Specific policies include reforms of subsidies for electricity industries to reduce greenhouse gas emissions, reforms of fuels subsidies making them more targeted, new policy instruments for the promotion of renewable energy such as geothermal and other clean energies, as well as incentives for industries which promote environmental friendly products. Indonesia has voluntarily committed to reducing greenhouse gas emissions or carbon intensity per unit of GDP by 2020. Indonesia is committed to reducing its greenhouse gas emissions by 26%, and up to 41% with international support, by 2020. In addition, the Government of Indonesia has introduced the Indonesia Climate Change Sectoral Roadmap with the objective to mainstream climate change in the Indonesian national mid-term development plan.
Indonesia launched a $6.3 billion (Rp 73.3 trillion) fiscal stimulus in February 2009 adding up to 1.4 per cent of 2008 GDP. Around 7% of the total stimulus consisted of funds to boost energy-saving investments. Another 17% was invested in building roads in villages and municipalities, and developing irrigation schemes to encourage employment.
Indonesia signed the Manila Declaration on Green Industry - in the framework of an international conference held in the Philippines in September 2009 - along more than 20 signatories from Asian countries. In this declaration, government representatives express their determination to establish policies and regulatory and institutional frameworks that are favourable to a shift towards resourceefficient and low-carbon industries. The Declaration also encourages an intensified transfer of cleaner production technologies and promotes an increased use of renewable energy, among others.