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Indonesia Energy Subsidy Briefing November 2015 - English (PDF - 87 KB)
Briefing Subsidi Energi Indonesia November 2015 - Bahasa (PDF - 87 KB)

As part of its work on energy policy and sustainable development in Indonesia, the Global Subsidies Initiative publishes a regular briefing on issues related to energy subsidies.

In this edition:

• In 2016, Indonesia’s state budget allocates IDR63.7 trillion (US$4.5 billion) to a combination of fuels, including diesel, LPG, kerosene, and liquefied gas for vehicles (LGV). The budget further allocates IDR38.4 trillion (USD$2.7 billion) to electricity subsidies.
   
• On 7 October, the government announced a range of fuel price decreases. This included a price reduction of Solar-brand diesel from IDR 6,900 per liter to IDR6,700 per liter as well as price reductions on a range of non-subsidized fuels such as Avtur (aviation fuel), Pertamax (RON 92 gasoline), Pertalite (RON 90 gasoline) and non-subsidized 12kg LPG.
   
• The 2016 allocation for electricity subsidies shows a significant decline compared to 2015, reflecting the government’s intention to implement electricity subsidy reform in 2016.
   
• The quota of subsidized diesel is set at 16 million kiloliters and budgeted at IDR16 trillion (US$1.12 billion). The quota for subsidized LPG is set at 6.6 million tonnes, equaling IDR31 trillion (US$2.17 billion). The allocation for LGV subsidies does not include a maximum quota, but a monetary ceiling at IDR6.4 billion (US$0.44 million). The volume of subsidized kerosene is capped at 688 thousand kiloliters, totaling IDR2.6 trillion (US$0.182 billion).