Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
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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