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Question raised over plan to ban clean power exports
Investment Minister Bahlil Lahadalia says exporting electricity generated from renewable sources could hamper the development of domestic industries, but other government officials say a ban may raise eyebrows among foreign investors.
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Investment Minister Bahlil Lahadalia presents the latest figures on realized investment at a press conference on Oct. 27, 2021. (Courtesy of BKPM/Investment Ministry)
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overnment officials have raised questions over a proposed ban on new and renewable energy (EBT) exports, arguing such a move could discourage investment.
Deputy Coordinating Economic Affairs Minister Edi Prio Pambudi said that even though meeting domestic demand for clean power was important, EBT development was impossible without foreign investment, which required “concessions” in the form of allowing energy trade.
“[We need to discuss] whether foreigners are willing to invest [if the project is] only for domestic demand, and how foreign supplies are considered. I believe that the idea [of an EBT electricity export ban] needs further discussion,” Edi told The Jakarta Post on Monday.
Last month, the Investment Ministry called for a ban on the export of electricity generated from new and renewable energy (EBT) sources, raising questions over plans for export-focused renewable energy projects, such as the export of solar power from Batam to Singapore.
Investment Minister Bahlil Lahadalia floated the idea during an investment forum in Surakarta on May 18, where he explained that, if domestic EBT electricity was exported, related industrial growth would be redirected to the importing countries.
"Go ahead if you want to invest, but we have not thought about exporting EBT to any country, because we will use it domestically first. […] Because, if we sell the electricity to other countries, the industrial [development] will run there [instead]," Bahlil contended.
Read also: Indonesia looks to ASEAN to offload excess electricity
