Measures to Promote Energy Conservation in Indonesian Households with Different Cultural Backgrounds: An Analysis on Electricity Prices Perspective

Abstract

The variety of cultural backgrounds play a huge role on the residents’ perspective on electricity price, and that will eventually lead to the decision-making behaviour regarding the electricity consumption. This study, under the framework analysis of different cultural backgrounds and ethnicities in Indonesia are represented by two areas—Yogyakarta as the representative of Javanese culture and Bandung as the representative of Sundanese culture, seeks to the following: (1) to analyze and compare the understanding of electricity price perspective and its changes in those societies, and (2) to analyze and compare the effect of monthly payment systems in awareness of electricity consumption between two societies. The result of study is expected to design a decently compiled strategy to improve energy conservation effort in Indonesia related to the electricity price perspective in local societies. The questionnaire survey method is employed to obtain information on electricity prices perspective. The results show that people in Bandung had significantly better understanding of electricity price as compared to people in Yogyakarta. However, change of electricity price does not serve as a signal in decision-making about electricity consumption in the homes of both cities. In order to improve the awareness of energy consumption, the pre-paid system of electricity payment should be widely introduced in Yogyakarta. On the flip side, the electricity payment with post-paid system is more suitable for Bandung.