Abstract
This paper analyzes household perceptions and the role of information in the fossil-fuel subsidy reforms (FFSR) in Indonesia. The data used in this study were collected by Lembaga Survei Indonesia (LSI), based on an August 2014 survey that involved 2,899 respondents in 34 Indonesian provinces. Survey logistic and multinomial logistic regressions approaches were used in this study. The results show that: (1) those who live outside Java tend to be more receptive to the idea of FFSR (2) The tendency of respondents to oppose the reform is attributable to ownership of motorcycles and cars (3) Providing information about the state budget and the personal impact of the subsidy could change a respondent’s opinion from opposition to support of the reform. These results indicated public resistance to a subsidy removal policy was not permanent. Those who own cars and/or motorcycles tend to be more resistant to FFSR than those who do not possess one.
Author: Rimawan Pradiptyo, Abraham Wirotomo, Alvin Adisasmita & Yudistira Permana.
This paper is published in IISD Report, March 2015. It can be retrieved from https://www.iisd.org/gsi/sites/default/files/ffs_indonesia_perception.pdf.