Ten Things You Need to Know About Electricity Subsidies in Indonesia
Subsidies for electricity cost Indonesia billions of dollars a year, much of that benefitting wealthy households.
Here's what you need to know about Indonesia's subsidies for electricity, and plans for reform.
Additional downloads
You might also be interested in
What the war in Ukraine means for Asia's climate goals
The queues outside petrol pumps in Sri Lanka have lessened, but not the anxiety. Asanka Sampath, a 43-year-old factory clerk, is forever vigilant. He checks his phone for messages, walks past the pump, and browses social media to see if fuel has arrived. Delays could mean being left stranded for days. "I am really fed up with this," he said. His frustrations echo that of the 22-million inhabitants of the island nation, facing its worst ever economic crisis because of heavy debts, lost tourism revenue during the pandemic, and surging costs. The consequent political turmoil culminated with the formation of a new government, but recovery has been complicated by Russia's invasion of Ukraine, and the consequent upending of global energy markets.
Curbing fuel subsidies is only the first step out of energy crisis
Indonesia’s fuel subsidies have been a recurring problem for the country’s economy. For years, they have been weighing on the state budget, providing unjust support for fossil fuels and slowing the much-awaited clean energy transition. But skyrocketing global energy prices could require the country to allocate a colossal Rp 700 trillion (US$46.6 billion) for energy subsidies this year – more than four times the budgeted amount.
Switching Fossil Fuel Subsidies in Indonesia to Support a Green Recovery
This brief looks at how Indonesia can start actively promoting renewable energy by removing the existing hurdles to its deployment—such as unattractive renewable energy feed-in tariffs and land and infrastructures barriers—and switching public support from fossil fuels to renewables to meet the country’s clean energy targets.
Fuel Subsidies to Marine Fisheries in Indonesia
This brief presents an overview of fuel subsidies to marine fisheries in Indonesia, explains why such measures can be risky from a sustainability perspective, and highlights lessons from Indonesia's experience in reforming of fossil fuel subsidies more broadly.