Renewable energy policy scenarios as implementation moderation of fuel subsidy policy in Indonesia

Abstract

PurposeThis paper aims to examine the effect of communication, resources, disposition and bureaucratic structure to the success of energy subsidy policy, to examine the effect of moderation of variable scenario of renewable energy policy on the influence of communication, resources, disposition and bureaucracy structure on the success of energy subsidy policy.Design/methodology/approachThis study was purposively (based on specific objectives) conducted in Jakarta, which is associated with the implementation and subsidy policy scenario, the study focused on the center of government, namely, the capital city, Jakarta. Collection of data in this research survey was conducted in June-August 2017. The sampling technique was proportional stratified random sampling that took up most of the 770 members of Masyarakat Peduli Energi dan Lingkungan and Masyarakat Energi Terbarukan Indonesia using a representative sample of results that have the ability to be generalized. Based on the formula Slovin (Solimun and Fernandes, 2017), a sample of 145 respondents was obtained. The research approach used was a quantitative with the analysis tool called the generalized structure component analysis.FindingsThis paper exhibited that all relationships between variables have a p-value of 0.05 except the third moderation and fourth moderation relationship. So it can be said that all relationships between variables are significant except the relationship between the variables of moderation to the relationship between the disposition variable (X3) on the successful implementation of subsidy policy (Y) and the relationship between the moderation variable to the relationship between bureaucracy structure variable (X4) to the successful implementation of subsidy policy.Originality/valueThe originality of the research refers to the following: The Policy Theory described by Edwards III (1980), and reinforced by the findings of Ratminto and Winarsih (2005), and Bloom et al. (2009), that communication, resources, dispositions and bureaucratic structures affect the success of the energy subsidy policy. This becomes the formulation of a hypothesized research problem whether communication, resources, disposition and bureaucratic structure affect the success of the energy subsidy policy. In fact, the conditions in Indonesia are quite different from the Western world, and the system in Indonesia has embraced subsidies. Therefore, this study also examines the moderating effects of renewable energy policy scenarios in the relationship between communication, resources, dispositions and bureaucratic structures on the success of the subsidy policy energy. Given that there is no strong theory that examines the effects of moderation of these four factors on the success of the energy subsidy policy. Therefore, as the development of Edward III Theory, this study examines the proposition of whether renewable energy policy scenarios reinforce or weaken (moderation effects) on the effects of communication, resources, dispositions and bureaucratic structures on the success of energy subsidy policies.