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

Indonesia to mend contract scheme to boost green energy projects

  • Norman Harsono

    The Jakarta Post

Jakarta   /   Thu, February 6, 2020   /  04:09 pm
The Jakarta Post Image
Environmentally friendly: The Dieng geothermal power plant in Central Java is one of the main sources of renewable energy in Indonesia. The government plans to introduce a feed-in-tariff pricing scheme to boost investment in the green energy sector.(Tempo/Aris Andrianto)

Renewable energy players are warmly welcoming two proposed changes in a regulation heralded as game changers for the green energy sector. Such players cheered when a government official announced the proposed changes in a discussion in Jakarta on Wednesday, which include the introduction of a feed-in-tariff (FIT) pricing policy and the decompulsorization of the build-own-operate-transfer (BOOT) contract scheme. The former guarantees fixed electricity rates for small renewable power plants and thus it ensures certainty of financial returns. The second proposal eliminates a scheme deemed harmful for the bankability of a renewable project. “There will be a FIT scheme. It assures steady prices,” said the Energy and Mineral Resources Ministry's electrification director general, Rida Mulyana, at the discussion, “Second: BOOT schemes will no longer be compulsory.&...