Contract

Project

Indonesia: System Dynamics Expert For Low Carbon Development Indonesia Study

Expertise

Category

Advisory Support: Level G

Location

Duty Station

Jakarta, Indonesia

Contract Length

Start Date

15 June 2018

End Date

31 December 2018 

Part-time/Full-time

Deliverable-based

Contract Value

Daily Rate

Deliverable based 

Days Estimated

50 days

Total Fees

USD 30,000 - USD 38,750 (dependent on qualification)

Specifics of Recruitment

Based in Seoul, The Global Green Growth Institute (GGGI) is an intergovernmental organization founded to support and promote a model of economic growth known as "green growth", which targets key aspects of economic performance such a poverty reduction, job creation, social inclusion, and environmental sustainability. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. The organization partners with countries, multilateral institutions, government bodies, and private sector to help build economies that grow strongly and are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change.

Since 2013 Government of Indonesia and Global Green Growth Institute (GGGI) have developed a program of activity that is aligned and wholly supportive of achieving Indonesia’s existing vision for economic development planning.

The aim is to show, using real examples of Indonesia’s development and investment plans at national, provincial and district levels, how economic growth can be maintained while reducing poverty and social inequality, maximizing the value of ecosystem services, reducing GHG emissions, and making communities, economies, and the environment resilient to economic and climate shocks.

The joint Government of Indonesia and GGGI goal is:

“To promote green growth in Indonesia that recognizes the value of natural capital, improves resilience, builds local economies and is inclusive and equitable”.

The specific objectives are:

1. To ensure the green growth vision matches or exceeds existing development targets;
2. To track the green growth priorities of Indonesia by providing relevant targets and indicators;
3. To evaluate the implications of the country’s current development path against green growth targets and indicators and assessing projects and potential policy and investment interventions against this baseline;
4. To identify the key sectors and high green growth potential projects and investment interventions that will help deliver green growth development;
5. To harness private sector engagement and investment in support of delivering green growth opportunities in Indonesia;
6. To undertake economic modelling to analyze each project showing their financial returns and identifying any gaps in the incremental spend required to secure green projects.

Objectives/Purpose of the Assignment

As part of efforts to mainstream green growth into the Indonesian development planning framework, GGGI is collaborating with the New Climate Economy (NCE) Initiative and the World Resources Institute (WRI) to support BAPPENAS in designing a Low Carbon Development in Indonesia (LCDI) program. This is a program to implement a climate-resilient economy based on new food and land use patterns in Indonesia.

The LCDI program will undertake a systematic economy-wide assessment, provide independent and authoritative evidence on the relationship between actions that strengthen economic performance and those that reduce the risk of climate change. In addition to examining economic sectors such as in forestry, agriculture, peatland, energy, transport, and water, attention will be given to the overall performance of food and land-use systems. The program intends to identify opportunities where policy reforms, investment and business solutions could yield large multiple benefits for the economy, society and the environment. It aims to contribute to building a low carbon development in Indonesia through new climate economy at a national level and sustainable food and land use economy in selected sub-national jurisdictions of East Kalimantan, South Sumatra, and Papua/West Papua. At a national level, it will develop an investment model to inform Indonesia’s Mid-term National Development Planning (RPJMN) strategic environmental assessment (KLHS) and to achieve Indonesia’s global commitment to emissions reduction.

The investment model will be supported by background studies for several sectors, including forestry and agriculture, that document stakeholder’s knowledge in these sectors to inform the country’s development and investment options. Moreover, it will establish science-based targets and pathways at scale to include national and sub-national levels and agreed upon by multi-stakeholders in the public and private sectors; provide business solutions that raise ambition of the private sector; and present these in action roadmaps with innovations that can mobilize financing and investments. It will also identify key policies, investments and actions needed to establish a new food and land use economy, which enhances agricultural productivity and rural livelihoods, addresses food waste, improves diets while at the same time protecting forests and biodiversity and increasing Indonesia's resilience and adaptation to climate change. Combined these will aim at providing proof points for key sectors (such as in forestry and agriculture) in specified jurisdictions (such as in East Kalimantan) where opportunities and policy reforms are likely to yield the largest economic, social and environmental impacts and co-benefits.

 Objective

The overall objectives for this assignment will be:

1. Develop and manage all data and information, including geo-spatial data,  which will be presented in a web-based database
2. Design and layout of a brand new website for East Kalimantan FMU Website
3. Prepare local government staff to maintain the East Kalimantan FMU Website

Proposed Activities

Given the above context, the Global Green Growth Institute (GGGI) seeks to hire a Consultant – System Dynamics Model Expert.

1. To support the development of Indonesia Vision 2045 Model (IV2045 Model) that will inform the Strategic Environmental Assessment (KLHS) required for the forthcoming Mid-term National Development Planning (RPJMN 2020-2024).
2. To support the conceptualization and modelling of the economy and the carrying capacity of the environment in the IV2045 Model.
3. To derive insights from such support for the development of investment model, of cost and benefit analysis that accounts for social, economic and environmental investment outcomes, and for policy formulation for the RPJMN 2020-2024 purposes.

Scope of Work

The scope of work for the Consultant includes model development, simulation of scenarios, and interpretation of results to support the formulation of development planning policies.

1. Review the existing IV2045 Model and its baseline, and assess gaps regarding the relations between the economy and carrying capacity of the environment;
2. Propose and formulate more structure in the IV2045 Model to provide needed and currently missing feedback mechanism that better represent the baseline model, especially concerning the relations between the impact of deteriorating carrying capacity on the economy and their consequences; this formulation may involve spatial and non-spatial feedbacks;
3. Apply the enhanced model as the basis for developing the investment model for the transition to low carbon development which is organized separately, but connected, through the modelling tasks under the LCDI (Low Carbon Development for Indonesia) that supports the IV2045 Model;
4. Validate model structure and baseline behavior, following best practices in the System Dynamics field;
5. Integrate selected policy interventions (along with business solutions/interventions of the investment modelling informed by the sectoral background studies) into the IV2045 Model, and customize the integration to ensure that the existing IV2045 Model captures a full integration of sustainability and impacts on the economy, including on investment, and policy choices from public and private stakeholders;
6. Provide interpretation of model results, scenarios and implications of policy interventions;
7. Coordinate and work together with the other teams working on the IV2045 modelling;

Output/Reporting Requirements/Deliverables

Reporting to the Senior Officer - SEZ in GGGI, and in close consultation with WRI, NCE and Bappenas, the Consultant shall deliver the following outputs:

1. Deliverable 1:  Inception meeting and note to discuss and agree on the TORs of the assignment
2. Deliverable 2: A short note about the assessment of the existing model
3. Deliverable 3: An initial draft of the proposed model revision.
4. Deliverable 4: Validation tests and documentation of results
5. Deliverable 5: A revised version of the model.
6. Deliverable 6: Simulation of alternative scenarios and documentation of the results (e.g. PPT and Excel). First draft of the report
7. Deliverable 7: Final (concise) model report (including PPT material and excel files)

Time Table and Payment Schedule

Applicable Tax:

Value Added Tax clarification

Individual consultant without Indonesian tax ID: In accordance to Directorate General Taxation number SE-145/PJ/2010 VAT is applicable on foreign services rendered by international entities not registered in Indonesia are subject to 10% VAT.

Withholding tax on foreign services rendered / withholding tax Art. 26

Payments of royalties, interest and service fees by a resident taxpayer to a non-resident taxpayer are subject to 20% withholding tax Art 26. However, if the payment is made to a resident of a country with which Indonesia has signed a tax treaty, the withholding (WHT) may be reduced or exempted. Non resident tax payer should get the DGT1 form certified by their country of residence tax authority to be exempted from WHT. Please visit the following sites to download the DGT 1 form. (http://www.pajak.go.id/content/formulir/10198/form-dgt-1)

Withholding tax on local purchase of goods and services

Payments of certain types of income paid to resident taxpayers are subject to withholding Art. 23 at a rate of 15% (for dividend, interest, royalties) and 2% (rental of asset, other than land and building [which is subject to final tax Art. 4(2)] and services such as technical, management, consulting services, etc.).

Qualifications/Experience/Expertise

The Consultant should have the following qualifications:

• PhD in Environmental Management, Economics, Environmental Engineering or related fields
• At least ten years of experience in system dynamics modelling in Indonesia and other developing countries
• Proven track-record of and experience in working with private sector, donor agencies and Indonesian government officials.
• Familiarity with Indonesian government structure and systems at national and subnational level.
• Working knowledge in Bahasa Indonesia and proven ability to write clearly and well in English.