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Indonesia’s Dynamic Electricity Power Sector: Investigating Need and Supply Performance

Author

Listed:
  • Latif Adam

  • Maxensius Tri Sambodo

    (Indonesian Institute of Sciences (LIPI))

Abstract

This paper analyzes the development and problems of electricity sector in Indonesia. After the economic crisis of 1997/98, investment in power sector has been decreasing. Minimizing transmission and distribution loss can increase reliability and quality of power supply, improve financial capacity, and reduce electricity subsidy. Electrification ratio and electric power consumption per capita need to be improved equally among provinces. Promoting public private partnership (PPP) can boost investment. Main policy challenges need to be addressed are that government needs to (1) provide information on the investment prospects; (2) solve social aspect of the project; and (3) provide practical guide in land acquisition.

Suggested Citation

  • Latif Adam & Maxensius Tri Sambodo, 2015. "Indonesia’s Dynamic Electricity Power Sector: Investigating Need and Supply Performance," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 61, pages 53-68, August.
    • Handle: RePEc:lpe:efijnl:201504
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    References listed on IDEAS

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    1. Hu, Zhaoguang & Yuan, Jiahai & Hu, Zheng, 2011. "Study on China's low carbon development in an Economy-Energy-Electricity-Environment framework," Energy Policy, Elsevier, vol. 39(5), pages 2596-2605, May.
    2. AfDB AfDB, . "AfDB Group Annual Report 2008," Annual Report, African Development Bank, number 64 edited by Koua Louis Kouakou.
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    Keywords

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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