In the early 1990s several leaders in the economic and energy fields often held meetings, which were initially facilitated by PT REDECON (Resource Development Consultants), a national private consulting company in the field of development management services established by Prof. Dr. Sumitro Djojohadikusumo and headed by Mr. Ismid Hadad as Managing Director. Besides Prof. Sumitro, in the ranks of REDECON's leaders and consultants, also sits with several other energy experts, such as Mr. Piet Haryono, Prof. M. Sadli, Dr. Purnomo Yusgiantoro, Dr. Umar Said, etc. In line with the situation at that time, the discussion topic focused on energy commodity exports, anticipating fluctuations in energy commodity prices, especially fuel oil (BBM) in the international market, as well as its relation to government policies and their impact on the country's economic growth.
Some time later it was felt necessary to institutionalize discussion activities and policy studies on the energy economy. Dr. Purnomo Yusgiantoro took the initiative to name the discussion group: The Indonesian Institute for Energy Economics (IIEE), to bring it closer to affiliation with a well-known international association, the "International Association for Energy Economics (IAEE)". In the initial period IIEE was not yet a legal entity, and the 'supporting houses & facilities' were still in the PT. REDECON. In addition to discussions and seminars for a number of circles and sectors in the country, IIEE collaborated with REDECON then also held an international conference namely " Jakarta International Energy Conference", Which succeeded in attracting the attention of the government, society, academics and the private sector both at home and abroad to the economic-energy problems faced by Indonesia.
At the encouragement of Dr. Fereidun Fesharaki, an international energy expert from Iran and jufa who was the IAEE administrator at the time, suggested that the IIEE be a branch or " Indonesia chapter " of the International Association for Energy Economics (IAEE) organization that manages IAEE membership in Indonesia. This step then made the IIEE as the IAEE Indonesia Chapter , trusted to hold the " Bali International Conference of IAEE 1993 ".
The Indonesian Institute for Energy Economics officially became a legal entity in the form of a foundation with a notary deed dated February 24, 1995. Listed as the founder was Piet Haryono, Prof. Dr. Subroto, Ismid Hadad, Prof. Dr. Mohamad Sadli, Dr. Purnomo Yusgiantoro, and Dr. Umar Said. IIEE is a non-profit organization in the field of research and development of energy and environmental policies ( energy & environment policy studies ). The founders wanted the IIEE to contribute in building community awareness about energy and its important role in development, and contributing ideas to policy makers to solve the nation's problems and the energy sector.
Over the next few years, the topic of discussions and studies organized by IIEE developed, in addition to the dependence on fossil energy and the way of energy management in Indonesia, the founders and many other figures joined the IIEE Trustees Council to discuss how to translate the organization's vision and mission, develop institutions and develop systems internal to be effective.
One implication is that, according to laws and regulations, the form of organization as a foundation does not have membership. Whereas in the early 1990s IIEE was also affiliated with the IAEE which had members like an association. In 1998 there was a surge in the exchange rate per US dollar from Rp. 2,500 to Rp. 15,000, which caused the payment of contributions from IAEE members in Indonesia to not be smooth. After a long debate, the dilemma was then ended with a decision to dissolve the Indonesian branch of the IAEE organization ( Indonesia Chapter) and IAEE members who are still interested can continue their membership in the IAEE as individuals, while the IIEE Foundation is an organization that accommodates aspirations and drives the activities of activists and practitioners of energy economics in various programs in Indonesia.
1. Study policy as a basis
Initially the IIEE activities focused on discussions and studies of oil and gas, coal and electricity sector policies. From a series of discussions with experts and practitioners, the IIEE presented various recommendations to the central government. One of the policy processes that is intensively followed is the change in the regulation of the oil and gas downstream industry which refers to Law 22/2001 concerning Oil and Gas.
Starting in 2005 IIEE took the initiative to develop research in the field of energy security ( energy security ), a topic that began to be discussed in the global and regional domains, but was not popular in Indonesia at that time. IIEE researchers took the initiative to develop research in the field of energy security ( energy security ), a topic that began to be discussed in the global and regional domains, but was not popular in Indonesia at that time. IIEE researchers raised the issue of energy availability ( availability ), community access to energy ( accessibility ), purchasing power to energy ( affordability ), and sustainability aspects in energy management including hospitality to the environment (acceptability & resistance ). This topic requires a multi-sectoral and multidisciplinary approach to evaluating policies and implementing programs to develop and utilize energy. The results of the IIEE study on energy security were published in 2006 and became the reference material for policies submitted to the government and the community.
In addition, IIEE also sees that the role of renewable energy ( renewable energy ) is very very significant to be presented in everyday life. Not only to substitute fossil energy, but because of the geographical nature of this country which is an archipelago and also the contours of mountainous areas that are often extreme, so that physically causing the population to separate. Integrated large-scale energy systems and the distribution of various types of energy to various places throughout the country will be very expensive, and vulnerable to disruption of transportation lines. Therefore, it is necessary to use and develop renewable and environmentally friendly sources of energy, such as geothermal energy, solar energy ( solar panels)), water energy (micro-hydro), wind energy ( wind-turbine ), and others that exist in their respective regions optimally. This also shows the importance of the existence of a small, medium and non-centralized environment-friendly energy system, to complement the existing fossil-based energy and gas (oil, gas & coal) procurement system.
2. Field activities for feedback
Armed with the various policy studies mentioned above, the IIEE deems it necessary to apply the energy security mindset that is also environmentally friendly through practical experience. Since 2010, the IIEE has collaborated with various parties to be involved in the development of small-scale renewable energy and its management by the Community to be able to understand dialectics in the field and learn to deal with it systematically.
In addition, the IIEE also organizes programs to improve public understanding of energy, starting with targeting secondary school students. Central is planned to expand this program through collaboration and networking with universities, schools, local governments, research institutions and other NGOs, both at the national and various regional levels.
