Indonesia's fuel subsidies were put in place to make energy more affordable, particularly for poor people.However, overwhelming evidence suggests that most of the subsidies—IDR164.7 trillion (US$18.1 billion) in 2011—go to the well-off. In addition, the subsidies interfere with energy supplies and economic development by reducing investment in energy infrastructure (both current and emerging technologies), wasting government resources and undermining Indonesia's international competitiveness.
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