PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
Ownership and Energy Efficiency in Indonesia’s Manufacturing Plants
| Author | Eric D. Ramstetter, Dionisius Narjoko |
|---|---|
| Date of Publication | 2012. 12 |
| No. | 2012-14 |
| Download | 352KB |
Contents Introduction
This paper examines energy efficiency differentials between foreign multinational corporations (MNCs) or state-owned enterprises (SOEs) and local, private plants in Indonesian manufacturing using data on medium-large plants from the industrial censuses for 1996 and 2006. The results suggest that correlations between ownership and five different energy intensities (total energy, electricity, diesel fuel, natural gas fuel, and coal fuel) were all relatively weak. When significant, MNC-private and SOE-private differentials varied markedly among energy types, industries, years, and capital definitions. In other words, the evidence suggests that ownership-related differentials in energy intensity were not pronounced or consistent in Indonesia in these two years. Thus, if policy makers are concerned with energy efficiency in Indonesian manufacturing, it does not appear meaningful to focus on plant ownership.