International Experiences With LPG Subsidy Reform

This report examines international best practices for reforming liquefied petroleum gas (LPG) subsidies, specifically focusing on the Government of Indonesia's efforts to transition from regressive fossil fuel subsidies to clean energy without compromising energy access for low-income households.

• LPG subsidies in Indonesia are currently regressive because the availability of low-cost 3-kg LPG cylinders allows 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, with fossil fuels accounting for nearly 90% of that spending.
• Among the alternatives of city gas, dimethyl ether (DME), and induction stoves, induction stoves are identified as the most viable and practical option for Indonesia's transition to non-fossil cooking, with the potential to save 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} }