1. Fabby Tumiwa Institute for Essential Services Reform www.iesr-indonesia.org

2.

• 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.

3.

• 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

4.

• 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.