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Jakarta Post

Renewable energy regulation repeats old mistakes: Association

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, February 6, 2017   /  04:13 pm
Renewable energy regulation repeats old mistakes: Association A worker checks a wind power device at the Jawa Bali Power Plant Office in Jakarta. Indonesia is working to generate more power from renewable energy sources like wind, especially in regions with high wind speeds, like in coastal areas. (Antara/Muhammad Adimaja)

The Indonesian Renewable Energy Society (METI) says Energy and Mineral Resources Minister Ignasius Jogan with a recent decree on new and renewable energy has repeated mistakes of the past that are proven to discourage investors.

The maximum tariff of 85 percent from the basic cost of production (BPP) stipulated in Energy and Mineral Resources Ministry Regulation (Permen) No. 12/2017 repeated a failure of the previous policy, said METI chairman Surya Darma, as reported by on Monday.

(Read also: Palm oil refineries may be 'clustered' to aid electricity production)

He said such a tariff had already been stipulated in Permen No. 14/2008, which applies only to electricity from geothermal energy.

“That regulation has failed and [therefore] has been replaced. It is not understandable that the current minister repeated the failure,” Surya said on Sunday.

Permen No. 12/2017 on New and Renewable Energy regulates tariffs for electricity generated from solar energy, wind, hydropower, biomass, biogas, waste and geothermal energy.

“We have expressed the concerns of the association in a meeting at the office of Vice President [Jusuf Kalla]. The regulation needs to be revised,” he added.

Institute for Essential Services Reform (IESR) executive director Fabby Tumiwa made similar comments, saying the new rules would hamper to investment in renewable energy.  

The government needed to prepare incentives for investors in this sector, he added. (bbn)

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