Pengalaman Internasional dalam Reformasi Subsidi LPG: Pilihan bagi Indonesia
Summary
The report analyzes global LPG pricing mechanisms and subsidy reform strategies, highlighting the need for targeted assistance to protect vulnerable populations. It details specific case studies from El Salvador, India, Mexico, Peru, and Thailand, emphasizing that successful reform requires a combination of gradual price adjustments, effective targeting technologies, and comprehensive communication strategies to maintain public support.
Key insights
- LPG retail prices in Indonesia are relatively lower than those in other countries both regionally and internationally.
- Current LPG subsidies in Indonesia are regressive, as the availability of cheap 3kg cylinders allows high-income households with greater purchasing power to benefit more than intended.
- International LPG pricing generally falls into four categories: deregulated (minimizes distortions but transmits volatility), automatic adjustments (linked to world prices via intervals or triggers), stabilization mechanisms (using savings from high prices to buffer low prices), and ad hoc (unpredictable and often politicized).
- Effective subsidy reform should follow three main principles: depoliticizing pricing mechanisms to move toward market prices, using targeted policies to manage impacts on vulnerable groups, and building support through consultation and communication.
- Various countries have implemented different targeting mechanisms: El Salvador used mobile phone technology for real-time transaction data; India used bank transfers (DBTL) to reduce corruption and a voluntary 'Give it Up!' campaign for the wealthy; Peru created the FISE fund providing monthly vouchers via electricity bills; and Mexico relied on its existing comprehensive social safety net, Oportunidades.
- Thailand's attempt to target LPG subsidies to low-income households and small businesses failed, with only 400,000 of 8 million eligible buyers registering due to survey issues, fear of taxation, and a rigid registration process.
- Public support for reform is heavily influenced by awareness, political alignment, and the perceived effectiveness of the alternative system; in El Salvador, support rose from 30% in January 2011 to 68% a year later as the new system proved effective.
Cite the original document
- APA
- Toft, L., Beaton, C., & Lontoh, L. (2016). Pengalaman Internasional dalam Reformasi Subsidi LPG: Pilihan bagi Indonesia. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/international-experiences-with-LPG-subsidy-reform-executive-summary-in.pdf
- Chicago
- Toft, Lasse, Chris Beaton, and Lucky Lontoh. Pengalaman Internasional dalam Reformasi Subsidi LPG: Pilihan bagi Indonesia. International Institute for Sustainable Development, 2016. https://www.iisd.org/system/files/publications/international-experiences-with-LPG-subsidy-reform-executive-summary-in.pdf.
- Wikipedia
- {{cite report |last1=Toft |first1=Lasse |last2=Beaton |first2=Chris |last3=Lontoh |first3=Lucky |title=Pengalaman Internasional dalam Reformasi Subsidi LPG: Pilihan bagi Indonesia |publisher=International Institute for Sustainable Development |date=January 2016 |url=https://www.iisd.org/system/files/publications/international-experiences-with-LPG-subsidy-reform-executive-summary-in.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{toft2016pengalaman, author = {Toft, Lasse and Beaton, Chris and Lontoh, Lucky}, title = {{Pengalaman Internasional dalam Reformasi Subsidi LPG: Pilihan bagi Indonesia}}, institution = {International Institute for Sustainable Development}, year = {2016}, month = jan, url = {https://www.iisd.org/system/files/publications/international-experiences-with-LPG-subsidy-reform-executive-summary-in.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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