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About Renewable & Alternative Energy Law in Mataram, Indonesia

Renewable and alternative energy refers to power generated from sources that are naturally replenished, such as solar, wind, hydro, and geothermal energy. In Mataram, located on the island of Lombok in Indonesia, there is increasing focus on the development and use of renewable and alternative energy sources. This is due to national and regional initiatives aimed at reducing dependence on fossil fuels, promoting sustainability, and supporting economic growth. The Indonesian government, together with local authorities in Mataram, is investing in frameworks that regulate, incentivize, and oversee the deployment of renewable energy projects. These laws are designed to address licensing, environmental impact, land use, grid connection, and investment opportunities in the renewable energy sector.

Why You May Need a Lawyer

Navigating the renewable and alternative energy sector in Mataram can be complex. Having legal guidance is especially important in situations such as:

  • Assessing compliance with national and local energy policies
  • Securing permits and licenses for renewable energy projects
  • Negotiating land acquisition or lease agreements for energy installations
  • Managing environmental impact assessment processes
  • Resolving disputes with local communities, suppliers, or government agencies
  • Drafting and reviewing contracts with investors, partners, and utility companies
  • Understanding incentives, tax breaks, and investment regulations
  • Dealing with intellectual property for new technologies
  • Interpreting feed-in tariff and power purchase agreement regulations
  • Facilitating foreign investment compliance in the energy sector

A lawyer who specializes in renewable and alternative energy law in Mataram can help protect your interests, ensure compliance, and streamline the process of project development.

Local Laws Overview

Indonesia has a comprehensive legal framework for renewable energy, which Mataram follows and implements at the local level. The primary legislation includes:

  • Law Number 30 of 2007 on Energy - Outlines the basic principles for national energy management and promotes the growth of renewable energy.
  • Law Number 21 of 2014 on Geothermal Energy - Regulates the development of geothermal resources, a significant potential energy source in Lombok.
  • Presidential Regulation Number 112 of 2022 on the Acceleration of Renewable Energy Development - Provides updated policies, pricing mechanisms, and investment guidelines for developing renewable energy projects.
  • Electricity Law Number 30 of 2009 - Covers licensing, business areas, and partnership models for power generation.

At the provincial and city level, there are specific regulations and zoning rules affecting project siting, local partnerships, and coordination with the Mataram City Government. Environmental impact assessments, community consultations, and compliance with land use rules are mandatory for most projects. In addition, investment incentives and approval processes may vary depending on the size and type of renewable energy initiative.

Frequently Asked Questions

What types of renewable energy projects are common in Mataram?

The most common projects include small-scale and commercial solar installations, micro-hydro power plants, and, to a lesser extent, wind and geothermal projects. Solar energy is particularly popular due to Lombok's abundant sunshine.

Do I need a permit to build a solar installation on my property?

Yes, permits are required from the local government. The exact type of permit depends on the system's size and whether it will be connected to the national grid or for private use.

Can foreign investors participate in renewable energy projects in Mataram?

Yes, but there are regulations governing foreign investment ratios, mandatory partnerships with local entities, and specific investment structures. Legal consultation is essential.

What incentives are available for renewable energy projects?

Incentives can include tax holidays, reductions or exemptions on import duties for equipment, feed-in tariffs, and access to government-backed support programs. These are subject to central and local government policies.

What are the environmental regulations for renewable energy projects?

Every project must comply with the Environmental Impact Assessment (AMDAL) and Environmental Management Efforts (UKL/UPL) based on project scale. Community involvement and local consultations are typically required.

How is electricity generated from renewable sources connected to the grid?

Projects must coordinate with PT PLN (the state electricity company) for grid connection. Regulatory approvals and a power purchase agreement may be necessary.

What happens if my renewable energy project faces opposition from local communities?

Community engagement is critical. Disputes can often be resolved through negotiation and consultation, sometimes with mediation from government or legal representatives.

Is it possible to sell excess electricity to the grid?

Yes, mechanisms for selling excess electricity exist, often through Feed-in Tariff schemes or through net metering for certain small-scale installations, depending on current PLN policies.

Are there restrictions on the use of land for renewable energy installations?

Yes, land use zoning and local spatial plans apply. Agricultural, protected, and residential areas may have specific restrictions or require additional approvals.

How long does it take to get approvals for a renewable energy project?

The approval process timeline varies depending on project complexity, land status, and environmental assessments. It may range from several months to over a year.

Additional Resources

If you need more information or wish to begin the legal process for a renewable or alternative energy project in Mataram, consider reaching out to these key organizations:

  • Ministry of Energy and Mineral Resources (ESDM) - For national and regional policy updates
  • Mataram City Government Energy and Mineral Resources Office - For local permits and inquiries
  • PT PLN (Persero) - For electricity grid connection and power purchase guidelines
  • Indonesia Investment Coordinating Board (BKPM) - For investment procedures and incentives
  • Indonesian Renewable Energy Society (METI) - Offers insights, events, and networking in renewables

Next Steps

If you wish to proceed with a renewable or alternative energy project in Mataram, or need legal advice, here are suggested next steps:

  1. Identify your project goals, scale, and preferred energy source.
  2. Consult with a qualified local lawyer experienced in energy and environmental law.
  3. Assess land ownership and zoning requirements with the local authorities.
  4. Gather necessary documents for permits and environmental clearances.
  5. Engage with stakeholders, including local communities, suppliers, and government agencies.
  6. Negotiate and review all contracts and agreements with legal guidance.
  7. Monitor compliance with relevant laws throughout the project lifecycle.

Legal support will help you navigate regulatory requirements and protect your investment. For personalized assistance, consider scheduling an appointment with a local legal expert specializing in renewable and alternative energy law.

Lawzana helps you find the best lawyers and law firms in Mataram through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Renewable & Alternative Energy, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Mataram, Indonesia - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.