JAKARTA - State-owned electricity provider PT PLN (Persero) is collaborating with the Ministry of Finance through PT Sarana Multi Infrastruktur (Persero), also known as SMI, to develop renewable energy as part of the Indonesia One Sustainable Development Goals (SDGs) platform.
According to Finance Minister Sri Mulyani Indrawati, the government is committed to issue policies and instruments to tackle climate change, such as by preparing new and renewable energy potential.
"A great challenge for Indonesia is to realise 23% renewable energy mix in the national energy use. However, we are not lacking in potential, as of 4,442 gigawatts in renewable energy potential only 10.4 gigawatts, or 2.4%, have been used," said Ms Indrawati in a video conference entitled "PLN Go Green and Sustainable" on Monday (2/11).
To maximise the potential, she added, the government provides various policy instruments to support PLN and the Ministry of Energy and Mineral Resources, including tax facilities such as tax allowance and tax holiday, port incentives, exemption from property tax, and State Equity Capital.
"In terms of regional transfers, we also provide Special Allocated Funds designed to encourage local governments to develop renewable energy infrastructure, especially solar, biogas, and geothermal power plants," Ms Indrawati asserted. (MS)