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Energy Subsidies in Indonesia

The GSI program of work for Indonesia undertakes research and policy engagement on subsidies for fuel consumers and producers, as well as breaking down barriers to renewable energy and ensuring long-term, sustainable reform processes.

Research

Objectives
  • Reduce expenditure on fossil fuel subsidies that promote unsustainable environmental and social impacts
  • Reform subsidies to level the playing field for clean energy
  • Improve the fair social distribution of subsidy expenditure
  • Build a greater understanding of the negative health impacts of fossil fuels, and how these are exacerbated by fossil fuel subsidies
Collaborations

In carrying forward this work, the Global Subsidies Initiative has collaborated with a number of organizations, including Tim Nasional Percepatan Penanggulangan Kemiskinan, Universitas Gadjah Mada, European Climate Foundation, ENERGIA, and the Embassies of Denmark and Sweden.

Blog: Removing Fuel Subsidies: Clearing the Road to Sustainable Development

March 29, 2007 | Dr. Gerhard P. Metschies , Dr. Sascha Thielmann , Armin Wagner
Fuel prices, fuel taxation and subsidies for petrol and diesel fuel rank high on the world's political agenda, particularly after the spectacular increases in world market prices for crude oil (up to USD 75 a barrel in August 2006) and the subsequent slide in price to around USD 54 a barrel in January 2007.

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Commentary: Alternative energy: beware the hidden costs

September 29, 2006 | Gavin Chua Hearn Yuit , Jardine Wall
Asian governments are caught between an ever-increasing demand for cheap energy to fuel development and an unabating rise in global oil prices. A few South-east Asian governments are feeling the financial pain of costly fuel subsidies and are looking elsewhere for energy sources. The hunt for alternative energy sources has led Asian nations to explore biofuel technology, among others.

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