Reformasi Subsidi LPG di Indonesia: Pembelajaran dari pengalaman internasional

The document argues that Indonesia's current LPG subsidy system is regressive, benefiting wealthy households more than the poor, and places a significant burden on the state budget. It proposes a shift to targeted subsidies using biometric verification and direct benefit transfers. The report analyzes how India and Mexico used economic crises as opportunities to reform fuel pricing and strengthen social safety nets. It also warns that shifting from LPG to electric induction stoves could increase greenhouse gas emissions due to Indonesia's coal-heavy energy mix.

• Indonesia's LPG subsidies are regressive and inefficient, with a significant portion of the benefits captured by wealthier households rather than the intended poor and vulnerable groups.
• The Indonesian government has explored targeted subsidy schemes, including a proposal by TNP2K to use facial biometric verification via the LinkAja app to limit access to the bottom 40% of socio-economic households.
• Transitioning to a targeted LPG subsidy system could significantly reduce government spending, with potential savings ranging from 40% to 70% depending on the inclusion of micro-businesses and farmers.
• Shifting from LPG to electric induction stoves in Indonesia may increase greenhouse gas emissions because the national electricity grid is heavily dependent on coal.
• The high upfront cost of switching to electric stoves—approximately Rp4.8 million for equipment and power upgrades—acts as a barrier for lower-middle-class households.
• India utilized the COVID-19 crisis to increase fuel excise taxes, generating approximately INR 1.4 trillion in additional revenue between April and December 2020 to fund recovery packages.
• India implemented a social protection measure during the pandemic by providing three free LPG refills to eligible women under the Pradhan Mantri Ujjwala Yojana (PMUY) scheme.
• Mexico's 'Oportunidades Energéticas' program, which added an energy component to conditional cash transfers, successfully reduced the regressive nature of subsidies by ensuring 85% of funds reached the poorest 40% of households in its first year.

APA

Kuehl, J., Maulidia, M., Bajaj, K., & Boelts, S. (2021). Reformasi Subsidi LPG di Indonesia: Pembelajaran dari pengalaman internasional. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-07/lpg-subsidy-reform-indonesia-bahasa.pdf

Chicago

Kuehl, Jonas, Martha Maulidia, Kavya Bajaj, and Silke Boelts. Reformasi Subsidi LPG di Indonesia: Pembelajaran dari pengalaman internasional. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-07/lpg-subsidy-reform-indonesia-bahasa.pdf.

Wikipedia

{{cite report |last1=Kuehl |first1=Jonas |last2=Maulidia |first2=Martha |last3=Bajaj |first3=Kavya |last4=Boelts |first4=Silke |title=Reformasi Subsidi LPG di Indonesia: Pembelajaran dari pengalaman internasional |publisher=International Institute for Sustainable Development |date=May 2021 |url=https://www.iisd.org/system/files/2021-07/lpg-subsidy-reform-indonesia-bahasa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kuehl2021reformasi, author = {Kuehl, Jonas and Maulidia, Martha and Bajaj, Kavya and Boelts, Silke}, title = {{Reformasi Subsidi LPG di Indonesia: Pembelajaran dari pengalaman internasional}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = may, url = {https://www.iisd.org/system/files/2021-07/lpg-subsidy-reform-indonesia-bahasa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }