Risk Management in the Energy Sector in Indonesia: A Review

Abstract

Indonesia’s energy sector is crucial for economic growth but faces complex risks such as technical, financial, environmental, regulatory, and socio-political that hinder its transition to sustainable and greener systems. Existing research on risk management in this sector is fragmented, covering different levels of analysis, energy sources, and types of risk. A systematic review and categorization of the literature are needed to map current knowledge, identify gaps, and guide future research and policy development. Harzing’s Publish or Perish software is used to search, filter, and evaluate academic articles from multiple databases using appropriate keywords that allows to systematically identify the most relevant, credible, and influential literature. This article investigates recent literature on risk management in Indonesia's energy sector. Thirty-three articles from Google Scholar discuss various issues related to risk management inquiry in the energy sector. After careful reading and reviewing, three categories are naturally developed, i.e., level of study, type of energy source, and type of risk, and function as a map in comprehending the literature. The analysis shows that risk management in Indonesia has been researched using various methods and for multiple purposes. With different levels of study and energy sources, the risks identified in this research provide a clear picture of how and why the energy sector has difficulties transitioning to a more sustainable and greener system. The article also offers a future agenda for research in the area of risk management in the energy sector.