Fuel Subsidies to Marine Fisheries in Indonesia

This policy brief examines fuel subsidies for marine fisheries in Indonesia, identifying them as the most consistent form of central government support. It highlights the risks these subsidies pose to marine sustainability and the socio-economic uncertainties regarding their benefit to small-scale fishers, while suggesting lessons from broader national fossil fuel subsidy reforms.

• Between 2017 and 2020, the Indonesian central government provided an average of IDR 4,585 billion (USD 328 million) in support to marine fisheries. Fuel subsidies and infrastructure spending together accounted for approximately 90% of all support during this period.
• Fuel subsidies represent roughly 35% of all central-level expenditures for marine fisheries from 2017 to 2020, with annual payments ranging from IDR 877 billion (USD 64.73 million) in 2017 to IDR 2,257 billion (USD 166.59 million) in 2019.
• Under Presidential Decree No. 15 of 2012, fuel subsidies (diesel and kerosene) are restricted to fishing vessels under 30 Gross Tonnage, with a maximum monthly quota of 25 tonnes per vessel. Distribution is managed by BPH Migas and carried out by Pertamina and AKR.
• Fuel subsidies may incentivize excessive fishing pressure and threaten marine resource sustainability, especially since Indonesia's management regime does not strictly limit fishing levels and many stocks are already fully exploited or overexploited.
• The effectiveness of fuel subsidies for fishers' livelihoods is uncertain; low realization rates suggest remote communities struggle to access support. Furthermore, benefits primarily accrue to boat owners, and crew income in 9 out of 10 provinces remained below regency minimum wages despite the subsidies.
• Indonesia's 2014 fossil fuel subsidy reforms resulted in fiscal savings of IDR 211 trillion (USD 15.6 billion), which were reallocated toward ministries' budgets (IDR 148 trillion), state-owned enterprise capital injections (IDR 61 trillion), and transfer funds to regions and villages (IDR 34 trillion).
• The government is transitioning the 3-kg LPG cylinder subsidy to a system of direct cash transfers to the poorest 40% of the population, utilizing the Social Welfare Integrated Database (DTKS) for verification.

APA

Suharsono, A., & Irschlinger, T. (2022). Fuel Subsidies to Marine Fisheries in Indonesia. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-indonesia.pdf

Chicago

Suharsono, Anissa, and Tristan Irschlinger. Fuel Subsidies to Marine Fisheries in Indonesia. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-indonesia.pdf.

Wikipedia

{{cite report |last1=Suharsono |first1=Anissa |last2=Irschlinger |first2=Tristan |title=Fuel Subsidies to Marine Fisheries in Indonesia |publisher=International Institute for Sustainable Development |date=July 2022 |url=https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-indonesia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{suharsono2022fuel, author = {Suharsono, Anissa and Irschlinger, Tristan}, title = {{Fuel Subsidies to Marine Fisheries in Indonesia}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jul, url = {https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-indonesia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }