Jakarta, July 2024— CELIOS released a report on the fiscal needs for implementing restorative economic initiatives in Indonesia. The study highlights the need for substantial government investment to support environmental recovery and social justice.
The report, “The New Economic Paradigm: Fiscal Support for a Restorative Economy,” estimates that Indonesia will need IDR 892.15 trillion by 2045 to effectively implement restorative strategies. The report identifies two main challenges: investment gaps and policy limitations, noting that “Indonesia still lacks dedicated budgets for restorative economic initiatives, which often lag behind other sustainability efforts such as renewable energy and climate change mitigation.”
To close these gaps, the report recommends progressive fiscal measures such as carbon taxes, coal production taxes, windfall taxes, and taxes on the ultra-wealthy. “Innovative breakthroughs in taxation can provide financing options to support restorative initiatives without increasing debt or burdening the current fiscal structure,” explained Media Wahyudi Askar, CELIOS’ Director of Public Policy.
CELIOS released a report on the fiscal needs for implementing restorative economic initiatives in Indonesia. The study highlights the importance of substantial government investment to support environmental recovery and social equity.
The report, “The New Economic Paradigm: Fiscal Support for a Restorative Economy” , estimates that Indonesia will need IDR892.15 trillion by 2045 to effectively implement restorative strategies across sectors. It identifies two main challenges: investment gaps and limited policies, noting that “Indonesia still lacks dedicated budgets for restorative economic initiatives, which often lag behind other sustainability efforts such as renewable energy and climate mitigation.”
To address these gaps, the report recommends progressive fiscal measures, including carbon taxes, coal production taxes, windfall taxes, and taxes on ultra-wealthy individuals. “Innovative breakthroughs in taxation can become a financing option to support restorative initiatives without increasing debt or burdening the current fiscal structure,” explained Media Wahyudi Askar, CELIOS’ Director of Public Policy.