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Pengalaman Internasional dalam Reformasi Subsidi LPG: Pilihan bagi Indonesia

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This executive summary examines international experiences and best practices for reforming Liquefied Petroleum Gas (LPG) subsidies to provide policy options for Indonesia. It argues that while current LPG subsidies in Indonesia are regressive, effective targeting can transform them into a tool for promoting clean cooking for low-income households. The document outlines various global pricing mechanisms and analyzes specific targeting strategies used in several countries to mitigate the impact of price increases on vulnerable populations.

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  • LPG retail prices in Indonesia are relatively lower than those in other countries both regionally and internationally.
  • Global LPG pricing mechanisms generally fall into four categories: deregulated (minimizing market distortions), automatic adjustments (linked to world prices), stabilization mechanisms (using savings from high domestic prices to buffer world price spikes), and ad hoc (unpredictable freezes or adjustments).
  • Successful LPG subsidy reform should follow three core principles: depoliticizing pricing mechanisms to move toward market prices, using targeted policies to manage impacts on vulnerable groups, and building public support through consultation and communication.
  • Various countries have implemented different targeting mechanisms: El Salvador used mobile phone technology for real-time transaction data; India introduced the Direct Benefits Transfer for LPG (DBTL) to reduce corruption by paying subsidies into bank accounts; Peru created the Fondo de Inclusión Social Energético (FISE) 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 registered beneficiaries out of 8 million eligible buyers. This failure is attributed to survey issues, business fears of increased taxation, and a registration system perceived as too rigid and cumbersome.
  • Communication is critical for reform success, serving both internal consultative functions and external communicative functions. In El Salvador, public support for policy change shifted from 70% opposition in January 2011 to 68% support one year later, driven by awareness, political support, and the perceived effectiveness of the new targeted system.

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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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