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Village Fund for Renewable Energy Development: A Case Study of Rural Area in Indonesia

Author

Listed:
  • Maria Merry Marianti

    (Department of Management, Faculty of Economics, Parahyangan Catholic University, Bandung, Indonesia)

  • Paulina Permatasari

    (Department of Accounting, Faculty of Economics, Parahyangan Catholic University, Bandung, Indonesia)

  • Elvy Maria Manurung

    (Parahyangan Catholic University)

  • Irwanda Wisnu Wardana

    (BRIN, Indonesia.)

  • Tri Emil Alim

    (University of Indonesia, Indonesia.)

  • Firli Wulansari Wahyuputri

    (BRIN, Indonesia.)

Abstract

Energy is a fundamental element for development in all countries. However, the problem is that not all people have access to energy, especially in Indonesia where 42% of the population lives in rural areas. The Indonesian government has created a Village Funds program to improve rural and energy development. This study aims to uncover the effectiveness of using the Village Fund, especially for affordable and clean energy, to support achieving Sustainable Development Goal number 7. The method used in this research is a case study method using document study and several interviews with the member of Fiscal Ministry of Indonesia. The result shows that after mapping all Village Funds activities during 2018-2020, Kalimantan and Sulawesi become the most extensive realization of the use of Village Funds to alternative and renewable energy activities. To achieve SDGs number 7, the allocation of Village Funds for renewable energy development still needs to be increased, especially in the island of Java. The role of government in making Village Funds policy is still required. Village development should not only focus on infrastructure, but the affordability of village communities to develop clean and renewable energy is also important.

Suggested Citation

  • Maria Merry Marianti & Paulina Permatasari & Elvy Maria Manurung & Irwanda Wisnu Wardana & Tri Emil Alim & Firli Wulansari Wahyuputri, 2023. "Village Fund for Renewable Energy Development: A Case Study of Rural Area in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 225-236, July.
    • Handle: RePEc:eco:journ2:2023-04-25
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    References listed on IDEAS

    as
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    3. Hana Kim, 2017. "A Community Energy Transition Model for Urban Areas: The Energy Self-Reliant Village Program in Seoul, South Korea," Sustainability, MDPI, vol. 9(7), pages 1-18, July.
    4. Clausen, Laura Tolnov & Rudolph, David, 2020. "Renewable energy for sustainable rural development: Synergies and mismatches," Energy Policy, Elsevier, vol. 138(C).
    5. Elvy Maria Manurung & Mumsikah Choyri Diyanah & Paulina Permatasari & Irwanda Wisnu Wardhana, 2022. "Energy Equality in Indonesia Villages: A Discourse Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 169-176.
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    More about this item

    Keywords

    Village Funds; Energy Development; SDG No.7; Clean and Renewable Energy;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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