IEEJ：December 2015, All Rights Reserved.

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

POWER POLICY ANDNATIONAL DEVELOPMENT PLAN IN
INDONESIA
Presented by:JarmanyDirector General of Electricity
BangkokNovember 20th 2015

SYMPOSIUM ON SUSTAINABLE POWER SUPPLY MIX IN THE
FUTUREIEEJ：December 2015, All Rights Reserved.

OUTLINE
1PRELIMINARY

2CURRENT CONDITION

3GENERAL PLAN FOR NATIONAL ELECTRICITY

435,000 MW PROGRAM

5CO2 EMISSION REDUCTION – CLEAN COAL TECHNOLOGYIEEJ：December 2015, All Rights Reserved.

1. PRELIMINARYIEEJ：December 2015, All Rights Reserved.

GOVERNMENT POLICY ON POWER SECTOR[BASED ON LAW NO. 30/2009 ON ELECTRICITY ]OBJECTIVE OF ELECTRICITYDEVELOPMENTElectricity
Elt i it development
dlt aims
it ensure thetoth availability
il bilit off electricl t i power: in sufficient quantity
 good quality
 reasonable pricein order to improve the welfare and prosperity of the people in a fair and equitable andsustainable development.

UTILIZATION OF PRIMARY ENERGYSOURCE Primary energy sources  shall be used optimally in accordance with the National Energy
Policy  to ensure the sustainability of electricity supply
 Shall be carried out by prioritizing the new and renewable energy sources Domestic primary energy sources  shall be prioritized for national electricity interest.

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

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IEEJ：December 2015, All Rights Reserved.

LEGAL BASE OF PLANNING AND DEVELOPMENT ON ENERGY AND ELECTRICITY

Law 30/2007

Law 30/2009(Energy)(Electricity)

Government Regulation 79/2014(National Energy Policy)
Designed by the National Energy Council then stipulated by
the Government with approval of the People's Representative
CouncilGovernment Regulation 14/2012
jo Government Regulation 23/2014

General Plan for National Energy

General Plan for National Electricity

Designed by the Government based on
National Energy Policy then stipulated by
National Energy Council

Designed and stipulated by the Minister based on
National Energy Policy after consultation with thePeople'ss Representative Council
People(Business Activities of Electricity Provision)

Business Plan for Electricity Provision[RUPTL PLN – MEMR Decree
No. 0074 K/21/MEM/2015]
Electricity provision business for public purpose carriedout in accordance with General Plan for Electricity andBusiness Plan for Electricity Provision.
Business Plan for Electricity Provision designed by theEnterprise with pay attention to General Plan forElectricity.

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

4IEEJ：December 2015, All Rights Reserved.

2. CURRENT CONDITIONIEEJ：December 2015, All Rights Reserved.

35,000 MW PROGRAM
Electricity Development of 2015‐2019 to fulfill Electricity Growth 8.7% and Electrification Ratio 97.35% in 2019

Currently the installed capacity
j t cover aboutjustb t 87,14%*
87 14%*
household, lower than Singapore(100,0%),Brunei(99,7%),
Thailand(99,3%),
Malaysia(99 0%) and(99,0%),d Vietnam
Vi t(98 0%)(98,0%)For the next 5 years, demand forelectricity will grow up about
8,7% per year in average, with atarget of electrification ratio
about 97,35% at the end of2019

Electrification Ratio and Capacity
Current
Condition

Unit

Electrification%

87,14*

CapacityMW

54.453*

Total

Electrification Ratio
100.0095.00
90.00

90.15%

92.75%

95.15%

97.35%

To fulfill electricity
demand growth and toachieve electrification
ratio target, it is required
new additional capacity
about 35,000 MW(exclude 7.4 GW on goingproject) for period 2015
2015‐
2019

35,000 MW
PROGRAM

87.35%

85.00
80.00
2015

2016

2017

2018

2019

External factor on the 35,000 MW program which is influence the goal:

1

The change of assumptions which is affect to the change of annual electricity demand

2

Demand availability to absorb of electricity supply to return of the investment*: September 2015
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

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IEEJ：December 2015, All Rights Reserved.

ELECTRIFICATION RATIO(SEPTEMBER 2015)
KATEGORI

Aceh

93,54%

Sumut> 70 %

Kaltara92,42%

Kaltim

72,51%

50 ‐ 70 %

94,07%< 50 %

Riau

Sulut

Kalbar

87,35%
Kepri

88 23%
88,23%

Gorontalo

81 32%
81,32%

Malut

78,26%

72,98%

93,63%

Papua Barat

78,92%
SumbarSumsel82 11%
82,11%

79 04%
79,04%

Kalteng

68,91%

Sulteng

78,13%
Jambi

83,45%

Babel

Sulbar100%

75,89%

Papua

44,81%

SultraBengkulu

85,85%

JakartaJateng

91,76%

90,64%

Maluku83,81%

86,12%

Lampung

83,49%67,34%

KalselBantenBali

Sulsel

87,98%

87,10%

99,63%
Jabar

92,66%ELECTRIFICATION RATIO (%)
100.00
90.00
80.00
70.00

72.95

76.56

80.51

84.35

87.35

90.15

DIY

Jatim

NTB

NTT

NATIONAL

85,44%

85,86%

71,15%

58,11%

87,14

92.75

95.15 97.35

REALIZATIONTARGET BASED ON DRAFT RUKN

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

67.15%

72.95%

76.56%

80.51%

84.35%

87.35%

90.15%

92.75%

95.15%

97.35%

67.15

60.00
2010

2011

2012

2013

2014

2015

2016

2017

2018

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

20197IEEJ：December 2015, All Rights Reserved.

REALIZATION ENERGY MIX 2009 ‐ 2015
10090807060504030201002009

PRIMARY ENERGYSOURCE2010

201120122013

2014

RAPBN‐P2015

REALIZATIONUNTIL Q2 2015

PERSENTAGE OF ELECTRICITY PRODUCTION, GWH (%)
20092010

2011

2012

2013

2014

RAPBN‐P 2015REALIZATIONUNTIL Q2 2015

Oil*)

25

22

22.95

14.97

12.54

11.49

8.85

9.34

Gas

25

25

21

23.41

23.56

24.07

23.15

23.45

Coal

39

38

44.06

50.27

51.58

52.87

57.03

55.32

Hydro

8126.8

6.39

7.73

6.7

6.51

7.35

Geothermal

33

5.13

4.854.42

4.44

4.32

4.35

Other RE000.07

0.110.160.43

0.140.19*) : Including biodiesel mandatory 20%

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

Source: Realization data until Quarter 2 of 20158IEEJ：December 2015, All Rights Reserved.

ELECTRICITY PRODUCTION COST, TARIFF AND SUBSIDY
1201600

1400
100
1200

Production Cost (average)
80
1000

Rp/kWhR/kWh 800

60

Rp. Trilion

Tariff (average)

600

40400

S b idSubsidy20200
2015*02003

2004

2005

2006

2007

2008

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

20092010

2011

2012

2013

2014

2015

0
* Target

9

IEEJ：December 2015, All Rights Reserved.

3. GENERAL PLAN FOR NATIONAL ELECTRICITYIEEJ：December 2015, All Rights Reserved.

POLICY FOR ADDITIONAL ELECTRICITY SUPPLY 2015‐2034
PPU &Non-oil Captive
Power

800

700

600

TTWh

500
IPP &EXCESS
POWER

400

75%
300

PLN
BusinessA
Area

90%

200

PLN

10025%‐2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Additional of Non PLN System

246811141720232732343739414446495255

Additional of IPP & Excess Power

1228456486

110

137

166

197

233

272299

326

354

382

412

443

476

511

547

Additional of PLN

4915212937465566

7891

100

109

118

127

137

148

159

170

182

Additional of PLN System

1637

60

86

115

147

182

221

263

310

363

398

435

472

510

550

591

635

681

730

Total Additional (based on 2014)

184166

94

126

161

199

241

287

338

395

433

471

511

551

593

637

684

733

784

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

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IEEJ：December 2015, All Rights Reserved.

PRIMARY ENERGY MIXFINAL ENERGY MIX(National Energy Policy, Govt. Reg No.79/2014)
NRE, 6%
Coal, 30%
Oil, 41%

Oil, 25%

Coal, 30%

NRE, 23%

Gas, 22%

Gas, 23%REALIZATION 2013

TARGET 2025

ENERGY MIX OF POWER GENERATION(General Planning of National Electricity – RUKN Draft 2015-2034)
Hydro, 6.70%

Geothermal, Other NRE,
NRE
4.40%
0.43%

Oil, 11.49%

Oil, 1%
NRE, 25%

Gas, 24.07%

Coal, 50%

Coal, 52.87%

REALIZATION 2014

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

Gas 24%Gas,TARGET 202512IEEJ：December 2015, All Rights Reserved.

PROJECTION OF POWER GENERATION ENERGY MIX 2025*)
PLN’s SystemyOil
5 TWh
Gas
126 TWh 1%20%

NationalOil
7 TWh
1%

Gas
169 TWh24%

703 TWh622 TWh

Coal
352 TWh50%

RE
176 TWh
25%

RE
169 TWh
27%

Coal
322 TWh52%

N PLN’s
Non
PLN’ SSystemtOil
2 TWh
3%

Gas
43 TWh53%

81 TWhCoal
30 TWh
36%

RE
7 TWh
8%*)based on draft RUKN 2015‐2034
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

13IEEJ：December 2015, All Rights Reserved.

PROJECTION OF POWER GENERATION CAPACITY 2025 *)PLN’s SystemyNationalGas
39 GW
26%

Gas
32 GW
24%

Oil
4 GW
3%

Oil
4 GW
3%

134 GW
Coal
54 GW
37%

146 GW

Coal
50 GW
37%

RE49 GW
36%N PLN’s
Non
PLN’ SSystemt
RE
50 GW
34%

Oil
0.3 GW
3%

Gas
7 GW
58%

12 GW

Coal
4 GW
31%
RE1 GW8%*) based on RUKN draft 2015‐2034.

Capacity means net capacity
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

14IEEJ：December 2015, All Rights Reserved.

SIMULATION ON HOW TO ACHIEVE OF PLN’S SYSTEM POWER GENERATION ENERGY MIX 2025
Projection of Capacity 2024
(additional based on RUPTL)

Projection of Capacity 2025(based on target of draft RUKN)
Oil ‐2 GW

Gas
29 GW
25%

Oil
6 GW
5%

Coal ‐11 GW

Gas +3 GW

115 GW(PLN, IPP,& Unallocated)

Coal
61 GW
53%

Gas
32 GW
24%

Oil
4 GW
3%

134 GW

RE20 GW
17%

Coal
50 GW
37%

RE
49 GW
36%
RE +2929 GW
GOne of the efforts that should be done is to revise the plan of additional capacity 2020‐2025, due tothe 35 GW project (2015 – 2019) is in procurement preparation process,process procurement,procurement financial closeand construction.
*Capacity means net capacity
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

15IEEJ：December 2015, All Rights Reserved.

4. 35,000 MW PROGRAMIEEJ：December 2015, All Rights Reserved.

POWER PLANT ADDITIONAL REQUIREMENT 2015‐2019
Additional by Type

Additional by COD Target
Others
PLT
LLain
i

19,319PSPSMHEPP, 737

HEPP
PLTA

HEPP, 634 PS, 1,040

Others, 81

GTPP/GEPP,
4 288
4,288

PLTM
MHEPP
PLTG/MGGTPP/GEPP
PLTGU
CCPP
PLTP
GeoPP

CCPP, 9,165

CFPP
PLTU

CFPP, 25,839

9,238

TOTAL
6,379
3,793

4,213

GeoPP, 1,160

2015201620172018

2019

Total power plant additional requirement 2015 ‐ 2019 is about 42.9 GW:− 7.4 GW on going project (FTP 1, some of FTP 2 and regular project);35 5 GW plan (35,000(35 000 program).
program)− 35.5
Sumber: RUPTL PLN 2015-2024
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

17IEEJ：December 2015, All Rights Reserved.

DISTRIBUTION OF GENERATION, TRANSMISSION, SUBSTATION, AND FUNDING NEEDS
Sumatera
11,327 MW

Million
USD
76 Gen 14,282

Kalimantan

MillionUSD

2,852 MW40 Gen4,000

19 305 kmc
19,305

210 Trans

3 840
3,840

7 883 kmc
7,883

68 Trans

1 122
1,122

32,406 MVA

398 Subs

2,475

3,910 MVA

115 Subs

324

Total Indonesia

291 Gen 53,663

46,597 kmc

732 Trans 10,893

Total

Million
USD

4,159 MW83 Gen5,434

7,207 kmc

90 Trans

1,169

5,620 MVA

165 Subs

412

Million
USD

42,940 MW
108,789 MVA

Sulawesi &Nusa Tenggara

1.375 Subs

8,386
72,942**exclude funding needs for land, Interest
During Construction (IDC) and taxes

MillionUSD

Jawa-Bali
JawaBali

Maluku & Papua

Million
USD

23,863 MW

49 Gen28,955739 MW

43 Gen992

11,185 kmc

349 Trans

4,615

1,017 kmc

15 Trans

148

66 083 MVA
66,083672 Subs

5 114
5,114770 MVA

25 Subs

61

Legend:

MW: Megawatt

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

kmc: Kilometer-circuit

MVA: Mega-volt ampere
18

IEEJ：December 2015, All Rights Reserved.

ECONOMIC ACTIVITIES OF 35,000 MW PROGRAM*INVESTMENT : 72,942 MILLION USD**732 SEGMENT TRANSMISSIONS
75,000 SET TOWER

291 POWER PLANTS

1375 UNIT
SUBSTATION

301,300 KM ALUMUNIUM CONDUCTOR
2 600 SET TRANSFORMER
2,600
3.5 MILLION TONS STEELLABORLOCAL CONTENTDIRECT: 650 THOUSANDIN DIRECT: 3 MILLION~40% OF INVESTMENT(~29.2 MILLION USD)

* Prediction** not include the funding requirements for land, Interest During Construction (IDC) and taxes

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA19IEEJ：December 2015, All Rights Reserved.

5. CO2 EMISSION REDUCTION – CLEAN COAL TECHNOLOGYIEEJ：December 2015, All Rights Reserved.

BACKGROUND

 To meet the rapidly growing demand and address supply
shortage, coal
coal‐based
based generation provides a quick and low
low‐cost
costsolution in Indonesia;
 Coal‐based ggeneration contributes to increased CO2 emissions; GoI is keen on reducing greenhouse gas emissions while keeping
expanding power production and enhancing energy security;
 CCT offers a potential solution to GoI’s dual goal with respect topower sector development/energy security and environmental
sustainability.
t i bilitMINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

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IEEJ：December 2015, All Rights Reserved.

CO2 EMISSION
power sector CO2 emissions is pprojected
jto double in theIndonesia p
period of 2015‐24 primarily due to growth in coal‐fired generation
Indonesia Power Sector CO2 Emissions (2015‐2024)

383 million tCO2(2024)

201 million tCO2(2015)

Source: RUPTL PLN
2015-2024
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

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IEEJ：December 2015, All Rights Reserved.

CLEAN COAL TECHNOLOGY
RationalRtil forf USC/IGCC
introduction in Indonesia
T h i l availability
Technicalil bili
 Is USC & IGCC readily available ?
→ USC: readilyy available,, IGCC: available in 2020
 When can it be introduced in Indonesia?
→ USC: 2017, IGCC: 2025

Alignment with Indonesia’s Policy Is it possible to use low rank coal (LRC) ?
→ Yes,Y LRC can bbe utilized
tili d Does it contribute to GHG emission reduction ?
→ Yes, GHG emission amount will be reduced

Economic validity
 Is it economicallyy viable ?
→ Yes, Generation cost will be lower than Sub‐c or SCMINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

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IEEJ：December 2015, All Rights Reserved.

CLEAN COAL TECHNOLOGYCCT Technology for Coal Fired Power Plants

USC
Matured technology to achieve lowelectricity costs & low GHGemissions• Proven and already commercialized technology• Introduced all around the world• Can utilize low rank coal with above average ash melting point• Economic superiority to SC• Lower GHG emission compared to SC

IGCC*Promising technology to achieve
low electricity cost, lower GHGemissions & LRC utilization• Technology yet to be commercialized• Will be introduced at the beginning of 2020s in commercial base in the world• Promising technology for low rank coal with low ash melting point• Economic superiority to SC and USC• Lower GHG emission compared to SC & USC

Target for introduction of USC and IGCC in Indonesia
 USC should be introduced for next new coal fired power plant project (2017)
 IGCC will be introduced around 2025, considering the development situation in theworldld*) Integrated Gasification Combined CycleMINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

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IEEJ：December 2015, All Rights Reserved.

ROADMAP OF CCT IN INDONESIA *)• After assessing relevant factors (technical availability, low rank coalavailability, economic viability, technical challenges in introducing CCTand contribution to GHG emission reduction),
reduction) the CCT study concludes
that the CCT technology that can be adopted by Indonesia are USC andIGCC.
• USC is commercially matured, already proven and well performed inmany countries, can use low rank coal having above average ash melting
point,
i t hasheconomic
i meritit tot SubC
S bC andd SC,SC produces
dllowerCO2emissions.
• IGCC is a promising technology,
technology yet not commercially matured,matured can use
low rank coal with low ash melting point, its project cost is expected todrop and make it economical compared to SC and USC, lower CO2emission than SC and USC.
SC*) Source: The Project for Promotion of Clean Coal Technology (CCT) in Indonesia, Interim
Report, October 2011, Jakarta, JICA Study Team.
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

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IEEJ：December 2015, All Rights Reserved.

ROADMAP OF CCT IN INDONESIA *)SC, = 35-40%
USC, 43%
Cirebon(USC 1x1000 MW)

Cirebon(SC 11x660660 MW)

2011
Paiton 3(SC 1x815 MW)

2015

2020
Central Java IPP(USC 2x1000 MW)

Indramayu #1(USC 1000 MW)

IGCC
45-48%
2025

2000–3000 MW
per year
I dIndramayu#2(USC 1000 MW)
IGCC 1000 MW Class*) Source: The Project for Promotion of Clean Coal Technology (CCT) in Indonesia, InterimReport, October 2011, Jakarta, JICA Study Team, with modification
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA26IEEJ：December 2015, All Rights Reserved.

THANK YOUO
WWW.DJK.ESDM.GO.ID
Contact : report@tky.ieej.or.jp