Skip to main content

Renewable Energy in Indonesia: Integrating Human Capital and Money Flows

  • Chapter
  • First Online:
Energy Technology and Valuation Issues

Abstract

In developing countries, renewable energy plays an important role. Applying the available natural resources in conjunction with a technology push may help to solve energy sourcing issues and to develop remote areas in such countries. Whereas many large-scale projects have been taking place, small-scale projects that bring a technology push are rare to find. This study investigates the possibilities of implementing renewable energy sources in the form of Mobile Biodiesel. We construct a conceptual model in which local economic development is infused with money flows and group entrepreneurship aspects in order to realise the implementation of this energy source. Our field research was conducted in remote villages in the Pulang Pisau area in Central Kalimantan, Indonesia. The results indicate a large shortage of technical, managerial, and financial knowledge and skills in the remote villages, resulting in a lack of human capital. Furthermore, the occurrence of frequent electricity blackouts with long durations disturbs the local communities in their daily activities. To address these problems, this study argues for the integration of community empowerment, social capital, social franchising and especially group entrepreneurship in combination with a transparent financial system on the flow of money while introducing a new technology. Although our model is based on empirical results in a remote Indonesian area and on the Mobile Biodiesel technology, the model is also applicable in developing areas throughout and it can be integrated with other renewable energy technologies.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 89.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 119.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Adler PS, Kwon SW (2002) Social capital: prospects for a new concept. Acad Manag Rev 27(1):17–40

    Google Scholar 

  • Chevalier JM, Quédraogo A (2013) In: Chevalier JM, Geoffron P (eds) The new energy crisis: climate, economics and geopolitics, 2nd edn. Palgrave Macmillan, Basingstoke

    Google Scholar 

  • Chong L, Gibbons P (1997) Corporate entrepreneurship: the roles of ideology and social capital. Group Organ Manag 22:10–30

    Article  Google Scholar 

  • Emery F, Trist E (1965) The causal texture of organizational environments. Hum Relations 1:21–35

    Article  Google Scholar 

  • Fredriks J, Pennink BJW, Simatupang TM, Siswanto J (2014) Modeling a technology push by using hybrid franchising. Int J Entrep Small Bus 22(1):64–88

    Article  Google Scholar 

  • Guiso L, Sapienza P, Zingales L (2004) The role of social capital in financial development. Am Econ Rev 94(3):526–556

    Article  Google Scholar 

  • Hargadon A, Sutton RI (1997) Technology brokering and innovation in a product development firm. Adm Sci Q 42:716–749

    Article  Google Scholar 

  • Helling L, Serrano R, Warren D (2005) Linking community empowerment, decentralized governance, and public service provision through a local development framework. SP discussion paper no 0535, pp 1–93

    Google Scholar 

  • Labonte R (1990) Empowerment: notes on professional and community dimensions. Can Rev Soc Policy 26:64–75

    Google Scholar 

  • Marwell G, Oliver P (1993) The critical mass in collective action: a micro-social theory. Cambridge University Press, New York

    Book  Google Scholar 

  • Möllering G (2007) Collective institutional entrepreneurship? The recursive interplay of action, networks and institutions in market constitution. Paper presented at the institutional embeddedness of markets conference, Max Planck Institute, Cologne, February

    Google Scholar 

  • Michel S, Meuter ML (2008) The service recovery paradox: true but overrated? Int J Serv Ind Manag 19(4)

    Google Scholar 

  • Nahapiet J, Ghoshal S (1998) Social capital, intellectual capital, and the organizational advantage. Acad Manag Rev 23:242–266

    Google Scholar 

  • Nel E (2001) Local economic development: a review and assessment of its current status in South Africa. Urban Stud 38(7):1003–1024

    Article  Google Scholar 

  • Nissanke M, Thorbecke E (2006) Channels and policy debate in the globalization-inequality-poverty nexus. World Dev 34(8):1338–1360

    Article  Google Scholar 

  • Peredo AM, McLean M (2006) Social entrepreneurship: a critical review of the concept. J World Bus 41(1):56–65

    Article  Google Scholar 

  • Pike A, Rodríquez-Pose A, Tomaney J (2006) Introduction: local and regional development in a global context. In: Pike A, Rodriquez-Pose A, Tomaney J (eds) Local and regional development. Routledge, London/New York

    Google Scholar 

  • Pomerantz M (2003) The business of social entrepreneurship in a down economy. Business 25(3):25–30

    Google Scholar 

  • Reddy AKN (2000) Energy and social issues. In: Goldemberg J (ed) World energy assessment: energy and the challenges of sustainability. UNDP, New York, pp 39–60

    Google Scholar 

  • Rissel C (1994) Empowerment: the holy grail of health promotion? Health Promot Int 9(1):39–47

    Article  Google Scholar 

  • Romo FP, Schwartz M (1995) Structural embeddedness of business decisions: a sociological assessment of the migration behavior of plants in New York State between 1960 and 1985. Am Sociol Rev 60:874–907

    Article  Google Scholar 

  • Sesay S, Amara V, Lebbi JA (2010) Strengthening social capital: the GoBifo approach in rural Sierra Leone. Royal Tropical Institute (KIT), Amsterdam, pp 1–72

    Google Scholar 

  • Simister N, Smith R (2010) Monitoring and evaluating capacity development: is it really that difficult? Praxis paper 23, International NGO Training and Research Centre (INTRAC), pp 1–31

    Google Scholar 

  • Stiglitz J (ed) (2002) Globalization and its discontents. Norton, New York

    Google Scholar 

  • Stimson R, Stough RR, Salazar M (2009) Leadership and institutions in regional endogenous development. Edward Elgar, Northampton

    Book  Google Scholar 

  • Willis G, Castrogiovanni GJ (2012) The franchising business model: an entrepreneurship growth alternative. Int Entrep Manag J 8(1):75–98

    Article  Google Scholar 

  • World Bank (2011) What is local economic development (LED)? World Bank, Washington, DC

    Google Scholar 

  • Zaaijer M, Sara LM (1993) Local economic development as an instrument for urban poverty alleviation: a case from Lima and Peru. Third World Plann Rev 15:127–142

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Bartjan Pennink .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Verkruijsse, N., Pennink, B., Westerman, W. (2015). Renewable Energy in Indonesia: Integrating Human Capital and Money Flows. In: Dorsman, A., Westerman, W., Simpson, J. (eds) Energy Technology and Valuation Issues. Springer, Cham. https://doi.org/10.1007/978-3-319-13746-9_7

Download citation

Publish with us

Policies and ethics