Inconsistency of Impact Regulation of Mangkrak EBT Generator

By : Hariyanto And Aldo Bella Putra | Monday, December 18 2017 - 19:00 IWST

Energi Panas Bumi (Foto Eksplorasi.Id)
Energi Panas Bumi (Foto Eksplorasi.Id)

INDUSTRY.co.id - Jakarta - The Association of Young Indonesian Entrepreneurs (Hipmi) reminded that the regulatory inconsistency in the electricity sector has affected the number of new and renewable energy (EBT) generators in various stagnant areas.

"EBT is neglected as a result of regulation that has been inconsistent or often changed," said BPP Deputy Chairman Hipmi Yaser Palito in his statement in Jakarta yesterday.

He cautioned that data from the Supreme Audit Agency (BPK) revealed that many damaged EBT power plants, or precisely about 142 EBT projects, were abandoned after they were built.

Yaser said the 142 EBTs could be prevented from mangkrak situation if the investment regulation is quite supportive, so that from the beginning of the project work done professionally.

"The projects are so arbitrary, because later on they will be handed over to the local government, then the local government is looking for private partners, but no private sector wants the electricity prices to be unattractive, while the investment and maintenance costs are huge," Yaser said.

Yaser said that when the EBT price is set in 2009, the EBT price is made as attractive as possible in order to attract private interests.

But lately, he added, the various revisions to make the EBT enthusiasts declined and the recent policy makes domestic banks difficult to lend to entrepreneurs because it is pegged with fixed and low rates.

"The local government is also having difficulties in finding partners, with no 85 percent interest rate from the Cost of Supply (BPP), where there are private parties who want to be partners, even with the regional government," he said.

Therefore, Yaser estimates that the energy mix target of EBT at least 23 percent by 2025 will not be achieved.

News Comment

Today's Industry

President Joko Widodo

Jumat, 24 September 2021 - 20:15 WIB

Indonesia Has Enormous Potential to Become Global Maritime Axis, President Jokowi Says

Indonesia, the world’s largest archipelagic country with 17,000 islands, a coastline of more than 108,000 kilometers and the world’s largest marine biodiversity, should become the world’s…

Minister of Finance Sri Mulyani Indrawati/ Photo by: PR of Cabinet Secretariat.

Jumat, 24 September 2021 - 18:48 WIB

State Budget Performance Improves; Economic Recovery Makes Headway: Sri Mulyani

The realization of this year’s State Budget until August 2021 has shown good performance, marked by maintained growth in expenditure realization of Rp1,560.8 trillion or a growth of 1.5 percent,…

President Jokowi accompanied by Cabinet Secretary Pramono Anung to conduct a working visit to Cilacap regency, Central Java province (23/09/2021). (Photo by: Presidential Secretariat’s Press, Media, and Information Bureau/Laily Rachev)

Jumat, 24 September 2021 - 17:10 WIB

President Jokowi Kicks Off C. Java Working Visit

President Joko “Jokowi” Widodo on Thursday (23/09) accompanied by Cabinet Secretary Pramono Anung left for Cilacap regency, Central Java province for a working visit.

President Joko Widodo delivers his remarks through video conference at the 76th UNGA General Debate Session on Thursday (09/23) Western Indonesia Time. Photo by: PR of Ministry of Foreign Affairs.

Jumat, 24 September 2021 - 16:37 WIB

President Jokowi: Inclusiveness is Top Priority for Indonesia’s G20 Presidency

Indonesia will make the best endeavor to ensure that the G20 can benefit all countries, President Joko “Jokowi” Widodo has stated.

Indonesian Ambassador to the United Nations Darmansjah Djumala receives award from the IAEA and the FAO in Vienna, Austria, Monday (20/9). (Photo: PR of BRIN)

Rabu, 22 September 2021 - 19:30 WIB

Indonesia Wins Award on Food Plant Breeding from FAO, IAEA

Indonesia has received an outstanding achievement award from the Food and Agriculture Organization (FAO) and the International Atomic Energy Agency or IAEA.