Beyond Fossil Fuels: Indonesia's fiscal transition

The report analyzes Indonesia's fiscal shift from fossil fuel dependence, noting a significant drop in upstream oil and gas revenues from 35% of total revenues in 2001 to 6% in 2016. It argues that current fuel and electricity subsidies are inefficient and that the government underutilizes the fiscal space available through energy consumption taxes compared to other BRIICS countries. The document advocates for investing subsidy savings and fossil fuel taxes into social development, economic diversification, and renewable energy.

• Indonesia has significantly reduced its fiscal reliance on upstream oil and gas revenues, which fell from 35 per cent of total revenues (7 per cent of GDP) in 2001 to 6 per cent (less than 1 per cent of GDP) in 2016, while maintaining stable GDP growth and budget deficits.
• The Indonesian government underutilizes potential revenue from energy consumption taxes; between 2014 and 2016, fuel consumption taxes generated only 0.57 per cent of GDP, while fuel and electricity subsidies averaged 1.7 per cent of GDP.
• Current fuel and electricity subsidies are described as an inefficient method for redistributing declining fossil fuel export rents, and the report suggests that savings from subsidy reforms should be redirected toward economic diversification and renewable energy.

APA

Braithwaite,, I. G. (2019). Beyond Fossil Fuels: Indonesia's fiscal transition. International Institute for Sustainable Development. https://www.iisd.org/publications/report/beyond-fossil-fuels-indonesias-fiscal-transition

Chicago

Braithwaite,, Ivetta Gerasimchuk,David. Beyond Fossil Fuels: Indonesia's fiscal transition. International Institute for Sustainable Development, 2019. https://www.iisd.org/publications/report/beyond-fossil-fuels-indonesias-fiscal-transition.

Wikipedia

{{cite report |last1=Braithwaite, |first1=Ivetta Gerasimchuk,David |title=Beyond Fossil Fuels: Indonesia's fiscal transition |publisher=International Institute for Sustainable Development |date=21 January 2019 |url=https://www.iisd.org/publications/report/beyond-fossil-fuels-indonesias-fiscal-transition |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{braithwaite2019beyond, author = {Braithwaite,, Ivetta Gerasimchuk,David}, title = {{Beyond Fossil Fuels: Indonesia's fiscal transition}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = jan, url = {https://www.iisd.org/publications/report/beyond-fossil-fuels-indonesias-fiscal-transition}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }