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Notorious for its wasteful fossil fuel subsidies, Indonesia offers a checkered history over 14 attempts at reform. The case of Indonesia provides important insights on the political challenges of implementing reforms in developing countries in the context of vested interests, corruption, strong interest groups and a poor population susceptible to the indirect effects of reducing fossil fuel subsidies. The first attempt at reforms during the aftermath of the Asian financial crisis incited violent protests over fuel price increases and the legacy of rampant corruption, contributing to Suharto’s overthrow in 1998. In contrast, President Jokowi’s 2015 reform was met with broad-based support. Using qualitative analysis, this paper examines the factors that contributed to the variation in the social acceptability and durability of fuel subsidy reforms over the nearly 20-year history. |
