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EU firms want RE law before investing in Indonesia: EU ambassador
European companies are keen on investing in “smart and green” projects in Indonesia’s new capital but are waiting for fair rules, says the EU ambassador to Indonesia.
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President Joko “Jokowi” Widodo (center), Defense Minister Prabowo Subianto (right) and Public Works and Housing Minister Basuki Hadimuljono (left) discuss the government's plan to build a road to connect the Balikpapan-Samarinda toll road with the planned new capital city in this undated photograph. (Presidential Secretariat Press Bureau/Lukas)
E
uropean companies are keen on investing in “smart and green” projects in Indonesia’s new capital but are waiting for a new law to level the playing field between fossil fuels and renewables, European Union Ambassador to Indonesia Vincent Piket has said.
Piket told The Jakarta Post on Friday that fair competition had yet to be established in Indonesia between power producers using fossil fuels and those tapping renewable sources, specifically with regard to electricity prices.
Investors were looking forward to the adoption of equitable regulations that would enable a conducive new and renewable energy (NRE) investment climate, such as through the NRE bill, to ensure the long-term viability of investments, he added.
“[The NRE bill] is a crucial piece of legislation to reshape the energy sector, [as it would help create] an equitable and flexible and open space for renewables in Indonesia,” the ambassador said.
The bill has been on the table for almost four years since it was initiated by the Regional Representatives Council (DPD) before the House of Representatives eventually began its deliberation in September.
The NRE bill is expected to improve the sector’s regulatory framework by providing clarity and certainty for investors, including on pricing and import tariffs, as well as applicable procurement processes, Indonesian Ambassador to Norway and Iceland Todung Mulya Lubis and Rinaldi Ahza, the counselor for economic affairs at the Indonesian Embassy in Oslo, wrote in an article for the Post on Nov. 17.
However, the bill has been met with criticism from experts and civil society groups especially for classifying coal gasification and nuclear power plants as new energy sources.
