IDEAS home Printed from https://ideas.repec.org/a/lpe/efijnl/200807.html
   My bibliography  Save this article

Indonesia in a Changing Energy Frontier: Challenges and Prospects

Author

Listed:
  • Maxensius Tri Sambodo

    (Economic Research Center, The Indonesia Institute of Sciences (LIPI))

Abstract

This articles aims to analyse the challenges and prospects energy frontier in Indonesia. The data for this analysis are derived from Indonesia -Energy Outlook and Statistics 1990 - 2025 and National Energy Blueprint 2005 – 2025. There are four major findings. First, rapid energy transition from crude oil has consequences on raising demand for natural gas and coal. Second, there is uncertainty about the long term prospects of energy prices because there is a possibility of conflicting targets among the energy price principles. In the future, this will have implications for the incentives for meeting domestic demand, especially if there is a huge price difference between the domestic and international markets. Third, decreasing oil supplies, mismatch between fossil fuel production and consumption, and a decreasing share of biomass in total energy consumption will lead to uncertainty about the prospects of energy security. Four, it is impossible for binding target on biofuel as far as Indonesia government gives fossil fuel subsidies. There are three implications from this study. First, demand management is the key for surviving. Second, binding targets on new and renewable energy need to be defined clearly and economically sound. This can be effective if government reduce subsidies on fossil fuel. Three, the government needs to revise the National Energy Blueprint because many of argument and policy setting do not sustainable under the current condition

Suggested Citation

  • Maxensius Tri Sambodo, 2008. "Indonesia in a Changing Energy Frontier: Challenges and Prospects," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 56, pages 111-133, August.
  • Handle: RePEc:lpe:efijnl:200807
    as

    Download full text from publisher

    File URL: http://www.lpem.org/repec/lpe/efijnl/200807.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Varinder Jain, 2011. "Challenge of Economic Growth and the Concern for Energy Security: A Comparative Analysis of South Asia and South-East Asia," Millennial Asia, , vol. 2(2), pages 207-227, July.
    2. Rahman, Arief & Dargusch, Paul & Wadley, David, 2021. "The political economy of oil supply in Indonesia and the implications for renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    3. Rahman, Arief & Richards, Russell & Dargusch, Paul & Wadley, David, 2023. "Pathways to reduce Indonesia’s dependence on oil and achieve longer-term decarbonization," Renewable Energy, Elsevier, vol. 202(C), pages 1305-1323.
    4. Jain, Varinder, 2011. "Challenge of Economic Growth and the Concern for Energy Security: A Comparative Analysis of South and South-East Asia," MPRA Paper 29006, University Library of Munich, Germany.

    More about this item

    Keywords

    Energy frontier; Energy transition; Energy security;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lpe:efijnl:200807. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Halley Yudhistira (email available below). General contact details of provider: https://edirc.repec.org/data/feuinid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.