“Fiscal Policy Must Consider People’s Welfare”

“Fiscal Policy Must Consider People’s Welfare”


Suahasil Nazara, Deputy Minister of the Ministry of Finance of the Republic of Indonesia


The COVID-19 pandemic that has lasted for 1.5 years has had hit the global economy. The oil and gas sector is no exception. The decline in production and demand is a challenge for the global oil and gas industry today, Indonesia included.

Under these conditions, global pressure for clean energy also requires the oil and gas industry to adapt and innovate; due to Indonesia’s accession to the Paris Agreement.

In the Minister Roundtable of the 2021 IPA Convex which took place on Wednesday (1/9), Deputy Ministry of Finance Suahasil Nazara said that the 2030 oil and gas lifting target to maintain national energy security can go hand in hand with the carbon emission reduction target.

Although the Government is currently boosting state revenues and one of the sources is the tax revenue instrument in the form of a carbon tax, he ensures that the main purpose of the carbon tax and fiscal incentives is the welfare of the people.

“I believe that all Ministries and their staff have the same goal in making regulations, namely for the welfare and prosperity of the people. From this perspective, we set every policy, be it fiscal incentives or taxation, aiming at the prosperity and welfare of the people,” he said.

That is why, every fiscal policy, including those related to the oil and gas and energy industries, must go through careful thought and consideration. “The oil and gas industry is a particular one, we are very careful in setting policies for the oil and gas sector so that it does not become a problem for oil and gas investors but instead makes a good contribution to the country,” he said.

The former Head of the Fiscal Policy Agency said that Indonesia is currently giving a signal to the international communities that Indonesia is making changes for the better. “Indonesia wants to give a signal to the international communities and the world about Indonesia’s new perspective that natural resources bring prosperity to the people,” he explained.


Born in Jakarta on November 23, 1970, Suahasil Nazara earned his bachelor’s degree majoring in Economics from Universitas Indonesia in 1994, and his Master’s of Science from Cornell University USA in 1997. In 2003, he gained his Doctor of Philosophy (PhD.) degree from the University of Illinois at Urbana-Champaign, IL, USA.

Suahasil Nazara started his public service as a lecturer at the Faculty of Economics and Business, Universitas Indonesia, in 1999. In 2009, he got his full professorship in Economics. Within the Universitas Indonesia, he served in different positions such as the Director of Graduate Program in Economics (2004-2005), the Director of Demographic Institute (2005-2008), and Chair of Economics Department (2009-2013).

Outside the Universitas Indonesia, Suahasil once served as a member of the Fiscal Decentralization Expert Team for Minister of Finance (2009-2011). Moreover, he was also the Vice-Chairman of the Regional Autonomy Supervisory Committee since 2009. Other functions he served include the Policy Group Coordinator of Secretariat of Poverty Reduction Acceleration National Team, Vice President Office (2010-2015); and the member of Presidential National Economic Committee (2013-2014).

Commencing on February 6, 2015, he serves as the Acting Head of Fiscal Policy Agency; and on October 31, 2016, was inaugurated as the Chairman of the Fiscal Policy Agency, at the Ministry of Finance. On October 25, 2019, he was appointed as the Vice Minister of Finance by the President of the Republic of Indonesia Joko Widodo.