President Joko “Jokowi’ Widodo is expected to soon sign the long-awaited government regulation on renewable energy, which will, among other things, fix the formula of the feed-in tariff in a bid to improve the investment climate in the renewable energy sector, a senior energy official has said,
Energy and Mineral Resources Ministry Renewable Energy Director General FX Sutijastoto said in Jakarta on Monday that the draft of the regulation on renewable energy had been sent to the President for approval.
“The draft was sent last week, “he was quoted as saying by bisnis.com. He was reluctant to elaborate on the content of the proposed regulation, but said it would regulate the feed-in tariff of electricity produced from renewable energy sources sold to state-owned electricity company PLN, except that of geothermal.
“The pricing policy for geothermal energy will be regulated under a different regulation,” he said, adding that the regulation on geothermal and other renewable energy would be issued to improve the investment climate in the renewable energy sector so that there would more investors interested in producing clean energy in the country.
With the improvement in the pricing formula, the government hopes that investment in new and renewable energy will reach US$20 billion by 2024.
Minister Arifin Tasrif said in Jakarta on Monday that the country had the potential to produce 700 gigawatts (GW) of new and renewable energy. He hopes the contribution of new and renewable energy in the country’s energy mix will increase to 23 percent by 2025 from between 9 and 10 percent at present.