Energy Poverty and Its Determinants at Subnational Level of Indonesia in 2021

Abstract

In the coming decades, the energy sector will soon be faced with three major transformations, one of which is energy poverty. The World Economic Forum defines energy poverty as people's limited access to modern energy services and products. Access to modern energy has not been fully met for all regions in Indonesia and disparities between regions still occur. For this reason, indicators are needed to measure the level of energy poverty at both the national and district/city levels. This study aims to analyze energy poverty in Indonesia and determine its determinants using the Multidimensional Energy Poverty Index (MEPI) approach. The data used is the March National Socio-Economic Survey and BPS Village Potential in 2021. This research uses Geographically Weighted Regression (GWR) to determine the determinants of Indonesia's multidimensional energy poverty at the district/city level in 2021. It was found that there were still inequalities in energy poverty conditions in most of Indonesia's districts/cities. Analysis using the GWR model resulted in 66 regional groups that were grouped based on the similarity of variables that had a significant effect. The level of influence of the independent variables vary across districts/cities as consequence of spatial heterogeneity in the data.