A discourse analysis of fuel subsidy reduction: revisiting the political economy of Indonesia’s experiences 1998–2019

Abstract While most scholars argue that reducing fuel subsidies should be a policy priority, they also note that once subsidies are in place, many countries, including Indonesia, find it hard to reduce them. This paper examines the complexity of Indonesia’s fuel subsidy reforms from 1998 to 2019, investigating key actors and narratives that shave have their trajectory. It undertakes discourse analysis of purposively sampled news articles from two credible media outlets, reflecting the central role of media as an arena for policy debates in the Global South. It finds that Indonesia has been consistently locked in the ups and downs of fuel subsidy reforms, which are rife with economic and political tensions. This paper affirms that fuel subsidy reform in Indonesia, and elsewhere, is ultimately a complex political, not just technical, endeavour. Reform narratives of economic rationality and technical feasibility must be understood and navigated alongside social and religious beliefs, and political contestation. To this end, reform efforts will likely only succeed and be sustained if they are both embedded within broader social contracts that respect public and political sensitivities and also confront the long-term fiscal and environmental costs of inaction. Through focussing on discourse, this study offers a valuable political economy perspective on fuel subsidy reforms and insight for both scholars and policymakers on highly consequential faming discourses and conflicts.