Ministry of Energy and Mineral Resources,

Republic of Indonesia

#EquitableEnergy
Keynote Speech in Energy Conference

Sari Pan Pacific Hotel, Jakarta, November 2017

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 #EquitableEnergy
Emphasize Social Wellfare, Condusive Bussiness Climate dan Economic Growth
Electrification Sustainability Investment & Bureaucracy
Fair Distribution
Ratio & Affordability Growth Reform
þ Increasing Power þ Targetted Subsidy þ Renewable Energy þ Mineral Added Value þ Simplification of
Generation Capacity þ Single Retail Fuel Utilization Permits
þ PI 10% from oil & gas
(35,000 MW) Price þ PPA Reform contract þ Online System
þ Rural Electrification þ City Gas þ Private Refinery
þ Mine Mouth Power þ Good Governance
þ Electrifying 2,500 þ LPG’s Converter Kit Plant þ Industrial Gas Price
Villages for fisherman
þ PSC Gross Split
þ Accountability
þ 1 Gas Refueling þ Wellhead Power
þ Electricity Tariff of Plant þ Sunc Cost Refund -
Station Nozzle at
NRE PSC
Each gas station

Sovereignty and Energy Resilient

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 Increasing The Electrification Ratio
Energizing The Villages and Accomodate The Local Wisdom

Increasing The Electrification Ratio 1.698 MW

Additional
Installed Capasity of Geothermal Power
1250 Plant

kWh/cap Power
(2019)
978 kWh/cap
Generation of 1.812 MW
Installed Capasity of Bioenergy Power
NRE (2016-2017) Plant

Electricity Consumption Local Wisdom

per Capita Acomodation
259 MW
Installed Capasity of Solar Power
Plant and Microhydro Power
Plant

Current Power Generation Capacity (MW)

Realization of 35 GW Program
93,5% Nov 2017 üCOD : 998 MW
Target 92,75% üConstruction :15,676 MW
üPPA :13,782 MW
(Yet Construction)
üProcurement : 3,163 MW
üPlanning : 2, 28 MW
2013 2014 2015 2016 2017*)
“ There are 2,500 villages whose
electricity had not entered at all, we *) September 2017
will go there, because equity is
important. The Policy regarding Acceleration of Rural Electrification
(Ministerial Reg. of EMR Number 38/2016) will adding the power
capacity amount 236.55 MW.

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“
THE ELECTRIFICATION RATIO Electrification
Ratio (%)

93.5%
Nov 2017
Realization target

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 SIMPLIFICATION OF THE NON-SUBSIDIZED
HOUSEHOLD ELECTRICITY CUSTOMER CLASS

OLD ELECTRICITY
POWER NEW ELECTRICITY NO INCREASE
POWER IN TARIFF

VAT

POWER Free of charge power addition

No increase for electricity subscription cost
ADDITION Will not applied to subsidized household customer of
450 VA and 900 VA

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 SIMPLIFICATION OF THE NON-SUBSIDIZED
HOUSEHOLD ELECTRICITY CUSTOMER CLASS

Household customer
450 VA and 900 VA Non-subsidized household
(Subsidized and Non- customer can add power
Subsidized)
100% Free of Charge
UN-
CHANGED MCB (Miniature Circuit Breaker) Replacement

Free of Charge

Subscription Cost
NO Per kWh (kilo Watt hour) tariff
INCREASE NO
INCREASE

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 SIMPLIFICATION OF THE NON-SUBSIDIZED
HOUSEHOLD ELECTRICITY CUSTOMER CLASS

Benefit of
Customer get more electrity power
#TambahDayaGratis
for Customers
without extra cost

No need to add extra electricity power for

any special occasion

Support small and micro enterprise to acess

more power without any extra electricity
cost
Support development of creative economy in
household

Free for power addition Support utilization of electric vehicle and

Voluntary Programme electric stove which is more efficient and
clean
Not Mandatory

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 Efficient Solar Powered Lamp Program
(LTSHE)
2,500 Villages in 2009
Target 2017 Target 2018
Illuminate 80,332 houses in Illuminate 175,782
5 Provinces (in process of houses in 5 Provinces
implementation)

1. Ultra Efficient LED 3 Watt

~ 25 Watt Lamp
2. Lithium Energy Storage Pack
(Lithium Battery)
3. Chip Management Energy
operate for 6, 12, and up to 60 hrs
in a single charge

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Revised by Ministerial Regulation No. 50/2017

Energy source produced by sustainable

energy resources, such as: solar, wind,
hydro, biomass, biogas, municipal waste,
geothermal, waves and OTEC Ocean Currents

Renewable IPP Contract

Geothermal and Municipal
General Auction Waste Power Plant

Hydro, Solar PV, Wind,

Direct Appointment Biomass, Ocean Currents, *) until November 2017
and Biogas Power Plant

Indexing to generation cost in local If power generation cost

system National average power
National average power generation cost:

Ocean Business to Business (B to B), if

Currents
National average power generation cost: power
Power generation cost based on the agreement
(B2B)
Power generation cost 9
PLT Bayu (Wind Power) Sidrap (30x2,5 MW)
Expected to COD by early 2018

Location : Kabupaten Sidenreng

Rappang, Sulawesi Selatan
COD Target : Kuartal I 2018
Power Purchase : 11,41 USD cent/kWh
Investment : $ 150 juta

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Business Certainty in Power Purchase Agreement (PPA)
Improved business certainty:
PPA Reform – Ministerial Regulation 49/2017 • The risk of government force majeure is removed
• Fair balance / risk sharing

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City Gas Distribution for Household Use

House Connection (SR)

(On Progress) 402.583
September 339.726
2017
225.336
200.000

2014 2015 2016 2017

Target on 2018 installed 77,880 SR

Rp
Reducing household economic cost at least 90,000 IDR/month/Family
More Efficient, Clean, and Safety energy than using LPG 3 Kg

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“Single Retail Fuel Price

Ministerial Regulation Number

36/2016 regarding the
Acceleration of Single Retail
Fuel Price Implementation

Previous Price: Currently Price:

7,000 IDR – 100,000 IDR per 6,450 IDR per litre (Premium) 4
litre 5,150 IDR per liter (Diesel Fuel)

Establish a Single Retail Fuel

Price Supplier in 157
59 52 46
locations locations locations
locations in 148 districts 2017 2018 2019
until 2019
until Nov 2017, has been
realized in 28 locations

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Private Enterprises

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PSC Gross Split :
Better Government take, more benefit to Contractors

Deployment:
Working Area of
Offshore North
West Java (ONWJ)

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Improvement of PSC Gross Split:
8 Revision in the PSC Gross Split
MR 52/2017- PSC Gross Split
Increase the economic viability by improving the contractor IRR
and NPV
Calibrated in 12 oil and gas field with various characteristics.
#IRR and NPV PSC Gross Split at least comparable with PSC Cost Recovery

CUMULATIVE PRODUCTION PRODUCTION PHASE

Additional Split up to 10% Additional split up to 10%

OIL PRICE H2S IMPURITIES

Split adjusted by formula Additional split up to 5%

GAS PRICE INFRASTRUCTURE

Split adjusted by formula Additional split up to 4%
(new progressive split)
POD-2 MINISTERIAL
Additional split 3% DISCRETION SPLIT
Uncapped
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 Simplification of Permits
Permits handle Directly by Ministry of Energy and Mineral Resources

NEW RENEWABLE
OIL & GAS MINERAL & COAL ELECTRICITY ENERGY & ENERGY
MR 29/2017 MR 34/2017 MR 12/2016 CONSERVATION
MR 12/2016

6 Permits 6 Permits 3 Certifications 3 Permits

þ Exploration Mining
þ 2 Permits
7 Non Permits
Permits
Upstream þ Exploration Special
Mining Permits
2 Recommendations
þ 4 Permits þ Production Mining
Downstream Permits
þ Production Special
Mining Permits
þ Operation & Production
+ 4 Non Permits Mining Permits
Specifically for Processing
& Refining
þ Business Permits for
Mining Services

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18
CERTAINTY OF FISCAL SCHEME FOR CURRENT PSC

Transition Period

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