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Abstract

Purpose: This study aims to critically examine the structure and effectiveness of Indonesia’s energy subsidy policy and its impact on household socioeconomic inequality in the post-COVID-19 context. The study examines whether the distribution of subsidies aligns with the principles of distributive justice and whether it effectively targets vulnerable populations.


Research Method: This research adopts a qualitative systematic literature review (SLR) approach, synthesizing scholarly articles, institutional reports, and policy evaluations published between 2018 and 2024. The study analyzes patterns of subsidy distribution, policy reforms, and their implications through thematic coding and theory-driven interpretation, particularly using the lens of Distributive Justice Theory.


Results and Discussion: The findings indicate that energy subsidies in Indonesia are regressive, with disproportionate benefits accruing to middle- and upper-income households, primarily due to their higher energy consumption. Meanwhile, lower-income and rural households receive limited support. Reforms aimed at transitioning toward targeted cash transfers show promise but are hindered by weak data systems and inconsistent implementation. The study further reveals that universal subsidy mechanisms often fail to address vertical and horizontal inequalities, underscoring the need for more targeted and data-driven policy interventions.


Implications: This research underscores the need for equity-based subsidy reform, emphasizing the importance of precision targeting, technological integration, and inclusive policy design. The study offers practical guidance for policymakers aiming to promote fiscal efficiency and social justice by refining subsidy frameworks.

Keywords

energy subsidy socioeconomic inequality distributive justice

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How to Cite
Wamea, P., & Pongtuluran, R. (2025). Analysis of Energy Subsidy Policy and Its Impact on Household Socioeconomic Inequality in Indonesia Post-COVID-19. Journal of Public Policy, 1(1), 17–30. Retrieved from http://jurnal.ppsuniyap.ac.id/index.php/jpp/article/view/89
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