Director General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources (ESDM), Eniya Listiani Dewi, said the government has set the target for investment in new, renewable energy (EBT) in Indonesia to increase by 28 percent in 2025.

The 2025 investment target in EBT is et at US$1.8 billion (Rp29.5 trillion), compared to the 2024 investment target of US$1.4 billion (Rp23 trillion).

Eniya said the target was made after the government had implemented several regulations to facilitate the entry of investment in the renewable energy industry.

One of the regulations that have been issued is the Minister of Energy and Mineral Resources Regulation (Permen ESDM) No. 11/2024 on Local Content Requirement (TKDN) for the Development of Electricity Infrastructure.

The regulation was issued to accelerate the development of electricity infrastructure while still prioritizing the use of domestic products.

In addition, the government has recently issued ESDM Ministerial Regulation No. 5/2025 on Guidelines for Electricity Purchase Agreements from Power Plants that Utilize Renewable Energy Sources.

Eniya said that this regulation will accelerate negotiations of Power Purchase Agreement (PJBL) which has so far been hampered by excess electricity generated by Hydroelectric Power Plants (PLTA) and Wind Power Plants (PLTB).

"We made a breakthrough regulation that various cooperation or electricity purchase agreements are sometimes always late because of negotiation problems. Basically, [State power utility company] PLN also has no regulatory hook to determine, for example, whether to buy excess energy," she cited.

Eniya said further that so far the PLN will not buy more electricity generated from PLTA, if there is an increase in water and electricity discharge, and the same applies to geothermal power plants.

With this regulation, companies operating hydroelectric power plants and geothermal power plants can sell excess electricity to PLN at a price of 80 percent of the initial contract value.

"It can be purchased at 80 percent of the contract price, so if the contract is for example 7 cents, then it can be purchased at 80 percent, so it's around 5-6 cents," she said.

However, the regulation also explains the maximum excess power generated from generators outside the PJBL.

Eniya said the maximum figure for excess power production that can be purchased is 30 percent of the capacity in the PJBL.

"Because if the excess is unlikely to be more than 30 percent, if it is already 50 percent it means there is a planning error. So we limit this in this ministerial regulation," she said.

She concluded that, with this regulation, as much as 201 Megawatts (MW) of excess electricity will be purchased by PLN from two types of EBT power plants − 180 MW of PLTB and 21 MW of PLTA.