The fossil fuel subsidy hampers green energy initatives

Abstract

Many international institutions have provided insights about reforming fossil fuel subsidies (FFS) in different countries, a decade after the conversation about FFS started during the Group of 20 Summit in Pittsburgh, the United States in 2009. Scholars agreed that the costs associated with FFS, whether from economic, social or environmental factors, could be avoided by reforming the system. One crucial problem facing Indonesia is heavy dependence on fossil energy sources. Fossil fuel consumption in Indonesia has increased significantly in the past three decades, even after fuel subsidies started to decrease in 2010. Indonesia has tried to reform its FFS, but despite huge renewable energy sources, the country remains dependent on fossil fuels

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