81313481-Strengthening of analytical capacities and policy formulation for a green transformation in Indonesia

The services put out to tender are seeking to support the Indonesian government - primarily the Indonesian Ministry for National Development Planning (Bappenas) - to improve the institutional and regulatory framework for the transformation towards a Green Economy in Indonesia at the national and provincial level.

The three main outputs under which a range of activities are being implemented are

- Output 1: The analytical capacities of Bappenas and other relevant actors for evidence-based policy design of the transformation to a green economy are strengthened - Output 2: Policy formulation and coordination for the transformation to a green economy are better aligned, taking into account proposals to improve the economic situation of women - Output 3: The capacities for planning and monitoring the transformation to a green economy have been improved in selected provinces

Under these outputs, the tendered services seek to provide the deliverables as agreed with GIZ and according to four work packages under which several activities are defined. The work packages and main activities are as follows:

WP I: Analytic Instruments: - Activity I.1: Assessment for Analytic Instruments Enhancement - Activity I.2: Improvement of Data Availability and Data Governance - Activity I.3: Initial Support for Development of the Indonesian Business Classification (KBLI) for Green Business - Activity I.4: Enhancement of Analytic Instruments - Activity I.5: Derivation of Results from New Model WP II: Capacity Development: - Activity II.1: Capacity Development for Selected Instruments - Activity II.2: Knowledge Management for Analytic Instruments Capacity Development

WP III: Governance Support and Policy Formulation: - Activity III.1: Development of Green Economic Transformation Coordination Task Force - Activity III.2: Development of Policy Recommendation

For each of the activities, detailed sub-activities to be carried out by the contractor with expected deliverables and indicative timelines are defined in the TOR. The deliverables serve the outputs of the overall project. In order to ensure an effective delivery of these activities, the envisaged team composition reflects the need to have a mix of local and international experts that can cover the needs of the Indonesian partners.

In order to prepare the delivery of these complex services, significant inputs for implementation of this assignment (linked to the respective work packages) are available by GIZ. These deliverables of the baseline are the following: Report 1: Recommendations on Analytical Tools, Methodology, and Data Improvement for Green Economic Planning, covering: - Green Growth Diagnostics using Hausmann's growth diagnostic adapted to include "green" parameters and to identify the most binding constraints for economic growth - Green Transition: Proposes the development of CGE modelling that integrates green indicators, using green database (Green IO Table), and elaborates on the required data to ensure a green transition - Green Growth: Stresses the importance and relevance of green GDP as a tool to track Indonesia's green growth progress - Data Improvement: Suggests developing a Green IO Table as a pivotal resource for greening CGE models and creating a green GDP Report 2: Key Recommendations to be included in the national mid-term development plan RPJMN 2025-2029 Report 3: Recommendations on Provincial Green Economy Transformation, covering: - Province Criteria Selection: Explores province selection criteria based on global green economy indicators, local context relevance, and data availability. The Analytic Hierarchy Process (AHP) was applied, clustering criteria into four aspects, with weights assigned to rank the provinces - Province Characteristics: Provides an analysis of provincial characteristics based on actual data, offering a brief overview of both the potential and challenges of implementing green economy practices in each province White Paper on Green Growth Diagnostics, covering the summary result of the above-mentioned reports that will include all key insights into the topic of Green Growth Additionally, substantial access to the existing German development cooperation portfolio of GIZ in Indonesia will also be provided to the contractor, including areas such as energy transition, green jobs, circular economy, fiscal policy and more. Workshops associated with the contract are foreseen to be jointly organised by GIZ and the contractor. GIZ shall be responsible for the logistical support, while the contractor shall be responsible for the workshop concept. Definitions

Strategy and planning instruments are defined as documents laying out strategic policy objectives to be achieved within a set timeframe, encompassing holistic approaches such as Indonesia Vision 2045, the current National Medium-Term Development Plan for 2020-2024 and the upcoming Annual Government Work Plan (Rencana Kerja Pemerintah).

Analytical instruments are economic models, summaries of indicators and/or compilations of data. Examples include the Growth Diagnostics Framework, Indonesia"s Green Economy Index, computable general equilibrium (CGE) models, a social accounting matrix (SAM) or an input output (IO) table.

Tools and knowledge products present or summarize results of research that apply analytic instruments. In that sense, they are working documents that can be used to inform policymaking processes to produce strategy and planning instruments. Examples are (often government-internal) publications of Bappenas presenting the results of economic modelling or the latest calculation of Indonesia"s Green Economy Index, e.g. via Bappenas Policy Modelling Dashboard (BAPOMED).