Top 10 Countries Providing Fossil Fuel Subsidies, Indonesia Included

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Adi Ahdiat 19/06/2023 14:40 WIB

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According to a World Bank report, Indonesia was the eighth largest provider of fossil fuel subsidies globally in 2021.

Top 10 Countries with the Largest Fossil Fuel Subsidies Globally (2021)

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Top 10 Countries with the Largest Fossil Fuel Subsidies Globally (2021)

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Indonesia was the eighth-largest provider of fossil fuel subsidies globally in 2021.

This is according to a World Bank report titled *Detox Development, Repurposing Environmentally Harmful Subsidies* (June 2023).

The report states that the Indonesian government disbursed USD 11.9 billion, or approximately Rp 170.6 trillion (assuming a 2021 exchange rate of Rp 14,269 per USD), in fossil fuel subsidies throughout 2021.

This figure includes subsidies for consumers and producers of LPG, kerosene, natural gas, coal, fossil fuel electricity, and various petroleum products.

Russia was the world's largest provider of fossil fuel subsidies, followed by Saudi Arabia, Iran, Venezuela, India, the United States, China, Algeria, and Canada, as detailed in the graph.

Globally, the total value of fossil fuel subsidies disbursed by 191 countries in 2021 is estimated at USD 577 billion.

The World Bank criticized these subsidies, citing their negative impacts on both the environment and public health.

"Governments worldwide are spending trillions on inefficient subsidies that worsen climate change," the World Bank stated in its report.

"Fossil fuel use, driven by subsidies, is a major contributor to the 7 million premature deaths annually from air pollution," it continued.

In response, the World Bank recommended that countries redirect fossil fuel subsidy funds to programs supporting climate change mitigation and a just energy transition.

"Amidst constrained budgets, rising debt, widening inequality, and worsening environmental degradation, governments must prioritize comprehensive subsidy reforms," said the World Bank.

"The belief that subsidy reforms will affect the poor is not always supported by data. In some cases, such as with energy subsidies, wealthier groups benefit more due to their higher consumption," it continued.

"To protect vulnerable groups during subsidy reforms, we recommend providing compensation to the poorest through cash transfers or direct assistance," said the World Bank.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Top 10 Countries Providing Fossil Fuel Subsidies, Indonesia Included

Top 10 Countries Providing Fossil Fuel Subsidies, Indonesia Included

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