GOVERNMENT SET RP3 TRILLION BUDGET FOR DEVELOPMENT OF RENEWABLE ENERGY

The Government Investment Center [PIP] had fund of Rp3 trillion to be distributed to companies or investors who would develop new and renewable energy [EBT]. So far, many companies were hesitant about rejuvenating their production equipment such as aging machines using diesel as fuel. In fact businesspeople could increase production capacity by using new machines. “We are scheming up plans how to pipeline this Rp3 trillion fund. Among the ways was to rejuvenate machines using renewable energy.” Soritaon Siregar, Head of PIP disclosed to Business News sometime ago.

Development of EBT energy by using PIP fund was more aimed at exploration activities, not exploitation. One of the output of exploitation was supporting data for exploitation. So far there was not any financial agency who dared to finance exploration. “This is fiscal instrument, here is where the Government is playing the role. It’s not for free, there is price to be paid and there are prerequirements to meet. The financing project which we finance is firstly for real investors, not brokers. They are licence seekers, not real investors.”

PIP was also prioritizing fund for EBT geothermal heat. Survey outcome could be used by holders of Mining Permit [IUP] and provincial governments. “The provincial government hold command over thermal head and projects are under their coordination. There is maximum amount for funds which we give away, i.e. USD 30 millions, but there is no minimum.”

Meanwhile Chairman of Matsushita Gobel Education Foundation, Yusman Syafei Djamal saw innovation in EBT development was a must, so Panasonic was in the direction of lower gas emission. “Panasonic would continue developing green economy,” Yusman told Business News sometime ago.

Innovation in the green industry was always related to investment. Investors must have a certain amount of fund for managing green industry. Financing and funding could also be on long term, medium or short term basis. All stakeholders must move to the nearest transformation community. So far the fossil energy [oil] had drained the State Budget. The gap between consumption and production of oil kept widening. The use of biofuel was still only 5%, go thermal 5 percent, and biomass 5 percent “Use of coal is 33%. The scenario: there is obstacles, not technology or innovation, but regulation.” (SS) 

Business News - June 20, 2014