The 2007 Energy Law (Law No. 30 of 2007) established a target for Indonesia to generate 23% of its energy from renewable sources by the end of 2025, and 31% of its energy by the end of 2050. Currently, Indonesia only generates 13% of its energy from renewable sources, which falls far short of the target.
The Government has taken numerous measures over the last 15 years to meet the renewable energy target, the most recent of which is the issuance of Presidential Regulation No. 112 of 2022. This regulation introduces several measures in the hope of increasing renewable energy in Indonesia: (i) prohibiting new coal power plant development; (ii) reducing the number of coal power plants; (iii) replacing the basis of the renewable energy tariff and imposing ceiling prices based on the type and location of the renewable energy power plant; (iv) streamlining the renewable energy project procurement process; and (v) providing incentives for geothermal energy power plants.
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