Indonesia Energy News March 2017
March 30, 2017
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:
- Indonesia’s State Budget 2017 allocates lower overall subsidies for fuel and electricity.
- One of the direct outcomes of the State Budget 2017 talks was the improvement of electricity subsidy targeting by matching the electricity subsidy recipients with Indonesia’s Unified Database (UDB) on poor households.
- The reduction of fuel subsidies in 2017 is influenced by a government decision to cut diesel subsidies, resulting in lowering the subsidy value from IDR 60,76 billion in 2015 to IDR 43,69 billion in 2016.
- State Budget 2017 also agreed to a significant reduction in the government’s LPG subsidies, from IDR 31.98 trillion to IDR 11.98 trillion in the ratified State Budget version.
- In January 2017, a Global Subsidies Initiative delegation was hosted by the Coordinating Ministry of Economic Affairs to introduce a preliminary report on Indonesia’s coal and renewable energy supports and subsidies. This included the development of a comprehensive inventory of these supports and subsidies for the first time in Indonesia.