The Clean Energy Technology Startup Community (KSTEB) assesses the Proposed Problem Inventory List (DIM) put forth by the government, co-signed by the Ministers of Finance, SOEs, Energy and Mineral Resources, and Environment and Forestry, as regressive and counterproductive to accelerating the energy transition in Indonesia. We have formulated 10 recommendations in the form of articles, supported by philosophical, sociological, and juridical foundations. These recommendations are based on two main justifications.
First, a legal justification is warranted, necessitating the refinement of provisions in Law No. 30 of 2007 concerning Energy into the Draft New and Renewable Energy Bill (EBET Bill) and the inclusion of international agreements, such as ratifying the Climate Change Convention and the 2015 Paris Agreement, into Law No. 16 of 2016. Second, an economic justification is provided, accompanied by case studies from various countries regarding the role of startups in the renewable energy industry, the benefits of incentives, the impact of research facilities and support, and the urgency of renewable energy funds in Indonesia.
The key recommendations encompass mentions of startups in various substantive provisions, changing the New and Renewable Energy Bill to the Renewable Energy Bill, emphasizing the term “mandatory” in Article 50 Paragraph (3) and (4) regarding the government’s obligation and forms of research and innovation facilities for renewable energy, reinforcing the term “mandatory” in Article 55 Paragraph (1) and adding letters in Paragraph (2) concerning the government’s obligation and forms of incentives provided, underscoring the term “mandatory” in Article 56 Paragraph (1) and rejecting the removal of Article 56 Paragraph (2) and (3) concerning the Renewable Energy Fund.