Senin, September 10, 2018

Utilization of New and Renewable Energy Promoted in Bid to Decrease Imports of Oil Fuels

The Head of the National Development Planning Agency, Bambang Brodjonegoro, stated recently that the massive utilization of New and Renewable Energy (“EBT”) across several areas of Indonesia was the right step to take in terms of efforts to decrease the country’s reliance on imports of Oil Fuels (“BBM”).
The government has set a target of an EBT energy mix (bauran energi) of 23% by 2023. During the first semester of 2018, the EBT energy mix produced by the country’s power plants only amounted to 12.71%. However, this number is predicted to rise to between 15% and 20% in line with government policy, which obliges the utilization of a B20 fuel level of 20%, outside of the Public Service Obligation (“PSO”), including across the entirety of the country’s transportation sector.
In order to accommodate the non-PSO sector, the government has formulated a number of incentives, as regulated under Regulation of the President No.66 of 2018 on the Second Amendment to Regulation of the President No. 61 of 2015 on the Gathering and Utilization of Palm-Oil Funds, as well as Regulation of the Minister of Energy and Mineral Resources No. 41 of 2018 on the Provision and Utilization of Biodiesel Fuels within the Financing Framework of the Palm-Oil Plantation Fund Management Agency.

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The Head of the National Development Planning Agency, Bambang Brodjonegoro, stated recently that the massive utilization of New and Renewable Energy (“EBT”) across several areas of Indonesia was the right step to take in terms of efforts to decrease the country’s reliance on imports of Oil Fuels (“BBM”).
The government has set a target of an EBT energy mix (bauran energi) of 23% by 2023. During the first semester of 2018, the EBT energy mix produced by the country’s power plants only amounted to 12.71%. However, this number is predicted to rise to between 15% and 20% in line with government policy, which obliges the utilization of a B20 fuel level of 20%, outside of the Public Service Obligation (“PSO”), including across the entirety of the country’s transportation sector.
In order to accommodate the non-PSO sector, the government has formulated a number of incentives, as regulated under Regulation of the President No.66 of 2018 on the Second Amendment to Regulation of the President No. 61 of 2015 on the Gathering and Utilization of Palm-Oil Funds, as well as Regulation of the Minister of Energy and Mineral Resources No. 41 of 2018 on the Provision and Utilization of Biodiesel Fuels within the Financing Framework of the Palm-Oil Plantation Fund Management Agency.

......