Analysis of Governance Complexity on Subsidized LPG in Indonesia: A Three-level Institutional Approach

Abstract

Subsidized liquefied petroleum gas (LPG) policies aim to ensure the efficient and effective supply and distribution of LPG so that the benefits of subsidies are on target. However, there is a gap between planned policies and actual reality. However, in order to achieve better governance of subsidized LPG policies, the causes of inconsistencies must be analyzed by the government. In this paper, we analyze the governance of subsidized LPG policies based on an institutional theory approach using the three levels of analysis and outcomes framework to find out the causes of policy inconsistencies by exploring policy structures and subsidized LPG management. The author proposes that this framework should be integrated into the improvement of subsidized LPG management and strategies. Further research is needed to analyze the impact and consequences of LPG transformation policies to estimate the benefits and challenges of implementing policy reforms.


Keywords: liquid petroleum gas, subsidy policy, governance, institutional analysis

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