Indonesia energy subsidies

Despite some superficial similarities, the production and distribution of energy is structured quite differently in the two countries.

Student groups and labor unions have pledged to step up demonstrations against the government's reduction of a fuel subsidy.

The move will be unpopular, but could well generate considerable economic benefits over the long run.

The move came after the state budget allocation for fuel subsidies jumped from $10 billion to nearly $34 billion.

Coming after two years of pandemic-induced deficit spending, the budget assumes a strong return to growth and revenue potential in the years to come.

State subsidies help keep energy affordable for low-income Indonesians. They may also be holding up its green energy transition.

Russia's invasion has exposed the country's vulnerability to shocks in the global energy markets.

The ban, imposed due to critically low stocks at domestic power plants, sent tremors through global coal markets.

President Jokowi's administration seems poised to break through the regulatory bottlenecks that have long held back the country's renewable energy ambitions.

Industry is racing to get green, but Indonesia has paved the road with unsupportive regulation.

The state utility PLN might have unwittingly side-stepped a common pitfall of tariff feed-in schemes.