Indonesia's Fuel Subsidies: Action plan for reform

This report and accompanying analysis from the International Institute for Sustainable Development outline the fiscal burden of fuel subsidies in Indonesia, the government's reform efforts to reduce gasoline and kerosene subsidies, and the potential for transitioning to electric induction cooking to reduce LPG subsidy costs.

• In 2011, Indonesia spent IDR164.7 trillion (US$18.1 billion) on fuel product subsidies, with IDR76.5 trillion (US$8.4 billion) specifically allocated to gasoline. These subsidies are described as a fiscal liability and a regressive tool for poverty reduction.
• The Indonesian government has implemented several reform measures, including a kerosene-to-LPG conversion program and plans announced in early 2012 to restrict access to subsidized gasoline, develop gas-based alternative transport fuels, and increase the price of 'Premium' gasoline by IDR1,500 per litre.
• By 2024, Indonesia's energy subsidy spending reached IDR 713.5 trillion, with nearly 90% supporting fossil fuels. Research suggests that transitioning from subsidized LPG to electric induction cooking—identified as the most practical option compared to dimethyl ether (DME) and city gas—could save the country up to IDR 12 trillion annually.

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} }