Sustainable energy development and its socio-political implications in Indonesia

Sustainable development calls for balanced interrelated policies aimed at economic growth, poverty reduction, social equity and protection of the natural resources and other life-support systems. In Indonesia, to meet the basic needs and improve the quality of people, however, based on the current level of energy consumption, more energy supplies and services are required (Bali Declaration, 2000). Against the background of the dichotomies of availability, relative technological progress and market mechanism, Indonesia is facing the dilemma of economic growth and pattern of production, which tends to become unsuitable. Following the first oil shock: dramatic increase in oil prices, 1973-74; the second oil shock: second sharp price increase, 1979-80 and the third oil shock: stable and drop in oil price, 1982; in-depth analysis of factors affecting the energy consumption assists the formulation of the policy measures needed within the framework of the macro objectives. At the second level: industrial, agricultural, and transport sectors, the significance of the technological, economic and organizational factors become obvious. On the other hand, micro-level studies on consumers behavior of households and potential substitutions between energy and non-energy inputs are necessary. (author)