What can Indonesia learn from China's industrial energy saving programs?

Rock, Michael T.

doi:10.1080/00074918.2012.654483

Cited by 11 publications

(5 citation statements)

References 31 publications

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“…Governments can assist by eliminating energy subsidies, setting large energy-saving targets, encouraging research and development into clean technologies, and providing incentives to boost investment in cleaner production or technology 34 , 65 , 66 . Companies should also be urged to take advantage of agreements between countries to adopt measures that require significant cost and technical capability.…”

Section: Discussionmentioning

confidence: 99%

A study of management decisions to adopt emission reduction measures in heavy industry in an emerging economy

Panjaitan

Dargusch

Wadley

et al. 2023

Sci Rep

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Heavy industry can face challenges in choosing applicable climate change mitigation measures due to a lack of technical background and practical guidance. A better understanding of these determinants is needed to design region-specific climate policies that most effectively enable more ‘successful’ low carbon transitions. Set in an emerging economy, this study aims to understand the determinants which underlie investment decision-making in greenhouse gas reduction. It relies on empirical research using an exploratory case study method in the leading cement company in Indonesia. The results show four key determinants influencing (constraining) adoption were (1) the primacy of profit-seeking objectives in operational planning and development; (2) the availability of sources (clinker substitutes and alternative energy fuels); (3) the limited access to cash capital; and (4) the complexity in implementing emissions reduction projects. The inquiry also compares determinants in an emerging and developed country to provide a comparative perspective on emissions management in manufacturing. It appears that firms from the industrial sector in emerging economies have investment strategies that are largely characterised by activities that accentuate achieving financial benefits or best value for money or cost savings in a short time frame, or ‘short-termism’. Currently, greenhouse gas emissions management activities tend to be second-preference strategies for firms in emerging economies, at least in the industrial manufacturing sector.

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Section: Discussionmentioning

confidence: 99%

A study of management decisions to adopt emission reduction measures in heavy industry in an emerging economy

Panjaitan

Dargusch

Wadley

et al. 2023

Sci Rep

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“…Similarly, Hang and Tu (2007) find that the price of energy harms EI in China. In addition, Rock (2012) suggests Indonesian government draw such successful Chinese initiatives as a standard energy-saving program, liberalisation of domestic markets, technological catch-up, industrial development strategy and openness of the economy to trade and investment. The implication of the above findings suggests that government focuses on reducing subsidies leading to higher energy prices, reducing the budget deficit and EI.…”

Section: Literature Backgroundmentioning

confidence: 99%

The determinants of energy intensity in Indonesia

Rudenko

Tanasov²

2020

IJOEM

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PurposeIndonesia is the fourth most populous country in the world, which has a strong effect on primary energy use and depletion of natural resources. This paper considers energy intensity (EI) defined as a measure of the amount of energy it takes to produce a dollar's worth of economic output. The purpose of the paper is to explore how different factors contributed to the decline in Indonesia's EI.Design/methodology/approachThe cointegration regression methodology is applied to explore the long-term nexus between EI and its factors in Indonesia during 1990–2016.FindingsResults show that domestic credit to the private sector, as well as the share of alternative energy, has a significant impact on the decline of EI in Indonesia.Research limitations/implicationsWe do not try to rule out other possible determinants of EI. We consider the determinants of EI using time series data, while an ideal analysis would be based on panel-level data. Another limitation is that the study covers only the small-time period from 1990 to 2016.Practical implicationsOur findings serve to aid the government and policymakers in prioritizing improvements in the sphere of energy policy. An important policy implication, regarding Indonesia, that arises from our study is that, for the country to be able to decrease its EI, it must be able to develop its financial market and zero-carbon energy sources, mainly geothermal energy with its huge potential.Originality/valueWe show that energy prices, financial development and the share of alternative energy sources contribute to EI decrease. Policy recommendations include geothermal and solar energy development as one of the most prospective sources of alternative energy in Indonesia.

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“…This has the potential to be a serious threat for future national energy security, unless long-term strategic planning is considered. The lack of more accessible, cheaper, and cleaner energy sources will impede industrial growth and development of the manufacturing sector in Indonesia, preventing the country from achieving the same performance as its neighbors [9]. To this end, further investigation into the utilization of both conventional as well as sustainable energy technologies appears to be pertinent for further development and the economic growth of Indonesia [10][11][12].…”

Section: Introductionmentioning

confidence: 99%

A PESTLE Policy Mapping and Stakeholder Analysis of Indonesia’s Fossil Fuel Energy Industry

2018

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Indonesia has a long-standing history of reliance on fossil fuels, which reflects the country's vast reserves of crude oil, natural gas, coal, and other resources. Consequently, the potential of Indonesia's fossil energy industry is both complex and multi-layered. This paper aims to carry out a policy mapping and stakeholder analysis of Indonesia's fossil energy industry, adopting a PESTLE (Political, Economic, Social, Technology, Legal, and Environmental) approach, which allows identification of multidisciplinary stakeholders and underlying relationships across the sector. The outcomes from the analysis indicated the importance of strategically aligning the stakeholders' policies to the needs of other relevant stakeholders. Furthermore, the central and regional governments need to work closely in order to better sense if there is a change in the policy, be receptive to anticipating the potential impacts, and to avoid policies being executed in an isolated manner.

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What can Indonesia learn from China's industrial energy saving programs?

Cited by 11 publications

References 31 publications

A study of management decisions to adopt emission reduction measures in heavy industry in an emerging economy

A study of management decisions to adopt emission reduction measures in heavy industry in an emerging economy

The determinants of energy intensity in Indonesia

A PESTLE Policy Mapping and Stakeholder Analysis of Indonesia’s Fossil Fuel Energy Industry

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