Govt to collaborate with IPP to reach renewable energy mix target
JAKARTA. The Indonesian government together with PT Perusahaan Listrik Negara (Persero) or PLN, are trying to achieve the new realization of New Renewable Energy (EBT) which is targeted at 17.87%.
It is known that in 2023, the new EBT targeted by the Indonesian Government will only be realized at 13.09%. Meanwhile, the domestic installed EBT generating capacity still reached 66.66% of the annual target in the first semester of 2024.
In fact, according to Government Regulation (PP) Number 79 of 2024 concerning National Energy Policy (KEN), the EBT mix must meet a minimum of 23% by 2025. Even in the latest PP draft regarding KEN, the Indonesian Government plans to set a more ambitious EBT mix target of 60% in 2050 and 70% in 2060.
To meet these targets, the Indonesian Government through the Ministry of Energy and Mineral Resources (ESDM) will prepare an Electricity Supply Business Plan (RUPTL) for 2025-2035 together with PLN. This scheme will be the basis for cooperation between the Government, PLN and Independent Power Producers (IPP) in realizing the EBT mix target.
It is hoped that this plan will help invest in NRE electricity generation infrastructure, which is currently considered quite expensive, so as not to burden the APBN. "There are limitations to financing EBT power plants, and our fiscal space is very limited so it is difficult to meet that, and if PLN has to finance most of it, it has to borrow, that's where the IPP balances," said Chatib Basri, Minister of Finance in the era President Susilo Bambang Yudhoyono.
For the record, the development of EBT infrastructure until 2025 is estimated to be an investment of US$14.2 billion or around IDR 22.78 trillion. Collaboration with IPPs is important for the realization of EBT, because they have wider funding options such as issuing green bonds and green financing.
On the other hand, said Chatib, private sector investment can also support the realization of economic growth of up to 8% targeted by President Prabowo Subianto. "To achieve the 8% target, the government needs a lot of electrical energy, IPPs can have a role here," said Chatib. (KR/LM)
