The electricity sector before and after the fast track program

Maxensius Tri Sambodo () and Tatsuo Oyama ()
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Maxensius Tri Sambodo: Economic Research Centre, Indonesian Institute of Sciences (P2E-LIPI), Jakarta, Indonesia
Tatsuo Oyama: National Graduate Institute for Policy Studies (GRIPS),Tokyo, Japan

Economics and Finance in Indonesia, 2010, vol. 58, 285-308

Abstract: Underinvestment is a major problem facing Indonesia’s electricity sector after the Asian financial and economic crisis of 1997/98. There are two major issues that will change the structure of Indonesia’s electricity sector. First, the Indonesian government in 2009 issued the Electricity Law No 30/2009. This law adopted the autonomy principle, which meant that the local governments assume the responsibility to build power plants. Second, Indonesia has implemented the ‘Fast Track’ program. This program not only affects the energy mix in the electricity sector, but also the Indonesian government emissions target following the Copenhagen Accord. In a quantitative analysis, we constructed a growth model, diversity index and energy-CO2 converting formula, and a coefficient variation index. This paper offers policy recommendations on how the Indonesian government can pursue sustainable development in dealing with the fast track program and the new institutional setting

Keywords: electricity sector; fast track program; autonomy principle; CO2 emissions (search for similar items in EconPapers)
JEL-codes: O10 Q48 Q56 (search for similar items in EconPapers)
Date: 2010
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