Abstract
To increase the utilization of renewable energy (RE) potential in Indonesia, the Indonesian government issued a feed-in tariff(FIT) policy. Indonesia is one of the largest coal-producing and exporting countries in the world. Coal-fired power plants (CFPP) support more than half of Indonesia’s electricity supply. The Strength Weakness opportunity & Threat (SWOT) approach is the methodology used in analyzing FIT policies in Indonesia. Based on the SWOT discussion and analysis process, it was found that the FIT policy in Indonesia has strengths in the form of stable economic growth& electricity consumption, relatively high RE potential with very low RE utilization, & government support, especially FIT policy. Meanwhile, its weakness is the geographical factor of Indonesia which is archipelagic, and the characteristics of the RE are intermittent, the investment cost of RE is relatively high & the length of the RE Power Purchasing Agreement (PPA) process. opportunities that can be maximized are the target of increasing RE penetration in the energy mix, especially the electricity sector, the trend of decreasing RE Levelized Cost of Energy (LCOE), competitive FIT rates, & global awareness related to climate change that encourages RE optimization. The condition of Indonesia which has high coal production and dependence on CFPP which has a low LCOE in the electricity production mix is a threat to the implementation of FIT. Apart from that, there are other threats such as generator oversupply conditions and the consistency of government policies in supporting RE. It is concluded that FIT in Indonesia offers a high level of tariffs by accommodating the geographical conditions of Indonesia which is an archipelago with a relatively high LCOE outside the island of Java and Bali.
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