TAX AS OBSTACLE TO RENEWABLE ENERGY APPLICATION PLAN

Academicians and private companies saw that the Government’s policy for the energy sector was generally oriented to the effort of using renewable energy. But the implementation of six renewable energy types potential for Indonesia was still facing many obstacles including tax exemptions. A condition as such could be counter productive to the Government considering that fossil-based energy resource (oil, gas, and coal) would soon run out. The six renewable energy were among others: solar, geothermal, bio-energy, ocean waves, micro hydro, bio mass were abundant in Indonesia.

“The obstacles were clear such as the way I experienced it when there was loan from lnutec Solarzentrrum Germany for the University of Indonesia, but the customs dept did not permit us to receive the electricity inverter and it is now still being held at the Soekarno Hatta airport customs. The University of Indonesia is an educational institution, not a commercial body. We are developing Renewable energy, especially solar energy, we are not businessmen. SO it is unethical to impose tax on our educational aid” Eko Adhi Setiawan from the Energy Center, Technical Faculty of the University of Indonesia told Business News (27.7)

There was no obstacle in the application of ET solar energy or German Solar Cell to the University of Indonesia. The development of ET solar energy in the collaboration process with the Academy for Solar Power Education Inutec had been running well Some students especially from the Electro Technical Faculty UI had comprehended some principles of solar energy application, especially power stations installed in house roofs in Indonesia where power stations were set up for electrification and electricity savings could reach 200 watt per sq meter of roof. “Perhaps the experience that I had can make investors loose interest in developing ET in Indonesia. The way I see it, the solar cell – making business is not interesting so the lnitec company from Germany concentrated more on fostering collaboration in education with the University of Indonesia. To build solar integration, we need to have an inverter. If the implementation of UI project could be made faster, ET business, especially solar cell could be very interesting, but such is not easy” Eko was quoted as saying.

Meanwhile the National Council of Energy (DEN) saw it that the State Electric Company PLN hads always referred to cheapest price in terms of buying goods and services. Cheap price seemed to be the standard and rule of the game for PLN, set for contractor companies in order to win a render. There were pressures on pricing, i.e. the cheapest. The regulation, it was always stated ‘mandatory’ for cheap price. But at the lower echelon, there is always negotiation on price offered by tender participants. Prices must be based on negotiation, because PLN could not buy energy at lower prices than PLN could sell. The situation seems incurable, because that’s the way rules are” Rinaldy Dalmi DEN told Business News (17/7).

In developing ET application, especially solar cell, DEN was expecting the Government to look at other alternatives not just referring to cheap price. In the application of solar cell, German technology was by far more effective and efficient compared to diesel. The Government so far had been comparing solar cell as energy and PLN’s price of electricity. The comparison clearly showed that investment in solar cell was more expensive than diesel application but operational duration of diesel was much shorter than solar call. PLN as business entity could not buy electricity more than they could sell. This was the root of problem: aiming at short term benefits, not long term”.

In a different location, President Director PT Pertamina EP Syamsu Alam and Director of PT Axis Sambidoyong Energy Ade Sandra Matondang signed the Field operation Collaboration Agreement of Sambidoyong production in Jakarta. The collaboration agreement between PT Pertamina EP and PT Axis Sambidoyong Energy was effective for 15 years.

Enhancing production process in the operational zone of Pertamina EP was carried out on own operation basis. “In running project operations in some other zones, Pertamina collaboration with working partners on operational cooperation basis (KSO)” Ade Sandra Mantondang disclosed to Business News (26/7).

Through this KSO production it was expected that PT Axis Sambidoyong Energy could synergize with Pertamina EP to maximize gas production in the Sambidotong operational zone located around 180 km south of Jakarta covering an area of around 16.5 sq km. This oil gas operational zone was located in Indramayu in the Province of West Java.

Today Pertamina EP was engaged in operational collaboration with 6 Exploration KSO, 13 Production KSO of Water Flooding Enhanced Oil Recovery. As a whole KSO contributed around 3% to 4% to total production of Pertamina EP.

PT Pertamina EP is a subsidiary company of PT Pertamina (Persero) which run upstream oil-gas operations in Indonesia. PT Pertamina EP was confided by the Government of RI and stakeholders to manage operations in + 138.611 sq km based on working contract in oil & gas operations of Pertamina with BP Migas on September 17, 2005. Oil-gas production output of Pertamina EP in June 2012 reached 131.5 MBPOD and gas 1,078 MMSCFD. Meanwhile the average production of Pertamina in first Semester of 2012 reached 127,8 thousand per barrel per day (MBPOD) and gas 1,050 million standard cubic feet per day (MMSCFD).

PT Axis Sambidoyong Energy (ASE) was a subsidiary company of Fountain Energy Corp (FEC) which was a company owned by a business group from South Korea with focus on business in investment and management of oil and gas projects.     

Business News - August 3, 2012