Huge Potential for Investment Indonesia Has in Renewable Energy

Huge Potential for Investment Indonesia Has in Renewable Energy

Indonesia has a huge potential for investment in renewable energy,
especially for waste and geothermal energy, according to the Energy and
Mineral Resources Ministry.

"There are 13 regions in Indonesia which have geothermal energy potential,"
the ministrys Director of Geothermal, Yunus Saefulhak said in a discussion
held here, Monday.

The regions have the potential to produce 9.6 gigawatt of geothermal energy,
with basic cost of production (BPP) lower than the national BPP, making it
more economical. The potential regions are East Nusa Tenggara, Aceh, papua,
South Kalimantan, South Sulawesi, Maluku, Bangka Belitung, Riau, West
Sumatra, and West Nusa Tenggara.

Other renewable energy resources across the country are expected to produce
200 GW of energy, thus the government has prepared a scheme to provide
incentives for investors. Currently, some investors have expressed their
interest to develop renewable energy in Indonesia.

Under the ministerial decree 12/2017, state-run electricity firm PT PLN
would have to use renewable energy in a bid to improve efficiency and reduce
its price to consumers.

The renewable energy would be bought from power plants under the mechanism
of fixed price or direct appointment. PLN would have to operate renewable
energy power plants with a capacity of 10 MW.

Yunus said, development of renewable energy would need closer coordination
with other ministries and institutions, for instance, to provide its land
and environmental impact assessment (Amdal). The development is expected to
improve national competitiveness in energy sector.

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Link to Original Article:
http://www.en.netralnews.com/news/business/read/1741/huge.potential.for.inve
stment.indonesia.has.in.renewable.energy

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com