MACROECONOMIC - BUSINESS CYCLE

INDONESIAN GDP GROWTH ANALYSIS

ENERGY SECTOR

Syndicate 3 - BLEMBA 64B

Fiemaelia Puterisantoso 29120569

Indriani Suryadi 29120608

Yocky Tegar Herdiansyah 29120557

Economy Structure of Energy Sector in Indonesia

Coal Geothermal
Household Commercial

Oil and Gas Water

Industry Transportation
BBM,LISTRIK, BATUBARA,LPG,
BIOFUEL
Renewable

DEMAND
SUPPLY
GROWTH DRIVERS

Population - Economy - Energy Prices - Resource - Technology - Policy - Strategic - Environmental Conditions
YoY GDP Growth Rate (%) of ENERGY SECTOR
2000-2002 : Recovered after
economy crisis, focus on policy
refinement
2003-2005: Oil Price in the world
was spiked, otherwise Indonesia
become an Oil Importer Country
2003 : The governance establish
PT Pertamina to increase domestic
oil production
2006: The governance launch Fast track program and also the new
2014-2016 : Global phenomenon of oil crash
policy named KEN and DEN
2015: Domestic oil refineries are unable to fulfill
2007-2009 : First producing LPG 3 KG to help the poor society to
the demand, import activities are increasing.
consume gas energy
2016: Coal consumption increased due to
2009 : High industrial investment makes the energy consumption
massive export to Australia and Japan
demand increased significantly
2017 : Transition from PT Total to PT Pertamina
2010 : National crisis energy due to the market demand more increase
operates Blok Mahakam
while our production is limited
2018: Relaxation DNI policy to increase foreign
2011 : Production Coal and BBM for PLN consumption is highly
investment
increase
2019-2020 : COVID-19 Impact
2013:: Increasing in BBM price due to cutting budget of subsidy
Global Crisis Commodity Boom Oil Crash
ROADMAP ENERGY SECTOR IN INDONESIA

Energy National Policy strategy:

Utilizing Renewable Energy that the target is 23% of energy consumption in 2025

Renewable Energy: Biomas, Hydroelectricity, Geothermal Energy, Wind Power, Solar Power
Projection & Conclusion

- 2020 was marked by the Covid 19 pandemic which has stopped most economic activities and pushed Indonesia into recession for
the first time since the 1998 crisis, in the context of national economic recovery the Indonesian government has allocated USD
6.76 billion for various different types of energy through new or amended policies like subsidies and intensive.
- Indonesian coal production continues to exceed the target amid falling global coal demand. The realization of coal production
exceeded the target of 550 million tons even though the realization of export and domestic consumption decreased and only
reached 85% and 77%, respectively. The government also continues to encourage increased domestic consumption of coal
through additional PLN and also downstream development of coal.
- In the oil and gas sector, the oil and gas production target is planned to increase. Several policies were issued by the government
to attract investment, including the reuse of the cost recovery performance sharing contract or PSC scheme. The government has
also prepared a fiscal incentive of 120 trillion to regulate domestic gas prices and boost domestic gas consumption
- According to the energy research institute (Wood Mackenzie), Indonesia will experience an energy deficit starting from
2021-2040. It is necessary to have an energy mix strategy with the use of New and Renewable Energy (EBT) (with a target of
23% by 2025) that is more optimal and pays more attention to the availability of sufficient & sustainable energy.
- Based on the assessment of the transitional readiness framework in the electricity sector, Indonesia is considered not yet ready to
make a transition. There are still aspects that can be improved, in particular strengthening the government's political commitment
and improving the quality of the policy framework to support the energy transition.