Perpres on EBT Regulates Three Important Points, What Are They?

The Energy and Mineral Resources (ESDM) Ministry highlights three important points in the presidential regulation (Perpres) regarding new and renewable energy (EBT), which will be issued this year. ESDM Ministry's Director of Renewable Energy, Harris Yahya, said three important points in the EBT Presidential Decree are tariffs, procurement, and incentives. In Perpres, the price of electricity generated by EBT uses a feed-in tariff scheme. "This is the price that has been set in the Perpres later so that there will be no negotiations. So, it will make it easier for generators [capacity] up to 5 MW [megawatts]," he said in a virtual discussion, Thursday (22/10).

The procurement process for power plants of up to 5 MW is carried out by direct appointment without going through an auction process. As for incentives, according to Haris, the Perpres will regulate more details. There are 11 ministries and government agencies that are part of providing incentives as an effort to encourage the development of EBT in Indonesia. "There is the Ministry of State-Owned Enterprises (BUMN), the Ministry of Industry, the Ministry of Environment and Forestry, the Ministry of Home Affairs, the Investment Coordinating Board (BKPM), including local governments. With the hope, they will make regulations so that EBT is in accordance with their respective authorities," he said.