02 Apr 2020

Financing Renewable Energy Project Through Crowdfunding

Introduction

Minister of Energy and Mineral Resources of Indonesia, Arifin Tasrif, stated that renewable energy (RE) in Indonesia has a massive potency and should be developed. However, RE utilization is still lacking. Currently, the RE realization for electricity in Indonesia has reached 32 megawatts (MW) out of 400 MW potency (Setiawan, 2019). This number indicates the national RE development still has room for improvement, but it is a difficult task. It is indicated by 19 RE projects that have not received their financial supports. State electricity company (PT PLN) informed that 9 out of 28 RE projects had fulfilled their responsibility as independent power producers (IPPs) (Indraini, 2019). Hence, the rest (19 RE projects) are processed to solve this issue. National development planning agency (Bappenas) involvement through non-government budget equity financing (PINA) availability will be essential to achieve project financial closing (Indraini, 2019).

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