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


  • 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.

Suggested Citation

  • Cut Dian R.D. Agustina & Wolfgang Fengler & Guenther G. Schulze, 2011. "The Regional Impact of Indonesia's Fiscal Policy on Oil and Gas - Options for Reform," Discussion Paper Series 18, Department of International Economic Policy, University of Freiburg, revised Nov 2011.
  • Handle: RePEc:fre:wpaper:18

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    File URL:'s_Fiscal_Policy_on_Oil_and_Gas.pdf
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    1. repec:eee:inteco:v:150:y:2017:i:c:p:19-35 is not listed on IDEAS
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    Oil policy; fuel subsidies; regional transfers; regional incidence of intergovernmental fiscal transfers;

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