Government to revise Perpres 112 to accelerate renewable power projects

Friday, February 6 2026 - 07:30 AM WIB

By Cepi Setiadi

The government is preparing a revision to Presidential Regulation (Perpres) No. 112 of 2022 as part of efforts to accelerate the development of renewable energy power plants and reduce delays in project realization under the Electricity Supply Business Plan (RUPTL) of state-owned utility PT PLN. The regulation governs measures to expedite power generation development from renewable energy sources.

Director General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources Eniya Listiani Dewi said the revision will include clearer and more competitive renewable electricity pricing schemes aimed at boosting investment interest and accelerating the commercial operation date (COD) of renewable projects.

“We have received approval to revise Perpres 112. Renewable energy prices will be set and reviewed so that project development can move more aggressively and avoid prolonged processes,” Eniya said during the CNBC Energy Outlook 2026 event on Thursday (Feb 5).

According to Eniya, many developers have complained about lengthy and complex price negotiations for renewable electricity, which have contributed to delays in project realization. Through the revision of Perpres 112, the government aims to introduce regulatory breakthroughs to simplify these processes.

“So far, price negotiations have often been protracted, both in terms of ceiling and floor prices. This has caused delays in COD for many RUPTL projects. This is what we intend to address,” she said.

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The revision of Perpres 112 forms part of the government’s broader effort to implement what it calls the “greenest” RUPTL, targeting a 30% renewable energy mix by the end of the planning period. Within the RUPTL, solar power plants (PLTS) account for the largest share, with a planned capacity of around 17 GW, followed by other new and renewable energy sources.

In addition to solar, the RUPTL includes the development of ocean current and tidal power plants totaling around 40 MW, nuclear power plants with a planned capacity of 500 MW, and waste-to-energy facilities of approximately 32 MW.

To support the implementation of these policies, the government is also preparing a revision to Government Regulation (PP) No. 14 of 2012 concerning cooperation between state utility PLN and private partners. With around 70% of RUPTL investment expected to come from independent power producers (IPP), the deregulation is expected to smooth collaboration between PLN and private investors.

Meanwhile, the government has simplified the permitting process for waste-to-energy projects through a separate presidential regulation, under which construction permits are issued simultaneously with direct assignment to PLN, eliminating additional negotiation stages.

“All of these deregulation measures are expected to work in synergy to accelerate renewable energy project realization and support the achievement of the national energy mix targets,” Eniya said.

Editing by Reiner Simanjuntak

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