Creating Green Energy Market until 2025 Needs USD36,95 Billion Investment

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 692.Pers/04/SJI/2019

Date: 4 December 2019

Creating Green Energy Market until 2025 Needs USD36,95 Billion Investment

The government's strong determination to reduce fossil-based energy by year has stimulated the massive increase of New, Renewable Energy (NRE) power plants which share is targeted to reach 23% in 2025.

Ministry of EMR also projects the investment to increase NRE power plants will reach USD36.95 billion over the next five years. This point has been confirmed by Director General of NREEC of Ministry EMR, Sutijastoto, on a number of occasions.

Head of Bureau of Communication, Public Information Services, and Cooperation of the Ministry, Agung Pribadi, says the huge amount of investment is intended as a strategy to expand the share of the energy market. "The investment amount can help increase the energy market share in 2025," said Agung in Jakarta, Tuesday (3/12).

Agung further breaks down the investment amount to consist of geothermal power plants of USD17.45 billion, hydroelectric or microhydro-electric power plants USD14.58 billion, solar and wind power plants USD1.69 billion, waste-to-energy plants USD1.6 billion, bioenergy power plants USD1.37 billion, and hybrid power plants USD0.26 billion.

The breakdown of the NRE power plant investment, Agung continues, is adjusted to the Electricity Procurement Plan (Rencana Usaha Penyediaan Tenaga Listrik, RUPTL) of 2019-2025. "This (RUPTL) refers to the economic growth assumption of 5.5% annually until 2020 and 6.5% in 2025," Agung explained.

According to Agung, the investment amount indirectly brings about the rise in the capacity of NRE power plant mix in Indonesia to 24,074 Mega Watt (MW) in 2025 from the previously 10,335 MW in 2019.

In total, the installed capacity of NRE power plants over the next five years is as follows: 11,256 MW in 2020, 12,887 in 2021, 14,064 MW in 2022, 15,184 MW in 2023, and 17,421 MW in 2024. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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