MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY

AND ENERGY CONSERVATION KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL
sasa

GOVERNMENT POLICY ON SOLAR ENERGY INDUSTRY

IN INDONESIA

Presented at SOLARTECH INDONESIA 2017

Jakarta , 18 Mei 2017

 OUTLINE KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

I. Renewable Energy Potential

II. National Electrification Ratio

III. National Energy Policy

IV. Regulation to Scaling-up Renewable Energy Utilizatio

2
I. INDONESIA’S RENEWABLE ENERGY
POTENTIAL KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

8,80 GW
443,2 GW (2% Based on potential)
G

3
 II. NATIONAL ELECTRIFICATION RATIO KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

• National electrification ratio was 91.16% in 2016.

• There are 2 provinces (NTT and Papua) having
electrification ratio lower than 70%.
• Indonesia’s electrification ratio is still low (91.16%)
compared to other ASEAN countries.
• Target of electrification ratio: 97.35% by 2019 (RPJM)
and 100% by 2024 (RUKN)
NATIONAL ELECTRIFICATION RATIO IN 2016 (%)

4
 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

III. National Energy Policy

5
 NATIONAL ENERGY POLICY
(Government Regulation No. 79/2014) KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

New and Renewable Energy

Oil
Gas
2015 2025
Coal NRE
Gas

23%
5% 22% 23%

166 ~ 400
MTOE 46% MTOE
26%
30% 25%
Coal
Oil

2015 2025
Total Installed 55,53 GW 135 GW
Capacity
Energy Consumption 0,75 1,4 TOE/capita
TOE/capita
Electricity 910 2.500 KWh/capita 6
 TARGET 2025 : NRE POWER PLANT KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

2025
Geothermal 7,2 GW
Hydro 21 GW
Bioenergi 5,5 GW
Solar Power 6,4 GW
Wind 1,8 GW
Other NRE
(include marine 3,1 GW
energy)
Totall 45 GW

2015 2025

Total Installed Capacity 55 GW 135 GW

8,7 GW 45 GW
NRE Power Plant Capacity (15,7%) (33%)

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 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

IV. REGULATION TO SCALING-UP

RENEWABLE ENERGY UTILIZATION

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 THE MINISTER OF ENERGY AND MINERAL RESOURCES’S REGULATION
9NUMBER 12 YEAR 2017 : “UTILIZATION OF RENEWABLE ENERGY SOURCE
FOR ELECTRICITY SUPPLY” KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

TYPES OF RENEWABLE ENERGY POWER PLANT :

Solar PV Wind Hydro

Municipal
Biomass Biogass
Waste

Geothermal

PT PLN (Persero) is obligated to buy

 RENEWABLE ENERGY TARIFFS
MINISTER OF ENERGY AND MINERAL RESOURCES’S REGULATION NUMBER 12 YEAR 2017)KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

Renewable Tariff
No. Energy Method of Appointment Local Grid BPP > National BPP Local Grid BPP ≤ National
Sources BPP
Maximum 85% x Local Grid
1. Solar PV Auction in capacity quota with minimum 15 MW 100% x Local Grid BPP
BPP
Maximum 85% x Local Grid
2. Wind Auction in capacity quota with minimum 15 MW 100% x Local Grid BPP
BPP
Maximum 85% x Local Grid
Reference Price 100% x Local Grid BPP
BPP

3. Hydro Direct Selection Price determined by direct selection process

a. Capacity ≤ 10 MW: Capacity Factor minimum 65%

b. Capacity > 10 MW: Capacity Factor depends on local grid system requirements
Maximum 85% x Local Grid
Reference Price (for 10 MW or less) 100% x Local Grid BPP
4. Biomass BPP
Direct Selection (for more than 10 MW) Price determined by direct selection process
Maximum 85% x Local Grid
Reference Price (for 10 MW or less) 100% x Local Grid BPP
5. Biogass BPP
Direct Selection (for more than 10 MW) Price determined by direct selection process
Municipal Maximum 100% of Local Mutual agreement between
6. Reference Price
Waste Generation BPP PLN and IPP
Maximum 100% x Local Grid Mutual agreement between
7. Geothermal Reference Price
BPP PLN and IPP
BPP = Production Cost of Electricity
Local Grid BPP and National BPP will be determined by the Minister based on the proposal of PT PLN (Persero) 10
 PRODUCTION COST OF ELECTRICITY/BPP (2016)
Kepmen ESDM No. 1404 K/20/MEM/2017 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

17,3217,52

13,54 13,66 13,68

12,75
12,17 12,43

10,14 10,20 10,39

9,04 9,28
7,77 7,86 8,07 8,10
National BPP
6,51 6,51 6,51 6,52 6,54 6,62
7,39

Note:
1 USD = Rp. 13.307
RE INVESTMENT IN INDONESIA: OPEN AND ECONOMIC
RE Potential is still wide, especially in 13 priority areas KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

22.9 Local BPP RE POTENTIAL

26.9 cent$/kWh Giga Watt (GW)
17.9 Municipal
23.9 PLTSa PLTA
Hydro
waste
100% Local BPP PLTBg
18.9 Biogas PLTB
Wind
17.6
85% Local BPP PLTBm
Biomass PLTS
Solar
Geother-
PLTP Total
10.9
mal Total
PLTMH
Hydro/
Mini
Aceh Sumut
14,18 12,41
12,05 10,55
Riau Kalbar Kaltim Sulutenggo Maluku

9,01 14,45 10 11,67

7,66 12,28 8,50 9,92 16,62 33.4
4.9
14,13
1.36
0.08

Babel Kalselteng Sulselrabar

14,72 8,76 8,03 19.2
12,51 7,45 6,83
13.1

“ There are 210 GW of RE potential

within this economically-appealing
13 priority areas
NTB
13,54
o NTT

16,94
Papua

13,67
11,51 14,40 11,62
(Local BPP > National BPP)
 RE Development Based On RUPTL KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

Sumatera Region Borneo Region Based on RUPTL 2017 – 2026 PT. PLN Pers
N Capaci Capaci
Power plants Total No Power Plants Total
o ty ty Total Indonesia
1 Geothermal MW 3.305 1 Geothermal MW - Capac
No Power Plants Total
2 Hydro MW 4.284 1.05 ity
2 Hydro MW
6
Mini/Micro 1 Geothermal MW 6.290
3 MW 983
Hydro Mini/Micro
3 MW 10 2 Hydro MW 12.343
Hydro
4 Solar MWp 5
4 Solar MWp - Mini/Micro
5 Wind MW -
3 MW 1.694
Hydro
5 Wind MW 15
6 Biomass/MSW MW 274 4 Solar MWp 57
6 Biomass/MSW MW 41
7 Marine MW - 5 Wind MW 570
7 Marine MW -
8 Bio-Fuel Thou KL 411
6 Biomass/MSW MW 597
8 Bio-Fuel Thou KL 830
8.85
Total MW 1.25 7 Marine MW 0
1 Total MW
7
8 Bio-Fuel Thou KL 6.572

Total MW 21.549

Java-Bali Region
Sulawesi & Nusa Tenggara Region Maluku & Papua Region
Capaci
No Power Plants Total Capaci Capaci
ty No Power Plants Total No Power Plants Total
ty ty
1 Geothermal MW 2.150
1 Geothermal MW 400 1 Geothermal MW 75
2 Hydro MW 4.562
2 Hydro MW 2.323 2 Hydro MW 118
Mini/Micro
3 MW 437 Mini/Micro Mini/Micro
Hydro 3 MW 221 3 MW 43
Hydro Hydro
4 Solar MWp -
4 Solar MWp 52 4 Solar MWp -
5 Wind MW 250
5 Wind MW 170 5 Wind MW -
6 Biomass/MSW MW 206
6 Biomass/MSW MW 21 6 Biomass/MSW MW 55
7 Marine MW -
7 Marine MW - 7 Marine MW -
8 Bio-Fuel Thou KL 439
8 Bio-Fuel Thou KL 4.423 8 Bio-Fuel Thou KL 469
Total MW 7.965
3.18 Total MW 290
Total MW
 ACCELERATION OF RURAL ELECTRIFICATION IN INDONESIA
14 (MEMR REGULATION NO. 38 YEAR 2016)
KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

Provision of electricity program up to Utilization of Renewable Energy

50 MW is intended for:
Acceleration of Rural Electrification Program
 Undeveloped rural areas
 Remote rural areas
utilize renewable energy as source of
 Rural in border areas electricity
 Small island

Procurement Mechanism Tariff Mechanism

The Determination of Business Area:
Investment Subsidy
1.
1 Minister determine Business Area based on the Business Area will be tender Government calculate and
Governor’s proposal based on the Governor’s propose the subsidy to the
2.
2 Minister will asign the Business Entity that proposal Parliament
already have Electrical Power Supply
License/IUPTL Non Subsidy (Tariff with Mutual
Agreement)
3.
3
The Governor propose the Business Area
Tariff will be determined by
4 The Governor offering Business Area to the Asignment Minister
Business Entity The Governor will asign the
Regional State-Owned Company Non Subsidy (National Tariff)
5
The Governor issued the Electrical Power
(direct appoinment) if there is no Using PLN’s tariff while Regional
Supply License/IUPTL
Business Entity interested Government unable to set the
tariff
 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION

Jalan Pegangsaan Timur No. 1 Menteng, Jakarta Pusat 10320; Telp/Faks : 021-31924540

www.ebtke.esdm.go.id