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Indonesia Energy Subsidy Briefing September 2016 - English (PDF - 87 KB)
Briefing Subsidi Energi Indonesia September 2016 - 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.

In this edition:

• Overall subsidy expenditure for the year ahead is anticipated to remain relatively stable, estimated at USD 6.99 billion (IDR 94,355 billion) in 2016 and USD 6.83 billion (IDR 90,872 billion) in 2017.
   
• The 2017 state budget proposal introduced a new energy subsidy post for new and renewable energy. According to the government, this subsidy is intended to support renewable power generation and bioethanol fuel.
   
• The government is still deliberating over when to implement reforms of subsidies to electricity and liquefied petroleum gas (LPG). These subsidy posts are expected to cost USD 3.65 billion (IDR 48,588 billion) and USD 2.40 billion (IDR 31,984 billion) respectively in 2017.
   
• PT PLN and Indonesian coal producers have not yet agreed on the price of coal. Currently, the coal price for mine mouth power plants is based on the cost of production and a 15–25 per cent profit margin. However, according to PT PLN, it could obtain a better price by negotiating the price of coal directly with the power plants, free of government interference.