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Revision as of 17:34, 2 December 2012

Part of: GIZ International Fuel Price database
Also see: Indonesia Energy Situation

Fuel Pricing Policies

Local Currency: IDR
Exchange Rate: 8849.6


(2010/11/17)

Last Update: 2011/05/01

Transport fuels in Indonesia are highly subsidized. The price for subsidized fuel is fixed and changes on an ad-hoc basis. However, only the retailing companies Pertamina and AKR Corporindo are allowed to sell subsidized diesel and gasoline at the pump (only 88 octance gasoline is subsidized, →App. A2). Other retailers, as e.g. Shell, are only allowed to sell non-subsidized diesel and gasoline (92 and 95 octance). The price difference is immense: As of Feb2011, the subsidized price for 88 octane gasoline was 4500 IDR, while non-subsidized gasoline starts from 8000 IDR (and higher, depending on the quality).

Because the subsidies mean an immense burden for the national budget, several ways of how subsidies can be reduced were investigated for the last years. A proposal in early 2011 was to limit the amount of subsidized fuels sold, e.g. by stopping subsidies for private car owners (while mass transit, industries, etc. still receive subsidies; see →App.A2).

Fuel Prices and Trends

Gasoline 95 Octane Diesel
in USD*

in Local Currency

* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil



Fuel Price Composition

Price composition.



Transport fuels are highly subsidized in Indonesia, resulting in fuel prices that are among the lowest in Asia. As of February 2011, about 43% of the actual costs of 88 octance gasoline are covered by the government through subsidies (→App. A2)

A detailed price breakdown is not available online, hints welcome.



At a Glance

Regulation-Price-Matrix
Transparency of
Price Composition
Transparency of Pricing
Mechanism / Monitoring
IFPDB matrix background.png
IFPDB matrix point.png
IFPDB trafficlight red.png IFPDB trafficlight explanation.png IFPDB trafficlight red.png


Subsidized fuel is on price level "low" with a price mechanism between "ad hoc" and "liberalized"

No official information found yet; hints welcome!


Sources to the Public

Type of Information Web-Link / Source
Other Information http://www.globalsubsidies.org/files/assets/ffs_gsiunepconf_sess2_askolani.pdf (Fuel Subsidy Policy in Indonesia)
Other Information http://www.pertamina.com/ (Fuel Subsidy Policy in Indonesia)
Other Information http://uk.reuters.com/article/2010/03/12/indonesia-oil-subsidy-idUKSGE62B0CS20100312 (A1)
Other Information http://www.thejakartaglobe.com/bisindonesia/indonesia-should-delay-fuel-subsidy-limits-minister-says/424765 (A2)
Other Information http://www.iisd.org/pdf/2010/lessons_indonesia_fossil_fuel_reform.pdf (GSI: Lessons learned from Indonesia’s attempts to reform fossil-fuel subsidies)
Pump prices and margins http://www.shell.co.id/home/content/idn/products_services/on_the_road/fuels/our_price/


Contact

Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices

This is a living document. If you have any comments or suggestions, please feel free to contact us: Armin.Wagner@giz.de