Indonesia’s President Joko “Jokowi’ Widodo is anticipated to sign a new government regulation on renewable energy. Based on a statement revealed by Energy and Mineral Resources Ministry Renewable Energy Director General FX Sutijastoto, the President is expected to sign the approval for the draft of regulation on renewable energy.
The deal will provide clarity on the feed-in tariff in order to improve the investment climate across the renewable energy sector.
With the alterations in prices, the government intends to invest in new and renewable energy, and investment is expected to reach US$20 billion by 2024.
According to a statement released by Minister Arifin Tasrif, the country has positive potential to produce 700 gigawatts (GW) of new and renewable energy. In addition, the contribution of new and renewable energy in the country’s energy mix will augment to up to 23 percent by 2025 from between 9 and 10 percent at present.
“The draft was sent last week,” Sutijastoto commented. The president however refused to comment on the content details of proposal in question. He however underlined that the new regulation 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.