Policy Research
The Government of Indonesia is considering reform of its consumer subsidies for liquefied petroleum gas (LPG) due to its rising fiscal cost: IDR 25 trillion (USD 1.9 billion) in 2016: around half of its total energy subsidy expenditure. Subsidized 3-kg LPG cylinders are currently available to all citizens.
This research project aims to inform the study of vulnerability for poor and near-poor women in LPG subsidy reform by examining the status of existing data relevant to energy use and gender in Indonesia.
Among the countries reviewed in this volume, only Indonesia has not engaged in major reforms of its food subsidy program, at least until recently. Its flagship food subsidy program Rastra, formerly Raskin (Rice for the Poor), has made some improvements in delivery, but its overall performance continues to be limited. As such, some rethinking of the business model as well as the form of transfers provided is overdue.
