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Jakarta Post

Clean energy sector takes regulatory battle to coordinating minister level

  • Stefanno Reinard Sulaiman
    Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Thu, August 1, 2019   /  04:19 pm
The Jakarta Post Image
Powered by the sun: Students and teachers take a look at a solar farm at SMP 9 state junior high school in Jakarta. The school is one of the few that use the renewable source of energy in the capital city. (The Jakarta Post/Ricky Yudhistira)

Local solar energy players are taking their fight against four regulations they consider unfriendly to the clean energy sector to the coordinating minister level. The Office of the Coordinating Economic Minister is expected to take over industry consultation and will review existing regulations issued by the Energy and Mineral Resources Ministry and the Industry Ministry, said Indonesia Solar Energy Association (AESI) chairman Andhika Prastawa. Certain policies issued by the energy ministry are considered burdensome to businesses; such as the cap on the selling price of renewable energy at 85 percent of the national electricity supply cost (BPP). Furthermore, the “build, own, operate and transfer” (BOOT) mechanism that underpins the policies mandates that electricity assets be handed over to state electricity firm PLN after 30 years of operation. Also, electricity from ...