Electricity subsidy reform in Indonesia: Demand-side effects on electricity use

Abstract

This Working Paper series provides a vehicle for preliminary circulation of research results in the fields of economic development and international trade. The series is intended to stimulate discussion and critical comment. Staff and visitors in any part of the Australian National University are encouraged to contribute. To facilitate prompt distribution, papers are screened, but not formally refereed.

Asia's Third Giant: A Survey of the Indonesian Economy

“…These subsidies have declined during the current administration, but there is no certainty that they will not return in a future era of high commodity prices. They are not justified on efficiency, equity or environmental grounds (Burke & Kurniawati, 2018). disintegration was very real.…”

Making the Switch

“…First and foremost is that energy consumption has increased significantly over this same period. Electricity use has increased from roughly 40 TWh/year in the early 1990s to over 200 TWh/year by 2015 (Burke & Kurniawati, 2016). Coupled with this is the ongoing challenge of delivering energy across a wide geographical area, including many remote areas where energy distribution can be difficult.…”

“…Prior to recent reforms, electricity consumption subsidies climbed to above 100 trillion IDR (roughly USD 7.5 billion) in 2014 alone (Burke & Kurniawati, 2016). A move to monthly automatic price adjustments as part of sector reform has reduced electricity subsidies significantly.…”

Map of Jordan governorates wind distribution and mean power density

“…5% per year, and at a rate of 5% per year in developing countries [21][22][23]. The future demand for electricity needs shows that the world's electricity consumption is expected almost to double [24][25][26][27][28][29][30]. Currently, Wind energy is popularly used in many countries such as the USA, Germany, Spain, China, India, UK, Denmark and Canada.…”