SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA: A COMPUTABLE GENERAL EQUILIBRIUM APPROACH
This paper examines the effect of subsidy policies for the petroleum sectoron the overall economy in Indonesia by using a computable general equilibrium (CGE) model. The latest Indonesia input output table of year 2008 with 66 different production sectors is used within a generalized framework. Ther...
| Main Authors: | , |
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| Format: | Thesis |
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[Yogyakarta] : Universitas Gadjah Mada
2011
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| _version_ | 1797030720878673920 |
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| author | , Agus Budiyono, S.T. , Koji Kotani |
| author_facet | , Agus Budiyono, S.T. , Koji Kotani |
| author_sort | , Agus Budiyono, S.T. |
| collection | UGM |
| description | This paper examines the effect of subsidy policies for the petroleum
sectoron the overall economy in Indonesia by using a computable general
equilibrium (CGE) model. The latest Indonesia input output table of year 2008
with 66 different production sectors is used within a generalized framework.
There are some striking results upon the implementation ofa CGE model in this
study. An increase in a subsidy for the petroleum sector is the best policy
instrument among all. A welfare gain is measured to be approximately
Rp265,040,590.80 millions when the subsidy rate of petroleum sector is increased
by 10% and the cost of policy changes in the budget constraint of the government
is not considered explicitly. When a 10 % subsidy decrease is simulated, there is a
welfare loss as much as Rp 205,215,835 millions. However, if the reduction of the
petroleum subsidy rate is followed by the change in a production tax, than it
becomesworst. The welfare loss by implementation of this policy to petroleum
sector itself is measured to be approximately Rp 654,938,084.23 millions. The
result of this study suggests a more explainable argument to encounter such
debates on the petroleum subsidy policy. An increasing subsidy policy, in the
short run has proven to be better implemented vis a vis the decreasing subsidy
policy. Furthermore, the implementation of an increasing subsidy policy should be
followed by another scheme which can accommodate the welfare gain on the
whole economy based on an equity point of view. |
| first_indexed | 2024-03-13T22:10:13Z |
| format | Thesis |
| id | oai:generic.eprints.org:90376 |
| institution | Universiti Gadjah Mada |
| last_indexed | 2024-03-13T22:10:13Z |
| publishDate | 2011 |
| publisher | [Yogyakarta] : Universitas Gadjah Mada |
| record_format | dspace |
| spelling | oai:generic.eprints.org:903762014-08-20T02:50:10Z https://repository.ugm.ac.id/90376/ SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA: A COMPUTABLE GENERAL EQUILIBRIUM APPROACH , Agus Budiyono, S.T. , Koji Kotani ETD This paper examines the effect of subsidy policies for the petroleum sectoron the overall economy in Indonesia by using a computable general equilibrium (CGE) model. The latest Indonesia input output table of year 2008 with 66 different production sectors is used within a generalized framework. There are some striking results upon the implementation ofa CGE model in this study. An increase in a subsidy for the petroleum sector is the best policy instrument among all. A welfare gain is measured to be approximately Rp265,040,590.80 millions when the subsidy rate of petroleum sector is increased by 10% and the cost of policy changes in the budget constraint of the government is not considered explicitly. When a 10 % subsidy decrease is simulated, there is a welfare loss as much as Rp 205,215,835 millions. However, if the reduction of the petroleum subsidy rate is followed by the change in a production tax, than it becomesworst. The welfare loss by implementation of this policy to petroleum sector itself is measured to be approximately Rp 654,938,084.23 millions. The result of this study suggests a more explainable argument to encounter such debates on the petroleum subsidy policy. An increasing subsidy policy, in the short run has proven to be better implemented vis a vis the decreasing subsidy policy. Furthermore, the implementation of an increasing subsidy policy should be followed by another scheme which can accommodate the welfare gain on the whole economy based on an equity point of view. [Yogyakarta] : Universitas Gadjah Mada 2011 Thesis NonPeerReviewed , Agus Budiyono, S.T. and , Koji Kotani (2011) SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA: A COMPUTABLE GENERAL EQUILIBRIUM APPROACH. UNSPECIFIED thesis, UNSPECIFIED. http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=53316 |
| spellingShingle | ETD , Agus Budiyono, S.T. , Koji Kotani SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA: A COMPUTABLE GENERAL EQUILIBRIUM APPROACH |
| title | SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA:
A COMPUTABLE GENERAL EQUILIBRIUM APPROACH |
| title_full | SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA:
A COMPUTABLE GENERAL EQUILIBRIUM APPROACH |
| title_fullStr | SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA:
A COMPUTABLE GENERAL EQUILIBRIUM APPROACH |
| title_full_unstemmed | SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA:
A COMPUTABLE GENERAL EQUILIBRIUM APPROACH |
| title_short | SUBSIDY POLICIES FOR THE PETROLEUM SECTOR IN INDONESIA:
A COMPUTABLE GENERAL EQUILIBRIUM APPROACH |
| title_sort | subsidy policies for the petroleum sector in indonesia a computable general equilibrium approach |
| topic | ETD |
| work_keys_str_mv | AT agusbudiyonost subsidypoliciesforthepetroleumsectorinindonesiaacomputablegeneralequilibriumapproach AT kojikotani subsidypoliciesforthepetroleumsectorinindonesiaacomputablegeneralequilibriumapproach |