SEMS in collaboration with PT Makara Mas (Holding Company of Universitas Indonesia) conducted an introductory system dynamics workshop on modeling sustainable development for Fiscal Policy Agency – Ministry of Finance, Government of Indonesia. The workshop was part of Low Carbon Support, provided by the United Kingdom (UK) for the Ministry of Finance, especially the Centre for Climate Change Financing and Multilateral Policy (PKPPIM) in the Fiscal Policy Agency. PKPPIM are tasked to recommend a low carbon fiscal policies especially starting from the national budget 2015. This is why they needed a more integrated modeling tool to be able to evaluate green fiscal policy impacts.

FPA has already a strong group of economic models that are based on IO Models, SAM, and CGE, however since the questions of green policy is multi-dimensions with multi-sectoral approach, they feel that they need to have a more adaptive model to answer these questions.

The workshop was conducted for 5 days in the 2nd week of February, ranging from the basics of systems thinking and system dynamics, group dynamics, simple model building and closed by discussion on future models development of a new “green fiscal policy” model.