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Policy Development for the Energy Mix in Indonesia Using System Dynamics


  • Kartono Sani

    () (School of Business and Management, Institut Teknologi Bandung, Indonesia. Author-2-Name: Manahan Siallagan Author-2-Workplace-Name: School of Business and Management, Institut Teknologi Bandung, Indonesia. Author-3-Name: Utomo Sarjono Putro Author-3-Workplace-Name: School of Business and Management, Institut Teknologi Bandung, Indonesia. Author-4-Name: Kuntoro Mangkusubroto Author-4-Workplace-Name: School of Business and Management, Institut Teknologi Bandung, Indonesia. Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)


"Objective – This paper discusses a literature review regarding finding system dynamics modeling as the preferred approach to building the national energy system model in Indonesia and introduces the uniqueness of the initial system dynamics model of the Indonesia energy mix today. Methodology/Technique – A literature review about system modeling of energy portfolio management worldwide to find the research gaps and to screen for the preferred modeling approach for the country. Along with past statistics in the background, a combination of system dynamics modeling and focus group discussion is subsequently expected to answer the research questions, bridge the research gaps, and contribute a new invention to management science. Findings – The theoretical testing reveals that system dynamics modeling is suitable to simplify and simulate very large, complex dynamic systems of energy supply that get feedback from many subsystems in non-linear fashions and is a good methodology for holistic approaches to understand underlying behavior over time, taking into account all sorts of feedback, including time delays and feedback loops, and those cannot be easily represented by conventional models, vastly applied in a study of sustainable development. Novelty – The uniqueness of the proposed system dynamics approach lies in the inclusion of a series of new variables developed from common characteristic impediments in public policy development using a traditional non-simulation approach, besides its focus on the unprecedented energy supply quality side of the archipelagic country with its unique parameters being highlighted."

Suggested Citation

  • Kartono Sani, 2017. "Policy Development for the Energy Mix in Indonesia Using System Dynamics," GATR Journals gjbssr488, Global Academy of Training and Research (GATR) Enterprise.
  • Handle: RePEc:gtr:gatrjs:gjbssr488

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    References listed on IDEAS

    1. Linda Babcock & George Loewenstein, 1997. "Explaining Bargaining Impasse: The Role of Self-Serving Biases," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 109-126, Winter.
    2. Aslani, Alireza & Helo, Petri & Naaranoja, Marja, 2014. "Role of renewable energy policies in energy dependency in Finland: System dynamics approach," Applied Energy, Elsevier, vol. 113(C), pages 758-765.
    3. Chi, K.C. & Reiner, D.M. & Nuttall, W.J., 2009. "Dynamics of the UK Natural Gas Industry: System Dynamics Modelling and Long-Term Energy Policy Analysis," Cambridge Working Papers in Economics 0922, Faculty of Economics, University of Cambridge.
    4. Urban, F. & Benders, R.M.J. & Moll, H.C., 2007. "Modelling energy systems for developing countries," Energy Policy, Elsevier, vol. 35(6), pages 3473-3482, June.
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    More about this item


    Portfolio Management; Past Performance; System Dynamic Modelling; Initial Model of Energy Close Loop Diagram of Indonesia Today.;

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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