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OECD Green Growth Policy Review of Indonesia 2019

image of OECD Green Growth Policy Review of Indonesia 2019
Indonesia is the world’s fourth most populated country, and the largest archipelagic one. Vibrant economic growth has lifted millions of people out of poverty. Economic success, however, has come at a high environmental cost. Rapid land-use change and reliance on fossil energy make Indonesia one of the world’s largest greenhouse gas emitters. Deforestation and pollution are putting pressure on its megadiverse ecosystems. Environmental services such as water supply, sanitation and waste management need to be further expanded and improved. Advancing to a greener economy will require continued efforts to develop policies, strengthen institutions and secure sufficient resources. This is the first Green Growth Policy Review of Indonesia. It examines progress towards sustainable development and green growth, with a special emphasis on the nexus of land use, ecosystems and climate change.

English Indonesian

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Towards green growth

This chapter discusses Indonesia’s progress in greening its economy on the path to sustainable development. It examines the policy and institutional framework for sustainable growth, then reviews the use of tax policy to pursue environmental objectives and progress in removing subsidies that can encourage environmentally harmful activities. The chapter also analyses public and private investment in environment-related infrastructure, such as that for water and sanitation, waste, energy and transport, and reviews promotion of environmental technology and green innovation as a source of economic growth and jobs. The role of development co‑operation is also discussed.

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