Study of the Potential Sharing of the Electricity Subsidy by Regional Government

  • Joko Tri Haryanto Center for Climate Change Financing and Multilateral Policy, Fiscal Policy Agency, Ministry of Finance of Republic of Indonesia,

Abstract

The electricity sector has a very important role as a source of energy that is vital for everyday life, industrial activities and other commercial activities. To keep electricity prices remain affordable to the public, government allocated electricity subsidy in the APBN. Unfortunately, every year electricity subsidy is more swollen. Therefore needs to consider funding the electricity subsidy sharing mechanism with regional governments. To support these mechanisms, necessary to study and trying to see the readiness level of funding in regional government and the division of authority. By using the methodology of mapping analysis, it can be concluded that the judicial authority of the electricity sector although it has been submitted to the region, but still the absolute authority of the Central Government. Based on the Regional Fiscal Capacity analysis, Jakarta Province, East Kalimantan Province, Papua Province of West and North Borneo are areas that deserve to be a top priority. By using the analysis of the development of regional economic growth from 2008 to 2012, the recommended area is the province of West Papua with an average economic growth, approximately 23.28% compared to Jakarta by 7.75% and by 5.08% in East Kalimantan.

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Published
2016-10-09
How to Cite
HARYANTO, Joko Tri. Study of the Potential Sharing of the Electricity Subsidy by Regional Government. Journal of Social and Development Sciences, [S.l.], v. 7, n. 3, p. 30-41, oct. 2016. ISSN 2221-1152. Available at: <http://ifrnd.org/journal/index.php/jsds/article/view/1408>. Date accessed: 28 feb. 2017.
Section
Research Paper