2020
DOI: 10.32479/ijeep.9223
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Assessing the Energy Subsidy Reform in Indonesia Through Different Scenarios

Abstract: This paper provides a comprehensive study on energy subsidy reform simulations in Indonesia by employing two new approaches, namely, the Almost-Ideal Demand System Iterated Linear Least-Square and SUBSIM. Periods of low and high oil prices are also accounted in this paper; further, it reveals that in 1999, when oil prices were low, this reform was possible due to Indonesia's status as a net oil exporter and precise selected-reformed energy goods; however, the major concerns were the unsupporting welfare situat… Show more

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Cited by 5 publications
(4 citation statements)
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“…1 A household that does not consume cigarette items has zero value of consumption; thus, such a household has a missing price unit of cigarette items. To overcome this issue, the value of the missing price unit will use the nearest household price data (similar strategy was applied by (Murjani, 2020). Lecocq & Robin (2015) stated that the common AIDS (Deaton & Muellbauer, 1980) and QUAIDS (Banks et al, 1997) model can suffer the endogeneity problem.…”
Section: Datamentioning
confidence: 99%
“…1 A household that does not consume cigarette items has zero value of consumption; thus, such a household has a missing price unit of cigarette items. To overcome this issue, the value of the missing price unit will use the nearest household price data (similar strategy was applied by (Murjani, 2020). Lecocq & Robin (2015) stated that the common AIDS (Deaton & Muellbauer, 1980) and QUAIDS (Banks et al, 1997) model can suffer the endogeneity problem.…”
Section: Datamentioning
confidence: 99%
“…Energy subsidy is defined as certain value that is discounted by government to companies or domestics towards certain goods/ commodity, hence they afford to purchase the goods with cheaper price and obtain more goods, if being compared with the purchasing condition before being subsidized. For electrical energy, the government has already accommodated public with the subsidy, in the form of price reduction for basic rate of electricity (Murjani, 2020). The electricity subsidy only addressed to certain customers, which is the group of social customers (S1 and S2), domestics (R1), business (B1) and industry (I1) with installed capacity of 450 VA for monthly consumption up to 60 kwh.…”
Section: Literature Reviewmentioning
confidence: 99%
“…West Java Province as the most populous province in Indonesia with 48.68 million people in 2018, certainly has a high energy demand . On the other hand, West Java has some fairly complete energy potential, both from fossil and renewable energy (Murjani, 2020). This is an attraction to study the energy potential of West Java Province, and its strategy in realizing Regional Energy Security to support National Energy Security.…”
Section: Introductionmentioning
confidence: 99%
“…This is an attraction to study the energy potential of West Java Province, and its strategy in realizing Regional Energy Security to support National Energy Security. Several studies have examined the optimization of energy efficiency within the national context (Bridge, 2015;Aized et al, 2018;Murjani, 2020;Romadhoni and Akhmad, 2020;Dooyum et al, 2020). However, no research has been done to measure Indonesia's potential and level of energy security, especially at the regional level.…”
Section: Introductionmentioning
confidence: 99%