Transcript Slide 1

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.