President signs regulation to form clean energy SOE

President Joko Widodo has signed a presidential decree on the establishment of a state owned firm (SOE) especially tasked with purchasing and selling power generated from clean energy, the Directorate General of New Renewable Energies and Energy Conservation (EBTKE) said in a statement on Thursday.

?(The new firm) will be attached to PLN. God willing, (the establishment of the new firm) will be soon realized,? Minister of Energy and Mineral Resources Sudirman Said was quoted as saying on Wednesday after signing a memorandum of understanding (MoU) with the Financial Services Authority (OJK).

The establishment of such firm proves the government?s serious intention to develop clean energies. ?This is part of the efforts to spur investment in clean energy. The government?s supports will provide security for investors. For the sake of our energy resilience, we don?t have alternatives other than developing clean energies,? Sudirman said.

Aside from establishing such firm, the government has also shown its commitment to clean energy development by making it mandatory to develop clean energy power plants in the 35,000 MW program. Twenty percent of the power plants to be developed under the 35,000 MW should use clean energies as fuel, he said.

Under the MoU signed by the ministry, OJK pledged to encourage the financial sector to finance clean energy development.

This year, the financial sector is ready to disburse Rp 1-3 trillion to finance clean energy projects, OJK Board of Commissioners? Head Muliaman D. Hadad said, while voicing optimism that the funds will increase in the future.

Editing by Johannes Simbolon