This paper considers the concept of a “data loop” —a relationship between the government and the private sector that focuses on strengthening collaborative efforts to enhance climate ambition through data sharing—in the Indonesian context. In the data loop, the private sector shares climate and GHG emissions data with the government, and the government facilitates mandatory reporting systems to properly collect this data and incentivize voluntary reporting, further encouraging more robust data sharing. A data loop could generate the impetus for the private sector to provide the data required, and the government could, in turn, provide greater clarity through more robust assessments of efforts and projections, which would be supported by strengthened domestic and international measurement, tracking, reporting, regulation, and verification systems.
The concept of the data loop builds upon previous research suggesting that a similar relationship could lead to enhanced climate action: an ambition loop. An ambition loop is a virtuous feedback loop in which bold policy action is supported by bold company leadership, resulting in the acceleration of further business action, faster progress to meet national targets, and the seizure of larger market opportunities. The government pushes companies by establishing bold targets and strong policies, and companies push the government by showing commercial demand and economic possibilities (Metzger et al. 2018).
Based on the experience and practices highlighted in this paper, the Indonesian government has the opportunity to engage its private sector more effectively to enhance its data by developing a participatory and integrated reporting system.
The Indonesian government can explore opportunities to facilitate mandatory reporting requirements and support voluntary and private data collection and reporting efforts.
A more robust, participatory, and integrated climate data management system can underpin enhanced climate action, including sustainable development planning, such as Indonesia’s LCDI.