Fuel Subsidies to Marine Fisheries in Indonesia

The document analyzes fuel subsidies for Indonesia's marine fisheries, noting they are the most consistent form of central government support. It highlights risks of overfishing and inefficient distribution, suggesting that lessons from broader fossil fuel subsidy reforms could improve targeting and sustainability.

• Between 2017 and 2020, central government support for marine fisheries averaged IDR 4,585 billion (USD 328 million) annually, with fuel subsidies and infrastructure spending together accounting for approximately 90% of all support.
• Fuel subsidies are the most consistent type of support, representing roughly 35% of all central-level expenditures from 2017 to 2020, with annual payments ranging from IDR 877 billion in 2017 to IDR 2,257 billion in 2019.
• Under Presidential Decree No. 15 of 2012, subsidized diesel and kerosene are restricted to fishing vessels under 30 Gross Tonnage, with a maximum monthly quota of 25 tonnes per vessel.
• Fuel subsidies may incentivize excessive fishing pressure and threaten marine resource sustainability because they are provided regardless of the target species and are implemented in a regime that does not strictly limit fishing levels.
• The distribution of fuel subsidies is inefficient, as the volume of fuel allocated is consistently higher than what is purchased, potentially excluding remote small-scale fishers and disproportionately benefiting larger commercial operations.
• There is little evidence that fuel subsidies improve the livelihoods of vessel crews; a study found that crew income remained below regency minimum wages in 9 out of 10 provinces 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 ministry budgets, state-owned enterprise capital injections, and regional transfer funds.

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} }