The Future of Social Welfare Programs in Indonesia: From Fossil-Fuel Subsidies to Better Social Protection

The document argues that Indonesia's fossil-fuel subsidies are inefficient and regressive, suggesting that a transparent reallocation of spending toward clean energy and better social protection is necessary.

• Indonesia's use of fossil-fuel subsidies to control inflation and alleviate poverty has become increasingly expensive and is considered regressive because wealthier individuals receive a larger share of the benefits than the poor.
• In 2024, Indonesia spent IDR 713.5 trillion on energy subsidies, with nearly 90% of those funds supporting fossil fuels.
• Accelerating the transition from subsidized LPG to electric induction cooking could allow Indonesia to save up to IDR 12 trillion annually, reduce reliance on imported fuel, and improve public health.

APA

Perdana,, A. (2014). The Future of Social Welfare Programs in Indonesia: From Fossil-Fuel Subsidies to Better Social Protection. International Institute for Sustainable Development. https://www.iisd.org/publications/report/future-social-welfare-programs-indonesia-fossil-fuel-subsidies-better-social

Chicago

Perdana,, Ari. The Future of Social Welfare Programs in Indonesia: From Fossil-Fuel Subsidies to Better Social Protection. International Institute for Sustainable Development, 2014. https://www.iisd.org/publications/report/future-social-welfare-programs-indonesia-fossil-fuel-subsidies-better-social.

Wikipedia

{{cite report |last1=Perdana, |first1=Ari |title=The Future of Social Welfare Programs in Indonesia: From Fossil-Fuel Subsidies to Better Social Protection |publisher=International Institute for Sustainable Development |date=3 April 2014 |url=https://www.iisd.org/publications/report/future-social-welfare-programs-indonesia-fossil-fuel-subsidies-better-social |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{perdana2014future, author = {Perdana,, Ari}, title = {{The Future of Social Welfare Programs in Indonesia: From Fossil-Fuel Subsidies to Better Social Protection}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = apr, url = {https://www.iisd.org/publications/report/future-social-welfare-programs-indonesia-fossil-fuel-subsidies-better-social}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }