The Economy-wide Impact of Controlling Energy Consumption in Indonesia: An Analysis Using a Social Accounting Matrix Framework

Escalating oil prices and the need to control carbon emissions sound the alarm
for Indonesia to reduce or be more efficient in its energy use. To create an
incentive for society to be more energy efficient, they need to understand the full
consequences of adopting more efficient energy use strategies toward their
incomes. This paper aims to analyse the impact on the economy of energy
policies aiming to reduce and to improve the efficiency of energy use,
particularly on the income of various household groups. This paper will, first,
construct a Social Accounting Matrix for Indonesia with detailed energy sectors
and, second, utilise various multiplier analyses to observe and understand the
impact of these energy policies.