JAKARTA - The Ministry of Energy and Mineral Resources will make adjustments to renewable electricity tariffs to attract investment, said Energy and Mineral Resources Minister Arifin Tasrif.
"Renewable energy is highly attractive, but on the other hand the production costs are still expensive," Mr Tasrif said as quoted from Antara, Tuesday (15/9).
"We are currently preparing a new regulation that stipulates more attractive tariffs for investors."
According to Mr Tasrif, the use of renewable energy in Indonesia is still very low despite the country's great potential. Indonesia, he added, has only used 2.5% of its total renewable potential of 417.8 gigawatts.
"We have geothermal energy sources, solar power, biomass, and water, and none of it has been used optimally. We need to encourage the use [of renewables] gradually," Mr Tasrif said.
In the near future, the government will issue a new regulation on renewable electricity tariffs expected to attract investors. Mr Tasrif estimates that the new regulation will be completed this year.
"We have had discussions with renewable energy business actors. The government will also take several initiatives, including by taking responsibility for risks in geothermal exploration in order to reduce the risks faced by investors," Mr Tasrif said. (MS)