The Energy and Mineral Resource Ministry recorded that investment value in the renewable energy sector for 2015 had only reached US$1.17 billion, or equals to 26 percent from the targeted US$4.8 billion.
“We are figuring out what is causing the slowdown,” said Director General for Renewable Energy and Energy Conservation Rida Mulyana on Monday, September 28, 2015.
Rida said that the government has provided incentives to support investment in the form of increased electricity prices generated by renewable energy. One of the first prices adjusted by the government was prices for electricity generated by geothermal power plant, which ranges between 16 to 20 cents per Kilowatt hour (kWh). Rida claimed that these rates had turned Indonesia into one of the most favored geothermal investment location.