Ministry of EMR Focuses on Energy Stability and Security in IEA’s Standing Group

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 182.Pers/04/SJI/2020

Date: 20 May 2020

Ministry of EMR Focuses on Energy Stability and Security in IEA's Standing Group

Support in the form of reduced electricity costs for household customers, small industries as well as Micro, Small, and Medium Enterprises (MSME) is the government's stimulus to focus on the stability of energy supply for the lower classes of the community. The statement was delivered directly by Advisor to Minister of EMR for Strategic Planning, Yudo Dwinanda Priaadi, at International Energy Agency (IEA) Standing Group for Global Energy, held on Tuesday (19/5) afternoon which aims to respond to the impacts of Covid-19 on the energy sector.

The Indonesian government, continued Yudo, has allocated as much as Rp6.9 trillion for energy access stimulus in the electricity subsector in particular. Specifically, Rp3.5 trillion is allocated to all 450 VA household customers and some 900 VA customers for three months, from April until June. The remaining Rp3.4 trillion is allocated to MSME and small industries. In fact, the policy has been extended until September.

Yudo explained that energy access stability would open new opportunities for the development of New, Renewable Energy (NRE) because NRE was considered to have long-term prospect. Additionally, NRE power plants are considered to have higher level of efficiency and in line with IEA's policy. "This is actually the moment to introduce more NRE as the main equipment to ensure long-term energy stability and security. We appreciate IEA's support to implement energy efficiency in Indonesia," he affirmed.

However, the government does not deny that there are a number of challenges that must be immediately responded to. The government is currently formulating a Presidential Regulation on Feed-in Tariff to promote investment in renewable energy. "We hope the new regulation can create an investment-friendly environment and numerous opportunities for investors," said Yudo.

To smooth out the effort, the Indonesian government has also cooperated with IEA to integrate the policies in NRE subsector. "Hopefully, publication about energy investment prepared by IEA for Indonesia can promote NRE development," Yudo concluded. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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