PROJECT DESCRIPTION
Indonesia's Ministry of Finance (MoF) estimates a $250 billion funding need by 2030 to meet its NDC targets, but current fiscal policies and a low tax-to-GDP ratio (10–11%) create a large financing gap. In response, the MoF is pursuing domestic resource mobilisation through tax reform and improved enforcement. The project supports this by working with MoF to develop fiscal incentives for the energy transition, reform fossil fuel subsidies and tariffs, establish carbon pricing mechanisms (e.g., carbon tax and trading), and digitalise tax administration. The $20 billion JETP commitment is seen as insufficient, highlighting the need for broader domestic financing efforts.
ADDITIONAL INFORMATION
For more information, please visit https//portfolio.jetp-id.org/program/performing-energy-transition-through-fiscal-reform-in-indonesia-perform