JAKARTA: The investors asked the government to make clear on the policy direction to boost the utilization of new energy and renewable energy in Indonesia.Executive Director of the Indonesian Renewable Energy Society (METI) Erwin Sadirsan explained the investment for potential new and renewable energy (EBT) is still expensive as the government's purchase price is relatively high compared to production costs."Until now, the price which was regulated in Ministerial Decree no. 31/2009 is only suitable for the use of micro hydro power plants, "he said at a press conference of IndoWater 2011 in JCC, today.Government of Indonesia, according to him, should reinforce the policy direction for the utilization of renewable energy if it wants to encourage renewable energy mix to 17% in 2025 as what was proclaimed by the Ministry of Energy and Mineral Resources.At present new and renewable energy mix was in a range of 2% - 3%. We need clear policy, such as an operational guideline for new and renewable energy.In term of the new and renewable development, the required investment is estimated to reach IDR134.6 trillion until the next 15 years.The investment will be allocated for the development of new and renewable energy in five regions. Those five regions are Sumatera (IDR25.06 trillion), Java (IDR86.3 trillion), Sulawesi (IDR15.77 trillion), Bali-Nusa Tenggara (IDR2.64 trillion) and Papua-Maluku (IDR4.83 trillion).Erwin stated that investment numbers from the government is not enoughWhat we need is not numbers, we need sources. The sources have to be thought, especially the allocated fund for each region per year.Besides, he also said that the investors also expect the issuance of the clear policy to develop the industry, particularly price benchmark based on the operational cost.The benchmark is aimed at boosting the investment to develop renewable energy through the return which will be distributed to the investors.So, if we have solar power. In the afternoon, we can deliver electricity to PLN with a price of IDR1,000 per kwh. But in the evening, when we used the electricity supply from PLN, we just buy it at IDR650 per kwh, or above the purchasing price, he said.According to him, most countries have implemented the cost based price policy. Even, in Japan, the return of electricity price from renewable energy price is 3 folds higher than the return from general energy. (10/14) (t03/msw)

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