Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy
Indonesia is an oil producing country and is the only East Asian member of the Organization of Petroleum Exporting Countries (OPEC). Over the years, this endowment of oil resources has been steadily exploited with substantial rents flowing to the g...
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| Format: | Energy Study |
| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/01/16461267/fuel-pricing-subsidies-indonesia-reaching-equitable-sustainable-policy http://hdl.handle.net/10986/12712 |
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okr-10986-12712 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO ELECTRICITY ACID RAIN ADVERSE ENVIRONMENTAL EFFECTS AIR POLLUTION AIR QUALITY APPROACH AUTOMOTIVE DIESEL AUTOMOTIVE FUELS AVAILABILITY AVIATION FUEL AVIATION GASOLINE BALANCE BARREL BARRELS PER DAY BIOMASS BLACK MARKET BOTTLENECKS BUSES CARBON DIOXIDE CARBON MONOXIDE CARS CHEMICAL FEEDSTOCKS CLIMATE CHANGE CO2 CO2 EMISSIONS COAL COAL BRIQUETTES COMBUSTION COMPETITIVE PRICE COMPETITIVENESS COMPRESSED NATURAL GAS CONSUMER PRICE CONSUMPTION OF PETROLEUM CRUDE OIL CRUDE OIL PRODUCTION CRUDE PRODUCTION DELIVERY MECHANISM DEMAND FOR GASOLINE DEMAND GROWTH DEPOTS DIESEL DIESEL ENGINES DIESEL FUEL DIESEL FUELS DIESEL OIL DISTRIBUTION FACILITIES DISTRIBUTION NETWORK DISTRIBUTION OF OIL DOMESTIC CRUDE OIL DOMESTIC CRUDE OIL PRODUCTION DOMESTIC MARKET DOMESTIC OIL DOMESTIC PETROLEUM DOMESTIC REFINING DOWNSTREAM OIL DOWNSTREAM OPERATIONS DRIVING ELECTRICITY ELECTRICITY GENERATION EMISSION EMISSION LEVELS EMISSIONS ENERGY RESOURCES ENVIRONMENTAL DEGRADATION ENVIRONMENTAL IMPACTS EXPENDITURE EXPENDITURES FAIR FEEDSTOCK FINANCIAL BURDEN FISCAL STABILITY FREIGHT FUEL FUEL CONSUMPTION FUEL DEMAND FUEL FOR POWER GENERATION FUEL MARKET FUEL MIX FUEL OIL FUEL OILS FUEL PRICE FUEL PRICE INCREASE FUEL PRICE INCREASES FUEL PRICING FUEL PRODUCTS FUEL SHORTAGES FUEL SOURCE FUEL SUBSIDIES FUEL TAX FUEL USE FUELS GAS GAS EXPLORATION GAS EXPLORATION AND PRODUCTION GAS LAW GAS PRICES GAS SECTOR GAS SUPPLIES GAS TRANSMISSION GASOLINE GASOLINE DEMAND GASOLINE PRICES GASOLINE SALES GREENHOUSE GAS HEAVY FUEL OIL HEAVY RELIANCE HIGHER OIL PRICES HOUSEHOLD FUEL HYDROCARBON SECTOR INTERNATIONAL MARKET INTERNATIONAL OIL PRICES KEROSENE KEROSENE CONSUMPTION LIQUEFIED PETROLEUM GAS LNG LUBRICANTS MARKET COMPETITION MARKET FORCES MARKET OPENING MARKET PRICE MARKET PRICES MARKET SHARE MARKET STRUCTURE MARKET VALUE MARKETPLACE MILLION BARRELS MILLION BARRELS PER DAY MONOPOLY NATIONAL OIL NATURAL GAS NATURAL RESOURCES NET OIL NITROGEN NITROGEN OXIDE NITROGEN OXIDES NONRENEWABLE ENERGY NOX OIL OIL & GAS OIL AND GAS OIL AND GAS SECTOR OIL COMPANIES OIL COMPANY OIL DEMAND OIL EXPORTS OIL FIELD OIL FIRM OIL FUELS OIL IMPORTS OIL INDUSTRY OIL MARKET OIL PRICES OIL PRICING OIL PRODUCERS OIL PRODUCING OIL PRODUCTION OIL PRODUCTS OIL RESOURCES OIL SECTOR OIL USE OPEC ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PARTICULATE PARTICULATE EMISSIONS PARTICULATES PATRONAGE PETROCHEMICALS PETROLEUM PETROLEUM COMPANY PETROLEUM EXPORTING COUNTRIES PETROLEUM FUEL PRICES PETROLEUM FUELS PETROLEUM GAS PETROLEUM PRICING PETROLEUM PRODUCTS PETROLEUM RESOURCE PETROLEUM SECTOR PETROLEUM USE PIPELINES POLICE POWER POWER GENERATION POWER GENERATION CAPACITY POWER PLANTS POWER PRODUCERS PRICE ADJUSTMENTS PRICE CAPS PRICE CHANGES PRICE CONTROLS PRICE DIFFERENTIAL PRICE DIFFERENTIALS PRICE INCREASE PRICE INCREASES PRICE LEVELS PRICE MECHANISM PRICE OF GASOLINE PRICE OF OIL PRICE STABILIZATION PRICE STRUCTURES PRICE SUBSIDIES PRICE VARIATIONS PRICE VOLATILITY PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRIVATE INVESTMENT PRODUCT MARKET PRODUCTS MARKET PRODUCTS MARKETS QUANTITY OF FUEL REFINED PETROLEUM PRODUCTS REFINERIES REFINERY REFINERY CAPACITY RETAIL RETAIL MARKETING RETAIL PRICE RETAIL PRICE OF GASOLINE RETAIL PRICES RETAILING ROAD SAFETY SALE SULFUR SULFUR DIOXIDE TAX TRANSPARENCY TRANSPORT TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRANSPORTATION USES TRUCKS TRUE TURBINE VEHICLE VEHICLE EMISSIONS VEHICLE FUEL VEHICLE OWNERSHIP VEHICLE PERFORMANCE VEHICLES VOLATILE INTERNATIONAL WHOLESALE PRICE |
| spellingShingle |
ACCESS TO ELECTRICITY ACID RAIN ADVERSE ENVIRONMENTAL EFFECTS AIR POLLUTION AIR QUALITY APPROACH AUTOMOTIVE DIESEL AUTOMOTIVE FUELS AVAILABILITY AVIATION FUEL AVIATION GASOLINE BALANCE BARREL BARRELS PER DAY BIOMASS BLACK MARKET BOTTLENECKS BUSES CARBON DIOXIDE CARBON MONOXIDE CARS CHEMICAL FEEDSTOCKS CLIMATE CHANGE CO2 CO2 EMISSIONS COAL COAL BRIQUETTES COMBUSTION COMPETITIVE PRICE COMPETITIVENESS COMPRESSED NATURAL GAS CONSUMER PRICE CONSUMPTION OF PETROLEUM CRUDE OIL CRUDE OIL PRODUCTION CRUDE PRODUCTION DELIVERY MECHANISM DEMAND FOR GASOLINE DEMAND GROWTH DEPOTS DIESEL DIESEL ENGINES DIESEL FUEL DIESEL FUELS DIESEL OIL DISTRIBUTION FACILITIES DISTRIBUTION NETWORK DISTRIBUTION OF OIL DOMESTIC CRUDE OIL DOMESTIC CRUDE OIL PRODUCTION DOMESTIC MARKET DOMESTIC OIL DOMESTIC PETROLEUM DOMESTIC REFINING DOWNSTREAM OIL DOWNSTREAM OPERATIONS DRIVING ELECTRICITY ELECTRICITY GENERATION EMISSION EMISSION LEVELS EMISSIONS ENERGY RESOURCES ENVIRONMENTAL DEGRADATION ENVIRONMENTAL IMPACTS EXPENDITURE EXPENDITURES FAIR FEEDSTOCK FINANCIAL BURDEN FISCAL STABILITY FREIGHT FUEL FUEL CONSUMPTION FUEL DEMAND FUEL FOR POWER GENERATION FUEL MARKET FUEL MIX FUEL OIL FUEL OILS FUEL PRICE FUEL PRICE INCREASE FUEL PRICE INCREASES FUEL PRICING FUEL PRODUCTS FUEL SHORTAGES FUEL SOURCE FUEL SUBSIDIES FUEL TAX FUEL USE FUELS GAS GAS EXPLORATION GAS EXPLORATION AND PRODUCTION GAS LAW GAS PRICES GAS SECTOR GAS SUPPLIES GAS TRANSMISSION GASOLINE GASOLINE DEMAND GASOLINE PRICES GASOLINE SALES GREENHOUSE GAS HEAVY FUEL OIL HEAVY RELIANCE HIGHER OIL PRICES HOUSEHOLD FUEL HYDROCARBON SECTOR INTERNATIONAL MARKET INTERNATIONAL OIL PRICES KEROSENE KEROSENE CONSUMPTION LIQUEFIED PETROLEUM GAS LNG LUBRICANTS MARKET COMPETITION MARKET FORCES MARKET OPENING MARKET PRICE MARKET PRICES MARKET SHARE MARKET STRUCTURE MARKET VALUE MARKETPLACE MILLION BARRELS MILLION BARRELS PER DAY MONOPOLY NATIONAL OIL NATURAL GAS NATURAL RESOURCES NET OIL NITROGEN NITROGEN OXIDE NITROGEN OXIDES NONRENEWABLE ENERGY NOX OIL OIL & GAS OIL AND GAS OIL AND GAS SECTOR OIL COMPANIES OIL COMPANY OIL DEMAND OIL EXPORTS OIL FIELD OIL FIRM OIL FUELS OIL IMPORTS OIL INDUSTRY OIL MARKET OIL PRICES OIL PRICING OIL PRODUCERS OIL PRODUCING OIL PRODUCTION OIL PRODUCTS OIL RESOURCES OIL SECTOR OIL USE OPEC ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PARTICULATE PARTICULATE EMISSIONS PARTICULATES PATRONAGE PETROCHEMICALS PETROLEUM PETROLEUM COMPANY PETROLEUM EXPORTING COUNTRIES PETROLEUM FUEL PRICES PETROLEUM FUELS PETROLEUM GAS PETROLEUM PRICING PETROLEUM PRODUCTS PETROLEUM RESOURCE PETROLEUM SECTOR PETROLEUM USE PIPELINES POLICE POWER POWER GENERATION POWER GENERATION CAPACITY POWER PLANTS POWER PRODUCERS PRICE ADJUSTMENTS PRICE CAPS PRICE CHANGES PRICE CONTROLS PRICE DIFFERENTIAL PRICE DIFFERENTIALS PRICE INCREASE PRICE INCREASES PRICE LEVELS PRICE MECHANISM PRICE OF GASOLINE PRICE OF OIL PRICE STABILIZATION PRICE STRUCTURES PRICE SUBSIDIES PRICE VARIATIONS PRICE VOLATILITY PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRIVATE INVESTMENT PRODUCT MARKET PRODUCTS MARKET PRODUCTS MARKETS QUANTITY OF FUEL REFINED PETROLEUM PRODUCTS REFINERIES REFINERY REFINERY CAPACITY RETAIL RETAIL MARKETING RETAIL PRICE RETAIL PRICE OF GASOLINE RETAIL PRICES RETAILING ROAD SAFETY SALE SULFUR SULFUR DIOXIDE TAX TRANSPARENCY TRANSPORT TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRANSPORTATION USES TRUCKS TRUE TURBINE VEHICLE VEHICLE EMISSIONS VEHICLE FUEL VEHICLE OWNERSHIP VEHICLE PERFORMANCE VEHICLES VOLATILE INTERNATIONAL WHOLESALE PRICE World Bank Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy |
| geographic_facet |
East Asia and Pacific Indonesia |
| description |
Indonesia is an oil producing country
and is the only East Asian member of the Organization of
Petroleum Exporting Countries (OPEC). Over the years, this
endowment of oil resources has been steadily exploited with
substantial rents flowing to the government from production
and exports of crude oil. The country is also one of the
world's largest exporters of another petroleum
resource, liquefied natural gas. The introduction of a new
oil and gas law in 2001 (the law) provides the policy and
legal basis for moving away from the present ineffective and
fiscally inefficient fuel pricing and subsidy regime,
towards the goal of an independent, reliable, transparent,
competitive, efficient, and environmentally friendly
petroleum sector that encourages the growth of the national
potential and role and at the same time does not exclude the
Government of Indonesia (GoI) fully meeting its social
responsibility towards certain community groups.
Implementation towards achieving the goals set out in the
Law has been slow and hesitant. The Indonesian treasury is
still saddled with a rather inefficient and ineffective fuel
pricing and subsidies regime. This present report identifies
a way forward for Indonesia to meet the requirements of the
Law. That way forward will progressively eliminate the waste
inherent in the present system, signal correct market
behaviors to consumers, achieve large fiscal savings and
help the economy grow while the any negative impact on the
poor and vulnerable are cushioned. Chapter one tracks the
recent history to the present situation in terms of
petroleum fuels utilization, supply, pricing and subsidies,
and identifies some of the key impacts of the prevailing
policies. Chapter two identifies the target petroleum fuel
market regime based on the goals established in the law,
evaluates where the present policy falls short, and proposes
measures that will help Indonesia achieve the outcomes that
are consistent with the law. Chapter three proposes a
step-wise transition that will be required to transform the
present regime and at the same time opening the oil products
market to the beneficial forces of competition and
restructuring Pertamina's downstream operations. |
| format |
Economic & Sector Work :: Energy Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy |
| title_short |
Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy |
| title_full |
Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy |
| title_fullStr |
Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy |
| title_full_unstemmed |
Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy |
| title_sort |
fuel pricing and subsidies in indonesia : reaching an equitable and sustainable policy |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/01/16461267/fuel-pricing-subsidies-indonesia-reaching-equitable-sustainable-policy http://hdl.handle.net/10986/12712 |
| _version_ |
1764421627243659264 |
| spelling |
okr-10986-127122021-04-23T14:03:04Z Fuel Pricing and Subsidies in Indonesia : Reaching an Equitable and Sustainable Policy World Bank ACCESS TO ELECTRICITY ACID RAIN ADVERSE ENVIRONMENTAL EFFECTS AIR POLLUTION AIR QUALITY APPROACH AUTOMOTIVE DIESEL AUTOMOTIVE FUELS AVAILABILITY AVIATION FUEL AVIATION GASOLINE BALANCE BARREL BARRELS PER DAY BIOMASS BLACK MARKET BOTTLENECKS BUSES CARBON DIOXIDE CARBON MONOXIDE CARS CHEMICAL FEEDSTOCKS CLIMATE CHANGE CO2 CO2 EMISSIONS COAL COAL BRIQUETTES COMBUSTION COMPETITIVE PRICE COMPETITIVENESS COMPRESSED NATURAL GAS CONSUMER PRICE CONSUMPTION OF PETROLEUM CRUDE OIL CRUDE OIL PRODUCTION CRUDE PRODUCTION DELIVERY MECHANISM DEMAND FOR GASOLINE DEMAND GROWTH DEPOTS DIESEL DIESEL ENGINES DIESEL FUEL DIESEL FUELS DIESEL OIL DISTRIBUTION FACILITIES DISTRIBUTION NETWORK DISTRIBUTION OF OIL DOMESTIC CRUDE OIL DOMESTIC CRUDE OIL PRODUCTION DOMESTIC MARKET DOMESTIC OIL DOMESTIC PETROLEUM DOMESTIC REFINING DOWNSTREAM OIL DOWNSTREAM OPERATIONS DRIVING ELECTRICITY ELECTRICITY GENERATION EMISSION EMISSION LEVELS EMISSIONS ENERGY RESOURCES ENVIRONMENTAL DEGRADATION ENVIRONMENTAL IMPACTS EXPENDITURE EXPENDITURES FAIR FEEDSTOCK FINANCIAL BURDEN FISCAL STABILITY FREIGHT FUEL FUEL CONSUMPTION FUEL DEMAND FUEL FOR POWER GENERATION FUEL MARKET FUEL MIX FUEL OIL FUEL OILS FUEL PRICE FUEL PRICE INCREASE FUEL PRICE INCREASES FUEL PRICING FUEL PRODUCTS FUEL SHORTAGES FUEL SOURCE FUEL SUBSIDIES FUEL TAX FUEL USE FUELS GAS GAS EXPLORATION GAS EXPLORATION AND PRODUCTION GAS LAW GAS PRICES GAS SECTOR GAS SUPPLIES GAS TRANSMISSION GASOLINE GASOLINE DEMAND GASOLINE PRICES GASOLINE SALES GREENHOUSE GAS HEAVY FUEL OIL HEAVY RELIANCE HIGHER OIL PRICES HOUSEHOLD FUEL HYDROCARBON SECTOR INTERNATIONAL MARKET INTERNATIONAL OIL PRICES KEROSENE KEROSENE CONSUMPTION LIQUEFIED PETROLEUM GAS LNG LUBRICANTS MARKET COMPETITION MARKET FORCES MARKET OPENING MARKET PRICE MARKET PRICES MARKET SHARE MARKET STRUCTURE MARKET VALUE MARKETPLACE MILLION BARRELS MILLION BARRELS PER DAY MONOPOLY NATIONAL OIL NATURAL GAS NATURAL RESOURCES NET OIL NITROGEN NITROGEN OXIDE NITROGEN OXIDES NONRENEWABLE ENERGY NOX OIL OIL & GAS OIL AND GAS OIL AND GAS SECTOR OIL COMPANIES OIL COMPANY OIL DEMAND OIL EXPORTS OIL FIELD OIL FIRM OIL FUELS OIL IMPORTS OIL INDUSTRY OIL MARKET OIL PRICES OIL PRICING OIL PRODUCERS OIL PRODUCING OIL PRODUCTION OIL PRODUCTS OIL RESOURCES OIL SECTOR OIL USE OPEC ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PARTICULATE PARTICULATE EMISSIONS PARTICULATES PATRONAGE PETROCHEMICALS PETROLEUM PETROLEUM COMPANY PETROLEUM EXPORTING COUNTRIES PETROLEUM FUEL PRICES PETROLEUM FUELS PETROLEUM GAS PETROLEUM PRICING PETROLEUM PRODUCTS PETROLEUM RESOURCE PETROLEUM SECTOR PETROLEUM USE PIPELINES POLICE POWER POWER GENERATION POWER GENERATION CAPACITY POWER PLANTS POWER PRODUCERS PRICE ADJUSTMENTS PRICE CAPS PRICE CHANGES PRICE CONTROLS PRICE DIFFERENTIAL PRICE DIFFERENTIALS PRICE INCREASE PRICE INCREASES PRICE LEVELS PRICE MECHANISM PRICE OF GASOLINE PRICE OF OIL PRICE STABILIZATION PRICE STRUCTURES PRICE SUBSIDIES PRICE VARIATIONS PRICE VOLATILITY PRICING MECHANISM PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRIVATE INVESTMENT PRODUCT MARKET PRODUCTS MARKET PRODUCTS MARKETS QUANTITY OF FUEL REFINED PETROLEUM PRODUCTS REFINERIES REFINERY REFINERY CAPACITY RETAIL RETAIL MARKETING RETAIL PRICE RETAIL PRICE OF GASOLINE RETAIL PRICES RETAILING ROAD SAFETY SALE SULFUR SULFUR DIOXIDE TAX TRANSPARENCY TRANSPORT TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRANSPORTATION USES TRUCKS TRUE TURBINE VEHICLE VEHICLE EMISSIONS VEHICLE FUEL VEHICLE OWNERSHIP VEHICLE PERFORMANCE VEHICLES VOLATILE INTERNATIONAL WHOLESALE PRICE Indonesia is an oil producing country and is the only East Asian member of the Organization of Petroleum Exporting Countries (OPEC). Over the years, this endowment of oil resources has been steadily exploited with substantial rents flowing to the government from production and exports of crude oil. The country is also one of the world's largest exporters of another petroleum resource, liquefied natural gas. The introduction of a new oil and gas law in 2001 (the law) provides the policy and legal basis for moving away from the present ineffective and fiscally inefficient fuel pricing and subsidy regime, towards the goal of an independent, reliable, transparent, competitive, efficient, and environmentally friendly petroleum sector that encourages the growth of the national potential and role and at the same time does not exclude the Government of Indonesia (GoI) fully meeting its social responsibility towards certain community groups. Implementation towards achieving the goals set out in the Law has been slow and hesitant. The Indonesian treasury is still saddled with a rather inefficient and ineffective fuel pricing and subsidies regime. This present report identifies a way forward for Indonesia to meet the requirements of the Law. That way forward will progressively eliminate the waste inherent in the present system, signal correct market behaviors to consumers, achieve large fiscal savings and help the economy grow while the any negative impact on the poor and vulnerable are cushioned. Chapter one tracks the recent history to the present situation in terms of petroleum fuels utilization, supply, pricing and subsidies, and identifies some of the key impacts of the prevailing policies. Chapter two identifies the target petroleum fuel market regime based on the goals established in the law, evaluates where the present policy falls short, and proposes measures that will help Indonesia achieve the outcomes that are consistent with the law. Chapter three proposes a step-wise transition that will be required to transform the present regime and at the same time opening the oil products market to the beneficial forces of competition and restructuring Pertamina's downstream operations. 2013-03-14T13:49:30Z 2013-03-14T13:49:30Z 2012 http://documents.worldbank.org/curated/en/2012/01/16461267/fuel-pricing-subsidies-indonesia-reaching-equitable-sustainable-policy http://hdl.handle.net/10986/12712 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Energy Study Economic & Sector Work East Asia and Pacific Indonesia |