Forum Kajian Pembangunan Hosted by Pusat Penelitian Ekonomi-LIPI: Energy Poverty under the Jokowi Presidency: Performance, Policies and Challenges

The presentation aimed to investigate the state of energy poverty in Indonesia. His study has three objectives:

(i) to evaluate the condition of energy poverty in Indonesia during the Joko Widodo Presidency;
(ii) to investigate existing energy policies that affect energy poverty alleviation;
(iii) and to propose further actions. We focused on two dimensions of energy poverty such as electricity access and clean energy for cooking.

In terms of definition of energy poverty, Indonesia does not have a consensus on the standard of electricity access. The electrification ratio that is planned to reach 100% this year, may not reflect the true condition. Similarly, a high number on rural electrification ratio, does not a means equal electricity access. Although clean energy for cooking has improved significantly since 2007, Indonesia has been trapped into energy subsidy for 3 Kg LPG. This may reduce resources to alleviate ‘double energy poor’.

Although, problem on clean energy for cooking is more severe that electricity access, the percentage of villages without access on electricity have lower index of development and index of rural geographic difficulty. Thus, implies that providing infrastructure for improving electricity access will have better outcome on the rural development index.

He proposed some policy recommendations, including:

  • Indonesia need consistent policy to alleviate energy poverty in terms of absolute and relative
  • Better access on energy needs to have better quality and environmentally friendly
  • Energy access can enhance more productive economic activity and for better education and health
  • Village fund needs to be allocate for better access on energy
  • PLN needs to work with village government to provide more equal electricity access
  • Transforming electricity access from temporary used do permanent used need to be a top priority
  • Government needs to re-thinking energy subsidy policy and energy subsidy needs to be provided to poor energy family’ or the dual energy poor family

Speaker: Dr. Maxensius Tri Sambodo (Pusat Penelitian Ekonomi - LIPI)
Host: Pusat Penelitian Ekonomi - LIPI
Date and Venue: 16 April 2020, Zoom Meeting
More information:

 Energy poverty, Jokowi