COAL ENERGY AND MACROECONOMIC CONDITIONS

Selamet Joko Utomo,Mochamad Ali Imron,Titov Chuk'S Mayvani

doi:10.32479/ijeep.11214

Abstract

This paper assesses the effect of coal energy production volume, exchange rate, inflation and gross domestic product on the volume of Indonesia's coal energy exports in 1998-2019. Based on an Autoregressive Distributed Lag (ARDL) approach, in the short run, we find that the coal energy production volume, exchange rate, and gross domestic product has a negative relationship to Indonesia's coal energy exports. However, on the other hand, inflation has a positive relationship to Indonesia's coal energy exports. In the long run, we also find that the coal energy production volume, inflation, and gross domestic product has a positive relationship to Indonesia's coal energy exports. Besides, the exchange rate has a negative relationship to Indonesia's coal energy exports. Keywords: Coal Energy, Exchange Rate, Inflation, Gross Domestic Product, Autoregressive Distributed Lag JEL Classifications: E2, E6, Q4, Q2 DOI: https://doi.org/10.32479/ijeep.11214

Highlights

Indonesia is one of the largest coal energy producing countries in the world
Where EXPt-i is the volume of exports in tonnes, PRODt-i is the amount of coal energy production in tonnes, ERt-i is the Rupiah exchange rate against USD in Rupiah, INFt-i is the inflation rate in percent and GDP is the Product gross domestic product in Rupiah
From the results of the research estimate, the coefficient of Indonesian Coal Energy Production Volume is 0.8497. These results can be interpreted that if the Volume of Indonesian Coal Energy Production increases by 1%, the Indonesian Coal Energy Export Volume will increase by 0.8497%, in which the exchange rate, inflation and Gross Domestic Product variables are considered constant

Summary

Introduction

Indonesia is one of the largest coal energy producing countries in the world It makes Indonesia the largest exporter of coal energy world in 2012, of the total production of coal energy Indonesia, approximately 25% is used for the benefit of the country, while 75% are exported to foreign countries (World Coal Institute, 2013) (International Energy Agency, 2020). Coal energy deposits in Indonesia are scattered on various islands from Sumatra to Papua. These deposits are very much found in large basins such as in Aceh, South Sumatra, East Kalimantan and South Kalimantan. According to (MEMR, 2019), the Geological Agency stated that Indonesia’s coal energy resources reached 124.6 billion tons and coal energy reserves reached 26.2 billion tons. Indonesia’s coal energy reserves are only 0.6% of the world’s total coal energy reserves

Methods

Discussion

Conclusion