Measuring Efficiency of Fuel Oil Usage in PT PLN: A Short-Run Analysis

Abstract

-This study aims to measure and to analyze the efficiency level of fuel oil usage in units of PT. PLN generation. The study result shows that until now the PLN is still operating in inefficiency condition, because of foil oil usage. The energy consumption level of fuel oil is less efficient compared with coal energy in generating electricity. Based on the short-term CobbDouglass analysis, the average decrease in oil fuel usage efficiency over the period 2011 -2015 is 17.21% per year. Allegedly, even though the portion has decreaseddue to the unsustainable supply of non-fuel fuel, it is important to maintain the use of fuel oil.The government is asked to continue evaluate the use of fuel oil inputs, diversify input energy and increase efficiency in producing electricity in Indonesia.