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This policy brief examines Indonesia's transition from fixed fuel subsidies to market-based pricing. It highlights the fiscal success of gasoline and diesel reforms—which saved over USD 15 billion—while noting the ongoing challenges of LPG subsidies. The authors propose using smoothing, ratcheting, or cap-and-floor formulas to manage international price volatility and recommend that price adjustments be handled by an independent agency with high transparency and frequency.

This case study by the International Institute for Sustainable Development (IISD) assesses investment incentives for renewable energy in Indonesia, specifically focusing on geothermal power, hydropower, biomass power, and biofuels. It examines the institutional, regulatory, and financial frameworks intended to attract investment and identifies significant barriers, including inter-ministerial conflict, market distortions caused by fossil fuel subsidies, and a lack of technical capacity among bidders and financial institutions.

This 2012 report provides an action plan for reforming fuel subsidies in Indonesia, specifically targeting the subsidized gasoline 'Premium'. It highlights the fiscal burden of these subsidies (US$18.1 billion in 2011) and analyzes the government's plans to restrict consumption and introduce alternative fuels like CNG and LGV. The report identifies significant infrastructure gaps in refineries and filling stations, political risks associated with the 2014 elections, and a lack of effective public communication. It recommends transitioning from ad-hoc pricing to an automated, market-based pricing mechanism and improving social safety nets to mitigate the impact on vulnerable populations.

This 2010 report examines food security in Indonesia, arguing that the country's focus on food self-sufficiency (Swasembada Pangan) has neglected the critical issue of food access. While national food supplies were adequate during the 2007/08 global food crisis, poor infrastructure and low incomes led to severe food insecurity in remote regions, particularly in East Nusa Tenggara, West Nusa Tenggara, and the Special Region of Yogyakarta. The report recommends shifting policy toward improving food access, investing in transportation infrastructure, and promoting food diversification.

This report, produced by the Global Canopy Programme and WCS Indonesia Program, evaluates the policy coherence and trade-offs within Indonesia's development agenda regarding water, energy, and food (WEF) security. Using a WEF nexus framework, the study identifies how competing demands for land and water resources can undermine climate mitigation targets and ecosystem services. It highlights gaps in cross-sectoral and multi-scale coordination, particularly between national goals and local government priorities, and recommends improving geospatial data through the One Map Initiative and utilizing Strategic Environmental Assessments (SEA) to better manage resource trade-offs.

This briefing note, produced by WCS Indonesia and the Global Canopy Programme, evaluates the coherence of Indonesia's water, energy, and food (WEF) security targets. It argues that while Indonesia aims for rapid economic growth and self-sufficiency, its 'business-as-usual' model of exploiting natural resources has led to severe environmental degradation, which now threatens the very security targets the government seeks to achieve. The document advocates for a WEF nexus approach to manage trade-offs between sector goals and forest conservation.

This briefing note by the International Institute for Sustainable Development examines the impact of fossil-fuel subsidy reforms on small and medium-sized enterprises (SMEs) in Indonesia. It argues that while SMEs are generally less energy-intensive than large enterprises, they are more vulnerable to price shocks due to lower coping capacities and a heavy reliance on low-income consumers who are most affected by fuel-driven inflation.

This February 2021 briefing by the International Institute for Sustainable Development (IISD) examines Indonesia's energy policy landscape during the COVID-19 pandemic. It details the fluctuations in fuel and LPG subsidies, the government's strategic push for coal derivatives to reduce imports, and the challenges facing the renewable energy transition, including regulatory uncertainty and project delays.

This report evaluates the financial sustainability of Indonesia's electricity sector using the Financial Sustainability Electricity Sector (FSES) framework. It examines the state-owned utility PT Perusahaan Listrik Negara (PLN), the role of government subsidies, the expansion of generation capacity through Fast Track Programmes, and the challenges of transitioning to renewable energy while achieving universal electricity access.

This infographic from the International Institute for Sustainable Development (IISD) outlines ten key points regarding electricity subsidies in Indonesia, highlighting inefficiencies in targeting, the financial burden of subsidies, and the challenges of implementing reform.

This research paper by Nancy Peluso explores the complex relationship between the decentralization of resource management and violence in Indonesia. Using the forest and land sectors as primary examples, Peluso argues that decentralization often shifts the locus of power to local elites who may use violence to secure resource control, while the legacy of the repressive Suharto regime has normalized violent conflict and weakened the state's capacity to enforce law and order.