Indonesian Journal of Agricultural Economics ( IJAE )

Abstract

Indonesia is one country that is in energy utilization. On the other hand the energy supply is relatively stagnant and even showed a declining trend, particularly in fuel oil supply. Therefore very interesting to discuss about the development of energy consumption based on the users and the energy supply by type of energy. Trend analysis is used to show the pattern in energy supply by type of energy and energy consumption according to the user, combined with a descriptive analysis to describe the problems and advantages of the fluctuations that occur from the results of trend analysis are presented. The results show that the energy consumption across all sectors, namely industrial sector, household sector, transport sector, agriculture and other sectors, tends to increase. Meanwhile, the overall energy supply tends to increase, but with a smaller increase than the increase of consumption. This results in Indonesia is highly dependent on imports, especially imports of fuel oil. In order to solve the energy problem in Indonesia is needed for energy conservation, namely by making energy savings campaign, the establishment of energy conservation laws, and establishment of energy conservation center. Besides, it also required a low interest rate policy and a stable exchange rate to encourage investment in energy sector for increased crude oil production and counteract the negative impact of rising world oil prices which led to decrease of energy supply. In the long term need to attempt to shift the use of energy sourced from unrenewable resources to the use of energy that are renewable resources, such as utilization of water energy, wind, biomass, biodiesel, biogas and sustainable energy sources other. In other words needed green energy strategy.