TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Government lowers investment target in renewable energy

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, January 9, 2019   /   11:38 am
Government lowers investment target in renewable energy President Joko “Jokowi” Widodo inaugurates a 100-hectare Sidrap wind farm in Sindereng Rappang regency, South Sulawesi, on July 2, 2018. (JP/Andi Hajramurni)

The government has lowered the investment target for new and renewable energy to US$1.79 billion this year from $2.01 billion in the previous year.

However, the realization of renewable energy development only reached 79.60 percent of the target or $1.6 billion, last year.

The Energy and Mineral Resources Ministry’s renewable energy and energy conservation director general, Rida Mulyana, said the failure to achieve the target had nothing to do with the reduced budget for the sector this year.

The official added that the ministry had only followed the guidance stipulated in the electricity procurement plan for 2019-2027. “It is because the program is implemented based on the existing plan,” he said in Jakarta on Tuesday as reported by kontan.co.id.

The $1.79 billion will go to construct geothermal power plants ($1.23 billion), bioenergy power plants ($51 million) and diversified new and renewable energy power plants ($51 million).

Analysts said among reasons for the failure to reach the 2018 target was the existence of  Ministerial Regulation No 50/2017 on the utilization of new and renewable energy for electricity, particularly an article that regulates the build–own–operate–transfer scheme. Investors say the financing scheme does not promise good business.

Rida said the ministry had listened to the aspirations of investors on the issue, but any revision to the regulation would only be decided by Minister Ignasius Jonan.

“We are waiting for guidance from the minister. We are not opposed to any changes,” he added. (bbn)