Comments on Presentation by the Government of Indonesia

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Presented by Fabby Tumiwa, Institute for Essential Services Reform

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Comments on Presentation by the Government of Indonesia

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

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