Keyword

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

Abstract

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.


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