MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

BRINGING RENEWABLE ENERGY TO HIGHER STATE

Rida Mulyana
Director General of New, Renewable Energy and Energy Conservation
The 7 thIndonesia Powe Generation and Independent Power Producer (IPP) Summit
Shangri-La Jakarta, 10 May 2017
2 OUTLINE KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

I. Indonesia’s RE Potential
II. National Electrification Ratio
III. The National Energy Policy
IV. Regulation on NRE Development
V. Nuclear Power: Updates and Develoment
VI.Closing
3 I. Indonesia’s Renewable Energy Potential KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

8,80 GW
443,2 GW (2% Based on potential)
G
 4 II. NATIONAL ELECTRIFICATION RATIO
ELECTRIFICATION RATIO IN ASEAN COUNTRIES
• National electrification ratio was 91.16% in 2016. KEMENTERIAN ENERGI

• There are 2 provinces (NTT and Papua) having & SUMBER DAYA MINERAL

electrification ratio lower than 70%.

• Indonesia’s electrification ratio is still low (91.16%)

Persen (%)
compared to other ASEAN countries.
• Target of electrification ratio: 97.35% by 2019 (RPJM)
and 100% by 2024 (RUKN)
NATIONAL ELECTRIFICATION RATIO IN 2016 (%)
4
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

III. THE NATIONAL ENERGY POLICY

 The National Energy Policy :
6
Government Regulation No. 79/2014 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

New and Renewable Energy

Oil
2013 2025
Gas
Gas
Coal
NRE
18%
5% 22% 23%

194 ~ 400
MTOE 46% MTOE
31%
30% 25%
Coal
Oil

2013 2025
Power Plant 51 GW 115 GW
Energy Consumption 0,8 TOE/capita 1,4 TOE/capita
Electricity 776 2.500 KWh/capita
Consumption KWh/capita
6
7
NEW AND RENEABLE ENERGY TARGET BY 2025
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

45,04
2025
Geothermal 7.2 GW
41,01
Hydro 21 GW
35,74 Bioenergy 5.5 GW

29,28
Solar 6.4 GW
Wind 1.8 GW
24,66 Other NRE 3.1 GW
18,48
15,81
Totall 45 GW
12,94
11,73
10,80
8,66

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PLTP PLT Bioenergi PLTA Mini Hidro PLTS PLT Bayu PLT Laut Total

2015 2025

Total Installed Capacity 55 GW 135 GW

NRE Power Plant Capacity

8.7 GW 45 GW
(15.7%) (33%)
8 8 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

IV. THE REGULATION ON NEW AND

RENEWABLE ENERGY DEVELOPMENT
 RENEWABLE ENERGY UTILIZATION FOR A MORE
9 EVEN AND AFFORDABLE ELECTRICITY
Regulation of the minister MEMR Number 12 Year 2017 PROVISION FOR THE PEOPLE
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

Type of Power Plant Solar PV, Wind, Hydro, Biomass, Biogas,

Municipal Waste, Geothermal

Through procurement,
Electricity based on the quota
Based on reference price, or
Purchase stated in PT. PLN’s through direct appointment
Implementation RUPTL for at least 15
MW of capacity
Hydro, biomass, biogas, municipal
Solar and Wind waste, and geothermal power plants
power plants

Solar Wind Geothermal Hydro Biomass Municipal Waste Biogas

Renewable PLN is obliged to operate small scale power plants

(up to 10 MW of capacity) continuously

Energy Electricity
 Maximum 85% of BPP (Biaya
Pokok Penyediaan/ Cost of
 Maximum 100% of BPP, if a
region’s BPP is considered more
than national BPP on average
Resources Purchase Price
Production), if a region’s BPP is
considered less than national
BPP on average  Based on agreement, if a region’s
 A total 100% of BPP, if a region’s BPP is equal or less than national
BPP is considered equal or more BPP, especially for Sumatera,
than national BPP on average Java, and Bali regions

Utilization of Electricity providers are obliged to use domestic components that

meet Indonesia’s National Standard, international standard, and/or
TKDN another standard required that are not contradicted with the ISO or
IEC.
Note: RUPTL (Rencana Usaha
Penyediaan Tenaga Listrik/ Sanctions Electricity providers are sanctioned if they can’t finish a power
Electricity Supply Business plant’s installation
Plan)
 IV. THE MINISTRY OF ENERGY AND MINERAL RESOURCES’S
10 REGULATION NUMBER 12 YEAR 2017 : “UTILIZATION OF
KEMENTERIAN ENERGI
RENEWABLE ENERGY SOURCE FOR ELECTRICITY SUPPLY” & SUMBER DAYA MINERAL

TYPES OF RENEWABLE ENERGY POWER PLANT :

Solar PV Wind Hydro

Municipal
Biomass Biogass
Waste

Geothermal

PT PLN (Persero) is obligated to purchase

11 THE MINISTRY EMR REGULATION No. 12/2017 : TARIFF
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

Renewable Tariff
No. Energy Method of Appointment Regional Grid BPP > National Regional Grid BPP ≤ National
Sources BPP BPP
Maximum 85% x Regional
1. Solar PV Auction in capacity quota with minimum 15 MW 100% x Regional Grid BPP
Grid BPP
Maximum 85% x Regional
2. Wind Auction in capacity quota with minimum 15 MW 100% x Regional Grid BPP
Grid BPP
Maximum 85% x Regional
Reference Price 100% x Regional Grid BPP
Grid BPP

3. Hydro Direct Selection Price determined by direct selection process

a. Capacity ≤ 10 MW: Capacity Factor minimum 65%

b. Capacity > 10 MW: Capacity Factor depends on Regional Grid system requirements
Maximum 85% x Regional
Reference Price (for 10 MW or less) 100% x Regional Grid BPP
4. Biomass Grid BPP
Direct Selection (for more than 10 MW) Price determined by direct selection process
Maximum 85% x Regional
Reference Price (for 10 MW or less) 100% x Regional Grid BPP
Grid BPP
5. Biogass
Direct Selection (for more than 10 MW) Price determined by direct selection process

Municipal Maximum 100% of Local Mutual agreement between

6. Reference Price
Waste Generation BPP PLN and IPP
Maximum 100% x Regional Mutual agreement between
7. Geothermal Reference Price
Grid BPP PLN and IPP
BPP = Production Cost of Electricity
Regional Grid BPP and National BPP will be determined by the Minister based on the proposal of PT PLN (Persero)
12 THE MINISTRY EMR REGULATION No. 12/2017 : OTHER FEATURES
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

(1) Hydro (for capacity more than 10 MW), Biomass, and Geothermal projects to be awarded on a Build, Own,
Operate, and Transfer/BOOT basis.
(2) Construction of the transmission interconnection between the IPP and the PLN grid may be done through
business-to-business basis.
(3) PLN conduct the Due Diligence on technical and financial aspects of the IPP.
(4) PLN may appoint a procurement agent to conduct the Due Diligence.
(5) The IPP’s proposal should be attached with Interconnection Study Document.
(6) The IPP must meet local content requirements.
(7) The local content must meet national standards, international standards, or other standards as long as not
contrary with the ISO or IEC.
(8) The construction must meet national standards, international standards, or standard applicable in PLN as long as
not contrary with the ISO or IEC.
(9) PLN is obliged to:
a. publish to the public the conditions of regional grid system that ready to accept the electricity from renewable
power plants.
b. publish the regional grid system’s production cost to the limited IPP who interested in developing renewable
power plants.
(10) PLN is obliged to set and publish:
a. Standard of bidding document; and
b. Standard of Power Purchase Agreement/PPA (with refer to MEMR No. 10 Year 2017).
(11) a. In case of the construction is delayed, the IPP will get sanction and/or penalties.
b. Get the reward, if the construction is finished earlier based on PLN request.
c. The sanction and/or penalties and reward will be stated in PPA.
 REGIONAL GRID SYSTEM’S PRODUCTION COST
13
2016 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

According to Ministerial Decree Number 1404 K/20/MEM/2017

17.32 17.52

13.54 13,66 13.68

12.75
12.17 12.43
¢USD/kWh
10.14 10.20 10.39
National
9.04 9.28
BPP
7.77 7.86 8.07 8.10 ¢ USD
7,39/kWh
6.51 6.51 6.51 6.52 6.54 6.62

Exchange rate assumption = Rp 13.307/USD

 33.4

Indonesia RE Investment Opportunities remain attractivePLTSa

33.4 33.4 26.9
14
A huge potential of RE is available, focus on 13 priority
22.9
areas
23.9 PLTBg
KEMENTERIAN ENERGI

PLTSa PLTSa
& SUMBER DAYA MINERAL
26.9 26.9
33.4 33.4
33.4
19.2
33.4
PLTBm
23.9 23.9 PLTBg PLTBg 18.9
22.9 22.9
17.6 17.9 Regional grid RE Potential PLTP
PLTBm26.9 PLTBm 33.4
PLTSa 26.926.9 PLTSa
PLTSa 26.9 Giga Watt PLTSa
(GW)
18.9 19.2 18.9 19.2 BPP cent$/kWh
17.9
PLTP
23.9 PLTP
13.1 PLTBg
23.9
23.9 PLTBg22.9
PLTBg 23.9 PLTMH
PLTBg
22.9 22.922.9
100% Regional grid
10.9
PLTMH PLTMH PLTBm PLTBm BPP26.9
PLTBm PLTSa
Municipal
PLTA
PLTBmLarge Hydro
18.9 19.2 18.918.9 19.219.2 18.9 19.2 Waste
18.9 19.
17.6 17.9 17.617.6 17.917.9 PLTA PLTA 17.6 17.9 17.6 17.9
PLTP 22.9
PLTP 23.9
PLTP 85% Regional grid
33.4
PLTBg
Biogas PLTPPLTB
Wind
4.9 PLTB PLTB PLTMH PLTMH BPP
PLTMH PLTMH
3.1 13.113.1 13.1
19.2
13.1 PLTBm
Biomass PLTS
Solar PV
10.910.9 PLTS 10.9 PLTS 18.9 10.9
17.6 17.9 PLTA PLTA
PLTA 26.9 PLTSa PLTA
PLTP
Geothermal Total
Total
Total Total PLTB PLTB 23.9
PLTB PLTBg PLTB
4.9 4.9 4.9
13.1
22.9 4.9 PLTMH
Micro Hydro
Babel
Kalbar Maluku NTB Riau PLTS Aceh PLTS Sumut
PLTS PLTBm PLTS
Aceh NTTSulutenggo
tenggo Sumut NTTKaltim Sumut
Kalbar Kaltim
Papua
10.9
Papua
PLTSa 18.9 Sulutenggo
19.2
NTT
PLTSa Kaltim Kalbar Papua
PLTA
14,18 12,41 17.6 Total
17.9 Total
Total PLTP Total
PLTP PLTP
12,05 10,55
13.1
PLTB
PLTMH
TB Babel Maluku
Riau
Babel MalukuSulutenggo
Aceh NTBNTB NTTRiau
Riau
4.9 AcehSulutenggo
Sumut
Aceh Sulutenggo
Babel
Kaltim
10.9
NTT
Maluku
Kalbar
NTT Sumut Kaltim
NTB
Papua
Sumut
Total
Kaltim Kalbar
Riau Kalbar Sulutenggo
Aceh Papua
Papua NTT
Total
Sumut
Babel Kaltim
Maluku Kalbar
NTB Papua
Riau Aceh Sulutenggo NTT
9,01 14,45 10 11,67 PLTS
PLTA
12,28 8,50
7,66 9,92 16,62 PLTB
Total
33.4 33.4 33.4
4.9
14,13 PLTS
1.36 1.36
Babel Maluku NTB Riau 0.08 Aceh Sulutenggo NTT 0.08
Sumut Kaltim Kalbar Papua
26.9 Total
26.9 26.9PLTSa PLTSa
22.9
23.9
22.9
23.9
22.9
23.9 PLTBg PLTBg
Babel Sulselrabar
Maluku NTBKalselteng
Riau Aceh Sulselrabar Kalselteng
Sulutenggo NTT Sumut Kaltim Kalbar Papua
14,72 8,76 8,03 19.2 19.2 19.2
PLTBm PLTBm
18.9 18.9 18.9
17.6 17.9
17.6 17.9
17.6 17.9
12,51 7,45 6,83 PLTP PLTP
13.1 13.1 13.1 PLTMH PLTMH
10.9 10.9 10.9 PLTA PLTA
PLTB PLTB
4.9 4.9 4.9
PLTS PLTS

“ There are around 210 GW of RE

potential in the 13 priority areas
that have remain attractive
Babel Babel
Maluku Babel
Maluku
NTB Maluku
NTB
Riau
13,54
NTB
Riau
Aceh Riau
Aceh
Sulutenggo Aceh
NTT Sulutenggo
Sulutenggo

16,94
NTT
Sumut NTT
Sumut
Kaltim Sumut
Kaltim
Kalbar Kaltim
Kalbar
Papua
Total

Kalbar
Papua Papua

13,67
Total

economics (regional grid BPP > 11,51 14,40 11,62

national BPP)
 THE MINISTRY EMR REGULATION NO. 38/2016: THE ACCELERATION PROGRAM
15 TO ELECTRIFY RURAL, BORDER AREA AND SMALL ISLAND KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

To provide electricity in
certain area until 50 MW;
 Undevelop rural areas
 Remote areas
 Border areas
 Small islands
Mechanism
 Offer Business Area To Non PLN Business
Entity
 Minimum Offered Working Area To Be
Electrified Is 1 (One) District
 Small Scale Electricity Supply Business
Could Be Operate:
 With Subsidy Funds
 Without Subsidy Funds
16 Renewable Energy Installed Capacity
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

MW

Electricity
based

KL Biofuel
17 V. Up-Dated Nuclear Power Development
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

 White Paper of Nuclear Power 5000 MW have been finalized and it present:
• Prespective of nuclear power development in Indonesia
• Current energy challenges,
• Introduction to NPP,
• Why Indonesia should build NPPs,
• National economic impact of NPP,
• Security and safety aspects of NPP,
• Infrastructure readiness for NPP construction in Indonesia (site readiness,
technology, human-resource readiness),
• Domestic industry readiness,
• Funding scheme,
• Electricity network infrastructure need,
• Supporting infrastructure

 Drafting Road Map of Nuclear Power Development

17
18 The Challenge of Nuclear Power Plant Development In Indonesia
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

• There is still some people’s resistance;

• Need strong political will;
• Need massive socialization

18
VI. Closing
Electricity supply should be efficient in
order to not burden electricity subsidy
and people gain a better electricity
tariff
RE investments remain attractive,
especially in the 13 priority areas
that have remain attractive
economics (regional grid BPP >
national BPP)
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL
Electricity subsidy in national
budget have to decrease, to get
more fair and equitable
development
There are around 210 GW of RE
potential in the 13 priority areas
Attractive RE investment is proven
and indicated by the ablity of
investor, studies and existing
contracts
 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION

Jalan Pegangsaan Timur No. 1 Menteng, Jakarta Pusat 10320; Telp/Faks : 021-31924540

www.ebtke.esdm.go.id