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Estimation of Energy Demand in Indonesia using Artificial Neural Network

Author

Listed:
  • Satrio Mukti Wibowo

    (Ministry of Energy and Mineral Resources, Jakarta, 10110, Indonesia,)

  • Dedi Budiman Hakim

    (Faculty of Economy and Management, Bogor Agricultural University, Bogor 16680, Indonesia,)

  • Baba Barus

    (Department of Soil and Land Resources, Faculty of Agriculture, Bogor Agricultural University, Bogor 16680, Indonesia.)

  • Akhmad Fauzi

    (Faculty of Economy and Management, Bogor Agricultural University, Bogor 16680, Indonesia,)

Abstract

Although Indonesia has many variations in energy types, Indonesia is currently a Net Oil Importer Country. Therefore, accurate energy demand estimation is very important for energy policy making in Indonesia. This study proposes a neural network model to efficiently, precisely and validly estimate energy demand for Indonesia. This model has four independent variables, such as gross domestic product (GDP), population, imports, and exports. Data obtained from Central Bureau of Statistics of Indonesia and The Ministry of Energy and Mineral Resources. Energy estimation is using a pessimistic, realistic and optimistic scenario that estimates of energy demand in the next 10 years using artificial neural networks shows that energy demand in Indonesia continues to increase every year, both in pessimistic, realistic and optimistic scenarios.

Suggested Citation

  • Satrio Mukti Wibowo & Dedi Budiman Hakim & Baba Barus & Akhmad Fauzi, 2022. "Estimation of Energy Demand in Indonesia using Artificial Neural Network," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 261-271, November.
    • Handle: RePEc:eco:journ2:2022-06-33
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    energy demand; energy policy; artificial neural networks;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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