Green and Renewable Energy Financing Policy in Indonesia

Abstract

New Energy and Renewable Energy are alternative sources of energy supply because apart from having a low impact on environmental damage, they also guarantee energy sustainability into the future. To achieve this target, various efforts and programs are needed, the elaboration and implementation of which are outlined in the National Energy General Plan and Regional Energy General Plans at the provincial level. Aspects of renewable energy financing cover various matters related to funding, investment, and financial management for renewable energy projects. Incentives and regulations Several countries provide incentives and restrictions to supporting renewable energy development. Financial management Good financial management is vital in running a successful renewable energy project. Regarding renewable energy financing, it is summarized in the policies and programs issued by the Government of Indonesia to build a green economy framework in the form of low-carbon green energy in the national energy plan, import duty policies, tax-cutting policies for green energy, equal distribution of electricity in rural areas, and others.