Investor Presentaiton

2019 OUTLOOK A way forward: short-term recommendations for renewables development in Indonesia Political leadership by President Jokowi to strengthen government commitment to jump-start and accelerate renewable energy development. The leadership is very critical to unite all government branches in setting up policy priorities, agendas, and orientation of SOES. This could give positive signals to credible investors and financial institutions. Make significant revisions of MEMR Reg. No. 50/2017, MEMR Reg No. 10/2018, and MEMR Reg. No. 49/2018. Some issues that need to be addressed are renewables tariffs, BOOT, and risks allocation for PLN and project developers. Prepare/formulate additional incentive schemes for solar rooftop financing to complement MEMR Reg No. 49/2018. For example, soft loan with an interest rate of 7% (similar to small enterprise credit/KUR scheme) from the Ministry of Finance or credit facility for homeowners by banks. Government to increase the number and size of solar pv projects for government buildings and street lightings in a coordinated procurement to help open up solar market and maximize economies of scale benefits which will lower the technology costs in Indonesia. Government to provide capacity building for local banks/financial institutions through workshops, trainings, consultancy to improve their knowledge and capacity in risk assessment of renewable energy projects. Government to provide funding for small IPPs to produce quality FS. Another option, government can take over the FS phase and auction the result to IPPs. Prepare the legal framework for the establishment of Renewable Energy Fund and include it into the Renewable Energy Bill which the parliament is currently drafting. IESR (Institute for Essential Services Reform) | www.iesr.or.id 36

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