Building U.S.-Indonesia Mutual Understanding Since 1994

Developing Indonesia’s Alternative Energy: Policy and Practical Implications

Indonesia’s economic growth requires not only increases in the supply of energy, but also wisdom in the use of its energy resources in a sustainable way.   Recognizing the need for more investment in sustainable energy development, the government has begun providing financial incentives for renewable energy, and opening of opportunities to foreign investors.

Strategic Risk Consultant and COO of Terrasys Energy, Arian Ardie, will discuss the policy environment surrounding alternative energy in Indonesia, and the practical challenges to its development.   The Indonesian government and the state electricity firm, PLN, have been making gains in creating a better policy environment for the development of renewable energy.  The government has already amended the negative investment list, allowing foreign investment in projects less than 10MW and the development of a standard off-take price for those projects. The policy environment is expected to improve further once effective implementing regulations under the new electricity law are issued, and continued rationalization of pricing mechanism, and coordination across ministries on laws and regulations occurs

Ardie will also discuss several challenging practical issues such as land rights, equalizing tenure of permits across ministries and agencies, a better understanding and increased capacity from the domestic financing sector to finance renewable energy, and the bankability gap between projects and the expectations of lenders and investors.

For anyone seeking to learn more about the alternative energy sector in Indonesia, this event is one you will not want to miss.   Please join us on February 25, 2011 at 10:30am for this Open Forum, to be held at USINDO’s Washington Office.