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Jakarta Post

Indonesia likely to miss renewable energy target – again

  • Norman Harsono

    The Jakarta Post

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Jakarta   /   Mon, January 27, 2020   /  02:51 pm
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Powerful roofs: Solar panel modules are showcased at the Renewable Energy and Energy Conservation Conference and Exhibition at the Jakarta Convention Center. Solar panels require little maintenance and can last for more than 25 years. (The Jakarta Post/-)

Indonesia is set to miss its renewable energy target again this year, but investors are optimistic about the future with a potentially game-changing regulation in the pipeline. The Energy and Mineral Resources Ministry aims to boost Indonesia’s power production capacity to 74,800 megawatts this year, with only 14.5 percent to come from renewables rather than the 19.4 percent stipulated in the National General Energy Planning road map. Against the backdrop of such underperformance, President Joko “Jokowi” Widodo is expected to reintroduce this year a fiscal incentive to boost renewables growth, namely a feed-in-tariff (FIT) scheme. Indonesia has introduced at least two FIT schemes in the past, each eliciting a positive response from investors, but both were later cancelled because the country’s largest utility company, state-owned PLN, was considered finan...