JAKARTA (TheInsiderStories) – The investment realization of renewable energy in Indonesia is still far from target, according to official, on Friday (26/10). This unachieved target is constrained by last year funding difficulties which impacted this year’s realization.
According to Energy and Mineral Resources ministry’ director general for new, renewable energy, and energy conservation, Rida Mulyana, in the third quarter (3Q) of 2018, the investment realization was only 40 percent of 2018 target, valued US$804 million.
This year, Indonesia targeted $2.01 billion investment in renewable energy sector. Seeing the low realization, Mulyana hoped it can reach at least 70 percent investment target with worth $1.4 billion by the end of this year.
Geothermal, which is the biggest contributor of renewable energy sector, wasn’t going well. State-owned energy producer, PT Pertamina, as geothermal power plant operator, met drilling problem.
Other than that, Ministry Regulation Number 50 Year 2017 obliges electricity price from renewable energy is in accordance with the region’s economical price, he added. It is also one of the reasons investors are not interested investing in Indonesia’s renewable energy.
Recently, the ministry is still proposing to revise the regulation, by accepting suggestions from several parties.
During third quarter of 2018, Indonesia’s geothermal electricity supply added by 140 megawatt (MW) from two operating power plants. Whilst capacity of geothermal electricity is 1,948.5 MW.
Mulyana optimistic that the capacity can reach 2,000 MW by the end of this year, by newly operating power plant.
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