Unprecedented industrial development during the last two decades, accompanied by a growing population, has increased the amount of environmental damage in Indonesia. A critical environmental problem is the rising level of air pollution in several large cities. This has stimulated the government to develop a national program designed to control the quantity of pollutantsin the air. However, the program's impact on economic performance and incomes has not yet been studied systematically. This paper analyses the expected impact of the clean air program on national economic performance and household incomes for various socio-economic groups.