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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.


  • 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

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.

FAQ: Indonesia

Indonesia’s Ministry of Energy and Mineral Resources estimates that around six million households are still without access to electricity, and large investments are needed to supply reliable power across the country. Coal is a central focus in this quest, and the Indonesian government expects it to continue to play a significant role in the decades to come. However, coal has harmful environmental and health impacts, while cleaner, renewable energy alternatives are becoming increasingly cost-competitive.

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News: Consultancy Opportunities in Indonesia with GSI

There are two new consultancy opportunities available with our team. More information is available below: Consultant on Indonesia’s Energy Policy and Investment (within IISD’s Energy Program, based in Indonesia) Consultant on Indonesia’s Health and Energy (within IISD’s Energy Program, based in Indonesia) Application deadline for both positions is 17 December 2017.

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Blog: Health Organizations, Help Indonesia Kick the Coal Habit

Indonesians’ lungs have been exposed to significant pollution in the past few years, from forest fire haze to increasing amounts of motor vehicle exhaust. A study looking at the greater Jakarta area attributed 3,700 premature deaths per year to air pollution from 2012 to 2015. The national and regional governments of Indonesia are trying to tackle some of these issues through, for example, banning land clearance by burning and improving public transit. But there’s one area, power generation, where current government policies are on course to make Indonesia’s air pollution worse.

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