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Liberalization and Electricity Policy Changes: Problems and Challenges in the Electricity Sector in Indonesia

Author

Listed:
  • Paryono Paryono

    (Doctoral Program in Law Science, Universitas Muhammadiyah, Surakarta, Indonesia,)

  • Absori Absori

    (Department of Law, Universitas Muhammadiyah, Surakarta, Indonesia,)

  • Khudzaifah Dimyati

    (Department of Law, Universitas Muhammadiyah, Surakarta, Indonesia,)

  • Muinudinillah Basri

    (Department of Law, Universitas Muhammadiyah, Surakarta, Indonesia,)

  • Shinta Dewi Rismawati

    (Department of Law State, Islamic Institute of Pekalongan, Pekalongan, Indonesia.)

Abstract

This paper analyzes the impact of changes in electricity policy in Indonesia. The purpose of this paper is to provide an overview of the development of electricity sector regulations in Indonesia and their impact. Based on the study conducted, concluded: that the Indonesian government made a change in electricity policy under the influence of international donor agencies, International Monetary Fund (IMF) with a Letter of Intent (LOI) namely the liberalization of the electricity sector in Indonesia brought to the free market. In 2014 the Indonesian government plans to build power generation infrastructure reaching 35 thousand MW, and the percentage of infrastructure ownership is private (foreign) is more dominant, this is contrary to article 33 paragraph 2 of the 1945 Constitution of the Republic of Indonesia. The state of Indonesia with these changes is likely to be held captive by the interests of global capitalism by dictating electricity policy.

Suggested Citation

  • Paryono Paryono & Absori Absori & Khudzaifah Dimyati & Muinudinillah Basri & Shinta Dewi Rismawati, 2020. "Liberalization and Electricity Policy Changes: Problems and Challenges in the Electricity Sector in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 170-177.
    • Handle: RePEc:eco:journ2:2020-01-26
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    References listed on IDEAS

    as
    1. Sergei Palamarchuk, 2016. "Status of Electric Power Sector Reform in Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 663-671.
    2. Eric L. Prentis, 2015. "Evidence on U.S. Electricity Prices: Regulated Utility vs. Restructured States," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 253-262.
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    Cited by:

    1. Zhanar M. Orynkanova & Diana I. Stepanova, 2020. "Evaluation of the Economic Efficiency of Heat Recovery from Exhaust Gas of Diesel Power Plants in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 399-404.

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    More about this item

    Keywords

    Liberalization; Electricity Policy; Capitalism; Indonesia;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • P12 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Enterprises

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