Indonesia

When: 2024–2026

Purpose: Support Indonesia’s long-term development planning and fiscal policy dialogue with OG-IDN, a country calibration of OG-Core used to assess fiscal trade-offs, sustainable recovery options, and policy choices affecting growth, investment, public finances, and distributional outcomes.

What happened: UN DESA held initial OG-Core workshops in Jakarta in August 2024 and a second training workshop in Bandung in March 2025. Participants worked through model calibration, policy simulations, and interpretation of results. Public materials identify policy questions around budget reallocations for education and health, pension reforms, fossil fuel and energy tax reforms, carbon tax options, social benefits, subsidy reform, the 3% deficit-to-GDP ceiling, and debt sustainability. The repository example compares a baseline with a corporate income tax rate cut to 20%, while the 2026 policy dialogue used OG-IDN to simulate alternative budget reallocations related to the Danantara initiative and the Free Nutritious Meals (MBG) programme.

Key insights: The Indonesia work demonstrates how OG-IDN can make fiscal trade-offs visible by tracing impacts on long-term economic growth, investment, and fiscal sustainability, with attention to intergenerational and distributional outcomes. The model outputs include GDP, investment, consumption, wages, interest rates, and tax revenue over time. Key graphs generated by the repository example compare the baseline and reform paths for GDP, consumption, capital, labor, interest rates, and wages.

Resources: Repository, model documentation, and training documentation.

Models: OG-Core

Stakeholders: UN DESA, Ministry of National Development Planning (Bappenas), Coordinating Ministry for Economic Affairs, Bank Indonesia, Department of Statistics, regional development agencies, UN Resident Coordinator’s Office, World Bank, UNIDO, Indonesian universities, and the Institute for Development of Economics and Finance (INDEF).