Indonesia’s Electricity Strategy Presented during ASEAN Energy Bussiness Forum

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 330.Pers/04/SJI/2021

Date: 17 September 2021

Indonesia's Electricity Strategy Presented during ASEAN Energy Bussiness Forum

The Ministry of Energy and Mineral Resources (EMR) has designed a strategy for developing Indonesia's electricity subsector, Director General of Electricity, Rida Mulyana, has said during the ASEAN Energy Business Forum (AEBF) on Thursday (16/9).

The first step is to attract investment in the new, renewable energy (NRE) subsector. According to Rida, the government has simplified the procurement process and made business schemes more open.

"Currently, we are finalizing a presidential regulation on NRE development," said Rida.

Next, Rida continues, is to develop smart grids and massively promote the use of rooftop solar. According to Rida, new regulations are needed to make NRE development more attractive.

The third effort is to promote renewable energy-based economic development (REBED) and renewable energy-based industry development (REBID) programs. REBED refers to the program that uses NRE to stimulate regional economy including in frontier, outermost, less developed (3T) regions, while REBID is the development of NRE potential that is integrated with industrial development.

"In an area with vast potential for NRE such as North Kalimantan, the NRE development for the industrial sector will be more competitive and attractive. Thus, the industry will get more affordable prices of electricity," Rida explained.

Moreover, the government is making every effort to convert diesel power plants into more environmentally friendly power plants. To increase the flexibility of the grid, the government has revised the grid code. "All electricity providers, both PT PLN (Persero) and Independent Power Producers (IPP), must follow the new grid code," Rida emphasized.

The fifth is to develop smart grid technology. Rida hopes it can improve the reliability of electricity supply and reduce losses in transmission and distribution networks.

Finally, the draft Electricity Procurement Plan (RUPTL) of PT PLN (Persero) for 2021-2030 has been made 'greener'. The share of NRE the RUPTL draft is higher compared to that in the 2019-2028 RUPTL which was set in the 30% range.

"To reach 23% of the NRE mix in 2025, the government gives a priority to the most economical NRE power plants and increases the development of solar power systems due to the declining prices," said Rida.

Rida said the target for the Electrification Ratio (RE) in the 2021-2030 RUPTL was set at 100% RE in 2022.

"To meet the electrification ratio target, the government maintains a balanced system to ensure the reliability of electricity supply," Rida concluded.

For the record, AEBF is the only exhibition and official conference on energy in ASEAN which involves regional and international policy makers as well as business actors. The event is part of the ASEAN Ministers on Energy Meeting (AMEM) which is held annually. (IY)

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