The Price of Electricity in Indonesia

Kristov, Lorenzo

doi:10.1080/00074919512331336835

Cited by 13 publications

(13 citation statements)

References 3 publications

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“…Indonesia's history of subsidies for the consumption of electricity is a long one (McCawley, 1970;Kristov, 1995;Soesastro and Atje, 2005;Burke and Resosudarmo, 2012). The subsidies result from electricity tariffs that have been set at a level below the cost of supplying electricity.…”

Section: Electricity Subsidy Reform In Indonesiamentioning

confidence: 99%

Electricity subsidy reform in Indonesia: Demand-side effects on electricity use

Burke

Kurniawati

2018

Energy Policy

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This Working Paper series provides a vehicle for preliminary circulation of research results in the fields of economic development and international trade. The series is intended to stimulate discussion and critical comment. Staff and visitors in any part of the Australian National University are encouraged to contribute. To facilitate prompt distribution, papers are screened, but not formally refereed.

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Section: Electricity Subsidy Reform In Indonesiamentioning

confidence: 99%

Electricity subsidy reform in Indonesia: Demand-side effects on electricity use

Burke

Kurniawati

2018

Energy Policy

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“…During the mid 1980s, however, PLN planned to expand electricity provision through new legislation allowing greater private provision, as well as by making significant new investments in their own provision. The Electricity Law of 1985, for instance, permitted Independent Power Producers (IPPs) to enter the market by selling electricity directly to PLN (Kristov, 1995). All of these plans were brought to a halt by the Asian financial crisis of 1997, during which PLN's vast quantity of dollar-denominated debt became unserviceable due to the dramatic currency depreciation of the Indonesian rupiah.…”

Section: Institutional Environmentmentioning

confidence: 99%

“…As a response to unreliability, industrial self-generation and use (also called captive power) is widely found and accounts for at least one third of total generation capacity in Indonesia (Pintz and Korn, 2005). The magnitude of captive capacity (the power supply generated by a firm for its own use (Kristov, 1995)) in Indonesia has several undesirable economic consequences for firms. First, as mentioned earlier, it means that industrial firms are diverting a large portion of investment funds away from productive investment to install power (Anas, Lee, and Murray, 1996).…”

Section: Institutional Environmentmentioning

confidence: 99%

You Can't Count on Me: The Impact of Electricity Unreliability on Productivity

Poczter¹

2017

Agric. Resour. Econom. Rev.

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While access to reliable electricity can significantly constrain industrial production, little is known as to how unreliability impacts firm level productivity. This is a particularly salient issue for firms in developing countries, where electricity provision is still unreliable and self-generation is costly. This paper analyzes the impact of electricity provision on productivity, instrumenting for electricity demand with district level solar irradiance. Results indicate that firms exhibit decreasing productivity in the initial stages of electricity adoption that decreases over time. Furthermore, I find that unreliability negatively impacts productivity initially and over time, and this effect is larger for smaller firms.

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“…This topic features in many articles in BIES, from its earliest issues: McCawley (1970) and Kristov (1995) focused on electricity prices; Booth (1977, 58) discussed water charges for irrigation; Dick (1981aDick ( , 1981b raised the topic in articles on urban public transport; and Conroy and Drake (1990, 15-16), Muir (1991, 23), Soesastro and Atje (2005, 27-29), and Kong and Ramayandi (2008, 16) carefully dissected energy and pricing issues.…”

Section: Pricing Controlsmentioning

confidence: 99%

Infrastructure Policy in Indonesia, 1965–2015: A Survey

McCawley

2015

Bulletin of Indonesian Economic Studies

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This survey, first, provides an overview of the main developments in the infrastructure sector in Indonesia during the past five decades and, second, considers what the main policy and management bottlenecks in infrastructure appear to be. The overview of main developments indicates that, in broad terms, most parts of the sector have expanded considerably but that the needs remain acute for further expansion and for attention to the maintenance of existing facilities. Demand for infrastructure is high, especially since the regulated prices set for infrastructure services are often low. Access is often difficult, however, because of shortages of infrastructure, and quality is often unsatisfactory because of poor maintenance and indifferent management. These problems of access are exacerbated by the regulation of prices. This overview also points to the markedly different performances of industries in which pro-competitive policies have been applied and those in which more traditional policies of close regulation have restricted the operation of markets.

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The Price of Electricity in Indonesia

Cited by 13 publications

References 3 publications

Electricity subsidy reform in Indonesia: Demand-side effects on electricity use

Electricity subsidy reform in Indonesia: Demand-side effects on electricity use

You Can't Count on Me: The Impact of Electricity Unreliability on Productivity

Infrastructure Policy in Indonesia, 1965–2015: A Survey

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