Indonesia's Fuel Subsidies: Action plan for reform
Summary
The document outlines the fiscal burden of Indonesia's fuel subsidies, noting that IDR 164.7 trillion (US$ 18.1 billion) was spent in 2011. It argues that these subsidies are regressive and inefficient, and it proposes a transition toward clean energy, including a shift from subsidized LPG to electric induction cooking to reduce costs and improve health.
Key insights
- In 2011, Indonesia's total expenditure on fuel subsidies reached IDR 164.7 trillion (US$ 18.1 billion), with gasoline subsidies accounting for IDR 76.5 trillion (US$ 8.4 billion).
- Fuel subsidies in Indonesia are considered a fiscal liability vulnerable to international oil price fluctuations and are described as regressive and inefficient for poverty reduction.
- Accelerating the transition from subsidized LPG to electric induction cooking could result in annual savings of up to IDR 12 trillion, reduce imported fuel reliance, and improve public health.
Cite the original document
- APA
- Widhiantoro,, L. L. V.-D. W. B. C. D. R. L. I. L. S. V.-D. A. W. (2012). Indonesia's Fuel Subsidies: Action plan for reform. International Institute for Sustainable Development. https://www.iisd.org/publications/report/indonesias-fuel-subsidies-action-plan-reform
- Chicago
- Widhiantoro,, Lucky Lontoh,Damon Vis-Dunbar,Peter Wooders,David Braithwaite,Alexander Chandra,Prasetyaning Diah R. L.,Ami Indriyanto,Kerryn Lang,Nataliawati Siahaan,Damon Vis-Dunbar,Bobby A. Wattimena,Unggung. Indonesia's Fuel Subsidies: Action plan for reform. International Institute for Sustainable Development, 2012. https://www.iisd.org/publications/report/indonesias-fuel-subsidies-action-plan-reform.
- Wikipedia
- {{cite report |last1=Widhiantoro, |first1=Lucky Lontoh,Damon Vis-Dunbar,Peter Wooders,David Braithwaite,Alexander Chandra,Prasetyaning Diah R. L.,Ami Indriyanto,Kerryn Lang,Nataliawati Siahaan,Damon Vis-Dunbar,Bobby A. Wattimena,Unggung |title=Indonesia's Fuel Subsidies: Action plan for reform |publisher=International Institute for Sustainable Development |date=2 May 2012 |url=https://www.iisd.org/publications/report/indonesias-fuel-subsidies-action-plan-reform |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{widhiantoro2012indonesias, author = {Widhiantoro,, Lucky Lontoh,Damon Vis-Dunbar,Peter Wooders,David Braithwaite,Alexander Chandra,Prasetyaning Diah R. L.,Ami Indriyanto,Kerryn Lang,Nataliawati Siahaan,Damon Vis-Dunbar,Bobby A. Wattimena,Unggung}, title = {{Indonesia's Fuel Subsidies: Action plan for reform}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = may, url = {https://www.iisd.org/publications/report/indonesias-fuel-subsidies-action-plan-reform}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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