Indonesian Energy and Mineral Resources Minister Jero Wacik said the country will stimulate renewable energy in the country by providing incentives for developers and raising feed-in tariff for alternative power plants, both of which will help to speed up the move toward a “greener” Indonesia.

“I am so optimistic that by having such movement pattern, year by year there will be much new and renewable energy we produced and we will develop fast.” The government has issued necessary policies to boost the development and utilization of clean energy to hit the national target of 25 percent energy supply from renewable energy by 2025.

It includes the proposal for a tax holiday for exploration activities by investors, sales purchase improvement of renewable energy projects, and higher price for renewable energy.

Recently, the subsidy for geothermal power plants was raised to around $0.1 to $0.17 per kilowatt-hour from 9.7 cents per kilowatt-hour, reported The Jakarta Post.

Mr. Wacik said this is to draw in more investors to tap into the country’s rich geothermal reserve.

Meanwhile, the minister is expected to sign the biomass energy price next week that will follow the launch of two biomass steam power plant units, each with a 15-megawatt capacity.

Indonesia has immense renewable energy potential which includes 450 MW of mini/micro hydropower, 50 gigawatts of biomass, 3 to 6 meters per second of wind power and 480 kWh per square meter per day of solar power.

The development of renewable energy in the country is currently being regulated by Presidential Decree No. 5 of 2006 or the national energy policy. Originally, it stipulated that renewable energy should contribute 17 percent to the total energy mix by 2025.

The new 25 percent target is now being revised by the National Energy Board along with several plans and projects to meet the goal.

“This is the time. Indonesian renewable energy should revive. Talk less and do more,” the minister said. – C. Dominguez

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