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The document argues that Indonesia's electricity subsidies are inefficiently distributed, benefiting non-poor households and densely populated areas like Java while neglecting remote regions. It highlights that electricity subsidies have increased from Rp8.8 trillion in 2005 to Rp58 trillion in 2016, and that reform is necessary to reduce greenhouse gas emissions and ensure support reaches the poor. Despite multiple delays, reform plans for early 2017 aim to narrow the number of subsidy recipients in the 450VA and 900VA connection classes.

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  • Electricity subsidies in Indonesia grew significantly between 2005 and 2016, rising from Rp8.8 trillion (USD666 million) to Rp58 trillion (USD4.4 billion).
  • The current subsidy system is poorly targeted; while the poverty rate was 11.3% in 2013 and social assistance targets the bottom 40% of earners, 70% of the population actually receives electricity subsidies.
  • Subsidies are disproportionately allocated to densely populated areas, specifically Java, while remote areas with high electricity procurement costs have the lowest electrification ratios and receive smaller subsidies.
  • Reforming all fossil fuel subsidies in Indonesia is estimated to reduce the country's greenhouse gas emissions by 7 to 12 percent.
  • Electricity subsidy reform has been delayed twice—once in January 2016 by President Jokowi and again in mid-2016 by the DPR—with a subsequent plan targeted for early 2017 to reduce the number of recipients in the 450VA and 900VA classes.

Cite the original document

APA
International Institute for Sustainable Development (n.d.). MENCAPAI AKSES LISTRIK YANG UNIVERSAL? https://www.iisd.org/system/files/publications/ten-things-indonesia-infographic-bahasa.pdf
Chicago
International Institute for Sustainable Development. MENCAPAI AKSES LISTRIK YANG UNIVERSAL? n.d. https://www.iisd.org/system/files/publications/ten-things-indonesia-infographic-bahasa.pdf.
Wikipedia
{{cite report |author=International Institute for Sustainable Development |title=MENCAPAI AKSES LISTRIK YANG UNIVERSAL? |url=https://www.iisd.org/system/files/publications/ten-things-indonesia-infographic-bahasa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{internationalinstituteforsustainabledevelopmentndmencapai, author = {{International Institute for Sustainable Development}}, title = {{MENCAPAI AKSES LISTRIK YANG UNIVERSAL?}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/ten-things-indonesia-infographic-bahasa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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