New Regulation to Improve Renewable Energy Development in Indonesia

October 2022

Presidential Regulation Number 112/2022 was officially issued by the President of Indonesia in late September. The new regulation, referred to as the ‘Acceleration of Renewable Energy Development for the Provision of Electricity’, aims to attract more investors to develop geothermal power plants in the country. The regulation sets power prices from renewable energy sources sold to local utility PT PLN (Persero).

Nisriyanto, the PT Supreme Energy President and CEO, mentioned that the Basic Cost of Supply (BPP) of electricity on the island of Java determined the current selling price of geothermal electricity. This is currently set at a maximum of 6 cents per kWh. Geothermal power prices under the current regulation, therefore, are higher and better. However, the CEO said that it was uncertain whether this would affect the feasibility of geothermal projects.

On a similar note, a leading fintech platform’s Indonesian subsidiary, AdaKami, got a fivefold hike in its financing facility with PT Bank Jago Tbk. The increase from 100 billion Rupiah to 500 billion Rupiah (USD 34.9 million) will enable AdaKami to expand credit access to broader segments of the local economy and accelerate the country’s financial inclusion.

The prominent increase in financing facility also highlights AdaKami’s strengthening relationship with Bank Jago, an Indonesian tech-based bank providing life-centric finance solutions which make money management simple, collaborative and innovative.

(Sources: PRNews Wire; Think Geoenergy)

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