Abstract
Indonesia's transport sector has experienced rapid growth that has caused excessive fossil fuel energy consumption. Over 2000 to 2016 total final energy consumption in Indonesia’s transport sector has grown by 10% per annum so that transport now provides a large and rapidly growing component of total energy use. This study analyzes the specific characteristics of energy intensity in the transportation sector in Indonesia from 2000 to 2016 by employing a multiplicative Log Mean Divisia Index-II. The passenger transport sector in Indonesia, including the four modes of road, rail, water and air is examined in this study. Overall, the decline in energy intensity in passenger transport is attributed to the intensity effect. In passenger transport, the improvement of intensity effect was found to have significantly reduced the overall aggregate energy intensity, while the change in structural effect was found to have a relatively small reduction in the aggregate energy intensity.
Highlights
Indonesia’s transportation energy consumption is rapidly increasing, primarily due to rising economic activity and population growth
Since the transportation sector in Indonesia is very complex and the statistical energy data in the transportation sector is limited, this study only investigates Indonesia’s passenger transportation for a limited period
In spite of being a country with many archipelagos, the road transport contributed the largest turnover in passenger transport, whereas air, waterways and rail transport did not play a significant role in the passenger transportation in Indonesia
Summary
Indonesia’s transportation energy consumption is rapidly increasing, primarily due to rising economic activity and population growth. Indonesia’s transportation sector has gone through the rapid development, causing a significant use of fossil fuel energy consumption. This sector uses more than 60% of Indonesian’s total oil use, approximately 70% of which is consumed in road transportation [2]. Starting from 2005, the Indonesian Government had cut subsidies for energy and increased fossil fuel prices more than threefold. The purpose of this energy price reform was to limit the difference between international and domestic prices and to bring decrease the burden on the state budget; as the budget for fuel subsidies accounted a substantial percentage in the national state budget [4]
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