Abstract:

Electricity is the fundamental needs for the community that the number continuous increase along with the increase in population. Unfortunately Indonesia's electricity production is still supported by coal which has a negative impact on the environment, even though Indonesia's renewable energy potential is very high. The policy for determining the price of renewable energy is one of the government's steps in accelerating the use of renewable energy in power plants. But in the implementation of this policy has not found the right scheme with the dynamics of policy changes taken by the government. This study aims to analyze the dynamics of renewable energy pricing policies for electricity generation based on policy stability, policy adequacy and contextual framework using the postpositivism approach. Primary and secondary data were taken in the period September 2018-July 2019. The results of this study indicate that the absence of a stable renewable energy pricing policy has consequences for the investment climate that is not conducive. Price policy is also considered not able to accommodate the interests of entrepreneurs because the rate of return does not match expectations. The policy contextual framework is also considered not to provide positive input on renewable energy pricing.