New and renewable energy (EBT) is the attraction, while on the other hand, the production cost of this energy is still high. Hence, we are drafting a new regulation to make the tariff more attractive to investors.
Jakarta (ANTARA) - Energy and Mineral Resources Minister Arifin Tasrif plans on issuing a regulation for improving the tariff of electricity produced from new and renewable energy sources to make it more competitive and attractive to investors.

"New and renewable energy (EBT) is the attraction, while on the other hand, the production cost of this energy is still high. Hence, we are drafting a new regulation to make the tariff more attractive to investors," he noted in a statement on Tuesday.

The utilization of new and renewable energy is still very low as compared to the potential, he pointed out.

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"Our new and renewable energy potential reaches 417.8 gigawatts, but only 2.5 percent of the total had been utilized. We have geothermal, solar, biomass, and hydro energy sources, but they had yet to be utilized optimally. Hence, we gradually encourage (the use of new and renewable energy)," he explained.

Today, the challenges encountered in the utilization of new and renewable energy is the tariff of electricity produced from this form of energy. The tariff is not attractive to investors to invest in this form of energy, he pointed out.

For its part, the government will soon issue a new regulation on the tariff of electricity produced from new and renewable energy sources to make it more attractive to investors, he revealed.

"The problem now lies with the tariff. If we can solve the problem, (the development of) new and renewable energy will run smoothly and the investors' return on investment will be guaranteed. The utilization of new and renewable energy will serve as a crucial factor for Indonesia for now and in future, as it will reduce its fossil fuel consumption, though it will not be totally abolished," he stated.

Tasrif has estimated the regulation to be completed sooner or later this year.

"We are optimistic of the regulation being completed this year. In fact, (the draft of the regulation) has been discussed several times with business agents engaged in the new and renewable energy sector," he added.

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Translator: Afut Syafril N/Suharto
Editor: Sri Haryati
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