Is 2020 Bali’s Time For Green Investments?

Is 2020 Bali's Time For Green Investments?
Green energy image by Arnie Chou on Pexels
Image by Arnie Chou on Pexels

I recently wrote a piece for Gapura Bali about newly issued regulations for clean energy and electric vehicles in Bali. If all goes well it could be an exciting time for green investments in Bali.  Here’s a version of it here.

The new clean energy regulations focus on 5-priority programmes, which include power generation and use, the development of environmentally friendly transportation, and the development of the Polytechnic and the Center for Clean Energy Studies in the Regency of Bangli.

Renewable energy

The first of these is Regulation No.45 / 2019, which aims to fulfil Bali’s energy needs using environmentally friendly and renewable energy sources.

The regulation has an impact on Bali’s property sector and real estate industry as it highlights the need to develop zero energy buildings using environmentally friendly building materials, energy efficient electrical devices, transportation and solar power roof systems. Water usage, wastewater treatment and recycling are also covered.

You can make a difference!

Anybody investing in property in Bali should really be looking at how they can make a difference by trying to minimize their footprint and maximize their eco-impact. And now the Governor has signed new regulations to encourage it, there’s no excuse why you shouldn’t get involved.

The initial focus however, looks like it’s going to be central and regional government buildings, as well as commercial, industrial, social and household buildings with a floor area of ​​more than 500-square meters.

Koster said solar powered roof systems will be installed between 2021 and 2024. Let’s hope so!

Be part of the solution

Industrial, commercial, and mall buildings with floor areas of more than 1,000-square metres, resorts with a land area of more than 3,000-square metres and 4-star (and above) hotels that use electricity sourced from clean energy will be entitled to a special green electricity tariff.

It’ll be interesting to see how this actually roles out as PLN don’t have the best reputation for getting behind green initiatives as much as they could, or should.

Maybe if enough people made a noise they’d listen some more.

Electricity suppliers will also have to convert from coal and/ or oil-fired power plants to clean energy power plants.

Koster appears to be determined to reduce coal-based electricity supplies and is committed to making sure this initiative works. “For me, this is not a discourse, I will run it, I do not want to do something that cannot be done,” he told local news wires.

Green is the new black!

According to Mongabay, investors who will be involved in this energy transition are BUMN (state owned enterprises), private companies and regional companies including PT Gas, Pertamina, Indonesia Power, and the private sector.

Koster welcomed the involvement of private companies so long as the technology was right and the price competitive, but long-term success will need support from local communities.

And this is where we see investment potential.

If you’ve got ideas send them to him … turn his inbox green!

Get together with like minded people and make a difference!

Nyoman Suwarjoni Astawa, General Manager of PLN Bali Distribution Main Unit, said there were already investors, naming Medco Energy and Solar Philippines who were involved in the first and to date, largest solar power plants (PLTS) auctioned by PLN.

The investment is reportedly valued at around IDR 500 billion and two plants are expected to be operational in Karangasem and Jembrana by 2021.

Electric vehicles and charging stations

The other significant regulation is Pergub Bali No.48 / 2019, which focuses on the Use of Battery Based Electric Vehicles (KBL).

The bill is focused on preserving “Bali’s natural environment, supporting government programmess for energy efficiency and reducing pollution in the field of transportation,” claim local news wires. It also paves the way for ensuring the readiness of the necessary infrastructure for electric vehicles in Bali.

Key to the success of this initiative is to use local content and providing incentives for owners and users of Battery-Based Electric Vehicles.

Koster said there would be special zones in the major tourist areas of Kuta, Sanur and Nusa Penida for electric vehicles, but this must be supported by suitable infrastructure from PLN. Astawa claims PLN has 127-public filling stations for motorcycles and two for electric cars.

I’ve written about this before and in my humble opinion this is only going to work if there are enough public recharging stations. Like thousands of them! If they’re on every street corner more people are likely to engage and the whole initiative will gain momentum.

Koster added that he has invited two companies, Gesit Motor (a private company) and Wijaya Karya (a state owned enterprise) to lead the way and a production target of 30,000 units a year has been set. Gapura Bali reported on Gesit Motor and the electric vehicle revolution in October and if all goes to plan it could have a very positive impact.

As with the clean energy regulation, the electric vehicle bill will be phased in, first targeting government agencies, regional management authorities and state owned enterprises as well as those companies engaged in public transportation services.

Sources: Mongabay, Bali Plus, Coconuts Bali, Bali Post, Bali Top News, Gapura Bali

Adapted from an original post in Gapura Bali.

#cleanandgreen #bali #sevenstonesindonesia #ecofriendly #greeninnovation #greeninvestment #baliindonesia #ecoinvest #savetheplanet #balicleanandgreen #investindonesia #invest2020 #invest

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.