A holistic approach to reducing the investment gap

A holistic approach to reducing the investment gap

Different economic and fiscal measures can be considered to reduce Indonesia’s burden of the additional investment.  Three key measures analysed in NEXSTEP include the removal of the fossil fuel subsidy, putting a price on carbon emissions and the issuance of green bonds. 

Different combinations of these key measures have been analysed. The figure below utilises the "Enhancing NDC with phasing out the coal and fossil fuel subsidy” scenario as an example, to show how the different combinations could contribute towards reducing the investment gap. 

* This recommendation is applicable across all ambitious scenarios.