Jakarta (January 16, 2023) — In alignment with the ongoing Working Meetings discussing the Draft Law on New and Renewable Energy (RUU EBET), Commission VII of the Indonesian House of Representatives (DPR RI) hosted a meeting with Komunitas Startup Teknologi Energi Bersih (KSTEB). This session, held on January 16, 2023, was supported by the Policy and Advocacy team from New Energy Nexus Indonesia. The meeting was attended by the Deputy Chair of Commission VII, Mr. Dony Maryadi Oekon, along with other members who participated virtually. The main focus of the meeting was to present KSTEB’s recommendations for several articles in the Draft Law’s List of Issues (DIM) dated December 11, 2022.

KSTEB’s key recommendation emphasized the importance of including the term “startup” in the RUU EBET, to ensure that clean energy technology startups (STEB) have the legal backing required to support the growth of renewable energy in Indonesia.

During the meeting, KSTEB highlighted that while clean energy technology startups (STEB) have the potential to drive significant innovation and contribute to the advancement of renewable energy, government support in funding and research for these startups remains minimal. Many startup founders continue to rely on personal funds to sustain their businesses, which limits their capacity for impactful development. KSTEB stressed the need for both fiscal and non-fiscal government support to foster the growth of STEBs and further promote clean energy technology in Indonesia. Additionally, KSTEB pointed out that the government has yet to formally recognize the growing presence of STEBs in the country, as demonstrated by limited engagement with local innovators in addressing Indonesia’s energy challenges.

KSTEB also raised concerns about the proposed amendments to Ministrial Regulation No. 26 of 2021 by the Ministry of Energy and Mineral Resources (Permen ESDM). The proposed elimination of export-import provisions could reduce public interest in solar energy and rooftop PV systems (PLTS). Over the past year, installations of rooftop PV systems have been limited to only 10-15% of installed capacity. KSTEB pointed out that the total current installed capacity of PLTS is only 77 MW, which does not pose a risk to the PLN’s transmission system, which has a capacity limit of 9,600 MW. Based on this, KSTEB recommended that regulations on rooftop PV should retain export-import provisions and be reevaluated in the context of the electrical system planning to avoid overcapacity. Furthermore, KSTEB expressed disappointment over the removal of articles in the revised regulation that encourage public participation in renewable energy generation. KSTEB hopes these provisions will be reinstated, allowing individuals and groups to contribute to renewable energy development.

Key Recommendations from KSTEB for the RUU EBET:

• Remove the term “new energy” to focus the RUU EBET solely on renewable energy.
• Include the term “startup” to establish a legal framework for clean energy technology startups (STEB).
• Reinstate the term “mandatory” in Article 50, Clause 4 to support renewable energy technology R&D.
• Restore references to “third parties” in Article 50, Clause 5, adding “startups” to the list of eligible third parties.
• Designate specific ministries or agencies to oversee funds and activities for renewable energy technology R&D.
• Mandate incentives for renewable energy until it becomes economically viable, as specified in Article 55.
• Include net metering as an incentive for renewable energy, particularly solar energy (Article 55).
• Reinstate the term “mandatory” for the allocation of EBET funds by the Central and/or Regional Governments in Article 56, Clause 1.

Restore Article 56, Clause 3, which outlines eligible activities for EBET funding and provisions for renewable energy subsidies.

In response to these suggestions and recommendations, Mr. Dony Maryadi Oekon, Deputy Chair of Commission VII, expressed his appreciation for KSTEB’s contributions. He encouraged the community to provide clear justifications for each proposal to ensure they could be effectively discussed in future meetings. Ms. Andi Yuliani Paris, a member of Commission VII, also suggested that the proposals be translated into legal language and norms to facilitate their integration into the RUU EBET.

About Komunitas Startup Teknologi Energi Bersih (KSTEB)

KSTEB is the first community in Indonesia serving as a networking platform for clean energy technology startups. Initiated by New Energy Nexus Indonesia, KESTEB established in 2022. Through KSTEB, practitioners of clean energy technology startups can exchange ideas, information, and networks to support the growth of the clean energy technology startup ecosystem in Indonesia. Currently, KSTEB comprises 50 clean energy technology startups operating in various sectors, including electricity, transportation, industry, and construction. The startups that are part of KSTEB play a vital role in Indonesia’s efforts to drive energy transition and mitigate climate change.