Table 5 Recommendations for selected stakeholders in the Indonesian SHP sector
From: Over a century of small hydropower projects in Indonesia: a historical review
Stakeholder | Tasks in the energy sector | Recommendations |
|---|---|---|
National Energy Board (DEN) | Design and formulation of the National Energy Policy, and supervision of the implementation of cross-sectoral energy policies | • Include SHP in national energy planning • Provide advice on Indonesia’s electricity market regulations |
MEMR | Formulation, implementation, control, and supervision of energy policies | • Provide supportive and attractive regulations for SHP both for the off-grid rural electrification and commercial use • Clear pricing regulations • Ensure implementation of mechanisms that price negative externalities from fossil fuel projects |
MOF | Approval for energy program budget, formulation of fiscal incentives for renewable energy, formulation of electricity subsidies, and RE pricing | • Encourage fiscal and tax incentives for SHP projects, both for private investment and the grant-based SHP for rural electrification • Tax negative externalities from fossil fuels |
Ministry of Industry | Formulation of local content requirements for the power sector | • Ensure that local content regulations do not overly impede the ability of the clean energy industry to develop |
State Utility, PLN | The main actor in the electricity provision with an authority over the generation, transmission, and distribution of electricity; development and implementation of the annual Electricity Development Plan (RUPTL) | • Improve the market practice of procurement and electricity sales transactions • Improve derivative regulations and market guidelines for RE project development including developing a uniform and attractive PPA model for SHPs that is fair in risk-sharing allocation |
Industry associations | Networking among the members and other players in the sector, providing inputs to policymakers, and giving a collective voice to the industry | • Share best practices among members, showing best practices of successful SHP projects to the public |
International development agencies | Providing technical and financial aid for policy advisory, capacity development, as well as infrastructure development | • Continue to scale up their technical and financial assistance in the SHP sector |
Non-governmental organizations (NGOs) | • Empowerment of civil society to engage and participate in the implementation of energy programs • Community engagement and representation in various energy-related forums | • NGOs can play a role by disseminating good information and knowledge to the public regarding the importance of SHP development in Indonesia |
Academician, researchers | Research, forward-looking think tanks, and development of innovations in technology and socio-economic aspects | • Research that aims at devising data-driven policy recommendations for SHP development |