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Comments on Presentation by the Government of Indonesia

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Presented by Fabby Tumiwa, Institute for Essential Services Reform

Presented by Fabby Tumiwa, Institute for Essential Services Reform

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Comments on Presentation by the Government of Indonesia Comments on Presentation by the Government of Indonesia Presentation Transcript

  • Fabby Tumiwa Institute for Essential Services Reform www.iesr-indonesia.org
    • Strong and clear target (Presidential Decree No. 5/2006) but not binding and poor implementation plan
      • Question on the basis to set up the long-term target? whether it is optimum energy mix?;
      • How to get there:
        • Infrastructure and financial consequences of the target;
        • Clear and operational action plan (road map but not action plan)
      • Long-term political support in highly uncertain political environment
      • Public funding and fiscal support are uncertain in the longer term.
    • Regulatory Institution is a new concepts
    • No tradition in imposing good regulation and mechanism, in particular in energy sector.
    • Regulatory Barriers:
      • Need broad consensus from others agency and institution
      • Streamlining and interpreting all existing policies and regulation in operation regulations
      • No clear mandate, task and responsibilities of executing agency
      • Limited capacity and resources to deal with complex regulatory mechanism
      • Trade-off with public interest
    • How to impose “good governance” standard in uncertain regulatory environment?
    • How to ensure “good governance indicators” in the future regulation that consider trade-off of sustainable energy development, environment, social consideration (subsidy and tariff), market effectiveness, and public participation.