THE IMPACT OF ELECTRICITY SUBSIDY REDUCTION ON THE ECONOMIC WELFARE IN INDONESIA
Moristanto, Ryuta Ray Kato
2012 | Tesis | S2 Magister Ek.Pembangunan-
The thesis numerically examines the impacts of electricity subsidy reductionon the economic welfare in Indonesia by using conventional static CGE model with the latest update of I-O transactions table of Indonesia 2008. It is a tool to evaluate the proposing 19.32% of policy reduction subsidy what is the most appropriate to be applied among instant cut, multi-stage schemes reduction, or following reduction by reducing wage income tax. It finds that the best way of reduction is policy of following reduction by reducing wage income taxwhich yields a total of lost on social welfare by 97,481.5 million rupiahs then multi-stage schemes reduction. It also finds what is the sector with most suffers as executing proposed policy is sector of electricity, gas, and water supplies itself. It suggests that before implementingthe policy government should make incentives to rise the suffer of electricity, gas, and water supplies sector such as minimizing the Non-Technical Loss, supporting R&D on electricity generation, and promoting efficiency and conservation on energy use.
Kata Kunci : Electricity Subsidy, Computable General Equilibrium, Economy of Indonesia, Simulation, and Social Welfare
