Economic Impact & Community Benefits Assessment

Executive Summary

The Nusantara Code carbon pricing framework is projected to create significant community benefits through job creation, regional development, and just transition support programs. This assessment quantifies the economic and social impacts across Indonesian communities.

Employment Impact

Net Job Creation (2022-2030)

• Total New Jobs: 425,000 net jobs created
• Renewable Energy Sector: 280,000 jobs
• Energy Efficiency: 95,000 jobs
• Sustainable Transport: 50,000 jobs

Job Distribution by Region

• Java: 180,000 jobs (42%)
• Sumatra: 110,000 jobs (26%)
• Kalimantan: 75,000 jobs (18%)
• Sulawesi: 40,000 jobs (9%)
• Eastern Indonesia: 20,000 jobs (5%)

Skills Development Programs

• Retraining Budget: $500M over 8 years
• Workers Supported: 150,000 displaced workers
• Training Centers: 50 facilities nationwide
• Certification Programs: 200+ courses in green skills

Just Transition Support

Coal-Dependent Regions

• Regional Development Fund: $2B allocated
• Target Regions: South Sumatra, East Kalimantan, South Kalimantan
• Economic Diversification: Tourism, agriculture, renewable energy
• Infrastructure Investment: $800M for roads, ports, digital connectivity

Worker Support Programs

• Income Support: 18-month transition allowance
• Early Retirement: Enhanced packages for workers 55+
• Relocation Assistance: $5,000-15,000 per family
• Healthcare Coverage: Extended benefits during transition

Community Enterprise Development

• SME Grants: $50M for green businesses
• Microfinance: $100M low-interest loans
• Cooperative Support: 500 community cooperatives
• Women Entrepreneurs: 40% of funding reserved

Coastal Community Benefits

Blue Carbon Projects

• Mangrove Restoration: 100,000 hectares
• Community Employment: 25,000 jobs in restoration
• Carbon Revenue: $500M/year to coastal communities
• Fisheries Enhancement: 30% increase in fish stocks

Coastal Resilience Programs

• Infrastructure Protection: $300M for seawalls, drainage
• Early Warning Systems: 200 communities covered
• Livelihood Diversification: Ecotourism, aquaculture

Indigenous & Forest Communities

REDD+ Benefit Sharing

• Direct Payments: $200M/year to forest communities
• Communities Benefiting: 5,000 villages
• Forest Area Protected: 10 million hectares
• Payment Mechanism: Direct bank transfers, transparent tracking

Community Forestry Initiatives

• Land Rights Recognition: 2 million hectares titled
• Sustainable Harvesting: Non-timber forest products
• Ecotourism Development: 500 community-based tourism sites
• Traditional Knowledge: Documentation and IP protection

Free, Prior, Informed Consent (FPIC)

• Consultation Process: Mandatory for all projects
• Legal Framework: Aligned with ILO Convention 169
• Grievance Mechanism: Independent ombudsman
• Benefit Sharing: Minimum 20% of carbon revenues

Urban Community Benefits

Air Quality Improvements

• Health Benefits: 15,000 premature deaths avoided/year
• Healthcare Savings: $2B/year
• Productivity Gains: 5 million fewer sick days
• Quality of Life: Improved for 50M urban residents

Green Jobs in Cities

• Public Transport: 80,000 jobs in BRT, LRT, MRT
• Building Retrofits: 45,000 jobs in energy efficiency
• Urban Forestry: 15,000 jobs in parks, green spaces
• Waste Management: 30,000 jobs in recycling, composting

Revenue Allocation for Communities

Carbon Revenue Distribution

• Total Annual Revenue (2030): $3.5B
• Community Programs: 30% ($1.05B)
• Just Transition: 20% ($700M)
• Regional Development: 15% ($525M)
• Green Infrastructure: 20% ($700M)
• Administration: 5% ($175M)
• Reserve Fund: 10% ($350M)

Transparency & Accountability

• Public Dashboard: Real-time revenue and spending tracking
• Community Audits: Participatory budget monitoring
• Annual Reports: Detailed impact assessments
• Independent Evaluation: Third-party verification

Social Safeguards

Vulnerable Groups Protection

• Low-Income Households: Energy subsidy protection
• Women: 40% of program benefits targeted
• Youth: Skills training and employment priority
• Persons with Disabilities: Accessible programs and facilities

Grievance Redress Mechanism

• Hotline: 24/7 multilingual support
• Local Offices: 100 community service centers
• Online Portal: Digital complaint submission
• Response Time: 30-day resolution target

Monitoring & Evaluation

Impact Indicators

• Employment creation and quality
• Income levels and poverty reduction
• Access to services (energy, transport, healthcare)
• Environmental quality (air, water, forests)
• Community satisfaction and well-being

Reporting Framework

• Quarterly: Employment and revenue data
• Annual: Comprehensive impact assessment
• Biennial: Independent evaluation
• Public Access: All data open and accessible

Success Stories

Case Study: South Sumatra Coal Transition

Former coal mining region successfully transitioned to solar energy manufacturing, creating 5,000 new jobs and increasing average incomes by 25%.

Case Study: Coastal Mangrove Restoration

Community-led mangrove restoration in East Java generated $15M in carbon credits, benefiting 10,000 households while protecting coastlines.

Case Study: Urban Air Quality Jakarta

Carbon pricing-funded public transport expansion reduced PM2.5 levels by 20%, preventing 2,000 premature deaths annually.