Bank Indonesia Policy Mix
The Role of Fiscal Policy in Green Economic Transformation
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State revenue policy is directed
to support the development of
renewable energy as well as
environmentally friendly business
areas
The Ministry of Finance provides tax
facilities in the form of tax holiday, tax
allowance, import duty exemption,
VAT reduction, government borne
income tax, and reduction of property
tax to support the development of
geothermal and other renewable
energy
State expenditure policy is directed to
support low-carbon and climate-resilient
government spending (spending better).
The Ministry of Finance implements the
Mechanism of Climate Budget Tagging at the
national and regional levels to determine the
contribution of the State Budget and Sub-
National Budget to tackle climate change.
Implementation of climate budget tagging in the
region in collaboration with the Ministry of
Home Affairs and Local Government.
Source: Ministry of Finance
Financing policy is directed to support
expansive fiscal policy through the
development of innovative financing
instruments
The Ministry of Finance issues Sovereign
Green Sukuk (Green Islamic Bond) both
global green sukuk and green sukuk retail
to finance climate mitigation and
adaptation projects.
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