The regional effects of Indonesia's oil and gas policy: options for reform

This paper analyses the effects on the regions of Indonesia's fuel policy. It discusses how the sharing of oil and gas revenue and taxes between the centre and the regions affects the sub-national fiscal position, and examines the distribution of fuel subsidies across regions. The paper also ex...

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Bibliographic Details
Published inBulletin of Indonesian economic studies Vol. 48; no. 3; pp. 369 - 397
Main Authors Agustina, Cut Dian R.D., Fengler, Wolfgang, Schulze, Günther G.
Format Journal Article
LanguageEnglish
Published Canberra Taylor & Francis Group 01.12.2012
Taylor & Francis LLC
Subjects
Economic efficiency
Energy policy
Equality
Equity
Fuel
fuel subsidies
Indonesia
Oil policy
Petrol
Petroleum industry
regional distribution of inter-governmental fiscal transfers
regional transfers
Revenue
Revenue sharing
Studies
Subsidiary
Subsidies
Taxes
Indonesia
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Summary:This paper analyses the effects on the regions of Indonesia's fuel policy. It discusses how the sharing of oil and gas revenue and taxes between the centre and the regions affects the sub-national fiscal position, and examines the distribution of fuel subsidies across regions. The paper also examines the recent proposals to discontinue subsidising gasoline for private vehicles or to eliminate fuel subsidies altogether, and shows how the regions would be affected if these suggestions were adopted. We argue that the proposals would increase efficiency and equity and should therefore be implemented.
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ISSN:0007-4918
1472-7234
DOI:10.1080/00074918.2012.728644