Inconsistency of Impact Regulation of Mangkrak EBT Generator

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.