Indonesia’s Renewable Energy Prospect in Post Pandemic Era

Currently, Indonesia’s renewable energy contribution is holding at twelve percent. Eighty eight percent of the national power capacity is still sourced from fossil fuels. However, it isonly by shifting energy investment toward renewable resources can Indonesia reach its target. The regulation of new and renewable energy (NRE) in Indonesia generally divided into geothermal, bioenergy, other NREs, energy conservation, and and NRE infrastructure. As part of the Government’s efforts to achieve NRE target of 23% by 2025, the Ministry of Energy and Mineral Resources (ESDM) has issued Regulation on Connected Rooftop Solar Power Plants to Electric Power Network. This regulation increase the electricity kWh exported to PLN from 65% to 100% which could be deducted from monthly electricity bill.

ESDM ministry stated that a number of efforts are currently being carried out to boost investment in NRE sector. One of the efforts being carried out is by finalizing the Presidential Regulation on NRE Tariffs. Later, this regulation will apply the highest benchmark price. This policy will allow the implementation of high electricity rates at the outset. After there is certainty of return on investment for investors, electricity rates can decrease. In addition, for remote areas there will be another option in the form of implementing a feed in tariff. Indonesian energy demand can expect to see increases by 80%, while electricity demand triples between 2015 and 2030. While data suggests Indonesia has slightly increased it reliance on fossil fuels, its renewable energy trends are stirring. As a result, consistent renewable energy additions into Indonesia’s overall energy mix is a growing trend. This is surely positive development in the country’s shift toward green energy. In the short-term, it looks as though growth in renewables will exceed the demand for coal and oil. by that Goals and demand that means Indonesia also need a large scale of an investment to be able fulfill the goals. so indonesia need to prepare the roadmap and visibility research and to made a scheme to attract investor to indonesia.