A pathway to Indonesia energy transition

After 3 long years of discussions, Indonesia has finally issued Presidential Regulation 112/2022 for the acceleration of the development of renewable energy projects.

The regulation is meant to send a strong signal to the market and wider public that Indonesia is committed to its international climate engagements and to support the development of new renewable energy capacity. 

The new regulation covers energy transition and the early retirement of coal-fired power plants, the pricing regime for the purchase of electricity from renewable energy projects, the tendering schemes for the procurement of renewable energy projects by PLN, and incentives available to such projects.

The new regulation covers 4 main topics:

1. Energy transition and the early retirement of coal-fired power plants;
2. The pricing regime for the purchase of electricity from renewable energy projects; 
3. The tendering schemes for the procurement of renewable energy projects by PLN; and
4. Incentives available to such projects.

Read the article from our projects and energy team in the PDF below.

Authors: Frédéric Draps, Partner; Alfred Ng, Partner; Andrew Roche, Partner; Elizabeth Sidabutar, Associate; Khairunissa Yuliandhini, Associate; and Rachelia Jumanti, Trainee Associate