The minister of energy and mineral resources recently enacted Regulation 48/2017 on the supervision of business activities in the energy and mineral resources sector, which revoked the short-lived Regulation 42/2017 on the same subject. In a press release, the minister explained that the regulation's aim is to accommodate the interests of investors and prevent any hindrance to investment.
Despite the primary role that coal and gas continue to play in meeting Indonesia's electricity needs, the government seems to be demonstrating a commitment to promoting renewable energies. New regulations have provided clarity for investors interested in solar, wind, hydro, geothermal and biogas projects by introducing incentives for undertaking such projects, detailing the procedures for renewable power purchase agreements and updating the tariff rates.
The Ministry of Finance has issued a regulation in order to implement provisions for the establishment of state-owned infrastructure guarantee corporations (BUPI). The regulation sets out more detailed provisions on government guarantees for infrastructure projects, as well as the nature, scope of and procedures governing such guarantees. A guarantee provided by a BUPI may cover infrastructure, political and default risks, among others.