Wednesday, 20 November 2019

Govt Includes Clean Energy Subsidy in 2017 Budget Draft

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  • Ulubelu Geothermal Power Plant in Lampung, Indonesia. ANTARA/Rivan Awal Lingga

    Ulubelu Geothermal Power Plant in Lampung, Indonesia. ANTARA/Rivan Awal Lingga

    TEMPO.CO, Jakarta - The government is committed to increase the mixture of new renewable energy for use in Indonesia. For the first time, clean energy subsidy is allocated in the state budget.

    In the 2017 State Budget Draft, the government allocates Rp1.29 trillion to subsidize new renewable energy. The total energy subsidy budget for next year is Rp92.2 trillion.

    The Energy and Mineral Resources Ministry's official said this subsidy is required because new renewable energy development costs more than fossil energy development. The Ministry's secretary for the Renewable Energy and Energy Conservation Directorate General Kusdiana Dadan said without the subsidy, the purchase of clean energy power from private developers would be detrimental to PT PLN.

    The subsidy would be managed by a public service board (BLU) working under the Energy Ministry. The board's formation is still waiting for the issuance of a presidential regulation on energy security funds.

    The Indonesian government seeks to promote the use of clean energy. The government has mandated the increase of clean energy mix by five percent this year to 23 percent in 2025.

    ROBBY IRFANY | VINDRY FLORENTIN