This seminar will preview the authors’ forthcoming article in the Bulletin of Indonesian Economic Studies.

The survey examines Indonesian economic development in the COVID-19 era, focusing on government responses and macroeconomic trends. The survey highlights the role that the agricultural sector has played as a driver of economic recovery and its potential to move towards more sustainable practices. Up to now, COVID-19 can be considered under control. Despite the increasing risk of Omicron, cases declined until the end of December 2021. High prices for primary commodity exports—principally coal and palm oil—rescue the fiscal balance and trade balances. The new tax law is expected to lower the fiscal deficit further and achieve the target of 3 percent of GDP by 2023. The new tax law includes the new carbon tax to be implemented in April 2022, starting with cap and tax scheme for coal-fired power plants. More ambitious climate targets have been adopted, including a commitment to no deforestation by 2030, resulting in the need for more stringent governance of agricultural sector. Taking oil palm as a case study, we look at current challenges and the potential to reform the sector towards more sustainable agricultural practices.

This seminar will be recorded.

Image by Koes-nadi