Government Rejects Proposal For The Establishment Of An EBT Management Agency From Commission VII

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed that the government rejected the proposal of Commission VII DPR RI to form a Renewable Energy Management Agency.

In his presentation at a Working Meeting with Commission VII DPR RI, Arifin stated, at a working committee forum meeting (Panja) on 7-8 November, commission VII proposed the establishment of a special agency for managing new and renewable energy.

"The government proposes not to regulate the mandate of establishing the latest ET business entity in the EBET Law," Arifin said in a Working Meeting with Commission VII DPR RI in Jakarta, Monday, November 20. Arifin refers to the Presidential Presulation 7 of 2021 concerning the Ministry of Energy and Mineral Resources which states that the implementation of the EBET policy incorporates the function of the Ministry of Energy and Mineral Resources.

In addition, the management of special funds sourced from renewable energy has now been formed by BPDPKS for palm oil and environmental BPDLH.

"Public policy related to bureaucratic reform is only complete, namely mentioning that simplification of bureaucracy and institutional arrangement is part of bureaucratic reform which is directed by the president," he said.

Arifin also said that the simplification of the bureaucracy was carried out to create a more dynamic bureaucracy so as to accelerate the work system with a simpler work system.

Arifin further said that the substance of the substance of the use of EBE funds is listed in Article 56 paragraph 3 of the Problem Inventory List (DIM) 508-514. The DPR proposes to regulate the details of the arrangement of ebet funds in body trunks, including the provision of infrastructure, incentive financing, compensation of business entities that develop EBT, the role of RIT, then increase the capacity and quality of human resources and subsidies for EBT prices that have not been able to compete with fossil prices.

"The government's proposal in this case is, as we convey in the 7-8 November panja, the use of EBET funds in accordance with the provisions of the legislation and is managed by the Ministry of Finance.

Regarding the establishment of the EBT Business Entity, members of Commission VII DPR RI from the Golkar Party faction, Dyah Roro Esti, also responded to the urgency of establishing an EBT business entity. According to him, Indonesia has a very large renewable energy potential, but the realization is still very small. Moreover, he said, there is the potential for funding from the Just Energy Transition Partnership (JETP) in large quantities so that it gets the spotlight of foreign countries.

"This is an extraordinary momentum, how we empower EBT. I hope that later the funding system, realization, utilization, supervision, and others can be carried out through a special agency that can monitor all movements of this sector," said Roro.