Modern energy consumption in Indonesia: Assessment for accessibility and affordability

Abstract

The Indonesian Government, in the last decade, attempted to increase modern energy consumption through the implementation of the Liquid Petroleum Gas (LPG) conversion program and the construction of numerous power generators. The attempt hoped to increase access to modern energy. This study investigates the Government modern energy projects by assessing both the accessibility and affordability of modern energy consumption in urban-rural areas and across different income level households. This study measured the changes in energy access in different household categories as well as the energy burden of each household category using descriptive statistics. The present study confirmed the roles of access and income in energy spending using multiple regression analysis. The result showed that household access to modern energy significantly increased in all household categories. However, access to rural households and low-income households still needed improvement. Besides, there was no proof of energy poverty in low-income households. The results also revealed that modern energy access, income, and head of household education were the major determinants of energy spending, especially for low-income household and rural areas. Hence, if Government wants to improve energy consumption, households are willing to consume modern energy if the supply is available. However, the education and financial ability will also be main consideration in determining energy consumption level.