For the first time, a clean energy subsidy is allocated in Indonesia's state budget, as the 2017 Budget Draft holds the plan to allocate IDR 1,29 tn (EUR 90,3 mn) to subsidize new renewable energy. The total energy subsidy budget for the next year is IDR 92,2 tn (EUR 6,5 bn).
The Indonesian government is committed to increase the mixture of new renewable energy for use in the country. The Energy and Mineral Resources Ministry’s Secretary for the Renewable Energy and Energy Conservation Directorate Gerneral, Kusdiana Dadan, explained the necessity of a subsidy with the higher costs of developing new renewable than fossil energy. A public service board (BLU) working under the Energy Ministry would be managing the subsidy. The board’s formation is still waiting for the issuance of a presidential regulation on energy security funds.
The Indonesian government is committed to increase the mixture of new renewable energy and seeks to promote the use of clean energy. The government has mandated the increase of clean energy mix from five percent this year to 23 percent by 2025.