Arcandra: Deregulation Provides Positive Results for the Electricity Sector

By : Hariyanto And Aldo Bella Putra | Monday, January 29 2018 - 21:00 IWST

Wakil Menteri Energi Dan Sumber Daya Mineral, Arcandra Tahar

INDUSTRY.co.id - Jakarta - Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar reiterated that the deregulation has recorded positive results for the electricity sector. In addition to attracting electric investors based on Renewable Energy (EBT), deregulation also has an impact on increasing the electrification ratio.

"Deregulation of that impact should facilitate the business process cut," said Arcandra to the media at the Ministry of Energy and Mineral Resources, Jakarta, Friday (26/1/2018).

According to Arcandra, the electricity deregulation efforts also add to the investment climate in the power sector. This is demonstrated by the signing of 70 Power-New Renewable Power (PPA) contracts based on Renewable Energy (EBT) throughout 2017.

"Last year (increase) quadruple, this is not due to deregulation? Its PPA is simpler, so we introduce up to 1,200 MW EBTKE which is signed by PPA last year. I think it is due to deregulation," said Arcandra.

Not only that, Arcandra believes the rearrangement of regulations also has made it easier for the Government to achieve the target ratio of electrification. Last year, the Government successfully exceeded the electrification ratio of 95.35% from the target benchmark of 92.75%.

"In addition to cutting the business process, the deregulation should accelerate efforts to achieve the Government's target in boosting the electrification ratio." It impacts there, yesterday in the House of Representatives in appreciate," he said.

Previously, in the Working Meeting with Commission VII of the House of Representatives (DPR), on Thursday (25/1/2018), the Government's effort in boosting the energy access distribution program throughout Indonesia was appreciated.

Some of the programs considered successful by the House of Representatives, such as electrification ratio reached 95.35%, electricity development contracts sourced from New and Renewable Energy (EBT) of 1.214 MW, non-tax state revenue (PNBP) achievement of 119% and Implementation of BBM One Price at 57 points.