Integrated SDG Insights
Indonesia
UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.
How To Read This Report
‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.
SDG Moment — This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.
SDG Trends & Priorities — This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.
SDG Interlinkages — Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.
Finance & Stimulus — These policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.
1. SDG Moment
While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.
GDP Growth Pathways
People
Poverty: Percentage of the population under each threshold (PPP$ a day).
Data not available.
Planet
Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).
Indonesia's growth trajectory during the 2023-2025 cycle is in acceleration, projected to be 69% higher than the global average, aligning with pre-pandemic projections. Accordingly, Indonesia’s commitments to achieving the SDGs are focused on increasing people’s well-being.
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However, Indonesia's carbon emissions intensity is expected to slightly increase at an annual rate of 1.3% due to fossil fuel usage. Despite the positive impact of economic growth on extreme poverty reduction, there are still significant distributional challenges, especially when using more stringent poverty thresholds.
2. SDG Trends & Priorities
Trends
Understanding how
Indonesia
performs against the SDG targets provides a baseline landscape against which to build integrated SDG pathways. SDG progress tracking follows UN Stats standards and methodology, and is aligned with country profiles.
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Priorities
Indonesia
’s national priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents. This analysis uses a custom-built model for SDG classification. It considers 100k+ terms, including phrases and expressions.
3. SDG Interlinkages
Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.
3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all
While Indonesia’s youth remains the dominant demographic, the rapidly increasing elderly population (65+) - projected to nearly double from its 2015 level, must not be overlooked. This demographic shift necessitates heightened policy attention be paid to health and social protection alongside current youth-orientated policies.
The country's universal healthcare system, the National Health Insurance, provides coverage to approximately 224 million individuals (around 82% of the population) through the Healthy Indonesia Card.
By increasing government investments in digital health technology, there is potential to extend healthcare services to remote areas and, as indicated by synergies, enhance investments in energy, decent jobs, and improved education.
8.5: Achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
Decent work and economic growth are drivers of Indonesia's social and environmental progress. With projected economic growth of nearly 5% annually until 2028, it is crucial to ensure it is inclusive and raises standards across the whole population.
Jobs play a significant role in shaping our identity and relationships. However, Indonesia still faces a substantial gender gap in labour-force participation, with rates of 83.6% for males and 54.2% for females in 2022. Addressing this gap is essential to promote equal employment opportunities.
Equality, non-discrimination, respect for human dignity, and equal participation are fundamental factors forming the foundation of progress achieved through investments in decent work.
11.1: Ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums
Indonesia recognizes the challenges of rapid urbanization and the need for equitable urban development. While significant measures have been taken by the government, further policy focus and investment are required to bridge existing gaps.
In 2000, 34.4% of the urban population resided in slums and progress was made in addressing this until 2014. However, the situation has since worsened with nearly all progress reversing to 30.6% in 2018.
By improving housing conditions through interventions that focus on safety and accessibility, upgrading informal settlements and connecting housing investments to basic sanitation access, Indonesia will build synergies that improve well-being for the population as a whole – a driving ambition for the country.
To implement this effectively, national and subnational actions will be critical to reach those left behind.
16.6: Develop effective, accountable and transparent institutions at all levels
SDG 16 (peace, justice, and strong institutions) along with the rule of law and effective public institutions and services, significantly accelerate the SDGs in Indonesia, including progress towards a just energy transition.
Effective provision of basic services is driven by governance at both the national and local levels. The government of Indonesia's annual investments of USD 5 billion through the Village Fund, coupled with national procedures for local planning that prioritize the advancement of SDGs at the village level, have demonstrated impactful results.
15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.
By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).
To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.
Futures Scenarios
SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.
Poverty <$1.90 Per Day (Number of People)
Malnourished Children Under 5 (Number Of Children)
Malnourished Children Under 5 (Number Of Children)
4. Finance and Stimulus
Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.
Indonesia's government debt, expected at 39.1% of GDP in 2023, is significantly below the emerging market and middle-income economies (EMMIE) group of 68.8%. Notably, Indonesia has one of the world’s lowest revenue-to-GDP ratios of 14.4% (with about 8% of revenue coming from natural resources), which is close to 12 percentage points (pp) lower than the EMMIE average.
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Relative to revenues, Indonesia’s expected 2023 external debt servicing of 12.6% is slightly above the EMMIE average of 12.3%. Indonesia’s financial market access looks relatively good with an investment grade credit rating and a 10-year bond yield of 6.4%, which is almost 3 pp lower than the EMMIE average and 2.7 pp higher than a 10Y US Treasury bond. Indonesia is using an Integrated National Financing Framework to address key fiscal and financial constraints and build a more sustainable financial architecture at the national level. Priority actions include strengthening public spending efficiency, improving domestic resources mobilization, strengthening capacity of financial markets and financial institutions to unlock sustainable investments, scaling up private investment for sustainable development, and expanding the potential of philanthropy and faith-based financing. The country has issued a series of GSSS bonds (SDG bond, green sukuk and blue bond), mobilizing more than USD8 billion to finance projects that contribute to the SDGs.
SDG Stimulus
The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:
- Providing liquidity to support recovery in the near term
- Enhance debt relief for vulnerable countries.
- Expanding development financing by MDBs
- Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).
Given the projected fiscal and financial constraints faced by
Indonesia
possible funding options for the investments derived from the identified interlinkages are as follows:
- The roll out of the INFF, to align national financing mechanisms, including SDG budgeting
- Building resilience through climate smart infrastructure investments.
- Investments in human capital
- Nature for Debt Swaps
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Methodology & Data Sources
Click here to view the Methodological Note for the Integrated SDG Insights.
This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.
SDG Moment
Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.
Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).
Trends & Priorities
Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.
Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.
Interlinkages
Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.
Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)
Finance & Stimulus
Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.
Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).