Govt Drafts Regulations On New Renewable Energy

Jakarta (Antara Bali) -- The Indonesian government, through the Directorate General of New Renewable Energy and Energy Conservation (EBTKE), is preparing three draft regulations on the use of new renewable energy.

"We are working on three draft regulations. These are on production bonuses, direct utilization and indirect use," Director General of EBTKE Rida Mulyana said during a gathering of festivities following the fasting month, at the office of the Ministry of Energy and Mineral Resources (ESDM) here on Thursday.

He added that after the gathering, he held a dialog with ESDM Minister Sudirman Said on the National Energy Policy, to discuss the drafting of regulations on geothermal energy in particular.    

"The government plays the role of a regulator to prepare all forms of regulations. This is to ensure that the governance and all matters related to resources, particularly those of renewable energy, are optimally utilized in accordance with the constitution," the director general explained.

He further noted that the draft law on production bonuses was nearly complete. The ESDM minister has submitted a letter to Finance Minister Bambang Brodjonegoro on the possibility that the production bonuses may reduce the government-owned portion of shares.

Based on law number 21/2014 on geothermal energy, some 34 percent of the production share is supposed to be owned by the government, Mulyana pointed out.

As it turns out, he added, the law has a clause which regulates that other levies beyond the shares regulated in the law will go to state-owned power company PLN.

"Going to PLN means going to the people. However, it gives the impression that the price of geothermal energy for the people may increase. This is not good. So the only option left is providing production bonuses from the central government's shares," he remarked.

According to Mulyana, the finance minister has been informed about the draft law on production bonuses. The ESDM Ministry was now awaiting a response from the Ministry of Finance. (WDY)