Regulatory uncertainty tops barrier in electricity investment

By Adianto P. Simamora

Regulatory uncertainty tops the list as the single most important barrier to making large-scale investments in the country?s electricity sector including in coal-fired power plant, according to a new survey by PwC Indonesia and Indonesian Independent Power Producers Association (APLSI).

The survey ?Powering the Nation: Indonesian Power Industry Survey 2017? finds that power companies are most concerned about the regulatory uncertainty to make large scale investments.

A presentation material of the survey cited as example that over the past two years, more than four regulations on coal mine mouth procurement and price have been issued.

Other barriers are the lack of coordination between ministries/government institutions, difficulties in obtaining financing and permits, and in reaching timely conclusion of Power Purchasing Agreement (PPA).

Editing by Reiner Simanjuntak