Ensuring Gender and Social Inclusiveness in the Household-Based Energy Subsidy Policy in Indonesia

Energy subsidies, including electricity and LPG, are often seen as a tool to benefit poor and vulnerable households. However, these subsidies are not distributed evenly, with wealthier households often receiving more extensive benefits. The purpose of this study is to examine the state of household-based energy subsidy policy in Indonesia concerning gender and social inclusiveness, and investigate the causes of inequality in accessing energy subsidies. A qualitative method with descriptive analysis and tabular analyses on the aggregation of microdata and the national socioeconomic survey data is applied. This study found that the policy creates inequality in access. Marginalized groups, such as women, people with disabilities, and the elderly from poor households, are being excluded. This inequality stems from the price-based subsidy policy and the unequal distribution of energy services. Therefore, the policy of subsidies should be reformed by transitioning from commodity-based to direct household subsidies and removing entry barriers. This policy reform would enable the government to save subsidy budget allocations, improve beneficiary target accuracy, and make the policy more inclusive. Furthermore, policy reform could promote the development of local alternative energy and, in a broader sense, contribute to the acceleration of Indonesia's just energy transition