Ministry of Energy and Mineral Resources
Republic of Indonesia

Regulation and Development of New andRenewable Energy in Indonesia
Japan-Indonesia Business Forum for Energy Efficiency,Conservation and Renewable Energy

HarrisDirector for Various of New and Renewable Energy
Directorate General of New, Renewable Energy andEnergy Conservation
Ministry of Energy and Mineral Resources
Jakarta, 14 November 2018

1

CURRENT CONDITION

The energy distribution needs to be
improved to increase thecurrent electrification ratio 98.05%
There are 2,519 villages that are still
dark, or 256,114 homes

EBT MW

The capacity of RE power plantneeds to be added

02

Indonesia has committed toimplementing the ParisAgreement

01
07

03
EfisienRP

RP

06

RP

04

Energy prices must be suppressed
to make more affordable
RE

Indonesia's energy is still
dominated by fossil energy

Fosil

Inefficient energy
use

Inefisiensi

05
%
=
RE
Potential%
RE

The abundant potential ofrenewable energy has not been
optimally utilized

2

3
NATIONAL
COMMITTMENT ON EMISSION REDUCTION

Indonesia commits to reduce (its GHG emission) by 29% from BAU levelby 2030 and 41% with international assistanceThe commitment of President Joko Widodo in
COP 21 December 2015 in Paris, Indonesia will
reduce GHG emissions by 29% with its own
abilities and 41% with international support.

Government through the Ministry LHK signed the Paris
Agreement on April 22, 2016.
(Paris Agreement has been signed by 180 parties)

3

ACCELERATING EFFICIENCY IN ELECTRICITY PROVISION“Electricity provision should be efficientso that electricity subsidy will not burden
the State Budget, thus a better electricty
price for the people.
EnergySubsidy
Trilion
RupiahSubsidiEnergi ||Triliun
Rupiah“Energy subsidy in the State
Budget should be going for amore equitable development.”

400
350
300

342

310

250
200
150

119

100

- Ignasius Jonan

50

101

99

2013

2014

7758594520152016

2017

0Oil/LPG
BBM/LPG

ListrikElectricity

Total* 2016 angka realisasi unaudited | 2017 angka APBN

Cheaper price leads to a better development economy,including the industrial sector.

““Producing electricity, as much as it
can be, shall the operational cost be
relatively as much, it means theproduction is not efficient. Such
condition makes our industry notcompetitive."

108

4

ELECTRIFICATION RATIO 2018
KALIMANTANSUMATRA
12345678910

The Achievement for national electrification ratio until Q3 2018has reach 98.05%*, with the composition as follows:
PLN 95.43%; Non-PLN 2.50%; and LTSHE 0.12%.

Aceh
98.59
North Sumatra 99.99
West Sumatra 91.72
Riau
98.44
Riau Islands
88.10
Jambi
96.54
Bengkulu
99.77
South Sumatra 90.79
Lampung
94.58
Babel
99.99

JAVA-BALI-NUSRA
11 Banten
99.99
12 Jakarta
99.99
13 West Java
99.99
14 Central Java
98.15
15 Yogyakarta
99.99
16 East Java
93.87
17 Bali
99.99
18 West Nusa Tenggara 88,52
19 East Nusa Tenggara 61.01

East Nusa Tenggara
61.01%
Note:> 70

50 - 70< 50

Electrification Ratio 2010 - 2019 [%]

73.0

76.6

80.5

Achievement

84.3

88.3

Target91.2

Realization Q3

95.3

20 West Kalimantan 86.66
21 Central Kalimantan 84.56
22 South Kalimantan 94.66
23 East Kalimantan
99.99
24 North Kalimantan 90.28

SULAWESI
25 South Sulawesi
26 SoutheastSulawesi
27 West Sulawesi
28 Central Sulawesi
29 Gorontalo
30 North Sulawesi

99.99
86.68
99.73
91.54
88.41
97.11

MALUKU & PAPUA
31 Maluku
32 North Maluku
33 West Papua34 Papua

89.1899.45
99.9981.66*) unaudited

98.05

9997.5

67.2

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

5

Renewable Energy Potentials
Geothermal• Resource:• Reserve:• Utilization for PLTPHydro• Resource:
75 GW (19,3 GW)• Utilization for: PLTA
5,124 GW
PLTMH
0,225 GW (1,21%)

Bioenergy

WindSolar

11,0 GW
17,5 GW
1,949 GW (0,44%)• Resource:
32,6 GW• Resource BBN: 200 Thou Bph• Utilization for: PLTBio
1,857 GW (0,42%)BBN
3 million kL per year
• Resource:• Utilization PLTB:

60,6 GW
0,076 GW (0,02%)• Potential PLTS:• Utilization for: PLTS

207,8 GWp
0,090 GWp (0,02%)

Ocean• Potential:• Utilization:

17,9 GW-Micro hydro Potential: 19,3 GWp

Solar Potential: 207,8 GWp

Wind Potential: 60,6 GWp

Total
Potential

442 GW

Total
Installed

9,32 GW(2%)

6

National Energy Policies
1

Maximizing renewable energy utilization;

2

Minimizing oil utilization;

3

Optimizing natural gas and new energy utilization;

4

Utilizing coal as a reliable national energy supply;

5

Utilizing nuclear as the last option.

Source: the article 11, Government Regulation No. 79 year 2014 concerning National Energy Policy.
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NATIONAL ENERGY POLICY TO ACCELERATE RENEWABLE ENERGYPRIMARY ENERGY SUPPLY 2025

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

Coal

Gas

Gas

NRE

2015
Coal

Oil
Indirect Utilization• RE (Electricity) Price(Private) Based on
Minister Reg 50/2017
and 38/2016;• RE (Electricity) State
Budget, Based on
Minister Reg 39/2017;• Biofuel Mandatory:
PSO and Non PSO

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

Direct Utilization

8Increasing Renewable Power Plant Capacity
Commercial▪ MEMR Reg 50 of 2017 on Utilization of Renew
able Energy Sources for the Provision of Electri
1. On-grid and off-grid communal sc Power;
ystems: Solar PV, Mini/ Microhyd ▪ MEMR Reg 38 of 2016 on Acceleration of Electro, Wind, Marine, Bioenergy PP
rification in Undeveloped Rural Area, Remote
2. Source of Funds: Private Sector (IAreas, Border Areas, and Small Island with Popnvestor)
ulation through the Implementation of Small Scale Power Supply

1.

Noncommercial

2.

3.

Development of energy infrastructu
re for rural communities, outer islands and border areas
Off-grid system: Solar PV, Mini/Mic
rohydro, Wind, Marine, Bioenergy
PP, Solar PV Street Lighting, LTSHE
Source of Funds: State Funded/ Special Allocation Fund (DAK)

▪
▪
▪
▪

Presidential Reg. 47 of 2017 on LTSHEMEMR Reg. 3 of 2017 on Operational Guidance ofDAK Physical Assignment of Small Scale Energy
MEMR Reg. 05 of 2018 on Procedures for the Pro
vision of LTSHE for Communities Without Access to Electricity
MEMR Reg. 12 of 2018 on the Implementation ofPhysical Activity of New Renewable Energy Utilization9

MEMR REGULATION 38/2016

Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Border Areas, and Small Island withPopulation through the Implementation of Small Scale Renewable Energy
Electrification program withtotal capacity up to 50 MW
is intended for :❑ Undeveloped Villages❑ Remote Areas❑ Villages in Border Areas❑ Inhabited Small IslandsBusiness Area Determination
▪
▪

▪
▪
▪

The Governor proposes business area.
The Minister of EMR authorization todetermine the business area that has
been proposed by Governor.
The Governor offers business area tobusiness entities.
The Governor issues IUPTL.
The Minister of EMR appoints busines
s entities that have already had IUPTL.

Renewable Energy To
Provide Electricity
Electrification acceleration
program in rural areas byprioritizing New and Renew
able Energy based power
plant

Procedure
Investment
Based on Governor’s proposal, thenAuction is held for Business AreaDeveloper.
Assignment
Head of Local Government can assign BUMD if there is no interested
investor“There are > 2500 Villages
without Electricity”
GOI target to electrify
2510 villages by 2019

TariffSubsidies
The GoI calculates the amount of the subsidy to be
proposed to the Parlianment (DPR) to be validated
Non Subsidies with Agreement Tariff (refer toBPP PLN)
Tariff will be set by MEMR or Governor
Non Subsidies with National tariff
Electricity tariff will correspond with PLN tariff

10Renewable Energy for Affordable Electricity Price
MEMR Regulation No. 50/2017
Implementation of Power Purchase*Rencana Kerja dan An
General auction in accordance to * RKAB:
Geothermal dan Municipal Waste Power Plant
ggaran Biaya Perusahaan
the provisions of the legislation
Hydro, Solar PV, Wind, Biomass, Ocean Currents,
Through direct selection mechanismand Biogas Power Plant

Power Purchase Price✓ Solar✓ Wind✓ Biomass✓ Biogas✓ OceanCurrent

If the local power production cost
National average power production cost>

Maximum purchase price is 85%of local power production cost

≤National average power production cost
Power Production Cost based on
the agreement (BtoB)✓ Municipal
Waste✓ Geothermal✓ HydroNote:• 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>

If the local power production costnational average power production cost
Maximum purchase price is 100%of local power production cost

Based on agreement, if power production cost inSumatera, Java, Bali or local electricity system ≤National Average power production cost.

11Power Generation Cost (BPP) 2017 (cUSD/kWh)
MEMR Decree No. 1772 K/20/MEM/2018

Electricity Tariff(MEMR Regulation No. 50/2017)
Renewable Energy
Power Plant

BPP Regional >BPP NationalBPP Regional ≤BPP National

Solar PV, Wind,Biomass, Biogas, Ocean
Energy85% regional BPP

B to B

Geothermal, Municipal
Waste, Hydro

19.36

20.00

15.52 15.53
100% regional BPP

14.49

B to B

17.00

12.64 12.94
10.98 11.07 11.14

7.66

16.46

12.32

9.77
8.33 8.59

13.19 13.20

10.74 11.00

7.26
6.81 6.81 6.81 6.81 6.81 6.83 6.99 7.18

9.33 9.41 9.47
8.30
7.08 7.30

85% BPP 2017
BPP 2017

12

Wind Farm Energy Projects
Wind Power Plant Sidrap(30x2.5 MW) COD April 2018

Located at
Sidereng Rappang (SIDRAP) Regency
South Sulawesi

Electricity Production
247 GWh/year
PPA Price :US$ 11.41 cent/kWh
Investment
US$ 150 Million
Average Wind Speed(85 m) 7+ m/s (25+ KPH)

Existing Renewable Energy
Projects

PLTB Jeneponto
Capacity 60 MW
PLTB Sidrap II
Capacity 50 MW
PLTB Tanah LautCapacity 70 MW

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CHALLENGE OF RENEWABLE ENERGY INFRASTRUCTURE DEVELOPMENT

There is still a need for systematic and sustain
able socialization and education to minimize
community resistance to RE projects
Intermittent power supply(PV & Wind) is not yet
supported by the existing of
local smart grid technology

Not many business entities
are interested in investing inEastern part of Indonesia;
due to lack of supporting
infrastructure

Dependence on REtechnology and equipmentfrom abroad is still high

The availability of Soft Loan funds inthe country is still limited

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CONCLUSION
1. Investment opportunities for Renewable Energy and Energy Conservation are still wide openfor private sector due to:• Increased energy consumption;• Target of 100% electrification ratio by 2020;• Renewable Energy targets 23% by 2025;• Target per capita consumption of electricity is 2500 kWh / year in 2025;
2. A number of regulations have been prepared to encourage Renewable Energy investments;
3. Revocation / Simplification of regulations is also done to cut bureaucracy / facilitate
investment;
4. Cooperation / partnership in Renewable Energy will increase for investment and capacity
development;

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MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIADIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION
Jalan Pegangsaan Timur No. 1 Menteng, Jakarta Pusat 10320; Telp/Faks : 021-31924540

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