METI: Regulatory inconsistencies hamper renewable energy development

Jakarta – The Indonesian Renewable Energy Society (METI) assesses that changing regulations have disrupted the renewable energy business community, so there needs to be a policy that is long-term and provides certainty for renewable energy developers and investors. For example, related to simplifying the licensing process, land acquisition, and the provision of supporting infrastructure.

“Until now, there are still frequent changes in policies and regulations,” said METI Chairman Bobby Gafur Umar recently.

He said there are four main challenges that make the development of renewable energy in Indonesia unable to accelerate, namely policy challenges, funding, technology, and human resources. Umar emphasized that policy challenges are the most influential, because there is no reward and punishment mechanism for renewable energy developer stakeholders.

Regarding funding, he said, the allocation of funding for renewable energy development purposes so far still relies on the state budget, so it is very limited. Umar, who is the President Director of PT Maharaksa Biru Energi Tbk (OASA) said that on the investment side, large-scale private developers actually have more experience in obtaining funding. However, small and medium-scale private developers still face constraints in providing guarantees and limitations in obtaining partners.

Therefore, the role and contribution of foreign investors in the development of renewable energy in Indonesia is very important, especially in the context of technology transfer. “We hope that the government can help develop creative funding to finance renewable energy development, so that the burden on the state budget can be reduced,” Umar said. (Hartatik)

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