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

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, a...

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Bibliographic Details
Main Authors: Latif Adam, Maxensius Tri Sambodo
Format: Article
Language:English
Published: Universitas Indonesia 2015-04-01
Series:Economics and Finance in Indonesia
Subjects:
Online Access:http://efi.ui.ac.id/index.php/efi/article/view/497
Description
Summary: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.
ISSN:0126-155X
2442-9260