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Investment in Indonesia’s renewable energy in 2018 below expectation

JAKARTA (RambuEnergy.com) – The progress of new and renewable energy in Indonesia has been discouraging. This is reflected in lower-than-expected investment in the sector in 2018, indicating that the government needs to work harder to attract more investment and create more friendly investment in the sector.

Director General for New, Renewable and Energy Conservation (EBTK) at the country’s energy ministry Rida Mulyana revealed that investment in the renewable sector last year only reached US$1.6 billion, lower than the energy ministry’s target of US$2.01 billion or 79.6% to the target.

Investment in geothermal and bioenergy, however, was above target, namely 105% and 101% respectively. Nevertheless, Rida Mulyana argues that the investment in the sector is still flowing. “It is not stagnant,” he said Tuesday (Jan. 8).

The encouraging news is that the contribution of the sector to the State Budget was higher than the target, amounting to Rp2.28 trillion, which is 326% of the target.

Meanwhile, the total investment in the energy and mineral sectors in 2018 reached US$32.2 billion, the energy minister Ignasius Jonan said last week. The realized investment was higher than the target of US$27.5 billion.

Of the investment, US$12.5 billion were invested in the oil and gas, US$11.3 billion in electricity, US$6.8 billion in mining and US$1.6 billion in the renewable sector.  The investment in energy and mineral sector was closed to the amount of investment in the sector in 2015, totalling US$32.3 billion. (*)

 

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