Domestic Content Rule Drives Away Foreign Renewables Investors

By Editorial Team 31/07/2023
green energy
Summary

PT Perusahaan Listrik Negara (PLN) admitted that the local content requirement (TKDN) has driven foreign investors away from developing renewable energy-based power plants in Indonesia.

The problem is the use of goods or services sourced locally is not in accordance with the procurement guidelines of international financial institutions providing financial support for renewable energy generation projects.

PLN's EVP of Renewables Zainal Arifin revealed on Thursday that such a hindrance has stunted the development of the Hululais geothermal power plant (PLTP) in Bengkulu.

He said that, in this project, PLN has already secured a funding commitment from the Japan International Cooperation Agency (JICA), but the institution cannot "continue or approve the funding because the local content requirement does not comply with their guidelines.

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