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Political Economy of Subsidized Fuel Control: Assessing Indonesia's Technological Approach and Potential Savings
Corresponding Author(s) : Muhammad Ridzki Wibowo
Sustainability Science and Resources,
Vol. 5 (2023): Sustainability Science and Resources
Abstract
This study analyzes the potential of Indonesia's technological approach to control subsidized fuels. To achieve its objective, the study employs both quantitative and qualitative analyses. Quantitatively, the research seeks to estimate the potential value of inefficiently targeted fuel subsidies and assess the potential fiscal savings achievable through diverse fuel restriction measures. In this case, the study carried out four simulations to assess the impact of fuel consumption controls. Meanwhile, the qualitative analysis aims to delve into details of Indonesia's technological infrastructure used to control the consumption of subsidized fuels. Furthermore, the study investigates the key challenges and successes associated with Indonesia's technological approach to control subsidized fuels. This study contributes insights into achieving fairness in fuel regulatory policies while calculating fiscal savings and the potential of technology-driven solutions. While promising, ongoing challenges of MyPertamina necessitate further improvements for optimal functionality in assignment fuels (JBKP) distribution. This research informs discussions on equitable and technologically-driven energy policy solutions in the context of achieving global climate goals and local economic dynamics.
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References
BPS (2022), Data Inflasi Oktober 2022. Jakarta: Badan Pusat Statistik.
Galletta, A. (2013). Mastering the semi-structured interview and beyond: From research
design to analysis and publication (Vol. 18). NYU press.
Gelb, A. and Mukherjee, A (2019), Fuel Subsidy Reform and Green Taxes: Can Digital Technologies Improve State Capacity and Effectiveness?. CGD Policy Paper 149. Washington DC: Center for Global Development. Available at: https://www.cgdev.org/publication/ fuel-subsidy-reform-and-green-taxes-can-digital- technologies-improve-state-capacity [accessed 29 June 2022].
Hennink, M. M (2013), Focus Group Discussions. Oxford: Oxford University Press.
IEA (2022a), Accelerating energy efficiency: What governments can do now to deliver energy savings. Available at: https://www.iea.org/commentaries/accelerating-energy- efficiency-what-governments-can-do-now-to-deliver-energy-savings [accessed 22 June 2022].
IEA (2022b), Energy subsidies: Tracking the impact of fossil-fuel subsidies. Available at:
https://www.iea.org/topics/energy-subsidies [accessed 22 June 2022].
IEA (2023), CO2 Emissions in 2022. Available at: https://www.iea.org/reports/co2-emissions-
in-2022 [accessed 11 November 2023].
IPCC (2023), Climate Change 2023 Synthesis Report: Summary for Policymakers. Report. Geneva, Switzerland.
Kementerian Keuangan (2022), Nota Keuangan dan RAPBN 2023
Kallio, H., Pietilä, A. M., Johnson, M., and Kangasniemi, M (2016), Systematic
methodological review: developing a framework for a qualitative semi‐structured
interview guide. Journal of advanced nursing, 72(12), 2954-2965.
Mayoux, L (2006), Quantitative, qualitative or participatory? which method, for what and when?. In Doing Development Research. New York: SAGE Publications, Ltd. pp. 115-129. DOI: https://doi.org/10.4135/9781849208925
Mushafiq, M., Arisar, M.M.K., Tariq, H. and Czapp, S (2023), Energy Efficiency and
Economic Policy: Comprehensive Theoretical, Empirical, and Policy Review. Energies
(5), 2381. DOI: https://doi.org/10.3390/en16052381
Nyumba, T., Wilson, K., Derrick, C. J., and Mukherjee, N (2018). The use of focus group
discussion methodology: Insights from two decades of application in conservation.
Methods in Ecology and Evolution 9(1): 20—32. DOI: 10.1111/2041-210X.12860. Softina, R.A., Amin, F.M., and Wahyudi, N (2022), Analisis Faktor yang Mempengaruhi Innovation Resistance dan Intention to Use Terhadap Penerapan Pembayaran Non Tunai.
Jurnal Sistem Informasi Bisnis 12(1): 26—35. DOI: 10.21456/vol12iss1pp26-35. Statista (2023), Number of smartphone users in Indonesia from 2019 to 2021 with forecasts until 2028. Available at: https://www.statista.com/statistics/266729/smartphone-users-
in-indonesia/ [accessed 11 November 2023].
World Bank (2023), Commodity Market. Available at:
https://www.worldbank.org/en/research/commodity-markets [accessed 12 November 2023].
World Bank Group. 2022. Commodity Markets Outlook: Pandemic, war, recession: Drivers of
aluminum and copper prices, October 2022. World Bank, Washington, DC. License:
Creative Commons Attribution CC BY 3.0 IGO.
World Bank (2020), Commodity Markets Outlook: October 2020. Available at:
World Bank (2022), Global Economic Prospects: June 2022. Available at: https://openknowledge.worldbank.org/server/api/core/bitstreams/1292b7cc-9aa3-5b12- b363-fc69b87f5769/content