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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 and Günther Schulze

No 18, Discussion Paper Series from Department of International Economic Policy, University of Freiburg

Abstract: 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.

Keywords: Oil policy; fuel subsidies; regional transfers; regional incidence of intergovernmental fiscal transfers (search for similar items in EconPapers)
Pages: 22 pages
Date: 2011-11, Revised 2011-11
New Economics Papers: this item is included in nep-ene and nep-sea
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fre:wpaper:18

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