This week, solar energy stakeholders in Indonesia have taken various government ministries to task over four regulations they say disincentivize clean energy development. One of them, Energy and Mineral Resources Ministry Regulation No. 50/2017, makes it difficult for renewable energy to enter the market, according to experts.
The debate over this regulation highlights tension between the desire for cheap energy and the need to increase the share of energy produced from renewable sources in Indonesia.
The electricity market is dominated by PLN, the single buyer of electricity in the country and the largest owner of fossil fuel assets. “PLN is not only dealing with renewables, it is also [pressured] by the government to deal with electricity, to make electricity as cheap as possible,” said Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR), a Jakarta-based sustainability think tank.
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