Electricity Consumption, GRDP, Discriminant Analysis, Regions, Economic Corridor


Indonesia faces unique challenges in developing an appropriate electricity policy to deal with its underdeveloped regions. This paper attempts to explore some spatial patterns of electricity consumption in 14 PLN’s distributive regions over the period of 1993-2010. Our analysis pioneers the study of Indonesia's electricity consumption and regional development that incorporates geography. Discriminant analysis proves to be useful as the basis to integrate the formulation of regional electricity development policy. The findings suggest that Indonesia needs development policies that incorporate regional variations in terms of population, industrialisation, electricity development and poverty. More importantly, Indonesia can enhance the performance of regions by taking into account the spatial dimension of population, industrialisation, electricity development and poverty. Our findings offer some insights into the spatial aspect of Indonesia's electricity consumption and regional development.

Full Text : PDF

  • Adams, J. and Pigliaru, F., 1999. Economic growth and change: national and regional patterns of convergence and divergence. Economia Politica, 3: 509-511.
  • Altinay, G. and Karagol, E., 2005. Electricity consumption and economic growth: evidence from Turkey. Energy Economics,  27: 849-856.
  • Badan Pusat Statistik (BPS), 2011a. Produk Domestik Regional Bruto atas dasar harga konstan 2000 menurut provinsi, 2004-2010 [Regional gross domestic products based on constant price 2000 by provinces, 2004-2010], Retrieved July 25, 2012, from
  • Baldwin, E.D., Thraen, C.S., and Larson, D.W. 1984. A discriminant analysis of grain market structure in selected states of the South and Cornbelt. Southern Journal of Agricultural Economics, December: 117-125.
  • BPS, 2011b. Penduduk Indonesia menurut provinsi 1971, 1980, 1990, 1995, 2000 and 2010 [Indonesia population based by provinces 1971, 1980, 1990, 1995, 2000 and 2010]. Retrieved January 24, 2013, from Table=1&daftar=1&id_subyek=12&notab=1.
  • BPS, 2011c. Data Sosial Ekonomi [Economic Social Data], 3 August, Jakarta: BPS.
  • Chen, S. T., Kuo, H. I., and Chen, C. C., 2006. The relationship between GDP and electricity consumption in 10 Asian countries. Energy Policy, 35: 2611-2621.
  • Coordinating Minister of Economic Affairs (CMEA), 2011. Masterplan for Acceleration and Expansion of Indonesia Economic Development 2011-2025. Jakarta: Coordinating Ministry for Economic Affairs, Republic of Indonesia.
  • Costa-Campi, M. T. and Elisabet Viladecans-Marsal, E., 1999. The district effect and the competitiveness of manufacturing companies in local productive systems. Urban Studies, 36: 2090.
  • Dillon, William R. and Goldstein, 1984. Multivariate Analysis Methods and Application. New York: John Wiley & Sons Inc.
  • Fujita, M, Krugman, P, and Venables, A.J., 1999. The Spatial Economy: Cities, Regions and International Trade. Cambridge, MA.: MIT Press.
  • Granger, C. W. J., 1969. Investigating Causal Relation by Econometric Models and Cross-Spectral Methods. Econometrica, 37(3): 424-438.
  • Granger, C. W. J. and Newbold, P., 1974. Spurious regressions in econometrics. Journal of Econometrics, 2: 111-120.
  • Harsono, T. D. and Kuncoro, M., 2013. Electricity consumption and economic growth: a causality evidence from six economic corridors of Indonesia, 1984-2010, International Journal of Business, Economics and Law, 2: 33-55.Hill, H., 1989. Unity and Diversity: Regional Economic Development in Indonesia Since 1980. Singapore: Oxford University Press. 
  • Koperski, K., and Han, J. 1995. Discovery of spatial association rules in geographic information databases. 4th international symposium on large spatial databases (SSD95). Portland, Maine.
  • Krugman, P., 1995. Development, Geography, and Economic Theory. Cambridge and London: The MIT Press.
  • Krugman, P., 1991. Geography and Trade. Cambridge MA: MIT Press.
  • Kuncoro, M., 2004. Otonomi dan Pembangunan Daerah [Regional Autonomy and Development]. Jakarta: Erlangga.
  • Kuncoro, M., 2012a. Perencanaan Daerah: Bagaimana Membangun Ekonomi Lokal, Kota, dan Kawasan [Regional Planning: How to Develop Local Economy, Cities and Zones]. Jakarta: Salemba Empat.
  • Kuncoro, M., 2012b. Ekonomika Aglomerasi: Dinamika dan Dimensi Spasial Kluster Industri Indonesia [Economics of Agglomeration: Dynamics and Spatial Dimension of Indonesia’s Industrial Clusters]. Yogyakarta: UPP STIM YKPN.
  • Kuncoro, M., 2013a. Economic geography of Indonesia: can MP3EI reduce inter-regional inequality? South East Asia Journal of Contemporary Business,Economics, and Law,2(2):17-33.
  • Kuncoro, M., 2013b. Economic geography of small and cottage industrial clusters in Java Island Indonesia. Global Advanced Research Journal of Geography and Regional Planning, 2(1): 006-018. 
  • Kuncoro, M. and Putro, S., 2013c. Economic geography of Indonesia’s manufacturing industry. Faculty of Economics and Business Working Paper. Yogyakarta: Universitas Gadjah Mada.
  • Krzanowski, W.J. and Marriott, F.H., 1995. Multivariate Analysis Part 2 Classification, Covariance Strutures And Repeated Measurements. London: Hodder Arnold.
  • Megalooikonomou, V., Kontos, D., Pokrajac, D., Lazarevic, A. and Obradovic, Z. (2008). An adaptive partitioning approach for mining discriminant regions in 3D image data, J Intell Inf Syst, 31:217242.
  • MEMR, 2010. Statistik listrik [Statistic of electricity]. Retrieved 10 August 10, 2010, from  statistiklistrik.html.
  • MEMR, 2011. Undang-Undang Nomor 30 Tahun 2009 tentang Ketenagalistrikan [Law No. 30 Year 2009 on Electricity], Retrieved September 12, 2011, from http://www.esdm.
  • Ministry of Finance (MoF), 2013. Budget Statistics 2007-2013. Jakarta: MoF.
  • Murry, D. A., & Nan, G. D., 1996. A definition of the Gross Domestic Product–electrification interrelationship. The Journal of Energy and Development, 19(2), 275-283.
  • Perusahaan Listrik Negara (PLN), 2010. Statistik PLN (1984-2010) [PLN by Statistics (1984-2010)]. Jakarta: PLN
  • Porter, M.E., 2003. The Performance of Regions. Regional Studies, 37.6 & 7: 549-578.
  • Rodriguez-Pose, A., 1998. The Dynamics of Regional Growth in Europe: Social and Political Factors. Oxford: Clarendon Press.
  • Shiu, A. and Lam, P.L., 2004. Electricity Consumption and Economic Growth in China.   Energy Policy, 32(1), 47-54. 
  • Yoo, S. H., 2006. Electricity consumption and economic growth: evidence from Korea. Energy Policy, 33: 1627-1632.
  • Tabachnick, B. G., & Fidell, L. S., 1996. Using Multivariate Statistics (3rd ed.). New York: Harper Collins.
  • Yunusa, A.J.,  Salako, A.E., and Oladejo, O. A. 2013. Morphometric characterization of Nigerian indigenous sheep using multifactorial discriminant analysis. International Journal of Biodiversity and Conservation, 5(10), pp. 661-665, Retrieved July 1, 2014, from