Indonesia - Renewable energy regulation repeats old mistakes: Association
The Indonesian Renewable Energy Society (METI) says Energy and Mineral
Resources Minister Ignasius Jogan with a recent decree on new and renewable
energy has repeated mistakes of the past that are proven to discourage
investors.
The maximum tariff of 85 percent from the basic cost of production (BPP)
stipulated in Energy and Mineral Resources Ministry Regulation (Permen) No.
12/2017 repeated a failure of the previous policy, said METI chairman Surya
Darma, as reported by tribunnews.com on Monday.
He said such a tariff had already been stipulated in Permen No. 14/2008,
which applies only to electricity from geothermal energy.
"That regulation has failed and [therefore] has been replaced. It is not
understandable that the current minister repeated the failure," Surya said
on Sunday.
Permen No. 12/2017 on New and Renewable Energy regulates tariffs for
electricity generated from solar energy, wind, hydropower, biomass, biogas,
waste and geothermal energy.
"We have expressed the concerns of the association in a meeting at the
office of Vice President [Jusuf Kalla]. The regulation needs to be revised,"
he added.
Institute for Essential Services Reform (IESR) executive director Fabby
Tumiwa made similar comments, saying the new rules would hamper to
investment in renewable energy.
The government needed to prepare incentives for investors in this sector, he
added.
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Link to Original Article:
http://www.thejakartapost.com/news/2017/02/06/renewable-energy-regulation-re
peats-old-mistakes-association.html
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John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
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