Ministry of Energy and Mineral Resources

Directorate General of New, Renewable Energy and Energy Conservation

Directorate of Various of New and Renewable EnergyDirectorate General of New Renewable Energy and Energy Conservation - MEMR

National Electrical Day 2019 Conference10 October 2019

1

Outline

• Indonesia’s Energy Situation

• Policy and Regulation

• Renewable Energy Potential Project

INDONESIA’S ENERGY SITUATION

3

59.20%

12 . 32%RenewableEnergy

6.18%*

Fueloil

22.3%Gas

PRIMARY ENERGY MIX FOR POWER GENERATION

Third Quarter -2018

58.41%

22.92%

12.67%

ELECTRICITYCONSUMPTION (kWh/capita)• Electricity consumption continues toincrease along with electrification accessibility

expansion and economicgrowth

• Encourage a development of electric vehicle and utilization of electric stove

2014 2015 2016 2017 2018

878 918 956 1,012 1,129

1,048

TARGET

REALIZATION Q3

20172018

Coal

6.00%*

* IncludeBiofuel

The primary energy mix inpower generation is a percentage of electricity production(GWh)by each energytype.

Reducing the electricityproduction cost to achieve competitive and affordable tariff.

Decreasing the use offuel oil powergeneration.

Q3 of 2018

National Capacity of Power Plant : 65,480 MW

Target2,500 kWh

by 2025

5

Kaltim

99% → 99%

Sulut

97% → 99%

Aceh

99% → 99%

Sumut

99% → 99%

Babel

99% → 99%

Bengkulu

99% → 99%

Sumsel

91% → 98%

Banten

99% → 99%

Jabar

99% → 99%

DIY

99% → 99%

Jakarta

99% → 99% Jateng

99% → 99%

Bali

100% → 100%

Jatim

94% → 98% NTT

62% → 72%

Pabar

99% → 99%

Maluku

90% → 99%

Malut

99% → 99%

Sultra

90% → 98%Sulsel

99% → 99%

Sulbar

99% → 99%

Gorontalo

89% → 98%

Sulteng

91% → 97%

RE 98,81%PLN : 94,97%Non PLN : 3,47%LTSHE : 0,37%

: > 95 % (30 provinsi)

: 80 - 90% (0 provinsi)

: < 80% (1 provinsi)

Keterangan :

: 90 - 95% (3 provinsi)

June 2019

98,81%

ELECTRIFICATION RATIO

December 2018

98.30%

Papua

90% → 94%

Kalbar

87% → 96%

Kalsel

95% → 99%

Kalteng

84% → 94%

Kaltara

90% → 99%

NTB

90% → 98%

Sumbar

91% → 98%

Jambi

98% → 99%

Kepri

88% → 98%Riau

98% → 99%

Lampung

96% → 99%

OIL RESERVES & PRODUCTION

• Since 2008 Indonesia is no longer as oil exporting country• National reserves and production progressively decline• Changes in Indonesia's Energy History, from OPEC Members to Oil Importers

Oil Consumption

> 1.5 MBOPD

Oil Production

< 0.8 MBOPD

0

10

20

30

40

50

60

70

80

90

100

Energy

Oil Coal Gas RE

43%

28%

22%

7%

Energy Mix 2018

Installed 0,140 GWp (0,02%) GW

Installed :147.1 MW (0,04%)

Installed 1,949 GW (0,44%)

Biodiesel 200 Thousand BphInstalled : 1,858 GW (0,42%)

Installed: Large Hydro 5.39 GW Micro Hydro 0.406 GW (1,23%)

Installed - 0

Potential 207.8 GW

Resources 60.6 GW

Resource 11 GWReserve 17.5 GW

Potential 32.6 GW

Potential 75 GW

Potential 17.9 GW

PO

TEN

TIA

L

INS

TA

LLE

D

TOTAL POTENTIAL442 GW

TOTAL INSTALLED9.76 GW (2.2%)

RENEWABLE ENERGY POTENTIALS

RENEWABLE ENERGY INSTALLED CAPACITY (1)

RENEWABLE ENERGY INSTALLED CAPACITY (2)

Signed in 2017-2018

75 NEW RENEWABLE ENERGY CONTRACTS

COD Construction Financial Close

Progress Implementation

11

Progres IPP PPA 2017 - 2018

Progres PPA Jumlah (PPA) Keterangan

COD 13

PPA 2017:

• PLTA Pakkat 18 MW

• PLTM Nengar (Excess Power) 1 MW

• PLTM Tanjung Tirta 8 MW

• PLTM Kincang 1 0,35 MW

• PLTBg Mitra Puding Mas (Excess Power) 2 MW

• PLTBm Tempilang 6 MW

PPA 2018:

• PLTBg Sawit Graha Manunggal (Excess Power) 1

MW

• PLTM Sita 1 MW

• PLTS Sengkol 5 MW

• PLTS Selong 5 MW

• PLTS Pringgabaya 5 MW

• PLTM Kunci Putih 0.9 MW

• PLTS Likupang 15 MW

Konstruksi 30

Sudah FC dan memasuki tahap konstruksi

PPA 2017 : 30 IPP

PPA 2018 : -

Persiapan FC 32

• Sudah mendapatkan Bank yang akan memberi pinjaman namun syarat FC belum lengkap;

• Mencari pendanaan;

• PPA sudah berlaku efektif namun masih proses FC;

• Menyiapkan jaminan pelaksanaan dan jaminan penawaran (PPA belum berlaku efektif).

PPA 2017 : 29 IPP

PPA 2018 : 3 IPP

Total 75

POLICY AND REGULATION

12

PRIMARY ENERGY SUPPLY 2025

GOV REG 79 OF 2014 NATIONAL ENERGY POLICY

Gas

Coal Oil

NRE

Indirect Utilization

Direct Utilization

1. Geothermal PP, 7,2 GW

2. Hydro PP, 17,9 GW

3. Small Hydro PP, 3 GW

4. Bioenergy PP, 5,5 GW

5. Solar PP, 6,5 GW

6. Wind PP, 1,8 GW

7. Others, 3,1 GW

Maximize renewable energy utilization; Reduce fuel-oil consumption and refined oil import

Co

al

Gas

2015

Target of RE:Policy

• Maximize Renewable Energy utilization

• Minimize Oil utilization

• Optimize gas and new energy utilization

• Utilization of coal as the main national energy supply

• Utilization of Nuclear Power Plant as the last option

Energy Sector Commitment• Reduce GHG emissions by 314 - 398 Million Tonnes of CO2 by 2030

(RE: 54.1%; EE: 30.7%; Others: 15.2%)

• Gov Reg 79/ 2014 National Energy Policy & Perpres No 22 / 2017

National Energy General Plan: Target 23% of RE on Primary Energy Mix

& 17% Final Energy Saving from BAU Schenario

Global Commitment

• Keep global temperature rise not exceed 2oC, and strive to

reach1.5oC

14

National Commitment• Mandate of Law No. 16 of 2016 on the Ratification of Reduce GHG

emissions by 2030: 29% from BaU (National Effort) 41% from BaU

(International Support)

CLIMATE CHANGE COMMITMENT

15

Legal Basis

❑ MEMR Reg 50 of 2017 on Utilization of Renewable Energy Sources for the Provision of Electric Power;

❑ MEMR Reg 38 of 2016 on Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Border Areas, and Small Island with Population through the Implementation of Small Scale Power Supply

❑ MEMR Reg 49 of 2018 on The Utilization of Rooftop Solar PV System By Consumers of PT PLN (Persero)

Legal Basis

❑ Presidential Reg. 47 of 2017 on LTSHE❑ MEMR Reg. 3 of 2017 on Operational Guidance of

DAK Physical Assignment of Small Scale Energy❑ MEMR Reg. 05 of 2018 on Procedures for the

Provision of LTSHE for Communities Without Access to Electricity

❑ MEMR Reg. 12 of 2018 on the Implementation of Physical Activity of New Renewable Energy Utilization

INCREASING INFRASTRUCTURE RENEWABLE ENERGY CAPACITY(POWER PLANT)

Commercial:• On-grid and off-grid communal systems:

Solar PV, Mini/ Microhydro, Wind, Marine, Bioenergy PP

• Source of Funds: Private Sector (Investor)

Non Commercial:• Energy infrastructure development for

undeveloped rural areas, remote rural areas, rural in border areas

• Off-grid system: Solar PV, Mini/ Micro-hydro, Wind, Marine, Bioenergy PP, Solar PV Street Lighting, LTSHE

• Source of Funds: State Funded/ Special Allocation Fund (DAK)

Improvement of Infrastructure

Capacity of Renewable Electricity

STRATEGI PENGEMBANGAN EBT

1. Mendukung Pelaksanaan RUPTL PLN Persero 2019-2028

2. Menciptakan pasar-pasar energi yang baru melalui:

• Sinergi BUMN (contoh: LEN-Pertamina-PLN-BUMN Lainnya)

• Sinergi dengan rencana pembangunan daerah (contoh; Prov Bali,

DKI, Prov Jateng, Prov Jatim, Prov Sumut, Prov Sulsel)

• Sinergi dengan rencana pengembangan dengan

Kementerian/Lembaga (contoh:PLTS Atap dengan APBN – Kemenkeu

dan KLHK)

Electricity Purchase Implementation

1. Hydro, Solar, Wind, Biofuel,Biomass, Biogas and Ocean

2. Geothermal and Municipal Waste

Electricity Purchase Price

❑ Solar❑Wind❑ Biomass❑ Biogas❑ Ocean

If BPP (Cost of Production) at region’s electrification system:

• > The national BPP on average

Maksimum purchasing price 85% of region’s BPP

• < The national BPP on averagePrice based on agreement (b to b)

Based on Geothermal and Municipal Waste regulation

❑ Municipal Waste

❑ Geothermal❑ Hydro

Note: • Construction of the transmission interconnection between the IPP and the PLN grid may be done through business-to-business basis.• Based on Build, Own, Operate, and Transfer/BOOT scheme

Through Direct Selection

Price based on agreement (b to b)❑ Biofuel

MEMR REG 50/2017 Renewable Energy Utilization for affordable Electricity Provision for the people

If BPP (Cost of Production) at region’s electrification system:

• > The national BPP on average

Maksimum purchasing price 100% of region’s BPP• < The national BPP on average

Price based on agreement (b to b)

18

COST OF PRODUCTION (BPP) 2018 (cUSD/kWh)MEMR Decree 55 K/20/MEM/2019

Sumatera: 7.29 – 11.74 cUSD/kWh

Java & Bali: 6.91 – 6.94 cUSD/kWh

Kalimantan & Sulawesi: 9.6 – 13.85 cUSD/kWh

Maluku, NTB, NTT, Papua: 15.14 – 21.34 cUSD/kWh

Electricity Tariff(Ministrial EMR Reg. No. 50/2017)

Renewable energy PowerPlant

Local BPP >National BPP

Local BPP ≤National BPP

Solar PV, wind, Biomass, Biogas, Hydro, and Ocean

Power Plant85% local BPP B to B

Geothermal, Waste, and Hydro Power Plant

100% local BPP B to B

Biofuel Power Plant B to B B to B

www.ebtke.esdm.go.id @djebtke 19@djebtkeLintas EBTKE

Renewable Energy To Provide ElectricityElectrification acceleration program in rural areas by prioritizing New and Renewable Energy based power plant

Electrification program with total capacity up to 50 MW is intended for :❑ Undeveloped Villages❑ Remote Areas❑ Villages in Border Areas❑ Inhabited Small Islands

“There are > 2500 Villages without Electricity”

GOI target to electrify 2510 villages by 2019

Business Area Procedure Tariff

• The Governor proposes business area.• The Minister of EMR authorization to

determine the business area that has been proposed by Governor.

• The Governor offers business area to business entities.

• The Governor issues IUPTL (Licence).• The Minister of EMR appoints business entities

that have already had IUPTL.

• InvestmentBased on Governor’s proposal, then Auction is held for Business Area Developer.

• AssignmentHead of Local Government can assign BUMD if there is no interested investor

• SubsidiesThe GoI calculates the amount of the subsidy to be proposed to the Parlianment (DPR) to be validated

• Non Subsidies with Agreement Tariff (refer to BPP PLN)Tariff will be set by MEMR or Governor

• Non Subsidies with National tariffElectricity tariff will correspond with PLN tariff

MEMR REGULATION 38/2016Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Border Areas, and

Small Island through the Implementation of Small Scale Renewable Energy

www.ebtke.esdm.go.id @djebtke 20@djebtkeLintas EBTKE

Export: Total energy exported from consumer to PLN grid pemonth

ROOFTOP SOLAR PV SYSTEM

INCLUDING: solar PV, inverter, consumer electricityconnection, safety system, dan export-import kWh meter.CONSUMER: PLN Consumer including industrial sector.CAPACITY: 100% installed capacity of consumer electricity(Watt).LOCATION: rooftop, wall, or other parts of building of PLNconsumer.

OBJECTIVES/ADVANTAGES

Community▪ Reducing monthly electricity bills.▪ Improving the role of the community regarding the use and

management of renewable energyGovernment and PLN▪ Increasing the percentage of NRE in the national energy mix.▪ Accelerating the solar energy utilization.▪ Encouraging the local solar energy industry.▪ Escalating the NRE investment.▪ Increasing energy security and energy independency.▪ Reducing green house gas emission.▪ Increasing the rate of employment.

EXPORT AND IMPORT CALCULATION

Formula: Imported kWh – 65% of Exported kWh

Import: Total energy imported from PLN grid to consumer per month

Imported kWh > 65% Exported kWh

The total energy deviation is paid to PLN as usual

The excess energy exported from the consumer for a particular month will reduce electricity bill for the following month. However, accumulated excess energy will be reset every 3 months (January-March, April-June, July-September, and October-December)

Imported kWh < 65% Exported kWh

MEMR REG 49 YEAR 2018 CONCERNING SOLAR PV ROOFTOP

21

UPDATE PELANGGAN PLTS ATAP – SEPTEMBER 2019 (1)

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UPDATE PELANGGAN PLTS ATAP – SEPTEMBER 2019 (2)

IMPORT FACILITY

2Import duties on machinery and equipment, item, and raw materials for production Exemption from import duty on machinery and equipment:• 2 years exemption from import duty on raw

materials • Additional 2 years exemption from import

duty for raw materials if the company uses local production machinery and equipment (min 30%)

✓ MoF Reg 176/2009 jo. MoF 188/2015

✓ MoF Reg 66/2015

✓ BKPM Regulation No. 13/2017

MOF Regulation 66/PMK.010/2015

Capital Import Duty for the Development and Expansion of the Industrial Electricity Generation for General Purpose

TAX ALLOWANCE

1✓ Government Regulation No. 18/2015 jo

Government Regulation No. 9/2016

✓ BKPM Regulation No. 6/2018

✓ MEMR Regulation No. 16/2015

145 Business SegmentQualified for tax benefits, expanded from 129 segments in the previous regulation.

30 % from total investment

Income tax reduction for 6 years, 5% every year

under certain requirements:investment value or export orientation, employment, local content.

Implementation :

9 IPP (hydro & wind),

total capacity148,19

MW

TAX HOLIDAY

3✓ MoF Regulation 35/2018

✓ BKPM Regulation 1/2019

5-20years Free Tax

Max . 100 % income tax reduction

IDR 500billon Minimum investment

Implementation: 2 IPP hydro,

total capacity 531MW

5 years Free tax

IDR 100 -500billlion Minimum

investment

Max . 50 % income tax reduction

MINI TAX HOLIDAY

INCENTIF FISCAL FACILITY FOR RENEWABLE ENERGY

RENEWABLE ENERGY POTENTIAL PROJECT

24

Ministerial Decree of MEMR No. 39K/20/MEM/2019 on Ratification Power Supply Business Plan of PT PLN (Persero) 2019-2028

25

POWER SUPPLY BUSINESS PLAN BY PT PLN (PERSERO) (RUPTL 2019 – 2028)

NoRE Power

PlantCapacity 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total

1 Geothermal MW 190 151 147 455 245 415 2759 45 145 55 4,607

2 Large Hydro MW 154 326 755 - 182 1484 3047 129 466 1467 8,009

3 Mini Hydro MW 140 238 479 200 168 232 27 20 20 10 1,534

4 Solar PV MWp 63 78 219 129 160 4 250 - 2 2 908

5 Wind MW - - 30 360 260 50 150 - - 5 855

6Biomass/

Mun. WasteMW 12 139 60 357 50 103 19 5 15 35 794

7 Ocean MW - - 7 - - - - - - - 7

8 BiofuelThousand

KL520 487 291 167 151 146 154 159 166 175 2,415

Total MW 560 933 1,697 1,501 1,065 2,287 6,251 199 648 1,574 16,714

26

PROSPEK PENGEMBANGAN EBT –RUPTL DAN STRATEGI PENCIPTAAN PASAR ENERGI

No Klasifikasi Status Proyek Panas Bumi PLTA/ PLTMH PLTS PLTB PLT Bioenergi

Unit MW Lokasi MW Lokasi MW Lokasi MW Unit MW

1 COD 2019 4 185 22 285,69 13 33,82 1 60*) 6 25,3

2 Proses pembangunandan akan COD pada2020-2025

52 2.292 209 7.145,85 29 869,98 13 850 30 374,1

3 Siap dikembangkan namun perlu mendapatkan PPA

25 1.210 - - - - - - 3 56,5

4 Belum memiliki BadanUsaha Pengembang PLT 15 675 - - - - - - 32 283,5

TOTAL 96 4.362 231 7.431,54 42 903,8 14 910 71 739,4

PELAKSANAAN PROYEK PLT EBT PADA RUPTL PLN s.d. 2025

Keterangan :*) PLTB Jeneponto

RENEWABLE ENERGY DEVELOPMENT PLAN 2019

Sumatera:• 30 Projets• 1181 MW• 2572 Mil USD

Kalimantan:• 14 Projets• 137 MW• 273 Mil USD

Sulawesi:• 26 Projets• 991 MW• 2493 Mil USD

Maluku & Papua:• 12 Projets• 60 MW• 156 Mil USD

Java (West):• 6 Projets• 200 MW• 495 Mil USD

Java (Central):• 19 Projets• 1672 MW• 3074 Mil USD

Java (East), Bali, Nusa Tenggara:• 48 Projets• 474 MW• 811 Mil USD

Source:

155 RE ProjetsCap. 4,718 MWInv. USD 10.51 Billion

Renewable energy developer who is interested in participating in the procurement process by PT PLN must register as a list of selected providers of PT PLN, with the following conditions: 1. Having technical experience in developing renewable energy up to the last 10 years 2. Have financial ability

29

BUSINES PROCESS OF RENEWABLE ENERGY POWER PLANT

Direct Selection by

PLN

Complete RFP / Request for

Proposal documents

consisting of Technical and

Financial documents

Electricity Price Approval by

MEMR

Request to the MEMR

Financial Model and Proposed Parameter

Rates

Negotiation Minutes/

Deal

PPA

Developer Designation Letter

UKL-UPL/Amdal Permit

SIPPA (specifically hydro power plant)

Location Permit (according to Spatial

Planning)

Feasibility Study

Financial Close

IUPTL

(Licence)

Completing Administrative and

Technical Requirements

according to MEMRRegulation 35/2013

Construction

Building Construction Permit (IMB)

Disturbance Permit HO

Decree on land rights which is authorized by

the competent authority

Construction implementation permit for

water resources (Mini hydro/Large Hydro)

IUPTL

Commercial Operation Date

Certificate of Eligibility for Operations (SLO)

Business Process based on MEMR Regulation No. 50/2017:

30

ELECTRICITY PERMIT ISSUANCE TROUGH ONLINE SINGLE SUBMISSION (OSS)

a. Business Permit:1. Electricity Supply Business License;2. Operating Permit; 3. Establishing Business Areas; 4. Issuance of electricity supporting service business

licenses conducted by SOEs or growers foreign capital/majority of shares owned by foreign investors;

5. License to Buy and Sell Cross-Country Electricity; 6. Electricity Network Utilization Permit for

Telecommunications, Multimedia, and Information Purposes from license holders determined by the Central Government

Gov Reg 24 of 2018 concerning Electronic and Integrated Business Licensing Services and MEMR Reg 39 of 2018 concerning Electronically Integrated Business Licensing Services Licensing

The authority of the Minister of Energy and Mineral Resources related to Electricity Permits through ONLINE SINGLE SUBMISSION (OSS):

b. Commercial Permit:1. Certificate of Eligibility for Operation; 2. Business Entity Certificate; 3. Certificate of Competence in Electric Power

Engineering.

31

PROCEDURE FOR APPLICATION OF ELECTRICITY SUPPLY BUSINESS LICENSE (IUPTL)

IUPTL is Electricity Supply Business License for public use

Requirement ofIUPTL

NIB (Nomor Induk Berusaha)Requirement:

1. Applicant identity;2. Deed and Ratification as an Indonesian legal entity; 3. NPWP;4. Location permit;5. Environmental Permit. (In accordance with the laws and regulations in the field

of environmental protection and management life);

Technical Requirement (OSSCommitment:))

1. Applicant profile (Composition of Directors, Commissioners and Composition Stock);

2. Funding Capability;

3. IUPTL feasibility study;

4. Installation location except for Electricity Sales Business

5. Single line diagram;

6. Business type and capacity;

7. Development Schedule;

8. Operating Schedule

9. Approval of the selling price of electricity and

✓ Electric power sell agreement for power business

✓ Network lease agreement for transmission and distribution business

10. Determination of business area (according to MEMRReg28/2012) and RUPTL for Distribution, Sales, or Integrated Businesses.

Business Entities submit

licenses at OSS (oss.go.id)

Dit General of Electricity MEMR

verifies technical requirements

(OSS commitment)

COMPLETE&appropriate

?

APPLICANT

NO

YES

Complete

the required

documents

Issuance of

IUPTL

(oss.go.id)

30Work days

NIB

(Registered Bussiness

Identitiy Number)

IUPTL

(not active yet)

(MEMR Reg 35 of 2013, MEMR Reg 39 of 2018, & the Ministry of Economic Affairs Circular PENG-1/SES.M.EKON/08/2018)

Thank You