Fossil Fuel Subsidies in Indonesia: Trends, Impacts, and Reforms
Asian Development Bank | October 2015
Abstract
Subsidized energy is provided to all Indonesian citizens as a public service obligation. This study measures
the size of fossil fuel subsidies such as underpricing of petroleum products and electricity, tax exemptions,
and subsidized credit; examines the potential economic, energy, and environmental impacts of reducing
them; and discusses options for social safety nets to mitigate the impacts of the reforms. It shows that the
short-term adverse impacts of subsidy reform turn positive in the long term as households and industry
respond to changing market realities by adjusting energy demand, supply, and production capacity. Policy
options for sustainable energy use are provided to aid policy makers in their current subsidy reform process.
Citation
Asian Development Bank. 2015. Fossil Fuel Subsidies in Indonesia: Trends, Impacts, and Reforms. © Asian Development Bank. http://hdl.handle.net/11540/5244. License: CC BY 3.0 IGO.PDF ISBN
978-92-9257-152-8
Print ISBN
978-92-9257-151-1
Keywords
Commercial Energy
Alternative energy
Alternative energy development
Photovoltaic Energy
Geothermal Energy
Alternative energy program
Alternative energy technology
Energy Demand
Energy planning
Energy Resources
Energy Resources Development
Primary Energy Supply
Green technology
Energy conversion
Electric power consumption
Cost effectiveness
Fossil fuels
Show allCollapse
Citable URI
http://hdl.handle.net/11540/5244Metadata
Show full item recordUsers also downloaded
-
Accountability Mechanism: Listening to Communities Affected by ADB-Assisted Projects and Enhancing Development Effectiveness
Asian Development Bank (Asian Development Bank, 2009-03-15)In May 2003, ADB approved a new accountability mechanism to replace the previous Inspection Function. The mechanism was established to provide better access for people adversely affected by ADBassisted projects to voice and seek solutions to their problems and also report alleged violations of ADB’s operational policies and procedures. Establishment of the mechanism is also an effort to enhance ADB’s ...In May 2003, ADB approved a new accountability mechanism to replace the previous Inspection Function. The mechanism was established to provide better access for people adversely affected by ADBassisted projects to voice and seek solutions to their ... -
Managing Reforms for Development: Political Economy of Reforms and Policy-Based Lending Case Studies
Abonyi, George; Bernardo, Romeo; Bolt, Richard; Duncan, Ronald; Tang, Christine (Asian Development Bank, 2013-01-01)The book’s intended readers are development practitioners involved in the policy reform process. It aims to help them understand political economy factors that shape actual outcomes, and to simplify the complexities of policy reform. Successful reform has to resolve two separate and conflicting dimensions: people and time. Reforms, by their very nature, challenge the status quo, often threatening ...The book’s intended readers are development practitioners involved in the policy reform process. It aims to help them understand political economy factors that shape actual outcomes, and to simplify the complexities of policy reform. Successful reform ... -
Multilateralizing Asian Regionalism
Baldwin, Richard; Kawai, Masahiro (Asian Development Bank Institute, 2013-08-15)Motivated by the proliferation of free trade agreements (FTAs) in Asia over the last decade, this paper studies the challenges faced by the Asian “noodle bowl”—overlapping, multiple trade rules, regulations, and standards in Asia—in the process of regional and global trade integration. The paper first highlights the importance of trade and investment linkages among Asian economies that have formed ...Motivated by the proliferation of free trade agreements (FTAs) in Asia over the last decade, this paper studies the challenges faced by the Asian “noodle bowl”—overlapping, multiple trade rules, regulations, and standards in Asia—in the process of ...