Attracting Investors To Invest In EBT Projects, The Government Prepares A Number Of Incentives

Director General of EBTKE, Ministry of Energy and Mineral Resources Dadan Kusdiana. (Photo: Doc. Ministry of Energy and Mineral Resources)

JAKARTA - Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources Dadan Kusdiana revealed that to achieve Net Zero Emissions, Indonesia still requires large amounts of investment. According to Dadan, based on the 2021-2030 Electric Power Supply Business Plan (RUPTL), Indonesia needs at least USD 50 billion or approximately USD 5 billion annually.

"When it comes to investment, it will certainly advance our economy. Indonesia also has a Domestic Component Level (TKDN) that supports us," said Dadan in CNBC Indonesia's Energy Outlook, Thursday, February 24.

For this reason, Dadan said that the government is currently preparing a tariff policy, or Presidential Regulation, to create an investment climate and the entry of innovation.

"We also reduce the barrier to entry so that more and more people are interested and willing to invest in Indonesia," he said.

In addition, the government will also set the highest price at the beginning so that investors are willing to place their funds considering a fast return on investment. Not only that, but other incentives are also available and have even been running, both fiscal and non-fiscal.

"The president's direction is that development II should not burden the state budget, so we have a strategy to set a high price benchmark at the beginning and will decrease slowly," he said.

Meanwhile, President Director of PT PLN Persero Darmawan Prasodjo said that the economy is the key to attracting EBT investment in Indonesia, where when EBT electricity is able to compete with fossil energy electricity, investors' interest in entering the green energy sector will be even greater.

"For example, 1 GW is expensive if 1 cent/kWH for a year accumulates IDR 1.2 trillion. This is the challenge. We have agreed that ESDM and PLN, EBT must be cheaper than fossil fuel," Darmo explained.

For now, he said, as long as the commercial economy is good, of course, investment will be competitive. So, his party created a conducive climate with a transparent and open auction process, simplified business processes, and created good corporate governance (GCG).

"The results have been sweet. At first, there were only 4 or 5 auctions, now there are 160 interested people," he concluded.