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Indonesia Energy Ministry to set new tariff scheme for renewables

JAKARTA ( – The Indonesian Energy and Mineral Resources Minister Ignasius Jonan said the ministry will soon issue new ruling on new tariff scheme for renewable energy.

He said based on the planned new scheme, the tariff for renewables will be set at no higher than 85% of the basic production costs (BPP) of the renewables in respective regions.

As a consequence, the tariff will be different between one region and others.

The Indonesian government is embarking on developing 35 GW power plant program. Portion of this will be renewables. The government has set target that by 2025, 23% of energy mixed will come from renewable energy.

On Monday, the National Energy Council (DEN) decided to maintain the target to complete the 35 GW installed capacity of power plants by end of 2019.

PLN expects 26,000 MW of power plants will commence commercial operations by end 2019. Of these 20,000 MW has signed power purchase (PPA)agreement with PLN.

Industry players however has criticized PLN for its inconsistency in carrying out project tenders. (*)

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