Publication:
Indonesia’s Fuel Subsidies Reforms

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dc.contributor.authorIhsan, Ahya
dc.contributor.authorAbriningrum, Dwi Endah
dc.contributor.authorSuharnoko, Bambang Suharnoko
dc.contributor.authorRahmawati, Anissa
dc.contributor.authorGiannozzi, Sara
dc.date.accessioned2024-05-29T19:35:44Z
dc.date.available2024-05-29T19:35:44Z
dc.date.issued2024-05-29
dc.description.abstractThis paper provides an assessment of the fiscal and social impacts resulting from the fuel price adjustments undertaken in 2022. The note lays out policy options and their potential fiscal and social impacts to inform future reforms. The policy simulations examine two scenarios: (i) a one-time increase in fuel prices; and (ii) a gradual price increase to align with the market price‒accompanied, in each scenario, by social assistance to safeguard poor and vulnerable households. The analysis suggests that a one-time price adjustment would generate immediate and sizeable fiscal savings. However, it imposes a large shock on households and requires a higher fiscal cost to fully offset the impact on poverty. A gradual price increase would generate smaller fiscal savings and impose a smaller shock on households. Under each scenario, compensating the bottom 60 percent would fully alleviate the adverse effects on the poorest households and would cost about 20-34 percent of fiscal savings. In the medium to long term, supporting the poor and vulnerable through improved, more integrated, and dynamic social protection programs will be essential to sustain gains and minimize the risk of policy reversal.en
dc.identifierhttp://documents.worldbank.org/curated/en/099748505212431959/IDU1e31e5e531f16114baa1b62c1b3201c9c2e68
dc.identifier.doi10.1596/41617
dc.identifier.urihttps://hdl.handle.net/10986/41617
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesEquitable Growth, Finance and Institutions Insight - Macroeconomics, Trade and Investment
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFUEL PRICE
dc.subjectENERGY SUBSIDIES
dc.subjectFISCAL COSTS
dc.subjectSOCIAL IMPACTS
dc.subjectSDG 12
dc.titleIndonesia’s Fuel Subsidies Reformsen
dc.typeReport
dspace.entity.typePublication
okr.crossref.titleIndonesia’s Fuel Subsidies Reforms
okr.date.disclosure2024-05-29
okr.date.lastmodified2024-05-21T00:00:00Zen
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/099748505212431959/IDU1e31e5e531f16114baa1b62c1b3201c9c2e68
okr.guid099748505212431959
okr.identifier.docmidIDU-e31e5e53-f161-4baa-b62c-b3201c9c2e68
okr.identifier.doihttps://doi.org/10.1596/41617
okr.identifier.externaldocumentum34321920
okr.identifier.internaldocumentum34321920
okr.identifier.report190478
okr.import.id4297
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099748505212431959/pdf/IDU1e31e5e531f16114baa1b62c1b3201c9c2e68.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.topicEnergy::Energy Conservation & Efficiency
okr.topicEnergy::Fuels
okr.unitEFI-EAP-MTI-MacroFiscal-2 (EEAM2)
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