An overview of the Feed-in Tariff policy development in Indonesia
- 10.2991/ebic-17.2018.24How to use a DOI?
- Feed-in tariff; renewable energy; energy price
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.
- © 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/).
Cite this article
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 -