Multidimensional energy poverty in Indonesia: Urban-rural perspectives

Energy is essential for human welfare and development, and the inability to meet basic energy needs adversely affects household welfare. Households deprived of access to energy services such as clean cooking fuel, lighting, adequate electricity, refrigeration, space cooling, entertainment and education, and communication are considered multidimensionally energy poor. Without effective policy intervention, energy poverty may worsen during the energy transition. Therefore, reliable empirical analysis is required to support the development of appropriate policies. This study measures energy poverty in Indonesia using the Multidimensional Energy Poverty Index, with particular emphasis on differences between urban and rural households. The results show that the average national level of energy poverty between 2022 and 2025 was classified as moderate, with a gradual reduction over this period. Energy poverty was classified as low in urban areas and moderate in rural areas. Electricity adequacy, measured by household electricity connection capacity, contributed the largest share of deprivation intensity, while lighting contributed the least. This indicates that although most households have electricity connections, basic energy needs are not necessarily met when electricity connection capacity is limited and modern appliances are unaffordable. At the provincial level, most rural areas were classified as moderate, while a clear regional disparity was observed in urban areas, with western Indonesia generally classified as low and eastern Indonesia classified as moderate. Overall, the findings highlight the need for institutionalised policies that address energy poverty, increase minimum household electricity capacity, and ensure equitable access to essential energy services, particularly in rural areas and eastern Indonesia.