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Indonesia Energy Subsidy Briefing September 2015 - English (PDF - 87 KB)
Briefing Subsidi Energi Indonesia June 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. 

The September 2015 edition includes:

• On August 14, 2015, Indonesia’s President Joko Widodo addressed the parliament to present the draft budget for 2016. The budget proposal for 2016 underlines the fiscal benefits gained from fuel sector reforms in early 2015.

• While the budgetary savings from diesel and gasoline subsidies are significant, subsidies to LPG continue to increase year-on-year. The 2016 draft budget also proposes to cut electricity subsidies by 41 per cent compared to 2015, estimating total expenditure for electricity subsidies at IDR 50 trillion in 2016.

• Despite clear signals from the government in early 2015 to pass through international prices to domestic pump prices, the government’s policy towards actually increasing fuel prices has been less consistent.

• In July, Minister of Energy and Mineral Resources, Sudirman Said, announced that the government was aiming to establish an oil fund as an instrument to manage fluctuations in international oil prices as well as to support PT Pertamina’s upstream activities.