International Experiences With LPG Subsidy Reform

The report examines the regressive nature of LPG subsidies and explores strategies for reform that protect energy access for the poor. It specifically analyzes Indonesia's situation, noting that the government spent IDR 713.5 trillion on energy subsidies in 2024, with nearly 90% supporting fossil fuels. The document identifies electric induction cooking as the most practical alternative to subsidized LPG for Indonesia to reduce costs and improve public health.

• LPG subsidies are generally regressive because low-cost cylinders are available to all, allowing higher-income households with more buying power to capture a larger share of the benefits.
• In 2024, Indonesia's energy subsidy expenditure totaled IDR 713.5 trillion, and nearly 90% of this funding was used to support fossil fuels.
• Among the alternatives of city gas, dimethyl ether (DME), and induction stoves, induction stoves are the most viable and practical option for Indonesia to transition to non-fossil cooking, potentially saving up to IDR 12 trillion annually.

APA

Christensen,, L. T. C. B. L. T. (2016). International Experiences With LPG Subsidy Reform. International Institute for Sustainable Development. https://www.iisd.org/publications/report/international-experiences-lpg-subsidy-reform

Chicago

Christensen,, Lasse Toft Christensen,Christopher Beaton,Lucky Lontoh,Lasse Toft. International Experiences With LPG Subsidy Reform. International Institute for Sustainable Development, 2016. https://www.iisd.org/publications/report/international-experiences-lpg-subsidy-reform.

Wikipedia

{{cite report |last1=Christensen, |first1=Lasse Toft Christensen,Christopher Beaton,Lucky Lontoh,Lasse Toft |title=International Experiences With LPG Subsidy Reform |publisher=International Institute for Sustainable Development |date=9 February 2016 |url=https://www.iisd.org/publications/report/international-experiences-lpg-subsidy-reform |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{christensen2016international, author = {Christensen,, Lasse Toft Christensen,Christopher Beaton,Lucky Lontoh,Lasse Toft}, title = {{International Experiences With LPG Subsidy Reform}}, institution = {International Institute for Sustainable Development}, year = {2016}, month = feb, url = {https://www.iisd.org/publications/report/international-experiences-lpg-subsidy-reform}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }