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Home / Indonesia / Grassroots / Economy
Indonesia's skewed fuel subsidies
Rimawan Pradiptyo, 28-12-2012











Indonesia’s Coordinating Ministry for Economic Affairs (2008) reported that the top 40% of households by income consumed 70% of subsidized gasoline. The World Bank (2011) reported that the top 50% of households by income consumed 84% of subsidized gasoline, whereas the lowest 10% of households by income consumed less than 1% of subsidized gasoline. Further analysis using Indonesia’s National Socioeconomic Survey 2010 data shows that the top 5% of households consumed 82 liters of subsidized gasoline per month, whereas the bottom 5% consumed only 1.7 liters of subsidized gasoline per month (Pradiptyo and Sahadewo 2012)....



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