The relationship between energy and economic growth: Case in Indonesia

Abstract

This study is aimed to analyze the relationship between energy and economic growth in Indonesia. Data were collected from the Statistical Central Bureau for the period of 1999-2012. Gross Domestic Product (GDP) was used as an indicator of the economic growth, while energy which was used as parameter that contributes to the economic growth was crude oil production. The different test was applied to compare between the pre-crisis period (1999-2005) and the crisis period (2006-2012). The result shows that there are differences between crude oil production before and after the period of the energy crisis in Indonesia. In addition, crude oil production has contribution to the economic growth by 30.8%.