JAKARTA: Indonesia Chamber of Commerce (Kadin) assessed the government is not serious in developing new renewable energy by providing incentive and realizing its implementation. The government is diligently echoing the development of new renewable energy but its not followed up with the efforts to realize its development, Vice Chairman of the chamber's Environment and Climate Change Department Shinta Widjaja Kamdani said. In fact, eco-friendly business needs to be developed and Indonesia has a tremendous potential. Such energy will become the future of the countrys economic development, she said over the weekend.There are several regulation associated with eco-friendly business that develops new renewable energy, which hasnt been completed by the government until this moment like land procurement law and capital access.The green investment cant be equated with ordinary commercial business. It needs incentive from the government to make this business more feasible such as tax holiday provision, she added.In term of funding access to banking, the government has not been able to provide much better interest to eco-friendly projects.This type of loan is mostly come from overseas like Green Fund. Green Fund is also focusing on such projects, yet, Indonesia has not been able to facilitate such fund to the business world."Ready to facilitateTherefore, Kadin tries to facilitate both the business world and the government. Its currently proposing a white paper containing recommendations from the business world to develop businesses in new renewable energy in Indonesia.This white paper is expected to be completed in the next two months. Kadin continues to communicate with Ministry of Energy and Mineral Resources, Ministry of Environment, National Development Planning Agency (Bappenas) and Finance Ministry since its also associated with fiscal (incentive provision), she said.She admitted investment in new renewable energy is not cheap and therefore governments assistance is needed apart from foreign funding.Recently, Indonesia received US$364 million grant from US and US$40 million from Finland particularly for Riau and South Kalimantan.The US has stated their interest to conduct joint research with Indonesia about algae but the country is not ready to facilitate such research. Meanwhile, Finland is more interested to develop biomass.The energy report from BP Statistical Review shows Indonesias renewable energy in the last two years was stagnant at 2.1 million tons of oil equivalents. Philippines is the highest among the three countries in the Asean region which already use renewable energy.The country's renewable energy use reached 2.3 million tons of oil equivalents last year but it was declined compared to a year earlier.The energy development was sluggish since the investment cost is still considered not economical. (14/Firman Hidranto) (msw/t06)

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