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Citation Information

Type Journal Article - Bulletin of Indonesian Economic Studies
Title The regional effects of Indonesia's oil and gas policy: options for reform
Volume 48
Issue 3
Publication (Day/Month/Year) 2012
Page numbers 369-397
URL http://www.tandfonline.com/doi/abs/10.1080/00074918.2012.728644#.VCxe2BZfZzs
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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