Indonesia Adds Renewable Capacity Faster Than Expected

The government has set a target for state-owned utility company Perusahaan Listrik Negara (PLN) to secure power purchase agreements for a total of 1,200 megawatts this year. (Antara Photo/Anis Efizudin)

By : Telly Nathalia | on 2:43 PM October 31, 2017
Category : News, Business, Featured, Sustainability

Jakarta. The government seeks to make green energy sources the backbone of Indonesia's power sector, a minister said on Monday (30/10).

According to Energy and Mineral Resources Minister Iganatius Jonan, President Joko "Jokowi" Widodo has given a directive that the government increase the use of hydropower and geothermal energy supplies, so that 25 percent of power in the country's grid be generated from renewable sources.

This year, Indonesia has already secured contracts for additional 723 megawatts of renewable capacity.

"I never reject renewable energy, as long as the price is normal ... electricity from coal, gas, water is still electricity," Jonan said in a press statement.

To attract investors to the renewable energy sector, the government has issued a ministerial regulation on the initial survey procedure (PSP) and exploration (PSPE), asked state-owned enterprises to increase investment, and simplified the procedures for obtaining exploration licenses through a one-stop integrated service center at the Investment Coordinating Board (BKPM).

The minister said Indonesia still has a huge potential in the renewable energy sector. Its North Kalimantan province, which is known for big rivers, can generate even 9,000 megawatts of hydropower.

The country also has the largest geothermal reserves in the world.

According to government data, the use of renewable energy sources is rising 0.54 percent annually. In the second quarter, the use of hydropower energy exceeded the government's target of 6.16 percent, reaching 8.07 percent. The use of geothermal and other renewable energy sources in the same period reached 5.23 percent, or 0.27 percent more than the target.

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