Indonesia, together with Italy, announced in February 2017 that they would undertake a reciprocal peer review of their fossil-fuel subsidies under the auspices of the G20. With China and the United States setting the precedent for these peer reviews as the first countries to participate in such an undertaking, and Germany and Mexico as the second pair, Indonesia and Italy constitute the third pair of countries to follow suit.
This report addresses each stage of the supply chain for fossil fuels, discussing in detail the subsidies and other measures that Indonesia and the review team have identified in the course of the review process. In this report, the review team also encourages Indonesia to continue reforming its fossil-fuel subsidies by harnessing the socio-economic information in the unified poverty database (UPD) to provide targeted support to poor households.