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Fabby Tumiwa Institute for Essential Services Reform iesr-indonesia

Comment on Presentation of Government of Indonesia in the Forum on Clean Energy, Good Governance and Regulation NUS- LKY School of Public Policy, Singapore, 17 – 18 March 2008. Fabby Tumiwa Institute for Essential Services Reform www.iesr-indonesia.org.

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Fabby Tumiwa Institute for Essential Services Reform iesr-indonesia

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  1. Comment on Presentation of Government of Indonesia in the Forum on Clean Energy, Good Governance and RegulationNUS- LKY School of Public Policy, Singapore, 17 – 18 March 2008 Fabby Tumiwa Institute for Essential Services Reform www.iesr-indonesia.org

  2. Promotion and Development of Renewable Energy • Strong and clear target (Presidential Decree No. 5/2006) but not binding and poor implementation plan • Question on the basis to set up the long-term target? whether it is optimum energy mix?; • How to get there: • Infrastructure and financial consequences of the target; • Clear and operational action plan (road map but not action plan) • Long-term political support in highly uncertain political environment • Public funding and fiscal support are uncertain in the longer term.

  3. Regulatory Barriers • Regulatory Institution is a new concepts • No tradition in imposing good regulation and mechanism, in particular in energy sector. • Regulatory Barriers: • Need broad consensus from others agency and institution • Streamlining and interpreting all existing policies and regulation in operation regulations • No clear mandate, task and responsibilities of executing agency • Limited capacity and resources to deal with complex regulatory mechanism • Trade-off with public interest

  4. Governance Challenges • How to impose “good governance” standard in uncertain regulatory environment? • How to ensure “good governance indicators” in the future regulation that consider trade-off of sustainable energy development, environment, social consideration (subsidy and tariff), market effectiveness, and public participation.

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