Practical Implications of Fossil-Fuel Subsidy Reform for the Energy Supply Chain in Indonesia

This briefing note analyzes the short-term effects of fossil-fuel subsidy reform on Indonesia's energy supply chain, specifically referencing price hikes in June 2013 and the potential for shifting from subsidized LPG to electric induction cooking.

• In 2024, Indonesia's expenditure on energy subsidies totaled IDR 713.5 trillion, with fossil fuels accounting for nearly 90% of that amount.
• Accelerating the transition from subsidized LPG to electric induction cooking could result in annual savings of up to IDR 12 trillion for Indonesia, while simultaneously reducing dependence on imported fuel and improving public health.
• The document advocates for a transparent and gradual reallocation of government funds from fossil fuels toward clean energy.

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} }