Rapid Assessment on the readiness of Indonesia towards an Environmental Fiscal Reform for greening the economy

This report aims at assessing whether Indonesia is ready in different respects to introduce new environmental fiscal elements or to broaden and increase existing ones. To this end first the greenhouse gas (GHG) emission reduction as major commitment in the environmental policy is presented. General means of environmental policy instruments and more specifically of an Environmental Fiscal Reform (EFR) follow. Past experiences with EFR-elements in Indonesia are presented, supplemented by a very comprehensive presentation of international experiences. Eventually Indonesia’s readiness is assessed against several criteria. Then the concrete opportunities for the introduction and strengthening of EFR-elements are assessed. Finally, conclusions and recommendations are drawn.