Indonesia to Expand Market for Renewables
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 299.Pers/04/SJI/2020
Date: 10 October 2020
Indonesia to Expand Market for Renewables
The use of renewables as environmentally friendly energy sources will be speeded up by creating new markets for renewables. Minister of Energy and Mineral Resources (EMR) Arifin Tasrif said the creation of renewable energy markets would be carried out through Renewable Energy-Based Industry Development (Rebid) and Renewable Energy Based on Economic Development (Rebed) programs.
The programs have been designed to speed up the use of renewables at industrial and Special Economic Zones (KEK) as well as to support local economic zones in remote, outermost and frontier (3T) areas in Indonesia.
"To accelerate the use of renewables, the government has, in addition to preparing draft presidential regulation on the purchase of electricity from renewables by PT PLN (Persero), also created new markets for renewables through the Renewable Energy-Based Industry Development and Renewable Energy Based on Economic Development programs which aim at accelerating the use of renewables at industrial and Special Economic Zones as well as supporting local economic zones in Indonesia's remote, outermost, and frontier, or 3T, areas," said Mr. Arifin Tasrif when virtually launching the 9th Indonesia EBTKE ConEx 2020 on Friday (9/10).
Mr. Tasrif went on to say it is time that Indonesia followed the global trend of optimizing the use of renewables to reduce the impacts of climate change. According to the Kyoto Protocol in 1997, international community is determined to reduce the emissions of carbon dioxide and other greenhouse gases.
"At the global level, world countries have committed to reducing the impacts of climate change by signing the Kyoto Protocol in 1997. The international community is determined to reduce the emissions of carbon dioxide and other greenhouse gases, from energy and transportation sectors, so as to ensure the transformation from fossil energy to new, renewable energy," continued Mr. Tasrif.
Besides creating markets that will ensure greater renewables utilization, the government will maximize the application of bioenergy, including by accelerating the construction of solid waste power plants at 12 cities, using biomass and organic waste as a fuel for co-firing at existing coal-fired power plants (PLTU), imposing the mandatory B30, developing green refinery program, and promoting the development of regional-based geothermal project, such as through Flores Geothermal Island project which aims to fulfil the electricity load of Flores Island.
"We'll optimize the indirect use of geothermal energy. To reduce the exploration risks of geothermal developers, the government has also adopted a government drilling scheme, where geothermal exploration is carried out by the government," explained Mr. Tasrif.
On the same occasion, Director of Various Energy of Ministry of EMR Harris said that the transition from fossil-based energy to renewable energy is necessary because the latter is environmentally friendly. The key to optimum utilization of renewables is a more competitive price.
"Currently, the government has completed the presidential regulation (Perpres) on the purchase of electricity from renewables. This regulation sets out renewable prices based on the economies of scale of the technology and the location where the renewable energy plant will be constructed. The prices will be different, and we've formulated a price scheme that will attract business players to invest in Indonesia," continued Mr.Harris.
Eleven state ministries and agencies will be involved and play their roles, including Ministry of EMR, Ministry of Finance, Investment Coordinating Agency (BKPM), Ministry of SOEs, and Ministry of Industry. (IY)
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