Harga Sebuah Kebijakan Bahan Bakar Fosil: Subsidi Pemerintah Indonesia di Sektor Hulu Minyak & Gas Bumi
Summary
The report examines subsidies in Indonesia's upstream oil and gas sector, identifying 17 potential subsidy activities categorized by WTO standards. It estimates total subsidies at US$ 1.799 billion for 2008, primarily driven by Domestic Market Obligation (DMO) oil subsidies. While some incentives successfully encouraged exploration and investment, the report notes a lack of evidence regarding their efficiency compared to alternative policy methods.
Key insights
- The study identified three categories of subsidies: those with estimated values, those requiring further research to confirm, and those where no subsidies exist. For 2008, the estimated total for confirmed subsidies was US$ 1.799 billion, consisting of US$ 1.554 billion for the Domestic Market Obligation (DMO) oil subsidy (from industry to Pertamina refineries), US$ 130 million in tax incentives for imports of goods and services, and US$ 115 million in investment via credit loans.
- The research highlights that subsidies exist in the downstream oil and gas industry, which are typically difficult to identify. Specifically, domestic gas users benefit from gas prices significantly below international market rates (DMO gas), and Pertamina refineries benefit from crude oil purchased through the oil DMO system at substantial price reductions.
- Tax incentives for importing goods and services and investment through credit loans positively contributed to the Indonesian government's goals of increasing exploration and encouraging investment in finding new oil and gas fields. However, the study did not determine the efficiency of these subsidies or whether the goals could have been achieved through alternative means.
Cite the original document
- APA
- Braithwaite, D., Soelaiman, S., Wiroyudo, G. K., Trimurdadi, H., Soeleman, S., Utomo, S. P., & Rakhmanto, P. A. (2010). Harga Sebuah Kebijakan Bahan Bakar Fosil: Subsidi Pemerintah Indonesia di Sektor Hulu Minyak & Gas Bumi. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/ffs_awc_indonesia_execbahasa.pdf
- Chicago
- Braithwaite, David, Soepraptono Soelaiman, Gatot K Wiroyudo, Herucokro Trimurdadi, Sugiharto Soeleman, Sutadi Pudjo Utomo, and Pri Agung Rakhmanto. Harga Sebuah Kebijakan Bahan Bakar Fosil: Subsidi Pemerintah Indonesia di Sektor Hulu Minyak & Gas Bumi. International Institute for Sustainable Development, 2010. https://www.iisd.org/system/files/publications/ffs_awc_indonesia_execbahasa.pdf.
- Wikipedia
- {{cite report |last1=Braithwaite |first1=David |last2=Soelaiman |first2=Soepraptono |last3=Wiroyudo |first3=Gatot K |last4=Trimurdadi |first4=Herucokro |last5=Soeleman |first5=Sugiharto |last6=Utomo |first6=Sutadi Pudjo |last7=Rakhmanto |first7=Pri Agung |title=Harga Sebuah Kebijakan Bahan Bakar Fosil: Subsidi Pemerintah Indonesia di Sektor Hulu Minyak & Gas Bumi |publisher=International Institute for Sustainable Development |date=October 2010 |url=https://www.iisd.org/system/files/publications/ffs_awc_indonesia_execbahasa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{braithwaite2010harga, author = {Braithwaite, David and Soelaiman, Soepraptono and Wiroyudo, Gatot K and Trimurdadi, Herucokro and Soeleman, Sugiharto and Utomo, Sutadi Pudjo and Rakhmanto, Pri Agung}, title = {{Harga Sebuah Kebijakan Bahan Bakar Fosil: Subsidi Pemerintah Indonesia di Sektor Hulu Minyak \& Gas Bumi}}, institution = {International Institute for Sustainable Development}, year = {2010}, month = oct, url = {https://www.iisd.org/system/files/publications/ffs_awc_indonesia_execbahasa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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