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ISSN 2063-5346
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STUDY ON INTER-RELATION OF ENERGY CONSUMPTION AND ECONOMIC PERFORMANCE IN INDONESIA

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Tachrir , Edi Cahyono , Samdin , Lukas Kano Mangalla , Mukhsar
ยป doi: 10.48047/ecb/2023.12.si4.1517

Abstract

Energy utilization is known to affect economic performance. Energy consumption fosters economic growth. Better economies consume more energy. This article analyzes the fuel consumption and GDP of Indonesia. The evaluation of economic performance is based on the GDP in US dollars and energy consumption in British ounces. 1980โ€“2019 time series data. In 1998, Indonesia experienced a severe economic crisis, and again in 2002 and 2008. The HEESI, Ministry of Energy and Mineral Resources, provided secondary data on energy consumption, while the World Bank website provided GDP data. A VAR analysis examined their relationship. The data reveal a significant correlation between fuel and GDP in Indonesia. The Granger test confirms. Due to the unidirectional causality between GDP and fuel, only GDP has a statistically significant impact on fuel with a probability of 0.0455 (rejects Ho). This investigation is essential for Indonesia's energy policy

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