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INDONESIA (updated 2015) 1. GENERAL INFORMATION 1.1. Country Overview 1.1.1. Governmental system As in other democratic countries, the Republic of Indonesia applies the Trias Politica that recognizes the separation of the legislative, executive and judicial bodies. The legislative authority is under the People’s Consultative Assembly (MPR) that consists of two bodies namely the Parliament composed of members of political parties (DPR), and the Regional Representative Council (DPD) composed of representatives from each province in Indonesia. The executive institution is centralized under the president, vice president, and the cabinet of ministers. The cabinet is a presidential cabinet in which the ministers report to the president and do not represent the political parties. Presidential election is also held every five years. Since 2004, the president of the Republic of Indonesia is elected through direct election by the people. Since the reform era and upon the amendment of the 1945 Constitution, the judicial institution is administered by the Supreme Court including the administration of the judges. 1.1.2. Geography and climate Indonesia is located between 6 degrees northern latitude and 11 degrees southern latitude and between 97 degrees to 141 degrees eastern longitude, stretching along 3,977 miles between the Indian Ocean and the Pacific Ocean. The total area is 1.9 million square miles (4.92 million km2), with water covering about two-third of the total area. It is located between two continents – Asia and Australia/Oceania. This strategic position greatly influences the country’s culture, social, politics and economy. Indonesia is one of the largest archipelagos in the world with 17,508 islands. The five large islands of Indonesia are: Sumatra, Java, Kalimantan, Sulawesi, and Papua. These islands were formed in the range from Tertiary to Quaternary age. The Australian and Pacific tectonic plate have a great effect on the change of the islands. The Australian plate changes slowly with an upward movement into the small plates of the Pacific plate that moves southward. Between these lines, the islands of Indonesia are stretched out. This makes Indonesia one of the most rapidly changing geological areas in the world. There are 400 volcanic mountains in Indonesia – of which 100 of them are active. Java alone is home to 112 volcanoes, 15 of which are still active. Most of the islands are hot and humid throughout the year. Temperatures range from 27.6° to 36.8° C during the day and from 14.6° to 24.6° C during the night. Humidity ranges from 63% to 83%. Rain falls primarily from December to March, when the winter monsoon dominates. Only western Java and the Lesser Sunda Islands have a dry season, from June to September. 1.1.3. Population TABLE 1 POPULATION INFORMATION Average annual growth rate (%) Year 2000 2005 2010 2011 2012 2013 2014 2000 to 2014 Population (millions) 205.84 218.87 237.64 241.13 244.52 248.80 253,61 1.47 Population density (inhabitants/km²) 106.26 112.98 122.67 124.48 126.23 128.43 130.92 1.47 Urban Population as % of total 42.00 45.94 49.92 50.71 51.49 52.25 53.00 1.71 Area (1000 km²) 4,920 Source: Statistics Indonesia and World Bank In 2014, there were more than 253 million people living in Indonesia. The population grew at an average of 1.47% between 2000 and 2014. It is projected that the total population of Indonesia will increase, from 237.64 million in 2010 to 284.83 million in 2025 or with growth rate at 1.21% per year. Every year there is an increasing number in urban population. Based on the data shown in Table 1, in 2014 about 53.00% of Indonesia population were living in a city and the urbanization level is projected to reach 60% in year 2025. In 2010, the National Population Census shows that Java and Madura Islands, which accounts for 7% of the total area, is resided by around 57.5% of the population (136 millions), while Maluku and Papua which account for 25% of the total area, are inhabited by 3% of the total population. 1.1.4. Economic data TABLE 2 GROSS DOMESTIC PRODUCT (GDP) Average annual growth rate (%) 2000 to 2000 2005 2010 2011 2012 2013 2014 2014 GDP (millions of current US$) 144,843.14 285,861.01 709,458.78 853,193.24 879,601.31 869,512.63 926,140.27 14.60 GDP (millions of constant 2000 US$) 144,843.14 182,471.62 241,215.09 256,870.92 272,864.95 288,593.33 303,197.66 5.43 GDP per capita (PPP* US$/capita) 4,400.62 5,796.11 7,864.42 8,437.73 9,014.34 9,561.13 - 6.16** GDP per capita (current US$/capita) 703.66 1,306.08 2,985.42 3,538.25 3,597.21 3,494.83 3,673.57 12.96 * PPP: Purchasing Power Parity ** Average annual growth rate up to 2013 Source: Statistics Indonesia and World Bank From Table 2, it is shown that Indonesia had an average real gross domestic product (GDP) growth rate of 5.43% between 2000 and 2014. During the 2000-2014 periods, GDP of Indonesia had increased from US$144.84 billion to US$ 303.19 billion (CY 2000 Price). Under the new government, lead by President Joko Widodo, one of the priorities is to achieve economic independence by moving the strategic sectors to domestic economy. The Government’s target for the economic performance is an annual growth of 7%. 1.2. Energy Information 1.2.1. Estimated available energy TABLE 3 ESTIMATED AVAILABLE ENERGY SOURCES Estimated Available Energy Sources Fossil Fuels Nuclear Renewables Thorium Geother Solid Liquid Gas Uranium Hydro Solar Biomass (Hypothetical) mal Million Billion Metric TSCF Metric tons GW GW GW GW Specific Unit tons Barrel tons Total Amount 151,882.57 7.55 150.39 59,200 1,500 75.77 28.91 22.5 45.54 in specific unit Total Amount 4,451.31 46.19 158.67 1,735.01 43.96 2.39 0.91 0.71 1.43 in Exajoule (EJ) Source: - Handbook of Energy and Economic Statistics of Indonesia 2014, Ministry of Energy & Mineral Resources; - National Nuclear Energy Agency (Batan). 1.2.2. Energy statistics TABLE 4 ENERGY STATISTICS Average Annual Growth Rate (%) Year 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2000 to 2013 Final Energy Consumption * Total 4.27 4.68 4.75 4.93 4.85 5.25 5.72 5.97 6.36 6.42 - Solid 0.21 0.38 0.52 0.71 0.55 0.48 0.80 0.84 0.91 1.04 16.51 - Liquids 1.97 2.21 2.12 2.14 2.07 2.43 2.64 2.76 3.06 2.97 3.44 - Gases 0.51 0.50 0.48 0.47 0.60 0.69 0.67 0.71 0.733 0.736 3.24 - Nuclear 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - Hydro 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Other Renewables - Geothermal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - Biomass 1.57 1.58 1.62 1.61 1.63 1.64 1.60 1.66 1.64 1.67 0.45 Energy Production * Total 8.85 11.40 12.54 13.05 13.93 14.59 15.52 17.64 18.62 20.16 - Solid 2.26 4.47 5.68 6.35 7.04 7.50 8.06 10.35 11.31 13.16 14.71 - Liquids 2.07 1.98 1.97 1.95 2.03 2.02 1.88 2.00 2.06 1.89 -0.60 - Gases 3.06 3.15 3.11 2.96 3.04 3.23 3.59 3.43 3.35 3.13 0.32 - Nuclear 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - Hydro 0.14 0.2 0.14 0.16 0.17 0.16 0.25 0.18 0.18 0.24 6.85 -Other Renewables Geothermal 0.04 0.05 0.05 0.05 0.06 0.07 0.07 0.07 0.07 0.07 7.98 Biomass 1.28 1.54 1.58 1.57 1.59 1.6 1.65 1.6 1.64 1.67 3.18 Net Import (Import - Export) * Total -3.61 -3.34 -4.38 -4.8 -4.66 -5.59 -5.9 -7.35 -7.87 -8.22 7.08 Source: Handbook of Energy and Economic Statistics of Indonesia 2014, Ministry of Energy & Mineral Resources. 1.2.3. Energy policy In October 2014, the government of Indonesia enacted the Government Regulation No. 79 of 2014 about the National Energy Policy (NEP). NEP is a comprehensive policy which covers both the supply and the demand side. It serves as the main guideline in the national energy management to achieve the security of domestic energy supply. NEP 2014 would reduce gasoline dependency and increase the use of renewable energy. Figure 1 shows that NEP sets a clear target of the share of each type of primary energy from the year 2025 up to the year 2050, as follows: - The share/role of new and renewable energy is at least: 23% in 2025 and at least 31% in 2050 as long as their economics comply; - The share/role of oil is less than 25% in 2025 and less than 20% in 2050; - The share/role of coal is minimum 30% in 2025 and minimum 25% in 2050; - The share/role of gas is minimum 22% in 2015 and minimum 24% in 2050.
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  • Financial Sustainability and Financial Performance of Local Government at East Kalimantan

    Financial Sustainability and Financial Performance of Local Government at East Kalimantan

    International Journal of Multidisciplinary Research and Publications ISSN (Online): 2581-6187 Financial Sustainability and Financial Performance of Local Government at East Kalimantan Muhammad Kadafi1, Amirudin2, Ratna Wulaningrum3 1, 2, 3Accounting Department, Samarinda State Polytechnic, Samarinda, Indonesia E-mail address: [email protected] Abstract— This study aims to determine and analysis Financial consumption of goods to consumption of services, and Sustainability, Trend Financial Sustainability, Map of Financial increasing new sources of income such as e-commerce. Performance and Financial Performance of city/regency (local Demands for good performance are often directed at local governments) in East Kalimantan in 2015-2019. The benefit of this governments to increase their regional financial independence. research is that it becomes input for local governments and To measure the level of success of a region in implementing provincial governments in making policies related to APBD. The analysis tool uses the calculation of financial sustainability, financial regional autonomy, it is necessary to evaluate the financial sustainability trends, quadrant methods, financial performance which performance management of local governments in Indonesia consists of the calculation of growth, share, elasticity, index X, IKK. [2]. Measurement is a concept that describes the process for This study also maps the performance of the LGR based on the evaluating performance finances in accordance with a set of Quadrant Method. The results of this study indicate that there are 5 rules [3]. Financial performance measurement aims to increase cities/regencies that have financial sustainability above the average local government accountability. Furthermore, the and 5 cities/regencies whose values are below the average. For 5 measurement of the government’s financial performance will years, Trend Financial Sustainability has grown, from a value of be useful in the process of making policies regarding regional 40.77%, 36.45%, 29.07%.