Assessing Indonesia's Readiness to Integrate Water Accounting into Green Fiscal Policy
DOI:
https://doi.org/10.26418/apssai.v5i2.137Keywords:
Climate Budget Tagging, Environmental Budget Tagging, Environmental-Economic Accounting, Green Fiscal Governance, Water AccountingAbstract
Research aims: This study aims to map the readiness for integrating water accounting into Indonesia's green fiscal governance by developing a conceptual framework that links water accounting data, public fiscal systems, and the effectiveness of environmental expenditure as the foundation for designing an environmental budget tagging model.
Design/Methodology/Approach: The study employs a scoping review approach, synthesizing national and international policy documents related to water management, sustainability reporting, and fiscal governance.
Research findings: The study finds that Indonesia has achieved conceptual, regulatory, fiscal, and institutional readiness to adopt water accounting within its green fiscal governance system. The existing statistical infrastructure aligns with the principles of environmental-economic accounting, while the Climate Budget Tagging mechanism provides a fiscal foundation that can evolve into a comprehensive Environmental Budget Tagging system encompassing water-related expenditures.
Theoretical contribution/Originality: This study extends the literature by explicitly connecting water accounting with fiscal policy mechanisms, integrating perspectives from environmental–economic accounting, climate governance, sustainability reporting, and public sector accounting into a single conceptual framework applicable to policy design.
Practitioner/Policy implication: The findings provide a foundation for policymakers to integrate water-related data into fiscal decision-making, promoting transparent and evidence-based environmental budgeting. Embedding water accounting within fiscal systems can strengthen the efficiency, accountability, and sustainability of public spending, aligning it with national green development goals.
Research Limitation/Implication: The study is conceptual in nature and limited to publicly available documents; future research may conduct empirical assessments to validate fiscal-environmental linkages and measure the effectiveness of implementation.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Authors
This work is licensed under a Creative Commons Attribution 4.0 International License.
License
APPSAI Accounting Review is licensed under Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Copyright
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution 4.0 International License that allows others to share the work with an acknowledgment of initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and greater citation of published work (See The Effect of Open Access).
