Gender and Fossil Fuel Subsidy Reform

This report examines the intersection of gender and LPG subsidy reform in Indonesia, finding that current subsidies are regressive and fail to reach many poor women. It highlights that women are more vulnerable to price increases due to their primary role in cooking and household management, and that switching back to biomass fuels poses significant health risks through indoor air pollution.

• 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, while 70 per cent of spending benefits the non-poor.
• LPG distribution is unreliable and patchy, particularly in Maluku and Papua where consumption is negligible. Most consumers purchase subsidized LPG from small retailers at unofficial prices that can be up to 200 per cent higher than the official agent price.
• Women are more vulnerable to LPG price increases than men because they are primarily responsible for cooking and household management. Potential impacts include eroded household budgets, reduced time for economic activity, and increased costs for small businesses.
• Switching from modern fuels like LPG back to traditional biomass due to price increases can lead to severe health issues. Indoor air pollution results in 45,000 premature deaths in Indonesia annually, with women and children more likely to report cough symptoms and have lower lung capacity.
• Indonesian women face systemic economic disadvantages compared to men, including lower employment rates, fewer working hours, and lower incomes, which average around 60 per cent of men's earnings.
• Men often dominate financial decision-making in households, particularly for major purchases like stoves. Over 20 per cent of men report that women have no say in expenditures, and some men do not value modern fuels because they do not cook.
• The report identifies significant data gaps that hinder the evaluation of subsidy reform, including a lack of data on the simultaneous use of multiple fuels, the impact of fuel switching on women's time usage, and the influence of prices on small businesses run by women.

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} }