Macroeconomic Drivers and the Forecast of Renewable Energy Consumption in Indonesia Toward Achieving SDG 7

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Authors: Anggi Putri Kurniadi, Heliyani, Sabri, Anne Putri, Fitria, Rina Supryanita, Kanetasya Sabilla, Dani Lukman Hakim, Agus Fernando, Adi Suhendra, Muhammad Riksa Praba Haskara, Asrori
+5 more Imansyah Abinda Firdaus, Muhammad Ro'uuf Fadhillah, Ragimun, Ragil Yoga Edi, R. Nurhidajat
Cited by: 0
References: 55

Abstract

This study aims to analyze the macroeconomic factors that influence renewable energy consumption (REC) in Indonesia using the Autoregressive Distributed Lag model, and to forecast its future trajectory through 2030 under a business-as-usual scenario, with reference to the targets of SDG 7. Using annual data from 2000 to 2023, the study identifies four macroeconomic determinants: population, economic growth, non-renewable energy consumption (NREC), and technological innovation.In the short-run, REC is significantly influenced by its own past values, population, economic growth, and technological innovation, while NREC demonstrates a delayed but positive effect.In the long-run, population has a negative impact on REC, reflecting Indonesia's continued dependence on fossil energy sources.In contrast, economic growth, NREC, and technological innovation contribute positively and significantly, suggesting a gradual but constrained transition toward clean energy.The forecasting results indicate that REC in Indonesia may reach approximately 17.4% by 2030, still falling short of the 23% national target set for 2025, leaving a persistent gap of about 5.6 percentage points.These findings underscore the urgent need for stronger policy reform and increased investment in green technology and infrastructure, particularly to close the 5.6% REC gap.

Fields of Study & Subjects

Energy Environment Economic Growth Renewable energy and sustainable power systems Energy and Environmental Sustainability

Publication details

Journal / source
International Journal of Sustainable Development and Planning
Volume
21
Issue
1
Pages
175–185
Publication date
31 January 2026
Language
EN