Centre for Climate Change Financing and Multilateral Policy, Fiscal Policy Office-Ministry of Finance of Indonesia, Indonesia
BibTex Citation Data :
@article{IJRED6145, author = {Dhani Setyawan}, title = {Assessing The Current Indonesia’s Electricity Market Arrangements and The Opportunities to Reform}, journal = {International Journal of Renewable Energy Development}, volume = {3}, number = {1}, year = {2015}, keywords = {analysis; electricity market; Indonesia; reform}, abstract = { Existing subsidy arrangements and institutional settings in the Indonesian electricity sector distort investment decisions and lead to higher cost. Electricity supply is characterized by natural monopoly characteristics, requiring different management by governments than sectors with more straightforward market characteristics. Many countries have undergone significant re-structuring of their electricity sectors, away from one, state owned and vertically integrated monopoly supplier to a setting whereby competition has emerged either at the generation level and/or the retail level. Transmission and distribution networks are typically heavily regulated and transparent access arrangements are put in place as part of the restructuring efforts. The analysis showed that the current structure of Indonesia’s electricity sector firmly within Model 2 (the single buyer model) and highlights that Indonesia is currently towards the less-competitive end of the spectrum of Model 2, identifying significant potential for efficiency enhancing reforms within this structure. Constitutional limitations have hampered previous efforts to restructure the sector in Indonesia but there is significant room for incremental reform to improve incentives in the sector and reduce the cost of generation in the process. }, pages = {55--64} doi = {10.14710/ijred.3.1.55-64}, url = {https://ejournal.undip.ac.id/index.php/ijred/article/view/6145} }
Refworks Citation Data :
Existing subsidy arrangements and institutional settings in the Indonesian electricity sector distort investment decisions and lead to higher cost. Electricity supply is characterized by natural monopoly characteristics, requiring different management by governments than sectors with more straightforward market characteristics. Many countries have undergone significant re-structuring of their electricity sectors, away from one, state owned and vertically integrated monopoly supplier to a setting whereby competition has emerged either at the generation level and/or the retail level. Transmission and distribution networks are typically heavily regulated and transparent access arrangements are put in place as part of the restructuring efforts. The analysis showed that the current structure of Indonesia’s electricity sector firmly within Model 2 (the single buyer model) and highlights that Indonesia is currently towards the less-competitive end of the spectrum of Model 2, identifying significant potential for efficiency enhancing reforms within this structure. Constitutional limitations have hampered previous efforts to restructure the sector in Indonesia but there is significant room for incremental reform to improve incentives in the sector and reduce the cost of generation in the process.
Article Metrics:
Last update:
Sidrap: A Study of the Factors That Led to the Development of Indonesia’s First Large-Scale Wind Farm
The Emergence of Solar Photovoltaic Technology in Indonesia: Winners and Losers
Investigating policies on increasing the adoption of electric vehicles in Indonesia
The Electricity Grid in Indonesia
Review of Policies for Indonesia’s Electricity Sector Transition and Qualitative Evaluation of Impacts and Influences Using a Conceptual Dynamic Model
Implementation of the Independent Single Buyer Mechanism for Indonesian Electricity System: Operational Study Case in Jakarta-Banten System
Indonesia’s energy transition and its contradictions: Emerging geographies of energy and finance
Investigating a Hampered NRE Utilization in Kaltim’s Energy System: Is there an Energy Policy with a Syndrome of the Energy-abundant Area?
Trust in the Process: Renewable Energy Governance in Malaysia and Indonesia
Structure of Electricity Market in Indonesia and The Challenge of Integrating Large Scale VRE
Examining the effectiveness of policies for developing battery swapping service industry
Last update: 2025-07-30 02:38:03
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge. Articles are freely available to both subscribers and the wider public with permitted reuse.
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options: Creative Commons Attribution-ShareAlike (CC BY-SA). Authors and readers can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially, but they must give appropriate credit (cite to the article or content), provide a link to the license, and indicate if changes were made. If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
International Journal of Renewable Energy Development (ISSN:2252-4940) published by CBIORE is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
