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- W1036872100 abstract "This paper examines the effect of subsidy policies for the petroleumsectoron the overall economy in Indonesia by using a computable generalequilibrium (CGE) model. The latest Indonesia input output table of year 2008with 66 different production sectors is used within a generalized framework.There are some striking results upon the implementation ofa CGE model in thisstudy. An increase in a subsidy for the petroleum sector is the best policyinstrument among all. A welfare gain is measured to be approximatelyRp265,040,590.80 millions when the subsidy rate of petroleum sector is increasedby 10% and the cost of policy changes in the budget constraint of the governmentis not considered explicitly. When a 10 % subsidy decrease is simulated, there is awelfare loss as much as Rp 205,215,835 millions. However, if the reduction of thepetroleum subsidy rate is followed by the change in a production tax, than itbecomesworst. The welfare loss by implementation of this policy to petroleumsector itself is measured to be approximately Rp 654,938,084.23 millions. Theresult of this study suggests a more explainable argument to encounter suchdebates on the petroleum subsidy policy. An increasing subsidy policy, in theshort run has proven to be better implemented vis a vis the decreasing subsidypolicy. Furthermore, the implementation of an increasing subsidy policy should befollowed by another scheme which can accommodate the welfare gain on thewhole economy based on an equity point of view." @default.
- W1036872100 created "2016-06-24" @default.
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- W1036872100 date "2011-01-01" @default.
- W1036872100 modified "2023-09-27" @default.
- W1036872100 title "SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA:A COMPUTABLE GENERAL EQUILIBRIUM APPROACH" @default.
- W1036872100 hasPublicationYear "2011" @default.
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