Fabby TumiwaFabby TumiwaInstitute for Essential Services ReformInstitute for Essential Services Reform

www.iesr-indonesia.org

Strong and clear target (Presidential Decree No. 5/2006) but not binding and poor implementation planQuestion 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 conceptsNo 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.