Jakarta—The Indonesian government is revising Government Regulation No. 79/2014 on the National Energy Policy (KEN) to accelerate the energy transition and overcome the inability to achieve the stated energy utilisation targets. The revision includes several new rules adjusted to the current energy transition situation.
In an official statement on Tuesday, July 9, Minister of Energy and Mineral Resources (EMR) Arifin Tasrif revealed that strengthening funding for energy decarbonisation is an important point in the government regulation’s latest proposal.
“The strengthening of funding was previously only for energy security through the APBN (state budget) and APBD (regional budget), but in the KEN update, funding is used for decarbonisation of the energy sector and energy security, which can be sourced from the APBN, APBD and other sources both national and international,” Arifin explained.
In addition, the government will also provide fiscal and non-fiscal incentives to facilitate energy diversification and the development of new renewable energy. This step is intended to make SOEs more actively involved in various energy transition programs.
“While the KEN update includes fiscal and non-fiscal incentives, there are also disincentives and financing for SOEs and business entities as well as compensation for SOEs in the implementation of energy transition and energy security programs,” he added.
The government regulation revision also includes an increase in the domestic component level (TKDN), which is not only limited to the national energy industry but also includes technology, building design, materials, and other components. “Labour and funding sources and increased added value,” he said.
Furthermore, Arifin mentioned regulating public participation in energy supply and utilization business activities. This includes funding for energy decarbonisation, energy security, and improving human resource capabilities in implementing the energy transition.
With these various measures, the government hopes to accelerate the energy transition and reduce dependence on fossil energy. The government also hopes that SOEs and other business entities can actively contribute to support this policy. (Hartatik)
