Gender and Fossil Fuel Subsidy Reform

This report by the International Institute for Sustainable Development (IISD) audits data on energy subsidies, energy use, and gender in Indonesia, specifically focusing on the reform of liquefied petroleum gas (LPG) consumer subsidies. It examines how the current subsidy regime fails to reach the poor and near-poor, particularly women, and analyzes the potential gender-differentiated impacts of removing these subsidies, such as increased health risks from indoor air pollution and economic vulnerability.

• The current LPG subsidy regime is regressive, with the majority of benefits captured by wealthier households. Only 12 per cent of the benefits flow to the bottom income quintile and 30 per cent to the bottom two quintiles, while 70 per cent of spending benefits the non-poor.
• LPG distribution is unreliable and characterized by unofficial pricing. Most consumers purchase 3-kg cylinders from small retailers at unofficial prices that can be up to 200 per cent higher than the official agent price.
• Women in Indonesia are more economically vulnerable than men, characterized by lower employment rates, fewer working hours, and lower incomes, which average around 60 per cent of men's earnings.
• Women are primarily responsible for household cooking and management, making them more susceptible to the impacts of LPG price increases. In Jakarta, a 2004 survey showed women spend an average of 3 hours per day cooking, while men's time spent is negligible.
• Switching from modern fuels like LPG to traditional biomass due to price increases poses significant health risks for women and children. Indoor air pollution is estimated to cause 45,000 premature deaths in Indonesia annually, and those using firewood have significantly lower lung capacity.
• Men maintain dominant decision-making power over major household expenditures, including the purchase of cooking appliances. Some studies indicate men may not prioritize cleaner cookstoves because they do not experience the effects of indoor air pollution.
• LPG demand is elastic, particularly for rural households with low purchasing power, who are more likely to switch back to biomass if prices rise.
• Access to electricity can provide economic opportunities for women by enabling home-based paid work. One study found that 12 per cent of electrified households had a small business at home, with 60 per cent using electricity to support it.

APA

Kusumawardhani, N., Hilman, R., Laan, T., Warda, N., & Nurbani, R. (2017). Gender and Fossil Fuel Subsidy Reform. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-indonesia.pdf

Chicago

Kusumawardhani, Niken, Rafiazka Hilman, Tara Laan, Nila Warda, and Rachma Nurbani. Gender and Fossil Fuel Subsidy Reform. International Institute for Sustainable Development, 2017. https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-indonesia.pdf.

Wikipedia

{{cite report |last1=Kusumawardhani |first1=Niken |last2=Hilman |first2=Rafiazka |last3=Laan |first3=Tara |last4=Warda |first4=Nila |last5=Nurbani |first5=Rachma |title=Gender and Fossil Fuel Subsidy Reform |publisher=International Institute for Sustainable Development |date=November 2017 |url=https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-indonesia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kusumawardhani2017gender, author = {Kusumawardhani, Niken and Hilman, Rafiazka and Laan, Tara and Warda, Nila and Nurbani, Rachma}, title = {{Gender and Fossil Fuel Subsidy Reform}}, institution = {International Institute for Sustainable Development}, year = {2017}, month = nov, url = {https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-indonesia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }