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Public Environmental Expenditures In Indonesia


  • Jeffrey Vincent
  • Jean Aden
  • Giovanna Dore
  • Magda Adriani
  • Vivianti Rambe
  • Thomas Walton


The economic justification for public expenditure is especially strong in the case of environmental management. Yet expenditures on environmental management have received little attention in public expenditure reviews by the World Bank and other international development organisations. An initial analysis of environmental expenditures in the Indonesian government budget between FY1994/95 and FY1998/99 yields four basic findings. First, most spending in the nominal environmental sector, sector 10 (Environment and Spatial Planning), is on non-environmental activities, and much environmental expenditure occurs in other budget sectors. Second, environmental expenditures fell sharply in real terms during the economic crisis, to levels far below those in FY94/95. Third, they also fell sharply relative to the budget and to GDP. Finally, environmental expenditures declined more in Indonesia during the economic crisis than in Malaysia, Thailand and Korea, relative to both the budget and GDP.

Suggested Citation

  • Jeffrey Vincent & Jean Aden & Giovanna Dore & Magda Adriani & Vivianti Rambe & Thomas Walton, 2002. "Public Environmental Expenditures In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(1), pages 61-74.
  • Handle: RePEc:taf:bindes:v:38:y:2002:i:1:p:61-74
    DOI: 10.1080/000749102753620284

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    References listed on IDEAS

    1. Gandhi, Ved P & Gray, Dale & McMorran, Ronald, 1997. "A comprehensive approach to domestic resource mobilization for sustainable development," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34311, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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