Coal Energy and Macroeconomic Conditions

This study examines and analyzes the energy economic policy of Indonesia with population, energy consumption and its macroeconomic condition in the short-run and long-run. In the long run, this study found that the non-renewable energy will be replaced with renewable energy. One of Indonesia's imported energy commodities is fuel and engine oil consumer goods. Based on the unit root test results, the Autoregressive Distributed Lag (ARDL) Model is the most appropriate model used in this study. The coefficient of determination indicated by the R-squared is 0.967579, which means the model can explain 96.8% of the international trade and its macroeconomic factors on the volume of imported fuel and engine oil in Indonesia. This study uses independent variables like total population, vehicle volume, gross domestic product (GDP), exchange rates, and foreign exchange reserves. These variables were fruitful in explaining the critical factors in the imported volume of fuel and engine oil, which are essential public goods used in daily activities and have to meet the people's consumption. In addition, the result reveals that the interesting thing is in the long run, the total population negatively affects fuel and engine oil imports in Indonesia.

Section: Gross Domestic Product and Imported Fuel And Engine Oilsupporting

confidence: 91%

Section: Consumptionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Sustainable Energy Economic Policy: Population, Energy Consumption, and Macroeconomic Conditions

Priyadi

Atmadji²,

Artiani³

et al. 2022

“…An exchange rate is the price that appears when the currency of one Country is converted or exchanged for the currency of another Country (Utomo et al, 2021) added that the exchange rate of one currency affects the economy if the exchange rate of that currency appreciates or depreciates. The trend of the Indonesian currency exchange rate continues to increase the depreciation rate.…”

Section: Literature Reviewmentioning

confidence: 99%

World Oil Prices and Exchange Rates on Islamic Banking Risks

Ryandono

Imron

Wildan

2022

Self Cite

Islamic banking risks are influenced by many factors, facing internal and external banking risks. In this study, the internal banking risks are represented by Credit risk as measured by Non-Performing Financing (NPF) and liquidity risks as measured by Financing to Deposit Ratio (FDR). At the same time, world oil prices and exchange rates represent the external banking risks. World oil price data is obtained from OPEC Price, and exchange rate data is obtained from the Pacific Exchange Rate Service. While the data from NPF and FDR is obtained from BI Statistics of Sharia Banking. The results of this study found that world oil prices have a significant effect on credit risk and liquidity risk in Islamic banking. In contrast, the exchange rate only has a significant effect on credit risk in Islamic banking.

“…However, the gradual shift from carbon-based to non-carbon energy sources is hindered by the relatively higher cost of most renewable options when compared to conventional energy sources, apart from hydroelectric and geothermal power (Rokhmawati, 2020). Additionally, the effectiveness of certain renewable energy sources in reducing CO 2 emissions remains a subject of scrutiny (Utomo et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Sustainable Development in Indonesia: A Study of Energy Consumption, CO2 Emissions, FDI, and Gross Capital Formation

Farabi,

Zamroni,

Handayani

et al. 2024

The purpose of this study is to examine how the consumption of renewable and nonrenewable energy, CO2 emissions, FDI, and gross capital formation affect the GDP per capita in the case of Indonesia. This study employs cointegration and ARDL to estimate the short and long-run coefficient which is preceded by ADF and PP unit root test using the annual time series data from 1960 to 2021. The result of the estimation shows that in the long run non-renewable energy consumption, CO2 emission, and FDI impact the economic growth of Indonesia directly. Meanwhile, in the short run, the estimation result reveals that non-renewable energy and FDI are positive and statistically significantly affected the economic growth of Indonesia. Renewable energy hasn't yet been found to have a substantial impact on Indonesia's economic growth. This research offers novel perspectives on how nonrenewable and renewable energy consumption, CO2 emissions, and FDI impact the economic growth. The findings provide valuable implications for Indonesia to develop long-term policies that can enhance the positive effects of energy consumption and CO2 emissions on economic growth in the future. The involvement of FDI in the model also become the novelty of this study to examine the impact of FDI to economic growth.