EBT aims to protect the people and accommodate investors

Jakarta, InfoPublik – Indonesia Ministry of Energy and Mineral Resources’ (ESDM) Head of Communications, Public Information and Cooperation Bureau Agung Pribadi said that the government will take advantage of the new renewable energy (EBT) policy and domestic market obligation (DMO) of coal to maintain the electricity cost of supply (BPP). In result, its tariff will remain stable.

Therefore, the ministry also directed its attention to EBT investors, provided convenience, and encouraged competitiveness.

"We make every effort to maintain the stability of electricity tariff. We manage and anticipate the increase of electricity BPP which is potential to increase the electricity tariff. Energy subsidy is not limitless. Subsidy is now wisely diverted to productive expenditures such as infrastructure, education, and health. Our ministry also has the vision to maintain people’s purchasing power," said Agung, Sunday (5/27).

He added that EBT investment is also kept conducive by the deregulation of 14 regulations or EBT licensing.

"Licensing regulations have been deregulated as of March 2018. Investment of EBT in 2017 was at USD1.3 billion and is targeted to increase to USD2 billion this year. State revenue from EBT 2017 was about Rp900 billion, exceeding the state budget target at Rp700 billion. We are still attempting to make EBT investment more lucrative. We are accommodative in maintaining the tariff for the interest of the people," said Agung.

In 2017, 70 EBT contracts were concluded. The number of contracts increased significantly from 14 contracts in the previous year. From those contracts, there have been 3 operational works and 22 constructions. The rest are still in either preparation and fundraising phases.

We hope these 25 companies can be inspiring role models for others, so national EBT development can be accelerated collectively. The government has also helped to facilitate attractive funding provision for several times.

"The synergy and collaboration of the Government, businessmen, academics, community, and all stakeholders are continuously indispensable to jointly encourage a just national energy provision," he concluded. (Translator: Erik Limantara)