Agustina, Cut Dian R. D. Fengler, Wolfgang Schulze, Günther G.
Year of Publication:
Discussion Paper Series, University of Freiburg, Department of International Economic Policy 18
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 aswell as the proposal to eliminate the fuel subsidies altogether and shows how the regions are affected ty these suggestions.