Indonesia is once again moving forward with major regulatory changes in the energy and mineral resources sector. Government Regulation (Permen) No. 2 of 2024 from the Minister of Energy and Mineral Resources has been officially issued to replace Regulation No. 26 of 2021. Essentially, Regulation No. 2 of 2024 governs the use of solar panels by Business Providers of Electricity Supply for Public Purposes. 

Key Changes 

The introduction of this new regulation on solar panels shows the government's effort to make investing easier and more sustainable. It aims to simplify and strengthen rules in Indonesia's energy and mineral resources sector, incorporating several important changes. This includes updating various guidelines for using solar panels from previous regulations. 

1. Competitive Benefits 

Incentives for users such as tax breaks, installation subsidies, and a competitive energy buy-back program allow solar panel users to sell energy generated by their panels back to national electricity providers. 

2. Installation Capacity 

• Enhanced flexibility; users can install solar panels without capacity limitations, as long as they meet technical standards and established requirements. 
• Increased capacity and distribution; this new regulation enables a boost in electricity production and distribution capacity from solar panels, benefiting both personal and commercial applications. 

3. Streamlined Business Licensing 

• Efficient process; by combining various types of business licenses into a single, integrated system, this regulation reduces bureaucracy and makes it easier for companies to start and operate. 
• Digital system; With an integrated portal, companies can apply for, monitor, and update their licenses in real-time. This system also ensures transparency and accountability throughout the licensing process. 

4. Enhanced Environmental Standards 

• Green policies; Stricter standards are being implemented to reduce the environmental impact of natural resource extraction. Businesses are required to manage waste and rehabilitate land as part of their commitment to environmental conservation. 
• Renewable energy; Businesses are strongly encouraged to use renewable energy sources, such as solar panels and biomass, to reduce their carbon footprint and support the transition to a more sustainable economy. 

5. Comprehensive Transformation Efforts 

• Technology support; The government actively promotes using the latest technologies, such as AI and sensors, in the energy industry to optimize operations, improve efficiency, and reduce environmental impact through more accurate monitoring. 
• Training and education; Programs are organized to enhance the skills and knowledge of professionals in the sector. Training and certification for solar panel technicians are also expanded to ensure enough qualified experts. 
• Public awareness; Campaigns are conducted to educate the public about the benefits of renewable energy and the importance of adopting a sustainable lifestyle in everyday life. 

Government Regulation No. 2 of 2024 by the Minister of Energy and Mineral Resources brings fresh air to Indonesia's energy sector. In addition to offering solutions that are more relevant to current environmental conditions, this regulation is expected to facilitate a greater transition to renewable energy, especially solar panels, in Indonesia. This step will not only help reduce dependence on limited fossil fuels but also provide a significant boost to the renewable energy industry. 

MODENA Energy provides complete solar panel solutions for all your needs, both individual and commercial. Consult your solar panel needs with our team today! Visit the MODENA Energy website to learn more about our solar panel solutions.