Research Article
Indonesian Legal Political Policy towards Determining Electricity Tariff in the Geothermal Industry
@INPROCEEDINGS{10.4108/eai.6-3-2021.2305977, author={Luhung Kushonggo and Faisal Santiago}, title={Indonesian Legal Political Policy towards Determining Electricity Tariff in the Geothermal Industry}, proceedings={Proceedings of the 1st International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2021, March 6th 2021, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICLSSEE}, year={2021}, month={5}, keywords={renewable energy; geothermal; electricity tariff; civil law; political configuration; sustainable economic}, doi={10.4108/eai.6-3-2021.2305977} }- Luhung Kushonggo
Faisal Santiago
Year: 2021
Indonesian Legal Political Policy towards Determining Electricity Tariff in the Geothermal Industry
ICLSSEE
EAI
DOI: 10.4108/eai.6-3-2021.2305977
Abstract
Indonesia should occupy a very important position for the global political economy of renewable energy because it has the largest geothermal reserves in the world, about 40% of the world's geothermal resources are in Indonesia. Historically, geothermal development for electric power was carried out in 1926 but until now the use of geothermal energy has been slow and has only reached less than 3% of the national energy demand and only ranks 2nd country after the United States as the largest producer of geothermal energy. The Indonesian government is having difficulty getting partners or investors to develop the geothermal industry, one of the reasons is the improper electricity tariffs set unilaterally by the government. This research uses a normative juridical method to analyze the determination of electricity tariffs related to the legal system of “Civil Law” and the political configuration in Indonesia that underlies the setting of electricity tariffs, with the intention that geothermal energy can act as a sustainable economic development agenda and help improve the domestic economy.