The Ministry of Energy and Mineral Resources (ESDM) has enacted Ministerial Regulation No. 5/2025 to serve as a comprehensive framework for facilitating renewable energy development in Indonesia. This regulation focuses on Power Purchase Agreements (PPAs) for electricity generated from renewable sources, aligning with the government’s mission to enhance energy security through domestic and sustainable energy production. Effective from March 4, 2025, the regulation aims to address challenges such as inconsistent PPA contracts, lengthy negotiations, and high transaction costs, which previously led to delays in project implementation and financial uncertainties for developers. By providing clear guidelines on contractual terms, payment schemes, risk allocation, and other key provisions, the regulation promotes transparency and legal certainty between State utility PT PLN and independent power producers (IPPs). Notable provisions include performance guarantees, adjustments in geothermal power plant pricing, and requirements for local content (TKDN). The regulation also introduces mechanisms for renewable energy projects equipped with energy storage, considerations for the economic value of carbon, and refinancing options for renewable energy investments. These measures are designed to reduce barriers to entry, attract investment, and support the achievement of Indonesia’s green energy targets.Furthermore, the regulation aligns with the government’s broader energy security vision, as outlined in Presidential Decree No. 1/2025. By ensuring that renewable energy sources are economically viable and environmentally friendly, it reinforces Indonesia’s commitment to sustainable and competitive energy development. This policy is a significant step toward a cleaner energy mix while securing the country's long-term energy needs.Source: https://indonesiabusinesspost.com/3899/policy-and-governance/ri-accelerates-renewable-energy-development-with-new-electricity-sales-rule (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 12 March 2025