Indonesia with over 250 million of population has recognized as one of the most important dynamic market and resource-rich country.
Indonesia is known has large renewable energy resources, so it needs to be optimally developed with investment opportunities and provide incentives for businesses and the wider community.
Indonesia is tropical country where the sun shines all the year makes it very potential to be used as an energy alternative source in the future. Based on data of Solar radiation which is collected from 18 location in Indonesia, the distribution of Solar radiation in Indonesia can be classified as follows : in the Western of Indonesia is about 4,5 kWh/m2/day with monthly variation around 10%, and in the Eastern of Indonesia is about 5.1 kWh/m2/day with monthly variation around 9%. Thus, the average of potential wind in Indonesia is about 4.8 kWh/m2/day with monthly variation around 9%.
Indonesia’s Ministry of Energy and Mineral Resources signed the Government Decree No. 19/2016. This Decree will provide proper support mechanisms for utility-scale solar PV systems. Importantly, the regulation does not utilize a tender mechanism or a reverse auction system like what has been used in past efforts. Rather, it is a Feed in Tariff (FiT) that’s promised to registered project developers once they meet certain milestones. An FIT of USD 14.5 cents to USD 25 cents per kWh (20 year PPA) depending on the project’s region.
The Government Decree No. 19/2016 also announce that Government will add 5.000 MWp (Mega Watt peak) electricity capacity from solar power energy in 5 years. This additional program will take over by Independent Power Producers (IPP).