Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy

World Bank

Washington, DC

关键词: ACCESS TO ELECTRICITY;    ACID RAIN;    ADVERSE ENVIRONMENTAL EFFECTS;    AIR POLLUTION;    AIR QUALITY;   

RP-ID  :  70420

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Indonesia is an oil producing countryand is the only East Asian member of the Organization ofPetroleum Exporting Countries (OPEC). Over the years, thisendowment of oil resources has been steadily exploited withsubstantial rents flowing to the government from productionand exports of crude oil. The country is also one of theworld's largest exporters of another petroleumresource, liquefied natural gas. The introduction of a newoil and gas law in 2001 (the law) provides the policy andlegal basis for moving away from the present ineffective andfiscally inefficient fuel pricing and subsidy regime,towards the goal of an independent, reliable, transparent,competitive, efficient, and environmentally friendlypetroleum sector that encourages the growth of the nationalpotential and role and at the same time does not exclude theGovernment of Indonesia (GoI) fully meeting its socialresponsibility towards certain community groups.Implementation towards achieving the goals set out in theLaw has been slow and hesitant. The Indonesian treasury isstill saddled with a rather inefficient and ineffective fuelpricing and subsidies regime. This present report identifiesa way forward for Indonesia to meet the requirements of theLaw. That way forward will progressively eliminate the wasteinherent in the present system, signal correct marketbehaviors to consumers, achieve large fiscal savings andhelp the economy grow while the any negative impact on thepoor and vulnerable are cushioned. Chapter one tracks therecent history to the present situation in terms ofpetroleum fuels utilization, supply, pricing and subsidies,and identifies some of the key impacts of the prevailingpolicies. Chapter two identifies the target petroleum fuelmarket regime based on the goals established in the law,evaluates where the present policy falls short, and proposesmeasures that will help Indonesia achieve the outcomes thatare consistent with the law. Chapter three proposes astep-wise transition that will be required to transform thepresent regime and at the same time opening the oil productsmarket to the beneficial forces of competition andrestructuring Pertamina's downstream operations.