Measuring Efficiency of Fuel Oil Usage in PT PLN: A Short-Run Analysis

5 Pages Posted: 5 Apr 2018

See all articles by Tongam Sihol Nababan

Tongam Sihol Nababan

University of HKBP Nommensen, Faculty of Economics

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Date Written: April 5, 2018

Abstract

This study aims to measure and to analyze the efficiency level of fuel oil usage in units of PT. PLN generation. The study result shows that until now the PLN is still operating in inefficiency condition, because of foil oil usage. The energy consumption level of fuel oil is less efficient compared with coal energy in generating electricity. Based on the short-term Cobb-Douglass analysis, the average decrease in oil fuel usage efficiency over the period 2011-2015 is 17.21% per year. Allegedly, even though the portion has decreased due to the unsustainable supply of non-fuel fuel, it is important to maintain the use of fuel oil.The government is asked to continue evaluate the use of fuel oil inputs, diversify input energy and increase efficiency in producing electricity in Indonesia.

Keywords: efficiency, electrical energy, input, fuel oil, PT, PLN

Suggested Citation

Nababan, Tongam Sihol, Measuring Efficiency of Fuel Oil Usage in PT PLN: A Short-Run Analysis (April 5, 2018). USAEE Working Paper. Available at SSRN: https://ssrn.com/abstract=3156999 or http://dx.doi.org/10.2139/ssrn.3156999

Tongam Sihol Nababan (Contact Author)

University of HKBP Nommensen, Faculty of Economics ( email )

Jln. Sutomo No. 4A
Medan, North Sumatra 20118
Indonesia
08126411543 (Phone)

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