Energy Intensity Analysis of Coal and Electricity in The Manufacturing Industry Sector in Indonesia 2007–2015

Authors

  • Olive Alexander Ambardhy Program Studi Ekonomi Pembangunan Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis, Universitas Airlangga Author

DOI:

https://doi.org/10.55208/wxbgaa54

Keywords:

Energy Intensity, Coal, Electricity, Manufacturing Industry

Abstract

This study has two objectives, first to decompose and compare the energy intensity of coal and electricity in the manufacturing sector in Indonesia. The second is to analyze what factors influence the energy intensity of the manufacturing industry sectors. The methods used in achieving these objectives are decomposition analysis and panel data regression analysis. The results of the decomposition analysis show that the efficiency effect dominates changes in energy intensity than the activity effect. Furthermore, the results of panel data analysis show that the variables of energy prices, intensity of machine maintenance and repair, intensity of raw materials, and intensity of machines have a significant effect on changes in energy intensity in the manufacturing sector in Indonesia in the time span from 2007 to 2015.

References

Ang, B., & Lee, S. (1994). Decomposition of industrial energy consumption some methodological and application issues. Energy Economics, 16(2), 83-92.

Bertrand, M., Duflo, E., & Mullainathan, S. (2004). How Much Should We Trust Differences in Differences Estimates? The Quarterly Journal of Economics, 249-275.

Bhattacharyya, S. C. (2011). Energy Economics Concepts, Issues, Markets and Governance. London: Springer.

Blanchard, O. (2017). Macroeconomics (7 ed.). Edinburgh Gate: Pearson.

Boyd, G., & Roop, J. (2004). A Note on the Fisher Ideal Index Decomposition for Structural Change in Energy Intensity. The Energy Journal, 25(1), 87-101.

Boyd, G., McDonald, J., & Hanson, D. (1987). Separating the Changing Composition of U.S. Manufacturing Production from Energy Efficiency Improvements: A Divisia Index Approach. The Energy Journal, 8(2), 77-96.

BPPT. (2020). Outlook Energi Indonesia 2020. Jakarta: BPPT.

BPS. (2015). Klasifikasi Baku Lapangan Usaha 2015. Jakarta: BPS.

BPS. (2020). Statistik Industri Manufaktur Indonesia 2018. Jakarta: BPS.

BPS. (2021, Februari 1). BPS. Retrieved from BPS: https://www.bps.go.id/subject/52/produk-domestik-regional-bruto--lapangan-usaha-.html

Bridle, R., Mostafa, M., & Suharsono, A. (2019, Mei 5). Indonesia's Coal Price Cap: A barrier to renewable energy deployment. Retrieved from IISD: https://www.iisd.org/publications/indonesia-coal-price-cap

Dewan Energi Nasional. (2016). Outlook Energi Indonesia 2016. Jakarta: Sekretariat Jenderal Dewan Energi Nasional.

Dewan Energi Nasional. (2019). Outlook Energi Indonesia 2019. Jakarta: Dewan Energi Nasional.

Direktorat Jenderal Anggaran. (2019). Informasi APBN 2019. Jakarta: Direktorat Jenderal Anggaran.

Enerdata. (2019, September 28). Energy Intensity. Retrieved from Enerdata: https://yearbook.enerdata.net/total-energy/world-energy-intensity-gdp-data.html

Fisher, I. (1921). The Best Form of Index Number. Quarterly Publications of the American Statistical Association, 17(133), 533-537.

Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). New York: McGraw-Hill/Irwin.

Gujarati, D., & Porter, D. (2009). Basic Econometrics (5 ed.). New York: McGraw-Hill.

Guo, X., Xiao, B., & Song, L. (2019). What cause the decline of energy intensity in China's cities? A comprehensive panel-data analysis. Journal of Cleaner Production, 233, 1298-1313. doi:https://doi.org/10.1016/j.jclepro.2019.06.075

Hasanbeigi, A., de la Rue du Can , S., & Sathaye, J. (2012). Analysis and Decomposition of the Energy Intensity of Industries in California. Energy Policy, 46, 234-245.

Irawan, T., Hartono, D., & Achsani, N. (2014). An Analysis of Energy Intensity in Indonesian Manufacturing. International Research Journal of Finance and Economics, 1-11.

Karimu, A., Lundgren, T., Brännlund, R., & Söderholm, P. (2016). Energy Intensity and Convergence in Swedish Industry: A Combined Econometric and Decomposition Analysis. CERE Working Paper, 8, 1-27.

Kartiasiha, F., Syaukat, Y., & Anggraeni, L. (2012). Determinan Intensitas Energi di Indonesia The Determinants of Energy Intensity in Indonesia. Jurnal Ekonomi dan Pembangunan Indonesia, 12(2), 192-214.

Kementerian Energi dan Sumber Daya Mineral. (2018). Data dan Informasi Konservasi Energi 2018 Edisi II. Jakarta: Kementerian Energi dan Sumber Daya Mineral.

Kementerian Energi dan Sumber Daya Mineral. (2019). Handbook of Energy and Economic Statistics of Indonesia 2018. Jakarta: Kementerian Energi dan Sumber Daya Mineral.

Kementerian Perindustrian. (2015). Rencana Induk Pembangunan Industri Nasional 2015-2035. Jakarta: Pusat Komunikasi Publik Kementerian Perindustrian.

Lam, K., Kenway, S., Lane, J., Islam, K., & de Berc, R. (2019). Energy intensity and embodied energy flow in Australia: An input-output analysis. Journal of Cleaner Production, 226, 357-368. doi:https://doi.org/10.1016/j.jclepro.2019.03.322

Lind, D., Marchal, W., & Wathen, S. (2018). Statistical Technoques in Business & Economics (17 ed.). New York: McGraw-Hill.

Metcalf, G. E. (2008). An Empirical Analysis of Energy Intensity and Its Determinants at the State Level. The Energy Journal, 29(3), 1-26.

Peraturan Pemerintah Republik Indonesia Nomor 79 Tahun 2014 tentang Kebijakan Energi Nasional. (n.d.).

Pindyck, R., & Daniel, R. (2013). Microeconomics. New Jersey: Pearson.

Samargandi, N. (2019). Energy intensity and its determinants in OPEC countries. Energy, 186, 1-10. doi:https://doi.org/10.1016/j.energy.2019.07.133

Schwarz, P. M. (2018). Energy Economics. New York: Routledge.

Segal, T. (2021, Januari 2). Investopedia. Retrieved from Import Substitution Industrialization—ISI: https://www.investopedia.com/terms/i/importsubstitutionindustrialization.asp#:~:text=Import%20substitution%20industrialization%20(ISI)%20is,their%20dependence%20on%20developed%20countries.&text=Under%20ISI%20theory%2C%20the%20process,their%20nations%2C%20

Soni, A., Mittal, A., & Kapshe, M. (2017). Energy Intensity analysis of Indian manufacturing industries. Resource-Efficient Technologies, 3, 353–357. doi:http://dx.doi.org/10.1016/j.reffit.2017.04.009

Suharsono, A., & Gençsü, I. (2019, Juni 27). G20 coal subsidies: Indonesia. Retrieved from IISD: https://www.odi.org/publications/11357-g20-coal-subsidies-indonesia

Worldbank. (2020, September 28). Energy Intensity Level of Primary Energy (MJ/$2011 PPP GDP). Retrieved from Worldbank: https://data.worldbank.org/indicator/EG.EGY.PRIM.PP.KD?end=2015&locations=ID-MY-TH-BN&start=1990

Yanagisawa, A. (2011). Trade-off in energy efficiencies and efficient frontier: relationship between GDP intensity and energy consumption per capita and what it means. The Institute of Energy Economics, 1-11.

Yudiartono, Anindhita, Sugiyono, A., Wahid, L. M., & Adiarso. (2018). Outlook Energi Indonesia 2018 Energi Berkelanjutan untuk Transportasi Darat. Jakarta: Badan Pengkajian dan Penerapan Teknologi.

Yusgiantoro, P. (2000). Ekonomi Energi Teori dan Praktik. Jakarta: LP3ES.

Zweifel, P., Praktiknjo, A., & Erdmann, G. (2017). Energy Economics Theory and Applications. Berlin: Springer.

Published

29-04-2022

How to Cite

Ambardhy, O. A. (2022). Energy Intensity Analysis of Coal and Electricity in The Manufacturing Industry Sector in Indonesia 2007–2015. Jurnal Ekonomi, Bisnis & Entrepreneurship, 16(1), 19-39. https://doi.org/10.55208/wxbgaa54