Indonesia’s decision to phasing out kerosene use and replace it with liquefied petroleum gas (LPG) last decade succeeded in cutting down State subsidies for kerosene which reached Rp48.2 trillion (US$5 billion that time) to nearly zero last year. Subsidy for LPG, however, increased dramatically from Rp5.6 trillion in 2008 to around Rp38 trillion set aside in the State Budget 2021. To subscribe please click here
