Measures
Indonesia can save 7.12 Billion USD annually by phasing out consumer side fossil fuel subsidies
NEXSTEP analysis considers abolishing consumer side and electricity generation fossil fuel subsidies in this scenario, saving Government of Indonesia 7.12 Billion USD per year.
Indonesia consumer side fossil fuel subsidies is made up of three main items:
- 3-kg LPG subsidy: Transition to electric stoves for poor and vulnerable households.
- Kerosene subsidy: Transition to biomass based ICS.
- Diesel subsidy: Transition to electric buses and electric passenger taxis.
Indonesia electricity generation fossil fuel subsidies consist of:
- Coal price cap: Transition to coal price based on market price.
- Natural gas price cap: Transition to natural gas price based on market price.
- Indirect coal generation subsidy: Tax exemptions, loan guarantees, credit lines abolished.
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