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DENPASAR – Indonesia has various energies, but the utilization of renewable energy (RE) is still low approximately 6% in national energy mix. Oil is dominating national energy mix for 49, 7%. Based on KEN (National Energy Policy) Planning, RE is targeted to reach 26% by 2025.

Minister of EMR, Jero Wacik in his keynote speech of Bali Province Head Meeting, Monday (3/9/2012) stated that consuming oil fuels as power plant fuel is more expensive than consuming RE so that gradually oil-fuelled power plants will be reduced. “Generating electricity using oil fuel needs US$ 40 cent per Kwh, so generating electricity using diesel oil costs US$ 40 cent per Kwh. By using coal needs approximately US$ 7 cent per Kwh and next will use RE,” he said. 

“This would be Jero Wacik era, this is my bet,” remarked the minister. 

RE utilization will significantly increase after the Fast Track Program Stage II succeed, in which 66,4% of renewable energy power plants such as geothermal and water need the total investment for Rp 169 trillion. The locations of power plants are in Sumatera 3.693 MW, Kalimantan 836 MW, Sulawesi 711 MW, Maluku 51 MW, Java – Bali 4.497 MW, Nusa Tenggara 143 MW and Papua 116 MW and predicted to commercially operate by 2013 and will finish by 2020.

Besides optimizing the utilization of RE in Fast Track Program, the Government has issued regulations to encourage the electricity development and renewable energy-based electricity development. Here are the regulations:  • PP No.14/2012 concerning Power Supply Business; 
• PP No. 42/2012 concerning Cross Countries Power Purchase;
• PP No. 62/2012 concerning Power Supporting Service Business; 
• Minister of EMR’s Regulation No. 4/2012 concerning Power Purchase Price by PT PLN (Persero) from Power Plants using Small and Medium Scale Renewable Energy or Excess Power prepared the Feed in Tariff for RE, such as:  PLTP increased from US$ 9, 7 cent/Kwh to US$ 10 – 18, 5 cent/Kwh (had been signed on August 16th, 2012), the details are as follow:

- Sumatera for US$10 cent per kwh;
- Java - Bali for US$11 cent per kwh;
- Central, Southeast and South Sulawesi for US$ 12 cent per kwh;
- North Sulawesi and Gorontalo US$ 13 cent per kwh;
- West Nusa Tenggara (NTB) and East Nusa Tenggara (NTT) US$14 cent per kwh;
- Papua and surrounding for US$ 18,5 cent per Kwh.
- Mini and Micro Hydro Power Plants increased from Rp. 656/kWh to Rp. 975 – 1.050/kWh.
- Biomass Plant increased from Rp. 1.398/kWh to Rp. 1.450 – 1.798/kWh.
- Solar Power Plant ranges from Rp. 1.880 – 3.135/kWh.
- Wind Power Plant ranges from Rp. 1.250 – 1.810/kWh.