New and Renewable Energy Needs Massive Investment, Ministry Says

TEMPO.CO, Jakarta - The Energy and Mineral Resources (ESDM) Ministry predicted that developing new and renewable energy power plant within the next 10 years would require Rp 1,600 trillion of investment.

ESDM Ministry data showed that the massive investment is needed to construct new and renewable energy power plants capable of generating a total of 36,300 Megawatts of electricity within the next ten years, or equals to 3,630 Megawatts each year.

On average, the investment required for one Megawatts of new and renewable energy electricity reaches up to Rp 44 billion, or equals to US$3.4 million.

In accordance with the National Energy Master Plan (Rencana Umum Energi Nasional – RUEN), new and renewable energy is expected to supply 23 percent of Indonesia's total energy supply by 2025, accompanied by coal, oil, and gas with 30 percent, 25 percent, and 22 percent, respectively.

Currently, the percentage of energy supply that comes from new renewable energy only reaches 10 percent, with coal, oil and natural gas supplying 33 percent, 35 percent, and 21 percent of the total energy supply, respectively.

In an effort to achieve the target, the government has carried out several improvements including, simplification of licensing processes, providing incentives, updating data on potential new and renewable energy, encouraging people to save energy, and improving coordination between the central and regional government.

BISNIS.COM