Local content rules holding back 9 renewable energy projects, PLN says - The Jakarta Post - The Jakarta Post
Local content rules holding back 9 renewable energy projects, PLN says - Regulations - The Jakarta Post
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Nine new renewable energy projects worth a combined Rp 51 trillion have seen their financing dry up as a result of international lenders' unwillingness to meet government local content requirements, state-owned electricity company PLN said on Tuesday.
Zainal Arifin, executive vice president of renewable energy at PLN, said the financing issues had led to delays in the development of the renewable energy capacity called for in the government’s electricity procurement plan, alongside other factors such as an ongoing oversupply of electricity, as quoted by Kontan.
“We are obtaining funding from the Asian Development Bank (ADB), World Bank and the Japan International Cooperation Agency (JICA), [but this] is currently hindered as local content is not part of their procurement process,” he said.
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