Analysis of Energy Efficiency on the Manufacturing Industry in Indonesia

Peggy Hariwan, Bambang Juanda, Sri Mulatsih, Himawan Hariyoga


The use of fossil energy in Indonesia has been constantly increasing, especially on the manufacturing industry, the largest contributor to Indonesia’s gross domestic product (GDP). Meanwhile, Indonesia’s fossil energy reserve has been declining. Energy efficiency is one of the solutions to maintaining the industry’s output. This research looks into the structures of Indonesia’s manufacturing industry based on its energy use and how the industry has been conducting energy efficiency policies from time to time.

Keywords: Energy efficiency, decomposition analysis, Indonesia, manufacturing industry

JEL Classifications: L60, Q28, Q4


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