Modeling of geothermal energy policy and its implications on geothermal energy outcomes in Indonesia

Abstract

PurposeThis study aims to improve the performance of geothermal energy. Therefore, this research requires a deep examination of the determinant factors that affect the performance of geothermal energy; the results of this study are expected to increase the outcomes that can be enjoyed by the people of Indonesia.Design/methodology/approachThis research uses quantitative approach. Data are obtained via questionnaires. The population in this study is all stakeholders of the national geothermal energy policy throughout the region. The stakeholders in question are the Community Care for Energy and the Environment (MPEL), using a sample of 400 respondents. The variables used were human resource capacity (X1), political resource capacity (X2), economic resource capacity (X3), social resource capacity (X4), performance of geothermal energy policy (Y1) and geothermal energy policy outcomes (Y2). Data analysis used to solve hypothetical model built in this research is partial least square.FindingsWhile human resource, political resource, economic resource and social resource capacities affect the performance of geothermal energy policy, those capacities directly affect the performance of geothermal energy policies. On the other hand, the results of the indirect effect test show that with the mediation of good geothermal energy policy, it will be seen that the effect of human resource capacity, political resource capacity, capacity of economic resources and the capacity of social resources to the utilization of geothermal energy. The utilization of geothermal energy cannot be directly felt by the community without the support of the formulation of geothermal energy policy or unless it is supported by high human resources, political resources, economic resource and social resource capacities.Originality/valueNo previous research has comprehensively examined the effect of human resource, political resource, economic resource and social resource capacities on geothermal energy policy and its implications for the outcomes of geothermal energy policy.