Jakarta , September 16 th 2013

Energy and Mineral Resources for People’s Welfare

Jakarta, September 16th 2013

MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Alihuddin SitompulDirector of Various New Energy and Renewable Energy


I. ENERGY POLICY 3

II. NATIONAL PRIMARY ENERGY MIX TARGET 4

III. NATIONAL ELECTRIFICATION RATIO 2013 6

IV. EFFORTS TO INCRESE NRE UTILIZATION 8

V. UPDATE ON POLICY AND REGULATIONS 10

VI. NRE DEVELOPMENT CHALLENGES 15


1. ENERGY CONSERVATION: to increase energy efficiency on supply and demand side, e.g. industrial, transportation, household and commercial sector.

2. ENERGY DIVERSIFICATION: to increase the share of new and renewable energy use in the national primary energy mix. e.g.: RENEWABLE ENERGY

a.Geothermal,b.Hydro,c.Bio-energy,d.Solar,e.Wind, f.Ocean wave and current.

NEW ENERGYa. Liquified Coalb. Coal Bed Methanec. Gasified Coald. Nucleare. Hydrogenf. Others methane


CURRENT CONDITION

2011

ENERGY ELASTICITY= 1,65NON FOSSIL ENERGY SHARE 5%

ENERGY ELASTICITY= 1,65NON FOSSIL ENERGY SHARE 5%

2025 TARGETBY PRESIDENTIAL REGULATION NO.

5/2006

ENERGY ELASTICITY LESS THAN 1 IN 2025OPTIMIZING NEW RENEWABLE ENERGY

SOURCES

ENERGY ELASTICITY LESS THAN 1 IN 2025OPTIMIZING NEW RENEWABLE ENERGY

SOURCES

Biofuel5%

Geothermal 5%

Nuclear, Hydro, Solar, Wind,

and Other NRE 5%

LiquifiedCoal 2%


NONEW & RENEWABLE

ENERGYRESOURCES INSTALLED CAPACITY (IC)

RATIO OF IC/RESOURCES (%)

1 2 3 4 5 = 4/3

1 Hydro 75,000 MW 6,848.46 MW 9.13%

2 Geothermal 29,164 MW 1,341 MW 4.6 %

3 Biomass 49,810 MW 1,644.1 MW 3.3%

4 Solar 4.80 kWh/m2/day 27.23 MW -

5 Wind 3 – 6 m/s 1.4 MW -

6 Ocean 49 GW ***) 0.01 MW ****) 0%

7 Uranium 3,000 MW *) 30 MW **) 0%

*) Only in Kalan – West Borneo**) As a center of research, non-energy

***) Source: National Energy Council****) BPPT’s Prototype


NAD90,96

%

NAD90,96

%Sumut86,70%Sumut86,70%

Sumbar76,14%Sumbar76,14%

Riau 85,09%Riau

85,09%

Sumsel73,97.%Sumsel73,97.%

Bengkulu79,37%

Bengkulu79,37%

Babel94,13%Babel

94,13%

Lampung74,91%

Lampung74,91%

Jakarta99,99%Jakarta99,99%

Banten77,52%Banten77,52%

Jabar76,03%Jabar

76,03%Jateng79,95%Jateng79,95%

Jambi70,37%Jambi

70,37%

DIY77,26%

DIY77,26%

Jatim74,31%Jatim

74,31%

Bali74,31%

Bali74,31%

NTB53,63%

NTB53,63%

NTT53,42%

NTT53,42%

Kalbar71,46%Kalbar71,46%

Kalsel76,74%Kalsel76,74%

Kaltim73,08%Kaltim73,08%

Sulut76,22%Sulut

76,22%

Sulteng66,83%Sulteng66,83%

Sulsel76,29%Sulsel76,29%

Malut74,12%Malut

74,12%

Maluku72,07%Maluku72,07%

Papua34,62%Papua34,62%

Category :Category :

> 60 %

41 - 60 %

20 - 40 %

Sulbar66,65%Sulbar66,65%

Kepri83,56%Kepri

83,56%

Sultra60,53%Sultra60,53%

Papua Barat67,88%

Papua Barat67,88%

Kaltim73,32%Kaltim73,32%

Gorontalo60,99%

Gorontalo60,99%

III. NATIONAL ELECTRIFICATION RATIO 2012


No.

Province Regency UnitCapacit

y(kW)

1 Riau Kuantan Singingi 1 1002 Lampung Lampung Barat 1 753 Sumatera Selatan Banyuasin 1 1504 Sumatera Utara Nias 1 505 Jawa Timur Sumenep 1 506 Kalimantan Timur Kutai Barat 1 100

7Nusa Tenggara Timur

Timor Tengah Selatan 1 30

8Nusa Tenggara Timur

Sumba Tengah1 50

9Nusa Tenggara Barat Sumbawa

1 30

10 Papua Barat Kaimana 1 7511 Papua Mappi 1 5012 Papua Kep. Yapen 1 15013 Papua Tolikara 1 5014 Papua Tolikara 1 5015 Papua Tolikara 1 5016 Papua Tolikara 1 5017 Papua Mamberamo raya 1 15018 Papua Mamberamo raya 1 5019 Papua Mamberamo raya 1 7520 Papua Mamberamo raya 1 15021 Papua Mamberamo raya 1 100

TOTAL 21 1.635


1. IMPROVING POLICY AND REGULATION A few sub-sectors of renewable energy still has not been set. Therefore, GoI continues to improve the

regulation on development and utilization of renewable energy, including the preparation of new renewable energy government regulations;

2. CREATING THE MARKET through the supply and utilization of bio-fuel, obligating the National Electric Company (PT PLN) to

purchase electricity, the application of Indonesian National Standard (SNI), etc;3. SUBSIDY

Subsidy for bio-fuel has been allocated since 2009. Subsidies are provided to cover the difference between fuel prices and biofuel prices; distributed through PT Pertamina;

4. FEED-IN TARIFF Be regulated through the Minister of Energy and Mineral Resources Regulation, which comprise the

non-negotiable selling price of electricity generated from renewable energy purchased by National Electric Company.

5. INCENTIVES AND FACILITIES Reduction of taxes and custom duties; simplicity of licensing procedures; There will be no tendering process for RE power plant with capacity less than 10 MW (excluding for Solar

PV Power Plant)


6. FUNDING AND OTHER FINANCIAL SUPPORT Providing fund to improve modern energy acess in remote and isolated area

7. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES Education and training in the field of renewable energy; Socialization; Improving NRE networks, supporting the establishment of organization/association (IKABI, METI,

etc);8. INCREASING RESEARCH IN THE FIELD OF NEW & RENEWABLE ENERGY Scale up research cooperation; Enhance type of research;9. DEVELOPING COOPERATION WITH OTHER COUNTRIES AND INTERNATIONAL

ORGANIZATION Cooperation for capacity building; Cooperation for technology transfer; Lessons learned for the implementation of new renewable energy policies and programmes; Acquire new renewable energy market (biofuel), and promote technology for NRE component.


1. CURRENT CONDITION Geothermal Power Plant installed capacity: 1,341 MW

2. DEVELOPMENT PROGRAM Improving coordination with permitting authorithy; Harmonizing regulation in the field of geothermal; Providing technical guidance, socialization and workshops in

order to improve the quality of human resources Accelerating the Phase II of 10,000 MW Program Increasing investment in geothermal energy sub-sector with:• Price of electricity (Feed-in Tariff);• Auction of Geothermal Working Areas (GWA) under the

authority of the Central Government (Mount Lawu and Ranau Lake);

• Development of 4 sites of geothermal project (exploration drilling) ;

• Promotion, dissemination of information and cooperation in geothermal side;

NO AREAPRICE (cent US$/kWh)

HIGH VOLTAGE

MEDIUM VOLTAGE

1 Sumatera 10 11,5

2 Jawa, Madura and Bali 11 12,5

3 South Sulawesi, West Sulawesi and Southeast Sulawesi

12 13,5

4 North Sulawesi, Central Sulawesi, and Gorontalo

13 14,5

5 West Nusa Tenggara and East Nusa Tenggara

15 16,5

6 Maluku and Papua 17 18,5

GEOTHERMAL FEED-IN TARIFF(MEMR Regulation No. 22/2012)

ROAD MAP OF GEOTHERMAL DEVELOPMENT 2006 - 2025 (As In Presidential Regulation NO. 5/2006 about National

Energy Policy)


1. CURRENT CONDITION Micro/Mini Hydro Power Plant installed capacity: 230 MW Solar Power Plant installed capacity: 27.23 MW

2. DEVELOPMENT PROGRAM To encourage investment in Micro/Mini Hydro and Solar

PV Power Plant by cooperatives, private and other business enterprises through the establishment of Feed-in Tariff for Micro/Mini Hydro and Solar PV;

Enhancing the capability of domestic manufacturer; Improving capacity building and technical assistance; Providing government fund (APBN)

HYDRO POWER AND WIND POWER TARIFF(BASED ON MEMR REGULATION NO 4 YEAR 2012)

Notes :

• National bidding process for Solar PV Quota will be announced

by October 2013 Price for Mini and Micro Hydro will be revised to Rp. 656/kWh to

Rp. 700 – Rp.850/kWh

AREA

Price for High

Voltage (Rp/kWh)

Price for Medium Voltage

(Rp/kWh)

Jawa and Bali 656 1,004

Sumatera and Sulawesi 787 1,205

Kalimantan, West and East Nusa Tenggara

853 1,305

Maluku and Papua 984 1,506

Price (cent USD/kWh)

Incentive for Local Module (cent USD/kWh)

25 30

SOLAR POWER (PHOTOVOLTAIC) POWER TARIFF(BASED ON MEMR REGULATION NO 17 YEAR

2013)


1. CURRENT CONDITION Bioenergy power plant (on-grid) installed capacity: 71

MW Bioenergy power plant (off-grid) installed capacity: 612

MW

2. DEVELOPMENT PROGRAM Appropriate price of electricity (Feed in Tariff); Export management to secure the supply of biomass

power plant feedstock; Duty exemption of renewable energy equipment and

simplification of the procedure ; Coordination with local governments and stakeholders

to increase understanding related to the utilization of waste into electricity to drive domestic product.

BIOMASS, BIOGAS, AND MUNICIPAL SOLID WASTE FEED-IN TARIFF(MEMR REGULATION NO. 04 YEAR 2012)

NO.

ENERGY CAPACITYELECTRICITY BUYING

PRICENOTES

Miedium Voltage

1. Biomass Up to 10 MW Rp. 975,- / kWh X F

2. Biogas Up to 10 MW Rp. 975,- / kWh X F Non MSW

3. Municipal Solid Waste (MSW) Up to 10 MW Rp. 1050,- / kWh Zero waste

4. Municipal Solid Waste Up to 10 MW Rp. 850,- / kWh Landfill

Low Voltage

1 Biomass Up to 10 MW Rp. 1.325,- / kWh X F

2 Biogas Up to 10 MW Rp. 1.325,- / kWh X F Non MSW

3 Municipal Solid Waste (MSW) Up to 10 MW Rp. 1.398,- / kWh Zero waste

4 Municipal Solid Waste Up to 10 MW Rp. 1.198,- / kWh Landfill

Incentive Factor (F):Jawa, Bali, Sumatera : F = 1Kalimantan, Sulawesi, West and East Nusa Tenggara : F = 1,2Maluku and Papua : F = 1,3


1. CURRENT CONDITION Wind Power Plant installed capacity : 1.4 MW Ocean current/wave still in the stage of pilot project, a few small-scale pilot (10 kW)

were built, e.g. at Baron Beach, East Nusa Tenggara Province.2. DEVELOPMENT PROGRAM

Conducting feasibility study and pilot project for wind and ocean current/wave power in the potential area, e.g East Nusa Tenggara.

Increasing foreign partnership in terms of capacity building, technology transfer in the development of wind and ocean current/wave power.

Encouraging domestic industrial competitiveness to manufacture components of wind and ocean current/wave power.

Developing Feed-in Tariff for wind power.


PRODUCTION COST The production cost is relatively higher than the conventional energy, means, it is difficult to compete with the conventional

energy. INVESTMENT The investment cost is quite high. However, investment in new renewable energy industry is quite in demand by domestic

investors. Investment for upstream and downstream is not widely carried out in the country; most of the components are still

imported. TECHNOLOGY Some technologies have been developed by domestic manufacturer, such as small to medium-scale power plant and

biogas technology (non-electric). Renewable energy technologies are still provided and dominated by foreign countries. RAW MATERIAL AVAILABILITY The potential of new renewable energy in Indonesia is very large. However, it still required integrated management in the

supplying and processing raw materials, especially for bioenergy feedstock. HUMAN RESOURCE Quantity and quality of human resources in the field of renewable energy is still quite limited. Communities’ acceptance for new renewable energy is still relatively low, since most of the people feel more comfortable

using conventional energy.

Energy and Mineral Resources for People’s Welfarewww.ebtke.esdm.go.id

Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540

e-mail: [email protected]

MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION


NO RENEWABLE ENERGY STRATEGIC ISSUE1 GEOTHERMAL- 6 STRATEGIC

ISSUES

1. Acceleration of geothermal development;2. Revision of Laws No. 27 Year 2003 on Geothermal;3. The second revision of Government Regulation No. 59/2007 jo. Government Regulation 70/2010

on Geothermal Working Activity;4. Revision of MEMR Regulation No. 11/2009 on Implementation Guidelines for Geothermal

Operations;5. Total production of geothermal steam;6. The number of non-tax revenues of the Geothermal.

2 BIOENERGY - 6 STRATEGIC ISSUES

1. Feed in Tariff (FIT) for utilization of Municipal Solid Waste for power plant;2. Increase the utilization of Biofuels to be blended with PSO fuel;3. Increase the utilization of Biofuels to be blended with non PSO fuel;4. Increase the ability to supply bioenergy for domestic needs;5. Increase the installed bioenergy power plant (on-grid);6. Enhance the role of NREEC in regional development through the development of Self Sufficient

Village Program (Desa Mandiri Energi)-based on biofuel.3 VARIOUS NEW AND RENEWABLE

ENERGY - 6 STRATEGIC ISSUES1. Increase national electrification ratio through the utilization of various new and

renewable energy;2. Development of Self Sufficient Village Program through the utilization of solar and

hydro energy;3. Encourage private sector participation in the utilization of wind, hydro and solar

energy;4. Harmonization of inter-sectoral policies related to renewable energy development;5. Sustainability of NRE power plant;6. Increase power plant capacity of various NRE.


1. Enhancing and accelerating investment climate through the new renewable energy partnership;

2. Knowledge and technology transfer in the field of new renewable energy and energy conservation ;

3. Enriching partnership in education and capacity building as well as technical assistance.

Jakarta , September 16 th 2013

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