Director General of the Ministry of Energy and Mineral Resources for Renewable Energy Rida Mulyana at the Innauguration of Thermal Power Plant Rantau Dedap operation located in Muara Enim, Lahat and Pagar Alam, South Sumatra Province (04/08) - Photo by MEMR

JAKARTA (TheInsiderStories) – Indonesia government targets to raised an investment in renewable energy sectors US$1.79 billion this year, said one government official on Tuesday (01/08). The amount smaller than last year’s target worth of $2.01 billion.

Last year, the investment realization of renewable energy in Indonesia is still far from target. According to Energy and Mineral Resources (EMR) ministry’ director general Rida Mulyana, in the third quarter (3Q) of 2018, the investment realization was only 40 percent of the target, or valued $804 million.

Meanwhile, Director of Various New Energy and Renewable Energy, Harris revealed, the projects is still dominated by diesel, solar and air power plant. He said, there were around 60 megawatt of diesel power plant which signed a purchase agreement in this year.

“For the definite project value this year, the power purchase agreement of $510 million will be in solar, water and others,” said Harris.

While, in the geothermal sector, the director Ida Nuryatin Finahari explained that in 2019 there are two geothermal power plant projects that will be operational, precisely in March.

“Hopefully the on time Lumut (South Sumatera) and Muara Laboh power plant (West Sumatera) will be operates. While the Sokoria power plant (Flores Island) is planned to be operational in the second semester of 2019,” said her.

In addition, the government also targets the installation of 1 million solar panels with total capacity 1 gigawatt over the next four years until 2023. This target is in line with the regulations related to Roof Solar issued by the government on Jan. 1, 2019 ago.

Harris explained that with these rules, the community and also government could start installing solar panels on the building. The hope, with the existence of these solar panels, the residents are no longer dependent on fossil energy sources alone.

He is optimistic that this project can be easily realized considering that there are more than 40 million electricity customers. To reduce fossil energy use, the government also plans to implement green fuel and also B30, which will be discussed by the government in 2020.

Furthermore, said Muljana, the first refinery for green fuel was prepared at the Plaju Refinery in South Sumatra. Since the beginning of December 2018, the Plaju Refinery Unit III has been able to process crude palm oil into green fuel and green LPG.

After the Plaju Refinery, a commercial trial of the production of environmentally friendly fuels will also be conducted at the Cilacap Refinery Unit (Central Java), Balongan Refinery (West Java) and Dumai Refinery (Riau).

The products produced are not only environmentally friendly gasoline but also environmentally friendly diesel (green diesel) and environmentally friendly Avtur (green avtur). Trial is conducted until 2020 and is targeted to be able to produce sustainably in 2023.

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