An overview of the Feed-in Tariff policy development in Indonesia

DOI

10.2991/ebic-17.2018.24How to use a DOI?

Keywords

Feed-in tariff; renewable energy; energy price

Abstract

Indonesia is blessed with abundant renewable energy resources that can be used to produce electricity for national grid. However, only a small amount of the renewable energy resources, less than 10%, has been utilized to produce electricity. The energy share is still dominated by fossil fuel which results in greenhouse gas emission. In order to increase the energy share and reduce greenhouse gas emission, the Government of Indonesia (GoI) has released several financial mechanisms in supporting the growth of the Independent Power Producers (IPP) to produce electricity from renewable energy resources. One of the potential mechanisms is the Feed-in tariff (FIT) policy. The FIT allows the PLN (State Electricity Company) to buy the electricity produced by the IPPs from renewable energy resource with a higher price and sell it to the costumer below the buying price. In this work, the history of the FIT in Indonesia is overviewed. The results show that FIT has changed several times to meet the need of IPP. However, the FIT has no significant effect yet to the growth of the IPP. Thus, other supporting financial mechanisms must be provided by the GoI.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Himsar Ambarita
AU  - Hideki Kawai
PY  - 2018/01
DA  - 2018/01
TI  - An overview of the Feed-in Tariff policy development in Indonesia
BT  - Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017)
PB  - Atlantis Press
SP  - 143
EP  - 146
SN  - 2352-5428
UR  - https://doi.org/10.2991/ebic-17.2018.24
DO  - 10.2991/ebic-17.2018.24
ID  - Ambarita2018/01
ER  -