Inequality in Indonesia's Electricity Access

  • Khalid Zuhri BPS-Statistic of Central Kalimantan Province, Palangka Raya, Indonesia
  • Lukytawati Anggraeni Department of Economics, IPB University, Bogor, Indonesia
  • Tony Irawan Department of Economics, IPB University, Bogor, Indonesia
Keywords: electrification, electricity consumption, Lorenz, probit

Abstract

This study aims to look at the inequality of electricity access experienced by households in Indonesia by measuring the distribution of household energy consumption and electrification determinants based on regional and household characteristics with the probit model. The data used Susenas 2018 data, with a total sample of 282 772 households. The Gini coefficient value of electricity consumption shows that in urban Indonesia the inequality of consumption between households is relatively more unequal than in rural areas. PLN's electricity access in Indonesia from the household side is strongly influenced by the level of education and gender of the head of the household. Territorial status and homeownership status are obstacles to PLN's electricity access. Access to electricity in rural areas is still relatively low due to Indonesia's geographical factors which are very difficult and require large costs for electricity infrastructure in the region. The role of the private sector needs to be increased through the public-private partnership (PPP) program in the development of electricity infrastructure and CSR programs related to the provision of electricity access to PLN for people who do not have access to electricity, especially in rural areas.

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Published
2020-01-06
Section
Articles