Indonesia is seeking to reduce its greenhouse gas emissions by 26 per cent by 2020 and up to 41 percent with international assistance. This paper spells out a longer-term strategic framework, grounded in economic principle and international experience, that can guide climate policymaking. It provides a framework for Indonesia’s climate policy design, and it spells out a number of concrete strategies for domestic fiscal and economic policies for climate change mitigation, and sets out international financing strategy considerations advantageous to Indonesia.