Illustrative image (Source: en.tempo.co)

Jakarta - The Indonesian government is set to temporarily suspend the export of new and renewable energy in order to prioritise domestic demands as the national clean energy mix for electricity is still at 11.7 percent, local media reported.

State-owned Enterprises (SOEs) Minister Erick Thohir last week said the export ban on renewable energy was similar to the domestic market obligation (DMO) policy the government imposed previously on coal and cooking oil, the Antara news agency reported.

“As an independent nation, we must prioritise domestic needs over other countries, but that does not mean we are anti-foreigners. We will impose the same policy as in the coal and cooking oil situation,” the news agency quoted the minister as saying.

This policy was mentioned by the Indonesian government at the recent ASEAN-US Summit and the legality for the policy is being prepared. However, the Indonesian government is open to international firms entering the country and developing new and renewable energy projects that are not intended to be exported again, according to Antara.

Gadjah Mada University's head of energy studies center Deendarlianto said the export ban will not have an effect on the country’s capital investments given Indonesia’s demand for clean energy is still huge.