SOLAR ENERGY TARGET IN THE INDONESIAN NATIONAL ENERGY POLICY: AN ANALYSIS TOWARDS CURRENT REGULATIONS, OBSTACLES, AND THE GOVERNMENT’S STRATEGY

Abstract

New and renewable energy in Indonesia has a big potential to be developed for electricity supply. For solar energy, there is 207.8 GWp potential (National Energy Master Plan, 2017) throughout Indonesia. With this potential, the Government has set a target of 23% by 2025 and 31% by 2050 for new and renewable energy in the primary energy mix as stated in Government Regulation Number 79 of 2014 concerning National Energy Policy. This target was set to reduce greenhouse gas emissions and the utilization of non-renewable energy sources for electricity. However, there are several solar energy power plant projects and other new and renewable energy power plants developments that were hindered. This is caused by some points stated in related regulations that are not supporting the development. Therefore, some obstacles that were arising caused by the regulations are hindering the project's construction and slowing down the usage percentage of new and renewable energy in the energy mix. The obstacles are often argued by several Independent Power Producers. In order to reach the National Energy Policy target, effective and well-implemented programs and regulations made by the Government are needed to support the development and enhance the usage percentage.