On September 13, 2022, the President of the Republic of Indonesia issued the Presidential Regulation No. 112 of 2022 concerning the Acceleration of Development of Renewable Energy for Electric Power Supply (PR 112/2022).
Key measures include:
- Mandating the state’s electricity company to prioritise the purchase of electricity from power plants that utilise renewable energy sources.
- Allowing the state electricity company to implement more straightforward procurement processes when purchasing electricity from renewable energy power plants.
- Instructing the Minister of Energy and Mineral Resources to formulate a roadmap for the accelerated end date for coal-fired steam power plant operation.
- Banning any development of new coal-fired steam power plants unless it has been stipulated in the electricity supply business plan prior to the enactment of PR 112/2022, or if it meets set criteria (including being of strategic importance, and ceasing operation by 2050).
- Enabling the government to grant incentives for development of renewable energy power plants.
