Indonesia’s government has ambitious dual revenue and emission reduction goals: its 2015 revenue targets are 21% higher than 2014 targets, and it aims to reduce emissions 29% by 2030. These dual goals make it a growing priority to find ways to encourage productive land use that can generate domestic revenue, while also curbing emissions and deforestation.
In a series of two studies, CPI’s analysis indicates that Indonesia has opportunities to improve its fiscal policy frameworks to meet both goals simultaneously. The first study, “A Framework for Analysis” looks at land use revenues broadly, pointing to promising opportunities to address inefficiencies. The second study, “Early Insights on Taxation in the palm oil supply chain” looks at how to incentivize higher productivity models in the palm oil sector, more specifically.