A solar power panel is seen in the schoolyard of SMP Negeri Satu Atap state junior high school in Kataka village of Kahaungun Eti district, East Sumba regency, East Nusa Tenggara, Wednesday (13/9). The solar panel is capable of producing 1,500 watts of electricity to meet the school’s electricity needs.
JAKARTA, KOMPAS – The development of renewable energy in Indonesia requires the full support of local governments. Unsynchronized development policies at the central and local governments may hinder development programs. On the one hand, regions are faced with limited resources in developing renewable energy.
The government has set a target of sourcing 23 percent of the national energy mix from renewable energy by 2025. Therefore, the nation must be able to generate 45,000 megawatts (MW) from renewable energy by then. Currently, the installed capacity is 7,500 MW.
“An important factor in the issue of energy price is commerciality. Is the price of [electricity from] renewable energy interesting in the eyes of investors? We don’t want unattractive prices combined with the unsupportive policies of local governments,” House of Representatives Commission VII deputy chair Satya Widya Yudha of the Golkar Party faction said in Jakarta on Thursday (21/9/2017).
According to him, the nation would be able to meet its renewable energy target upon the full support of regional governments. Incentive policies from the central government should be fully implemented in the field. The policies of regional governments should not contradict those of the central government.
Satya said that one obstacle in the development of renewable energy was that regions had yet to prepare their regional energy plans (RUED). RUEDs are derived from Presidential Regulation (Perpres) No. 22/2017 on the National Energy Plan (RUEN). The RUEN itself is the implementation of Government Regulation (PP) No. 79/2014 on National Energy Policy.
“The RUEN and the RUED are energy management guidelines at the national and regional levels. How can we have proper energy management if the guidelines are not in place?” Satya said.
In a working meeting between House Commission VII, the Energy and Mineral Resources Ministry and the National Energy Council (DEN) in Jakarta on Wednesday (20/9), it was revealed that not a single province had readied its RUED. Provinces must have issued their respective RUEDs in the form of a regional regulation (perda) at least one year after the RUEN was issued. President Joko Widodo signed the RUEN on April 2017.
At the working meeting, it was revealed that the majority of provinces had only arranged joint teams involving provincial working units (SKPD). The only province that was in the process of preparing its RUED was West Nusa Tenggara. Only Jakarta had its RUED documents ready. Once the documents are ready, the next step is to prepare the perda.
DEN member Rinaldy Dalimi said that most provinces had yet to allocate budgets for preparing the RUED. Socialization of the importance of preparing the RUED had been conducted in all provinces. He said that the central government needed to guide provincial administrations in preparing their RUEDs.
“We have socialized this. However, the DEN Secretariat General and a team from the Energy and Mineral Resources Ministry need to guide provincial governments in preparing their RUEDs. This takes time,” Rinaldy said.
DEN records show that 10 provinces had earmarked their RUED preparation budgets. These 10 provinces are: Nanggroe Aceh Darussalam, Lampung, Bengkulu, Banten, West Java, Jakarta, Central Java, Central Kalimantan, Maluku and West Nusa Tenggara. Provinces that have yet to begin actively preparing their RUEDs are North Kalimantan, North Sulawesi, Gorontalo, Central Sulawesi, Southeast Sulawesi, North Maluku, Papua and West Papua.
Input from business players
Hydro Power Plant Developers’ Association chairman Riza Husni said that the government should listen to inputs from business players regarding the development of renewable energy. These inputs were important in preparing a number of regulations on renewable energy in Indonesia. As direct players, investors had much at stake in these regulations.
“The government should not ask for our inputs only when troubles arise. It is better to involve business players from the start,” Riza said.
Regarding the higher price of electricity generated from renewable energy sources compared to that generated from coal-fired steam energy, Energy and Mineral Resources Minister Ignasius Jonan has said on several occasions that business players should make a reasonable profit. The higher rate of return on investment (ROI) that business players aim for would affect the price of renewable electricity.
“Say, [the business players] want to make an ROI in five years. This will result in a high electricity price. If they are willing to make an ROI in 10 years, for example, the price of electricity can be lower and more affordable,” Jonan said.
The government has also improved a number of regulations related to renewable energy development in Indonesia. A number of permits have also been slashed and delegated to the Investment Coordinating Board (BKPM) in a one-stop licensing system. However, the central government’s spirit in simplifying licensing may not be in alignment with licensing simplification efforts in regions.
