Practical Implications of Fossil-Fuel Subsidy Reform for the Energy Supply Chain in Indonesia
Summary
The document assesses the impact of fossil-fuel subsidy reform in Indonesia, noting that in 2024, the country spent IDR 713.5 trillion on energy subsidies, with nearly 90% supporting fossil fuels. It argues for a gradual, transparent reallocation of spending toward clean energy and highlights that transitioning from subsidized LPG to electric induction cooking could save up to IDR 12 trillion annually while reducing import reliance and improving public health.
Key insights
- In 2024, Indonesia's energy subsidy expenditure totaled IDR 713.5 trillion, with fossil fuels receiving nearly 90% of those funds.
- Accelerating the transition from subsidized LPG to electric induction cooking could result in annual savings of up to IDR 12 trillion, decrease dependence on imported fuel, and enhance public health.
- The document advocates for a transparent and gradual shift in government spending from fossil fuels toward clean energy.
Cite the original document
- APA
- Braithwaite,, D. (2014). Practical Implications of Fossil-Fuel Subsidy Reform for the Energy Supply Chain in Indonesia. International Institute for Sustainable Development. https://www.iisd.org/publications/report/practical-implications-fossil-fuel-subsidy-reform-energy-supply-chain-indonesia
- Chicago
- Braithwaite,, David. Practical Implications of Fossil-Fuel Subsidy Reform for the Energy Supply Chain in Indonesia. International Institute for Sustainable Development, 2014. https://www.iisd.org/publications/report/practical-implications-fossil-fuel-subsidy-reform-energy-supply-chain-indonesia.
- Wikipedia
- {{cite report |last1=Braithwaite, |first1=David |title=Practical Implications of Fossil-Fuel Subsidy Reform for the Energy Supply Chain in Indonesia |publisher=International Institute for Sustainable Development |date=3 April 2014 |url=https://www.iisd.org/publications/report/practical-implications-fossil-fuel-subsidy-reform-energy-supply-chain-indonesia |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{braithwaite2014practical, author = {Braithwaite,, David}, title = {{Practical Implications of Fossil-Fuel Subsidy Reform for the Energy Supply Chain in Indonesia}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = apr, url = {https://www.iisd.org/publications/report/practical-implications-fossil-fuel-subsidy-reform-energy-supply-chain-indonesia}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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