Electricity Consumption, GRDP, Discriminant Analysis, Regions, Economic Corridor
Indonesia faces unique challenges in developing appropriate electricity policy to deal with its underdeveloped regions. This paper attempts to explore some spatial patterns of electricity consumption in 14 PLNâ€™s distributive regions over the period of 1993-2010. Our analysis pioneers the study of Indonesiaâ€™s electricity consumption and regional development that incorporates â€˜geographyâ€™. 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 about spatial aspect of the Indonesiaâ€™s electricity consumption and regional development.
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