Fuel Subsidies to Marine Fisheries in Indonesia
Fuel subsidies are the second-largest type of support provided by the Indonesian government to the marine fisheries sector, but also the most consistent, with very significant amounts committed every year.
Fuel subsidies provided to the fishing sector are risky from a sustainability perspective, as they can incentivize overfishing.
Possible reform of fuel subsidies to marine fisheries could be informed by some of the key lessons from Indonesia's experience in reforming fossil fuel subsidies more generally.
Indonesia is the second-largest marine fish producer in the world after China. Its fishing sector is essential for ensuring food security, supporting employment, and generating income, making it a key sustainable development priority for the country's authorities.
Government support can play an essential role in efforts to ensure that marine fisheries can continue to support these many benefits for the Indonesian population. However, some common types of fisheries subsidies, like fuel subsidies, can also pose significant risks to the sustainable exploitation of marine resources.
This brief provides an overview of fuel subsidies to marine fisheries in Indonesia by presenting key information and figures about this type of government support measure. It also explains why a detailed assessment of fuel subsidies is needed, emphasizing the need to better understand how they affect fishing communities and the marine resources they rely on for their livelihoods, as well as whether any possible reform could better serve the desired policy objectives. The brief concludes by offering key lessons from Indonesia’s experience in reforming fossil fuel subsidies more broadly.
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