Monday, October 23, 2023

Providing Fiscal Support through the Funding and Financing Framework in the Context of Accelerating the Energy Transition

Liputan6.com wrote about the Minister of Finance Sri Mulyani Indrawati who has 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. Through this regulation, it will be possible to implement an early retirement program for steam power plants or coal-fired power plants to be supported by funds from the State Revenue and Expenditure Budget (APBN). However, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif admitted that he had not studied further regarding the financing mechanism for the coal fired power plant lethal injection program by the APBN. Even so, he has no problem if the state wants to allocate money for early retirement of coal-fired power plants. Arifin believes that accelerating the early retirement of coal-fired power plants will open the door to new energy products, as well as reduce the burning of carbon emissions in order to achieve the energy transition target.

 

Investor.id wrote about coal which still has a very strategic role for Indonesia even though it is considered a dirty energy source because it produces emissions. Several coal companies are also making innovations from upstream to downstream to reduce emissions. With the help of technology, coal emissions can be reduced so that it becomes cleaner. Executive Director of the Indonesian Coal Mining Association Hendra Sinadia said, until now coal is still the cheapest (affordable) energy source and the most reliable (reliable) energy source, and still has an important role in the energy transition era. A similar thing was expressed by Member of the National Energy Council (DEN) As Natio Lasman. According to him, as a whole, Indonesia cannot be separated from the role of fossil energy, including coal. The roadmap to stop the use of coal in the country is still being discussed. 

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