Govt Boosts Green Investment to Meet 2025 Target
23 April 2015 16:04 WIB
TEMPO.CO, Jakarta - The government will boost green investments to help meet the renewable energy use target of 25 percent in 2025.
Sudirman Said, Minister of Energy and Mineral Resources, said green investments in the energy sector will be prioritized for the development of renewable energy, which currently accounts for just seven percent of Indonesia's total energy utilization.
Sudirman recognizes renewable energy development requires considerable funds. That's why his ministry proposed for additional budget next year. At the moment, the Energy Ministry has Rp1.03 trillion allocated in the 2015 Amended State Budget.
According to Sudirman, the potential of green energy in Indonesia that has been identified is 75 Giga-watts (GW) from hydro energy, 112 GW from solar energy, 32 GW from biofuels, 0.95 GW from wind turbines, 32 GW from biomass, 28.8 GW from geothermal and 60 GW from sea.
Currently there are eight potential sectors for green investments in Indonesia. They are tourism, agriculture, forestry, fisheries, geothermal energy, processing industry (biomass, biofuels, transportation component), as well as the procurement of electricity from renewable sources, waste management and recycling.
Franky Sibarani, head of the Investment Coordinating Board (BKPM), said that from October 2014 to April 20 this year, 24 investors have stated their interest in investing in Indonesia's electricity sector.
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