The Ministry of Energy and Mineral Resources (ESDM) is planning to establish a Public Service Agency (BLU) or a special body tasked to managed funds that will be used to accelerate growth of renewable energy power plants in Indonesia.

Eniya Listiani Dewi, Director General of New and Renewable Energy and Energy Conservation (EBTKE) at the Ministry of ESDM, said that this body will be included in the draft Law on New and Renewable Energy (RUU EBET).

"The RUU EBET includes a unit for managing new and renewable energy (EBT) funds," Eniya said on Thursday, July 4, 2024.

She said that the new body would function similarly to the Environmental Fund Management Agency and the Palm Oil Plantation Fund Management Agency (BPDPKS). Like BPDPKS, the EBT fund management body will also operate under the Ministry of Finance.

She cited that the discussion regarding the clean energy fund management body has secured approval from the House of Representatives (DPR). The government and the House are continuing discussions on the RUU EBET.

Eniya noted that there is one article that remains contentious. This article concerns the Green Electricity Supply Business Plan (RUPTL). The discussion is tough because this article is crucial to the RUU EBET.

The Green RUPTL is one of the drivers of the renewable energy mix in Indonesia. Without this article, the growth of the EBT mix could be slow.

"We aim to ensure that private sector contributions are significantly expected to invest in renewables," Eniya said.

She added that the RUU EBET will also underline the government's upcoming regulations to expedite the renewable energy mix in Indonesia. Once the law is enacted, the government will issue regulations on new energy, which will include various renewable energy sources to be developed in Indonesia.

Another debated issue in the RUU EBET is the power wheeling scheme. Eniya said that issues related to transmission rental are already clearly stated in the Electricity Law currently in force in Indonesia.

In the RUU EBET, the power wheeling scheme is emphasized specifically for renewable energy.

Eniya hopes that with the same language but with a special emphasis, the acceleration of renewable energy in Indonesia can be promoted.

"The pricing and usage terms will be determined by the Minister of ESDM," she said.