IEEJ：July 2017 © IEEJ2017

MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIADIRECTORATE GENERAL OF ELECTRICITY

COUNTRY REPORT“ELECTRICITY SECTOR IN INDONESIA”
Presented by

Ainul Wafa
at Energy Policy Training Course Japan International Cooperation Agency

JUNE 2017

IEEJ：July 2017 © IEEJ2017

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GOVERNMENT REGULATION & POLICYMANAGEMENT OF ELECTRICITY SUPPLY IN INDONESIAIEEJ：July 2017 © IEEJ2017(Law No. 30/2009 on Electricity)

AUTHORIZATION
•
•

STATE
GOVERNMENTREGIONAL
GOVERNMENT

Regulation, policy, standard
Provides funding for:
 Low income society Development of electricity supply infrastructurein undeveloped regions
 Development of electricity in remote and borderareas Development of rural electricity

BUSINESSELECTRICITY BUSINESS LICENSE HOLDERSTATEOWNEDENTERPRISE*REGION-OWNEDENTERPRISE**

PRIVATEENTITIES**

COOPERATIVES**SELF-RELIANT
COMMUNITIES*** : First Priority** : Given the opportunity as integrated
electricity business license organizer for
not electrified areas
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES2

IEEJ：July 2017 © IEEJ2017

GOVERNMENT POLICY ON ELECTRICITY SECTOR

1 ELECTRICITYPROSPEROUS
SOCIETY

DEVELOPMENT

MATERIAL
EQUITABLESPIRITUAL
EQUITABLE

NATIONAL
DEVELOPMENTOBJECTIVES

NAWA
CITA

ELECTRICITY

Available: Sufficient Good quality
 Reasonable
price

2 UTILIZATION OF PRIMARY ENERGY
SOURCES
NEP → Optimalization → Continuous
Determination
NRE Priority

ELECTRICITYAVAILABILITY
GUARANTEE

Domestic Sources → National Interest
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

NEP: National Energy Policy

3

IEEJ：July 2017 © IEEJ2017

LEGAL BASIS OF POWER SUPPLY PLANNING
LAW 30/2007(ENERGY)

LAW 30/2009(ELECTRICITY)

GR 79/2014(NATIONAL ENERGY POLICY - KEN)
• An energy management policy based on the principles of justice,sustainable, and environmentally-friendly in order to create energy
independence and national energy security• Prepared by the National Energy Council• Stipulated by the Government after the approval of Parliament

General Plan of National Energy(RUEN)• A plan for developing electricity supply
system prepared by the central government
which
includespower
generation,transmission and distribution required tomeet national electricity needs.
• Prepared by the Minister based on KEN.
• Stipulated by the Minister after consultation
with Parliament.

General Plan of Local Energy(RUED)

General Plan of Local Electricity(RUKD)DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES(Business Activities of Electricity
Provision)

General Plan of National Electricity(RUKN)• The central government policy on thenational level energy management planasanelaboration
andtheimplementation plan of KEN using multisectoral approaches in order to achieve
the target of KEN.
• Prepared by the Government andstipulated by National Energy Council

Prepared by the local government based on
RUEN and stipulated under the local
regulation.

GR 14/2012
jo GR 23/2014

Prepared by the local government based on
RUKN and stipulated by the Governor after
consultation with Local Parliament.

Business Plan for Electricity Provision(RUPTL)• As a basis for implementing the electricity
supply business for public interest• Prepared by electricity business who has
special business areas• Prepared by taking into account the Electricity
General Plan*)• Approved by the Minister/Governor inaccordance with their authority.

*) Electricity General Plan consists of General Plan of National Electricity and General Plan of Local Electricity

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POLICY ON POWER GENERATION – DIRECTION OF DEVELOPMENTIEEJ：July 2017 © IEEJ2017(Based on Draft General Plan for National Electricity – RUKN 2015-2034)

Directed to meet the growing electricity demand, increase reserves, and thefulfillment of reserve margin.

Coal-fired PP• CFPP can still be developed, however it should be prioritizing the use ofenvironmentally sound technology and has a high efficiency (CCT/HELE)
for the mature electricity system (i.e. Java-Bali system and Sumatera
system).
• The criteria used in the preparation of the power requirement is using
deterministic methods in percentages, targeted power reserve of at least about
35% for a period of twenty years in the future, on the basis of Ability Power Net.

Gas-fired PP

NRE PP• GFPP and Hydropower - pump storage should be developed in order tomeet peak load demand and to minimize or limited the utilization of diesel
power plant during peak load period.
• NRE-PP will be developed in order not only to meet the growing
electricity demand but also reducing CO2 emission level.
• NPP can be considered to be developed as the last option if NRE’s target of
25% by 2025 cannot be achieved by considering high safety factor.

Nuclear PP
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

Note:
CFPP : Coal Fired Power Plant
CCT : Clean Coal Technology
HELE : High Efficiency and Low Emission
GFPP : Gas Fired Power Plant
NRE-PP : New and Renewable Power Plant
NPP: Nuclear Power Plant

5

POLICY ON POWER GENERATION – ACTORS FOR PIKIEEJ：July 2017 © IEEJ2017(Based on Presidential Regulation No. 4/2016)

Provide greater participation for private participation in PIK.
• Implementation of the accelerated development of electricity
infrastructure (PIK) will be conducted by PLN through “self-management”
in terms of:• PLN having financial capability for equity and source of low funding;• Construction risk is low;
• Fuel supply is available;• Peaker power plant with the function is to control reliability ofsystem operation; and/or• Isolated system development.
• Implementation of PIK can be conducted by PLN through “cooperation”
with other electricity supplies in terms of:• The project needs a huge funding;• Construction risk is high;• The risk of fuel supply is high or do not have a secure supply of gas
and/or infrastructure;• New and renewable power plants;• Expansion of existing power plant;• There is more than one developer who interested to develop power
plant in the area.
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

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IEEJ：July 2017 © IEEJ2017

POLICY ON TRANSMISSION - DIRECTION OF DEVELOPMENT(Based on Draft General Plan for National Electricity – RUKN 2015-2034)

Directed to the growth of the electricity system, increasing system reliability andreducing constraints on the delivery of electricity to the system as well as evacuating
electricity from new power plants.
• In the upcoming 2-5 years, the transmission network development will beprioritized to deliver electricity from new power plants under the 35,000 MW
program.
• 500 kV Transmission network in outside Jawa-Bali and Sumatera systems,
HVDC and smart grid technologies are possible to be developed by considering
the needs of the local electricity system, meet the system requirements,
economic considerations and availability of the technology.
• Transmission network using under ground cable is possible to be implemented
at certain places as long as meets technical and economic aspects.
• Additional transformer or new construction of substation should be prioritizedwhen loading capacity of existing transformer or transformer capacity inexisting substation has already reached 70% of total its capacity for outside
Java-Bali system and 80% for the Java-Bali system.
• Back-up systems can be considered to increase the reliability of the electricity
system.
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

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IEEJ：July 2017 © IEEJ2017

POLICY ON DISTRIBUTION – DIRECTION OF DEVELOPMENT(Based on Draft General Plan for National Electricity – RUKN 2015-2034)

Directed to anticipate the growth of electricity sales, maintaining the desired level ofreliability and efficiency and improve service quality.

• Isolated distribution network can be developed if thecompliance to fulfil electricity needs through electricity
integrated system is less or not efficient.
• Distribution network using under ground cable is possible tobe implemented at certain places as long as meets technicaland economic aspects.
• Distribution network using smart grid technology andsubmarine cable between the islands can be implemented aslong as meet the system requirements and availability oftechnology.
• Micro grid can be considered developed in order to improvereliability and optimize the energy mix of generation in aremote area which is far from large electricity system.
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

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POLICY ON POWER SUPPLY– PLN’S PRIORITYIEEJ：July 2017 © IEEJ2017(Based on MEMR Decree No. 5899K/20/MEM/2016 on RUPTL PLN 2016-2025)

Construction of power plants can be carried out by PLN if having sufficient funding after thedevelopment of rural electrification, construction of transmission and distribution andsubstation have been implemented.
Funding capacity owned by PLN should be prioritized to:• Implement the rural electrification program;• Construct and strengthen transmission and distribution of electricity;• Construct and strengthen substations;• Construct Peaker power plant; and• Construct power plants in remote areas.

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

9PRESIDENTIAL REGULATION NO. 4/2016 amended by PR No. 11/2017
THE BUSINESS MODELIEEJ：July 2017 © IEEJ2017•

The regulation is emphases to solve some issues related to among others:o Primary Energy Source Supply
o Renewable Energy Utilizationo One stop service on permittingo Spatial solutiono Land Use Facility
o Alternative Dispute Resolution
PT PLN (PERSERO)(State Owned Electricity Company)

Cooperation with
OthersSelf-Management
It will be carried out by PLN with the conditions:•
PLN having financial capability for equity andsource of low funding;•Construction risk is low;•
Fuel supply is available;•
Peaker power plant with the function is to control
reliability of system operation; and/or•
Isolated system development
It will be applied for•Power plant; and/or•Transmission

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

Joint Venture with
PLN or PLN’s
Subsidiary
It can be done with domestic and/foreign company if this company:•
Providing funding to PLN; and/or•
Having energy that can be usedby PLN.
•
Technology transfer•
Enhancement of local content
Requirement:• The share of PLN or the PLN’s
subsidiary company in the joint
venture should be at least 51%.

Power Plant
Developer
It will be offered to developer with theconditions:•
The project needs a huge funding;•Construction risk is high;•
The risk of fuel supply is high or
do not have a secure supply of gas
and/or infrastructure;•
New and renewable power plants;•
Expansion of existing power plant;•
There is more than one developer
who interested to develop power
plant in the area.
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IEEJ：July 2017 © IEEJ2017

POWER GENERATION ENERGY MIX POLICY

New and Renewable En
Oil
Gas
Coal

PRIMARY ENERGY MIX(National Energy Policy, GR No.79/2014)
23%

6%

41%

30%

REALIZATION
2013

23%

22%

30%

25
%

TARGET 2025

ENERGY MIX OF POWER GENERATION(Draft of RUKN 2015-2034)
12%
53%
11%

25%
24
%

REALIZATION
2014
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

50%
1%

24%

TARGET 2025
11

IEEJ：July 2017 © IEEJ2017

2

NATIONAL ELECTRICITY CONDITIONIEEJ：July 2017 © IEEJ2017

GENERAL OVERVIEWINSTALLED CAPACITYINSTALLED CAPACITY

59.656 MW
PLN: 41.049 MW

IPP: 13.781 MW

ELECTRICITY PRODUCTION

PPU: 2.434 MW

Non Oil Op.
License4%

Non Oil Op. License: 2.392 MW

ELECTRICITY CONSUMPTIONENERGY MIX *)290 TWh247 TWh

GAS
26%
RE
12%

OIL
7%

ELECTRIFICATION RATIO

91.16 %kWh PER CAPITA

956 kWh

COAL
55%

ELECTRICITY CONSUMPTIONPER CUSTOMER GROUP*)

TRANSMISSION LINES

49.799 kmc

DISTRIBUTION LINESINDUSTRY40%

946.101 kmc

BUSINESS
16%
PUBLIC
6%

RESIDENTIAL
38%

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES*) Include Non-PLN

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CONDITIONS OF PLN’S POWER SUPPLYIEEJ：July 2017 © IEEJ2017(BASED ON DAILY OPERATIONAL RESERVE – APRIL 16, 2017)
STATUS:: 12 Normal (Insufficient reserve margin): 11 Alert (reserve margin < the biggest capacity of generation unit): 0 Deficit (Partially blackout

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

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IEEJ：July 2017 © IEEJ2017

ELECTRIFICATION RATIO 2016 (%)
KALTIM

ACEH

96.26

98.78

JAMBI

88.99

SUMUT

95.81

NOTES:GORONTALOKALTARA

> 70

87.66

77.37

50 - 70
KEPRI

RIAU

88.81

SULUT

KALBAR

76.37

86.03

MALUT

91.31

SULTENG

82.48

< 50

98.06
PABAR

88.24

BABEL

99.97

PAPUA

47.78

SULBAR

80.06

SUMBARDKI JAKARTA

86.13

99.98

JATENG

93.59

KALTENG

73.32

BENGKULU

KALSELMALUKU

89.07

SULSEL

91.00

92.09

SUMSEL

87.12

SULTRA

74.47

83.74

LAMPUNGNATIONAL

91.16

87.97

JABAR

97.87

BANTEN

99.91

DIY

88.66

JATIM

89.52

NTT

NTB

BALI

92.20

77.22

Realization:
91.16

72.95
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

67.15

58.93

76.56

80.51

84.35

87.35

90.15

92.75

95.15

97.35

15

IEEJ：July 2017 © IEEJ2017

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ELECTRICITY DEVELOPMENT PLANIEEJ：July 2017 © IEEJ2017

POLICY FOR ADDITIONAL ELECTRICITY SUPPLY (2015-2034)(Based on Draft General Plan for National Electricity (RUKN) 2015-2034)
784
TWh

Non PLN System
IPP & Excess PowerPLN

PPU AND NONOIL CAPTIVE
POWER
(10%)
395
TWh
IPP ANDEXCESS
POWER
(75%)

PLN
(25%)

2015

2020

ADDITIONAL OF NON PLN SYSTEMADDITIONAL OF IPP & EXCESS POWER
ADDITIONAL OF PLN
ADDITIONAL OF PLN SYSTEMTOTAL ADDITIONAL (BASED ON 2014)
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

2025

2015
2
12
4
16
18

PLN’S
BUSINESS
AREA
(90%)

2030

2016
4
28
9
37
41

2017
6
45
15
60
66

2018
8
64
21
86
94

2019
11
86
29
115
126

2020
14
110
37
147
161

2025
32
272
91
363
395

2030
44
412
137
550
593

2034
55
547
182
730
784
17

FOREIGN DIRECT INVESTMENT PARTICIPATIONIEEJ：July 2017 © IEEJ2017(Based on Presidential Regulation No. 44/2016)• Power plant with the capacity less than 1 MW is dedicated 100% for domestic
investment.
• Small scale of power plant with the capacity is 1 MW up to 10 MW, the maximum
share of foreign direct investment (FDI) is 49%.
• Geothermal power plant with the capacity up to 10 MW, the maximum share of
FDI is 67%.
• Power plant with the capacity above 10 MW, the maximum share of FDI is 95%(max. 100% if under PPP scheme during the concession period).

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES18

IEEJ：July 2017 © IEEJ2017

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ACCELERATION STRATEGYIEEJ：July 2017 © IEEJ2017

PROGRESS OF 35,000 MW PROGRAM(MARCH 2017)[VALUE][PERCENT
AGE]

TOTAL
[VALUE][PERCENT
AGE]

11,319Contracted [PERCENT
AGE] 35.627/PPA
20.767 MW
58%

MW[VALUE][PERCENT
AGE]

Not yetContracted/
PPA[VALUE][PERCENT 14.860 MW
42%[VALUE][PERCENTAGE]PLN

Not yetContracted
5.101 MW48%

AGE]

[VALUE][PERCE
6,460
NTAGE][PERCE

PPA
15.308 MW
61%: Planning: Procurement: Contracted/PPA, not yet Construction: Contracted/PPA, On going Construction: OAS/COD

3,422[PERCENTAGE][VALUE]10.560[PERCE MW[VALUE]NTAGE][PERCENTAGE]

Contracted
5.459 MW52%

In addition, there are power generations that have been COD:
− DPP Outer Islands and the Border Region (68 MW)− MVPP Amurang (120 MW)− MVPP Kupang (60 MW)

3,971[PERCENTAGE][VALUENTAGE]
25.067 ]MW [PERCE[VALUENTAGE]][PERCENTAGE]

Not yetPPA9.759 MW
39%

There are also around of 0.8 GW of power generation under Regular projects which the original COD target is beyond 2019 but since the PPAs has been signed thenthe COD of those power generations might be accelerated in 2019 by considering the progress of the projects made by the developers.
DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

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IEEJ：July 2017 © IEEJ2017

PROGRESS OF 35,000 MW PROGRAM(MARCH 2017)

SUMATERA
360
816
4%
10%
2,164
25%

8.481
MW

KALIMANTAN
100 215
6% 13%

3,287
39%

770
46%

1,854
22%

1.671
MW

JBTB

6.225
3,623
MW
58%

2,500
40%

2
0%

JBT

: Planning: Procurement

601
32%

22 1,000
0% 8% 1,150

1.901
MW

251
15%
335
20%

SULAWESI
NUSRA

100
28 10%
3%
272
28%

969
MW

568
59%

159
655 5%JBB
100
2%MALUKU
PAPUA

800
42%

20%
3.254
79
MW
2%
940
29%

1,422
44%

500
26%

9%
4,755
36% 13.126: Contracted/PPA, not yet Construction: Contracted/PPA, On going Construction

MW

6,199
47%

: OAS/COD

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES21

IEEJ：July 2017 © IEEJ2017

PROGRESS OF 7,000 MW(MARCH 2017)

TOTAL: Construction: Commissioning: OAS/COD

1,922
25%

7.512
MW

4,564
61%

1,025
14%

FTP 2

255
10% 95
4%

607
18%

3.419
2,056 MW

2.543
MW
2,193
86%

60%

756
22%

316
20%
174
11%

1.550
MW 1,060
69%

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

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IEEJ：July 2017 © IEEJ2017

PROGRESS OF 7,000 MW(MARCH 2017): Construction: Commissioning: OAS/COD

KALIMANTANSUMATERA
903
34%

1666
62%

451
46%

2.679
MW 110

981
MW
90
9%

4%

JBTB
JBB
3 4
0% 1%

632
MW
625
99%

MALUKU
PAPUA

440
45%

SULAWESI
NUSRA
144
19%
135
18%

756
MW

44
37%

118
MW

64
54%

10
9%

477
63%

930
MW
JBT
89
6%

930
100%

1.415
MW
1327
94%

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES23

IEEJ：July 2017 © IEEJ2017

TRANSMISSION LINES DEVELOPMENT PROGRESS(MARCH 2017)

INDONESIA
5,765
12%

46.254
16,653 KMS

SUMATERAKALIMANTAN

2,031
11%
7,811
41%

36%

1,422
18%

19.133 9,291
48%
KMS

7.897
2,388 KMS

MALUKU
PAPUA

4,087
52%

30%

SULAWESI
NUSRA
JBB

237
9%

2.859
KMS 1,887

JBT

66%

: Energize

658
26%

7.207
KMS

1.017
27 KMS

659
65%

9,401
49%

2.533
KMS 1,638
65%

339
6%

: Pre Construction: Construction

7,701
40%

331
32%
3%

2,031
11%

JBTB

380
13%
592
21%

23,836
52%

2,239
40%

5.608 3,030
KMS 54%

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES24

IEEJ：July 2017 © IEEJ2017

SUBSTASTION DEVELOPMENT PROGRESS(MARCH 2017)

INDONESIA
21,36820%

108.479
24,011 MVA 63,100
58%

SUMATERA

7,660
24%

32.176 18,216
MVA 57%

1,220
31%

3.910
MVA

1,890
48%

800
21%

19.329 10,677
4,102 MVA 55%

JBT

21%

: Pre Construction: Energize

820
15%
1,010
18%

3,230
24%

4,550
24%

13.4188,444
1,744MVA
13%

MALUKUPAPUASULAWESI
NUSRA

JBTB

JBB

: Construction

22%

KALIMANTAN

6,300
19%

80
40 10%
5%

770
MVA
650
85%

5.600
MVA 3,770
67%

63%

5,168
16%

33.276
19,4538,655 MVA
58%
26%

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES

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IEEJ：July 2017 © IEEJ2017

5

ACCELERATION STRATEGYPOLICY FOR OVERCOMING OBSTACLES (LESSON LEARNT FROM FTP I& II) POLICY FOR OVERCOMING OBSTACLES (Lesson Learnt from FTP I & II)

IEEJ：July 2017 © IEEJ2017

OBSTACLES

SOLUTION

Land Acquisition

Implement Law No 2/2012 and Presidential Regulation No. 4/2016

Price Negotiation

Electricity purchased by PLN from IPP and Excess Power is carried out based on ceiling electricity price does not need
the approval from Minister of Energy and Mineral Resources (MEMR Regulation No.3/2015)

Procurement of
power generationfrom IPP

Accelerate procurement process through “Direct Appointment & Direct Selection” for renewable energy, mine mouth,
marginal gas, expansion, & excess power (MEMR Regulation No.3/2015)

Permitting process

Establish “One stop service on permitting (Pelayanan Terpadu Satu Pintu - PTSP)” at BKPM (MEMR Regulation No.
35/2014 & Presidential Regulation No. 4/2016), reducing number and time for issuing licenses from 52 licenses (923days) to 22 licenses (256 days).

Developer &Contractor
Performance

Conduct Due Delligence to the IPP developer and EPC contractor’s candidates, both from the technical and financial
aspects which is carried out by Independent Procurement Agent (MEMR Regulation No.3/2015)

Project
Management

Establish “Project Management Office (PMO)” & appoint “Independent Procurement Agent” (MEMR Reg. No. 3/2015)

Coordination
Across Sectors

Establish a Working Team in Acceleration of Infrastructure Provision of Electricity (Coordinating Minister Decree No.
129/2015) which is formed by the Coordinating Minister for Economy Affairs as Chairman of Committee for the
Acceleration of Infrastructure Provision Priority (KPPIP)

Government
Guarantee,
Regional spatialplanning, and Legal
Issue

Presidential Regulation No.4 year 2016:• The government provides a guarantee of PLN's payment obligations to the lenders and guarantees of PLN’s businessfeasibility to its financial obligations to the IPPs.
• In the event that the project site is not in accordance with the regional spatial planning then the spatial planningcan be changed in accordance with the legislation.
• Administrative mistakes should be resolved by improving the administration and the state loss should be resolved
by repayment of indemnification to the state.

DIRECTORATE GENERAL OF ELECTRICITYMINISTRY OF ENERGY AND MINERAL RESOURCES27

IEEJ：July 2017 © IEEJ2017

THANK YOU

DIRECTORATE GENERAL OF ELECTRICITY
JL. H. R. RASUNA SAID BLOK X2 KAV 7 & 8 KUNINGAN JAKARTA
TELP: +62 21 5225180
FAX: +62 21 5256044
WEBSITE : WWW.DJK.ESDM.GO.ID
Contact :report@tky.ieej.or.jp