Fuelling the Recovery

The document proposes that Indonesia implement a fuel tax increase of IDR 500 per litre for gasoline and diesel to generate USD 2.2 billion annually for pandemic recovery. It highlights India's transition from high fuel subsidies to high taxes as a viable model for boosting revenue and funding social programs. Additionally, it notes that while India's subsidies for renewable energy and electric vehicles more than doubled in FY 2022, the country still allocates four times more support to fossil fuels than to clean energy.

• A modest tax increase of IDR 500 (approximately USD 3.5 cents) per litre for diesel and gasoline, representing less than 8% of retail prices, would generate IDR 31 trillion (USD 2.2 billion) annually, equivalent to 2% of current government revenue, to support Covid-19 recovery.
• India provides a successful precedent for transitioning from high transport fuel subsidies to relatively high fuel taxes, which has provided significant revenue for social and economic recovery, including the country's response to COVID-19.
• In India, subsidies for electric vehicles and renewable energy more than doubled in FY 2022, though fossil fuel support remains four times higher than clean energy support, down from nine times higher in FY 2021.

APA

Viswanathan,, T. L. S. (2021). Fuelling the Recovery. International Institute for Sustainable Development. https://www.iisd.org/publications/fuelling-recovery-india-subsidies-help-indonesia

Chicago

Viswanathan,, Tara Laan,Anissa Suharsono,Balasubramanian. Fuelling the Recovery. International Institute for Sustainable Development, 2021. https://www.iisd.org/publications/fuelling-recovery-india-subsidies-help-indonesia.

Wikipedia

{{cite report |last1=Viswanathan, |first1=Tara Laan,Anissa Suharsono,Balasubramanian |title=Fuelling the Recovery |publisher=International Institute for Sustainable Development |date=19 April 2021 |url=https://www.iisd.org/publications/fuelling-recovery-india-subsidies-help-indonesia |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{viswanathan2021fuelling, author = {Viswanathan,, Tara Laan,Anissa Suharsono,Balasubramanian}, title = {{Fuelling the Recovery}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = apr, url = {https://www.iisd.org/publications/fuelling-recovery-india-subsidies-help-indonesia}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }