The Impact of Low Rank Coal (LRC) Utilization on the Indonesian Economy 2025 : An Input-Output Analysis

Abstract

The main objective of this paper is to quantify the economic impact of LRC utilization on the Indonesian economy in 2025 using Input-Output (IO) analysis. Combined with mathematical models, IO tables can be used to analyze economic impact, simulate the impact of policies and make estimates. In this study, the analysis is based on the 2005 IO Table 175 x 175 sectors with domestic transaction based on producer prices. The table was then adjusted to the conditions of 2013 and projected to 2025 with scenarios of economic growth at 5.5%. These growth scenarios are also used in forecasting energy demand. The type and amount of LRC utilization calculation results are based on economic and forecasting of energy demand, these then entered in the IO table as a new economic sector. After the IO tables are projected to 2025, multiplier, linkage and economic impact analyses are then carried out.

Keywords: low rank coal, input-output analysis, multiplier, linkage, economic impact analysis