Wahyu Dwi Anggoro
Indonesia can build on progress it has made in addressing the challenges associated with climate changes with fiscal, financial and trade policies. Fiscal policies can help raise revenues and disincentivize fossil fuel use. Financial instruments like green bonds can mobilize finance for climate mitigation and adaptation. Trade policy reforms could make it easier to import products needed for climate change adaptation and mitigation.
Indonesia can advance its green transition by developing plans to complete fuel subsidy reforms and expand carbon pricing. It could simplify or phase out non-tariff trade measures applicable to green goods.
“Through a series of targeted actions, Indonesia can boost underlying drivers of productivity and efficiency, helping to reduce the short-term costs of emissions cuts and adaptation, while strengthening long-run growth prospects,” said World Bank Lead Economist for Indonesia and Timor-Leste Habib Rab. (WHY)
