Geber EBT, The Government Ensures That It Will Not Shift Fossil Subsidies

Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana. (Photo: Doc. ANTARA)

JAKARTA - Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana said the government would not shift subsidies during the energy transition process.

On the other hand, the government will encourage the acceleration of the use of renewable energy sources, one of which is by issuing regulations regarding more profitable rates.

"The Ministry of Energy and Mineral Resources must ensure the availability of energy for the community. It must be available, purchased, and affordable for the community," said Dadan, Monday, September 18.

Regarding the process of transitioning energy from fossil energy sources to renewable energy sources, Dadan continued, the position of the Ministry of Energy and Mineral Resources did not take policies to shift subsidies from fossils to EBT, but to accelerate the development of EBT.

"We are not in a position to shift fossil subsidies to renewables. We will encourage how to accelerate for renewable energy. One of them is to provide tariffs according to the existing Presidential Regulation (Perpres) Number 112," said Dadan.

Dadan explained, in Presidential Regulation number 112 of 2022 concerning the Acceleration of Renewable Energy Development for the Provision of Electricity, it was stated that in carrying out the development of power plants that utilize renewable energy sources, Business Entities were given incentives in the form of fiscal and non-fiscal.

"The government will provide compensation if the price is more expensive. The Presidential Regulation already exists and stated in the Presidential Decree that already exists. The government will provide compensation if the price is more expensive, but as of now in some of the locations are reversed (in conditions), it has started to shift towards that, but not all of them. Don't worry about the fossils, that the government ensures that they are sufficient and affordable," Dadan concluded.