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The Regional Impact of Indonesia's Fiscal Policy on Oil and Gas - Options for Reform


Author Info

  • Cut Dian R.D. Agustina
  • Wolfgang Fengler
  • Guenther G. Schulze

    (Department of International Economic Policy, University of Freiburg)


This paper analyzes the regional impact of Indonesia’s fuel policy. It discusses how the sharing of oil and gas revenue and taxes on oil and gas between the center and the regions affect sub-national fiscal position and what the regional incidence of the fuel subsidies is. It also analyzes the regional impact of president’s recent proposal to discontinue subsidizing vehicle fuel as well as the proposal to eliminate the fuel subsidies altogether and shows how the regions are affected by these suggestions.

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File URL:'s_Fiscal_Policy_on_Oil_and_Gas.pdf
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Bibliographic Info

Paper provided by Department of International Economic Policy, University of Freiburg in its series Discussion Paper Series with number 18.

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Length: 22 pages
Date of creation: Nov 2011
Date of revision: Nov 2011
Handle: RePEc:fre:wpaper:18

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Related research

Keywords: Oil policy; fuel subsidies; regional transfers; regional incidence of intergovernmental fiscal transfers;

This paper has been announced in the following NEP Reports:


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