Adianto P. Simamora, The Jakarta Post, Jakarta

Green groups proposed Tuesday the government push the country's transportation, energy and forestry sectors to promote a low-carbon economy.

The three sectors are known as the major contributors of greenhouse gas emissions.

"Indonesia can shift its development concept to the low-carbon model to boost the country's economic growth by emitting less carbon," Fitrian Ardiansyah, the WWF-Indonesia director for climate and energy, told a discussion on developing visions for low carbon economy in Indonesia.

The event was jointly organized by the Institute for Essential Services Reform (IESR) and WWF Indonesia.

Fitrian said Indonesia should not emulate policies of rich nations, which in the past relied much on fossil fuels to spur economic growth.

Experts have blamed excessive combustion-use of fossil fuels for global warming, which has adversely effected developing countries, including Indonesia.

A low-carbon economy is an economy where growth of carbon dioxide (CO2) emissions from the use of carbon-based fuels are halted and then significantly reduced.

IESR Director Fabby Tumiwa said the low-carbon economy could be promoted through the use of energy efficiency measures and substitution to renewable energy sources.

"There are strong reasons why Indonesia must shift to a low carbon economy because otherwise there will be over exploitation of conventional energy resources in a short period," he said.

Indonesia has experienced peak oil consumption since the 1970s, with the peak of coal use expected to come in the next two decades, he said.

"If we don't shift soon to alternative or renewable energies, economic development will become more costly," he said.

A government study shows the country will become a net importer of energy in 2030.

Assistant Deputy for Transportation at the Coordinating Minister for Economics Office, Mesra Eza, said the country needed to move toward low carbon pathways, particularly within the transportation sector.

The country's transport sector absorbs about 48 percent of national fuel consumption, which is likely to increase if the number of motor vehicles in the country continues to rise.

"The ownership of motorized transport reached 24 percent of the population between 2004 to 2005, while efforts to promote non-motorized transport remain insignificant," Mesra said.

Motor vehicle numbers reached 38 million in 2005, with half in Java, Mesra's office data said.

He said the consumption of diesel for motor vehicles reached 25 million kilo liters with 15 million kilo liters of gasoline in 2005.

"The existing policy still focuses more on the flow of motorized transport rather than the commuters."

To meet the low-carbon policy, it was urgent to integrate land-use planning with transport planning, Mesra said.

"We need to promote non-motorized transport and public transport as well as the use of cleaner fuel."

With regard to the forestry sector, Fitrian said the reducing of emissions from deforestation in developing countries (REDD) was a step forward.

"With the REDD incentives, we can implement the low-carbon economic concept in the forestry sector," he said.

He said the government should not award any more forest land to oil palm plantation companies because this would increase forest degradation.

The ministry of finance said it would conduct intensive studies on climate change issues to support global efforts.

Finance ministry official Purwoku said, "We plan to conduct four studies including fiscal, tax and incentive policies related to the climate change this year".