Client Alert on MEMR Reg 19/2025: New MEMR Regulation on Hybrid Power Plants for Small Islands or Isolated Area
Indonesia’s renewable energy sector continues to gain significant momentum, with growing policy attention and market activity accelerating the country’s energy transition agenda. Hybrid power plants are increasingly promoted as part of the energy transition, supported by MEMR’s energy transition roadmap issued through MEMR Reg 10/2025, which formally advances the de-dieselisation program. In parallel, PLN has engaged with three companies to implement de-dieselisation program, and the President has announced an ambitious initiative to develop up to 100 GW of solar power plants equipped with BESS.
Against this backdrop of rapid policy and market developments, it is particularly noteworthy that MEMR Reg 19/2025 has introduced a new pricing mechanism that departs from the single-ceiling price approach under PR 112/2022. The regulation adopts a dual structure consisting of both a ceiling price and a floor price—signaling a potentially significant shift with direct implications for the economics and bankability of renewable projects in small-scale electricity grid.
For further details on this MEMR Reg 19/2025, please refer to our Client Alert herein: Client Alert on MEMR Reg 19/2025
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