Breaking News
Home » Green Energy » Geothermal » Indonesia govt issues regulation on establishment of renewable company

Indonesia govt issues regulation on establishment of renewable company

JAKARTA ( – Indonesian President Joko Widodo has signed President Regulation (Perpres) that gives legal foundation for the establishment of state owned company specializing on renewable energy.

Sudirman Said, the Energy and Mineral Resources Minister (ESDM), said in mid-week the planned new company will be “attached” with the state electricity company PT Perusahaan Listrik Negara (PLN). It is believed that the company will become a subsidiary of PLN. 

Under the planned scheme, the renewable company will purchased electricity independent renewable energy producers, similar to the role of PLN.

The planned new company is also established to bridge the limited capacity of PLN in term of funding in developing renewable energy.

The Minister said the establishment of the renewable company shows “seriousness of the government” to optimize renewable energy in the country.

The regulation was also issued to lure investment in the renewable company, therefore ultimately support the government’s drive to ensure future energy security in this country of 253 million people.

The government is embarking on 35,000 MW of power plant capacity in the next five years, as much as 8,750 MW of this will be contributed by renewable energy, such as solar power, geothermal, wind mill, geothermal, biomass and so on.

Currently, the country’s utilization of renewable energy is only six percent of total energy consumption. The government targets to increase the renewable energy consumption to 23 percent in 2025.

Cooperate with OJK

Last Wednesday (Feb. 3), the Energy and Mineral Resources Minister Sudirman Said and Head of Financial Services Authority (OJK) signed memorandum of understanding (MoU) on the development of renewable energy.

Based on the MoU, the OJK will play its part to encourage banking industry to support the development of renewable energy, in particular providing funding for the development of electricity infrastructure.

“The development of renewable energy needs to be accelerated, therefore breakthroughs are needed, including in term of financial support. We cooperate with OJK to support banks and financial institutions to provide funding for renewable energy development,” said Minister Sudirman. (*)

Written by Rambu Energy staff writer (


Check Also

Medco Power Indonesia bags $222 mln loan from ADB, IFC, MUFG, Sumitomo

JAKARTA (RambuEnergy) - PT Medco Power Indonesia (Medco Power), through its subsidiary, PT Medco Ratch ...


  1. Providing funding for Infrastructure is not good enough, the public , busineses need to have access to financing their properties with Renewable Energy- Roof top PV systems. this is very common n other countries like australia, USA, Malaysia, India..where banks will provide Solar Loans,Green loans etc…its no different than any other loans products from the banks.

    This is why solar PV uptake for small scale generation is very slow. No Subsidies from the government and yet it banks , financial institution is not opening their doors to welcome new lender wanting to go renewables.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.