Recent project financings have successfully closed without government support, including the financing for the Java 1 LNG-to-power project.Theoretically, government support is available in two different forms. As a general rule, an Indonesian limited liability company must have at least two shareholders.Foreign shareholding restrictions apply under Indonesia’s current Negative Investment List as follows>10 MW up to 95 per cent foreign ownership or 100 per cent foreign-owned if the project is procured under the Public Private Partnership (PPP) scheme. An Eco-Business initiative The tender process is a two stage process consisting of a qualification stage followed by the submission of a project development proposal and an exploration commitment proposal. The results were announced in November 2018 and the pre-qualification is valid for three years. Indonesia will require nothing less than a policy overhaul—starting with its state-owned power utility—to meet the target of having 23 per cent of its electricity generated from hydro, solar and other renewable sources in 2025, according to a new report released last week.Unless Southeast Asia’s largest economy “radically changes” its roll-out of renewable energy, clean sources will only make up 12 per cent of the energy mix in 2025, said management consulting firm AT Kearney in its report titled Indonesia’s Energy Transition: A Case for Action.

Key exceptions to this risk allocation areHowever, the IPP is entitled to an extension of the term of the PPA to compensate for periods of inoperability due to qualifying events.For hydro, geothermal and biomass PPAs, PLN will be subject to a take-or-pay commitment for a specified period. To tackle this, the government could expand the use of guarantees for renewable energy projects and increase the awareness of local commercial banks of renewable energy technologies.And while Indonesia’s geography—an archipelago of 17,000 islands with an estimated 45 per cent of the population living in rural areas—poses a challenge to design and operate electricity networks, the government can provide PLN with the budget to build distribution networks in remote locations for off-grid projects. From the commercial operation date, a transfer will be subject to approval from PLN and must be reported to the MEMR.Shareholders of a privately held geothermal IPP can transfer their shares, but must notify MEMR shortly thereafter.Previous projects have been project financed mostly by international banks, export credit agencies and multilateral agencies, but domestic banks have also participated in some financings.PLN must provide the template PPA for each type of renewable energy project at the time of procuring the project.The forms of PPA vary from project to project, but are broadly based on the same set of terms. IPPs that have reached financial close in recent years have found a work-around for this problem, but Regulation 10 has created uncertainty around this issue.Now is not the time to guess what the law requires or to be unprepared.In its July 2020 Digital Trust Report, AustCyber estimated that a four week disruption to digital infrastructure caused by a major cyber attack would cost the Australian economy $30 billion (1.5% of GDP) and 163,000 lost jobs. Indonesia is targeting that 23 per cent of electricity will be generated from renewable energy sources by 2025. Indonesia will require nothing less than a policy overhaul—starting with its state-owned power utility—to meet the target of having 23 per cent of its electricity generated from hydro, solar and other renewable sources in 2025, according to a new report released last week. Existing renewable projects Hydro, geothermal, solar PV, wind, biomass, biogas and waste-to-energy. The 2018 national average BPP was USD 7.86 cents/kWh or IDR 1,119/kWh.If the average cost of generation of the local grid is higher than the national average, the tariff may reach up to 100 per cent of the local BPP for municipal waste, hydro and geothermal and 85 per cent of the local BPP for other renewable technologies. Prior to the commercial operation date, transfer of shares in a non-geothermal IPP is restricted, except to a 90 per cent owned affiliate of the sponsor established in Indonesia. Key requirements of such projects include an electricity supply business permit, an operational license (Indonesia favours an auction process with a tariff ceiling.

Regulation 49 does not expressly apply to off-grid installations, but the MEMR has stated that Regulation 49’s requirements will apply to on and off-grid projects.PLN’s customers are permitted to install and operate rooftop solar projects for their own use and sell excess power generated to PLN on the basis of a net metering scheme, subject to a 35 per cent discount. Jakarta (ANTARA) - The Indonesian Government is preparing a presidential regulation on renewable energy pricing, in a bid to gain investors' trust in the clean energy sector.