JAKARTA (RambuEnergy.com) – Investment in renewable energy in the first quarter of 2017 reached only US$294 million, or only 14.7% of the Energy and Mineral Resources Ministry’s target of US$2 billion.
Director for Geothermal at the Directorate General for New, Renewable Energy and Energy Conservation at the energy ministry Ida Nuryatin said of the investment target, US$5 million would be invested in energy conservation, US$72 million in bio-energy, US$718 million in various renewable energy projects and US$1.21 billion geothermal.
The full-year target is higher than the realized investment in 2017 which amounted to US$1.34 billion.
She said one of the obstacles in developing renewable energy in the country is lack of financing support from domestic banks.
The Joko Widodo government is pushing the development of renewable energy in the country with a target to achieve 23% renewable energy in the country’s energy mix by 2025.
This will be contributed by geothermal, hydropower, bio-energy, solar power, wind power and others. To lure investors, the government is offering fiscal and non-fiscal incentives. (*)