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Fossil Fuel Subsidy Reform

Submitted by saif on
Measures

Indonesia can save 3.6 Billion USD annually by phasing out consumer side fossil fuel subsidies

NEXSTEP analysis considers abolishing consumer side fossil fuel subsidies in this scenario, saving Government of Indonesia 3.6 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.
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