Analyzing the Factors Affecting the Electricity Cost in Indonesia: A Multiple Linear Regression Approach

With profound changes in the global economic landscape and the accelerated energy transition, electricity cost management has become a critical issue affecting the sustainable development of national industrial competitiveness and livelihood security. As ASEAN’s largest economy and a G20 member, Indonesia’s energy consumption structure exhibits typical developing country characteristics: rapid growth in electricity demand driven by economic growth and urbanization, and relatively underdeveloped energy infrastructure and a need to improve energy efficiency. This study, based on 312 Indonesian electricity consumption data obtained from Kaggle, empirically analyzed the key factors influencing electricity costs using multiple linear regression models. The results demonstrate that the constructed model has strong explanatory power, explaining 79.8% of the variation in electricity costs (R2=0.798). The study found that site area (B=0.606), water consumption (B=0.085), and utilization rate (B=9.254) have a significant positive impact on electricity costs, while factors such as building type and recycling rate have no significant impact. The research results provide empirical evidence for the Indonesian government and enterprises to formulate differentiated electricity price policies and optimize energy management. It is recommended to effectively control electricity costs by controlling site size, improving water use efficiency and managing facility utilization.