Indonesia - Renewable energy development ruling is setback: Expert

Indonesia - Renewable energy development ruling is setback: Expert

An energy expert has criticized the government for discouraging the
development of renewable energy with the issuance of the latest regulation
by Energy and Mineral Resources Minister Ignasius Jonan.

Yunus Daud of the University of Indonesia said Energy and Mineral Resources
Ministerial Regulation (Permen) No 12/2017 on the utilization of renewable
energy for electricity had discouraged investors from putting their money in
the sector.

He referred to an article in the Permen that stresses that the maximal
prices of electricity from renewable energy is 85 percent of the production
basic cost.

(Read also: Renewable energy regulation repeats old mistakes: Association)

"How would [they] want to invest if there is such a limitation?," Yunus said
as reported by tribunnews.com on Friday.

"The state will suffer from losses. It means that progress in renewable
energy will be sluggish. It is ironic because initially the wish [of the
investors] to develop renewable energy, including geothermal, was quite
high," he added.

He expressed doubt over whether the target of 23 percent in contribution
from renewable energy to the total national energy demand by 2025 could be
achieved if the government went ahead with its current policy. Currently,
renewable energy contributes to only about 8 percent of the total energy
demand.

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Link to Original Article:
http://www.thejakartapost.com/news/2017/02/10/renewable-energy-development-r
uling-is-setback-expert.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com