Govt supports new and renewable energy development through pricing

By Sonar Sihombing

The latest increase in the feed in tariff for electricity produced from geothermal is a form of the government?s support in the development of new and renewable energy in the country, according to Kardaya Warnika, Director General of New and Renewable Energy and Energy Conservation.

Kardaya said on Tuesday that the feed in tariff is differentiated according to regions. He said that the price in Sumatra is 10 US cents per kwh, in Java 11-11.5 cents per kwh, in Bali 12-12.5 per kwh, in East Nusa Tenggara 15 cents per kwh and in Papua 17 cents per kwh.

?The basis in determining the price is the condition of the respective regions and its resources. In Bali, for instance, the price is set higher because Bali is a tourist destination where tourists would look for places with clean air,? Kardaya said.

Kardaya has also proposed for a special state-owned enterprise to help manage and promote the development of new and renewable energy in the country. One possible state enterprise is PT LEN, which has been engaged in the sector.

Meanwhile, Rachmat Gobel, Chairman of the Indonesian Renewable Energy Society (METI) called on the government to provide incentives to encourage companies to participate in the development of renewable energy in the country. He added a special law on renewable energy is also necessary.

Editing by Reiner Simanjuntak