Monday, 16 June 2014


Ministry of Energy and Mineral Resources will soon prepare regulations concerning renewable resources (EBT) incentives, especially for Solar Pho­tovoltaic Power Plant (PLTS). The regulation will de­fine the criteria for the use of renewable resources, including incentives. "Directly, there is no incentive for the business operators. But we will soon stipulate a criteria in the regulation", Maritce Hutapea, Energy Conservation Director of the Ministry of Energy and Mineral Resources, told Business News some time ago.
The Ministry of Energy and Mineral Resourc­es were intense discussing plans and preparation for EBT regulations. In addition to incentives, EBT users can obtain banking facilities which interest is lower than market rates. "We have been intensely discuss­ing this matter since last year. The regulation should have been implemented."

The amount of incentive that has been al­located reached approximately IDIR500 billion. This amount has passed the energy audit. This amount is only a small fraction of the overall amount of commit­ment of countries in the world for renewable resourc­es use. Because the value of the agreement between countries reaches trillions of Rupiah, EBT incentives cannot not be separated from the massive campaign on environmental sustainability and global warming. "This is the result of investments and energy audits, in the presence of business operators. Initially, we want to channel it through the Government Invest­ment Center (PIP), but there is a change of officials in the Ministry of Finance. We all know that work program is determined by "people", and not by "sys­ tem".

The use of renewable resources, especially solar photovoltaic power plant, has been accompa­nied by the issuance of feed in tariff (FIT). FIT is de­termined by a price of IDR 23 cents per kWh. The price could change if business operators use local content of more than 40 percent. "The IDR 23 cent price will surely attract investors."

Meanwhile, Mardi Utomo, a businessman, said that investment in solar cell or Pv is very ex­pensive. When the power supply is very minimal, especially at peak load, businesses look for another solution. "Solar cell is for personal use, not for sale. Investment in solar cell (Pv) is expensive, although it can be used as an alternative energy", Mardi Utomo told Business News in the Sunset Cruise Discussion event some time ago.

Saving has been made, so it can reduce pow­er up to 2.5 million kWh. The savings, if converted, the value is equivalent to IDR 2.5 billion. Therefore, businesses could simultaneously provide incentives for saving and use of renewable resources, such as solar cell (Pv). "We hope that our efforts will not be strenuous (because of the costs). The government could give tariffs and incentives that encourage entre­preneurs. The shops in Sumatra were overburdened by energy problem. Some of them are without elec­tricity. There is no other source. We try investing in solar cell, but it is very expensive."

Meanwhile, the management of Indorama Synthetics in Purwakarta admitted that they were con­cerned about the utilization of renewable resources since 2000. So, Indorama always reviews the use of power energy for operations. "We are talking about energy, not just limited to electricity, but many other things, which are significant. The plan is using a chiller for plant operation, but we not yet operated an electric chiller", Darwin of Indorama told Business News.

Indorama compared with other companies about the use of electric chiller. The machine was purchased from one of the countries in Europe. But in the country of origin, the operation of the machine is no longer allowed. "It is not allowed to be operated, but in Indonesia, it can be operated. So, after 40 per­cent of usage, there is a problem. We see that the problem in energy conservation is not only for lighting products, but also the installation (factory), which is improper for operation. This happened because the installation is non-synergic with the State Electricity Company (PLN). Now, there is an operational feasibil­ity certification (SLO). If it is tested, electric power of 20 kWh is not feasible, or impossible. But, this happened. When we want to calculate the installed capacity, it cannot be measured, unless we ask PLN for assistance. Fortunately, it has been installed for one month, and there is no problem. Energy problem is very serious. PLN has made rules regarding K-factor and peak load, but there are still many who do not know, including the rules regarding penalty." (E)

Business New - May 30, 2014

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