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Indonesia's Revenue from Renewable Energy Remains Minimal Until 2022

Adi Ahdiat 21/02/2023 12:20 WIB

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Between 2017 and 2022, the realization of State Revenue from Non-Tax Revenue (PNBP) from new and renewable energy sources ranged only from Rp500 billion to Rp2.3 trillion per year. This is significant

Realization of Non-Tax State Revenue (PNBP) from Indonesia's Energy and Mineral Resources Sector (2017-2022)

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Indonesia's Revenue from Renewable Energy Remains Minimal Until 2022

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Realization of Non-Tax State Revenue (PNBP) from Indonesia's Energy and Mineral Resources Sector (2017-2022)

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Over the past six years, renewable energy has seemingly not yielded significant benefits for the Indonesian government.

This is evident in a report by the Ministry of Energy and Mineral Resources (ESDM) titled *ESDM Sector Performance Achievements in 2022 & Target for 2023*.

According to the report, during the 2017-2022 period, the realization of Non-Tax State Revenue (PNBP) from new and renewable energy (EBT) and energy conservation was only in the range of Rp500 billion to Rp2.3 trillion per year.

This figure is minuscule compared to the realization of PNBP from oil and gas (migas), minerals and coal (minerba), and other ESDM sector PNBP, which contributed tens to hundreds of trillions of rupiah per year, as shown in the graph.

PNBP is all central government revenue that does not come from taxation. Sources of PNBP include revenue from the utilization of natural resources, government services, and others.

PNBP from the ESDM sector plummeted in 2020, coinciding with the onset of the pandemic. However, since 2021, PNBP in this sector has rebounded, mainly driven by oil and gas and minerals and coal.

In 2022, the realization of PNBP from oil and gas reached Rp148 trillion, a 51.9% year-on-year (yoy) increase and the highest level in the last six years.

The realization of PNBP from minerals and coal even exceeded Rp183 trillion, surging 143.2% (yoy) and setting a new record during the same period.

"(The increase in ESDM PNBP) is due to windfalls in 2022 where commodity prices increased significantly, resulting in achievements exceeding our targets," said ESDM Minister Arifin Tasrif at a press conference on Monday (30/1/2023).

Meanwhile, the realization of PNBP from renewable energy also increased in 2022. However, the annual increase was not significant, even stagnant compared to 2018.

This could indicate that the Indonesian government and energy companies lack sufficient capital and capacity, or lack a strong commitment to managing national renewable energy resources.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Revenue from Renewable Energy Remains Minimal Until 2022

Indonesia's Revenue from Renewable Energy Remains Minimal Until 2022

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Indonesia's Revenue from Renewable Energy Remains Minimal Until 2022

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