Jakarta, CNBC Indonesia – The government, in this case the Ministry of Finance (Kemenkeu), issued Minister of Finance Regulation (PMK) Number 103 of 2023 concerning Providing Fiscal Support through the Funding and Financing Framework in the Context of Accelerating the Energy Transition in the Electricity Sector.
With the issuance of this new regulation, funding for the termination or early retirement of coal-fired Steam Power Plants (PLTU) will be injected using APBN funds.
Article 1 paragraph 1 of PMK 103/2023 states that: Funding and Financing Framework for the Acceleration of Energy Transition in the electricity sector, hereinafter referred to as the Energy Transition Platform, is one of the government’s fiscal supports established by the Minister of Finance in order to support the acceleration of the end of operation of the coal-fired power plant. coals.
Article 2 (1) states: In order to accelerate the energy transition in the Electricity sector, the government provides fiscal support through a funding and financing framework.
(2) This Ministerial Regulation aims to realize the implementation of a just and affordable energy transition policy by the government, by: a. setting funding and financing mechanisms, including blended finance, through the Energy Transition Platform; b. providing fiscal support through the Energy Transition Platform; and c. setting up coordinated and integrated mechanisms necessary for the management of the Energy Transition Platform.
“The source of funding for the Energy Transition Platform can come from: a. APBN; and/or b. other legitimate sources in accordance with statutory provisions,” writes Article 3 paragraph 1.
Responding to this, the Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, stated that funding for early retirement of coal-fired power plants through the APBN mechanism could increase the acceleration of other funding, thus opening up access to new incoming energy.
“We want to see (the PMK) first, if there is one (APBN), why not, so that new energy can be introduced,” said Minister Arifin at the Ministry of Energy and Mineral Resources Office, Friday (20/10/2023).
As in the PMK regulations, the funding source originating from the APBN as referred to in paragraph (1) letter a is fiscal support for the Energy Transition Platform facility in accordance with the provisions of statutory regulations.
The fiscal support provided in the Energy Transition Platform facility as referred to in paragraph (2) takes into account the state’s financial capacity.
So, other legitimate sources as referred to in paragraph (1) letter b are funds obtained by the Platform Manager based on: a. Funding Collaboration with:
1. international financial institutions; and/or 2. other institutions/bodies, for the energy transition by taking into account the provisions regarding the fulfillment of the criteria to be able to utilize the Energy Transition Platform facilities and/or other related activities based on the Funding Cooperation Agreement; and/or b. other collaborations apart from Funding Cooperation.
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