The Utilization of Economic Instruments to Encourage the Sustainable Use of Natural Resources and to Internalize Environmental Impacts Resulting from Globalization Processes

Project Proponents

Ministry of Environment, National Resource Management Agency, National Agency for Export Development, and University of Indonesia, Indonesia.

National Implementing Organization

Indonesia Ministry of Environment (IME)


As trade becomes increasingly globalize, government policy needs to make greater use of market-based incentives for resource management. Through the activities of this research project, the government of Indonesia seeks to more effectively manage its natural and environmental resources using economic instruments while enhancing its competitiveness in international markets through an improved environmental image. The project will involve cooperation between the IME, other government institutions, universities, NGOs, and major stakeholder groups in the private sector. It will result in the publication of a report -- a country case study outlining the opportunities, benefits, challenges and costs of wider use of economic instruments at the national level and an identification and discussion of implications for Indonesia's international trade relations. This report will become a resource tool for the CBTF to support country projects, policy dialogue activities and it will be disseminated as a reference source through the CBTF networking and information exchange mechanisms.