The impact of electricity blackouts on the performance of small-sized manufacturing enterprises: evidence from Indonesia

Date & time

9.30–11am 27 October 2017

Location

Seminar Room 1, Level 1, Stanner Building 37, Lennox Crossing, ANU

Speakers

Anna Falentina, PhD Scholar

Contacts

 Paul Burke

PhD Seminar (Economics)

Crawford School of Public Policy | Arndt-Corden Department of Economics

Indonesia is struggling to provide reliable electricity supply in some regions. This paper estimates the impact of electricity blackouts on the productivity of Indonesia’s small-sized manufacturing enterprises. A pseudo-panel dataset covering the period 2004–2015 is employed. The estimates suggest that a one-percent increase in blackout frequency is associated with a 0.1 per cent reduction in labour productivity. In total, blackouts cause a cost of around IDR109 billion per year for Indonesia’s small-sized manufacturing enterprises. A discussion of the role of the government in addressing this problem will be provided.

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