The Act No.

30 in 2007

Chapter III (Energy Settings) Part I

Article 4 (2) New energy resources and renewable energy resources are arranged by the state and
utilized for the greatest prosperity of the society.

Chapter V Energy Management Part I Provision and Utilization

Article 20 (4) New energy and renewable energy provision is mandatory to be improved by the central
government and local government based on their authority

(5) Energy provision from new energy resources and renewable energy resources that be done by the
business entity, fix business entity, and individual can achieve the facility and/or incentive from the
government and/or local government based on their authority for certain range time until the
accomplished of economic values.

The Annex of Ministerial Regulation No. 39 in 2017 Consumption Price of the National Electricity
Company (PT PLN) from the electricity generation of physical activity result from new energy resources
and renewable energy resources, Solar Power Electricity Generation has the selling price at Rp. 750/kWh

Draft of the Act Layout about New Energy and Renewable Energy in a Concept Paper in April 2 2019

Chapter VIII New Energy and Renewable Energy Price

Article 47, Renewable Energy Prices are set by the Central Government based on fair economic value by
considering a reasonable rate for the Business Entity in the form of:

a. input rates based on the type, characteristics, technology, location, and / or installed capacity of
power plants from Renewable Energy Resources;

b. the market index price for biofuels; and / or

c. reverse auction mechanism (this mechanism is for getting the most efficient price for solar power
electricity generation with the capacity more than 10 MW).

Regulation of the Minister of Energy and Mineral Resources 19/2016

The price of PLTS electricity which is more competitive and cheaper must pay attention to several things.
These include ease of land acquisition, economic capacity, fiscal incentives in the form of reduced taxes
and reduced loan interest, and non-fiscal incentives in the form of easy licensing.

In Permen No. 19/2016, the government changed the PLTS development scheme to be developed by
private power producers (IPP) with a first in, first out (FIFO) mechanism.

For the initial stage, PLTS will be offered with a total capacity of 250 MW with locations spread across
Indonesia. In the candy, the rates offered vary depending on the location of the PLTS. He mentioned that
the cheapest tariff is US $ 14.5 cents for PLTS located in Java Island. Meanwhile, the tariff is US $ 25
cents for Eastern Indonesia.

With the high tariffs offered, the government will conduct strict selection for developers who wish to
participate. All participants must submit accurate data and have financial and technical capabilities. His
party also provides opportunities for interested people to carry out feasibility studies at predetermined
locations.

In the Regulation of Government 79/2014 about National Energy Policy and in the Regulation of
President 22/2017 about General Plan of National Energy, the direction of policies are maximize
the usage of renewable / clean energy, minimize the usage crude oil, optimize the utilize of
natural gas and new energy, use the coal as a mainstay of national energy supply, and utilize the
nuclear as the last option. In 2018, renewable energy just reached 8.55% whereas the target in
2025 it should reach 23%.
Law No. 16/2016 about ratification of Paris Agreement to the UNFCCC, Indonesia commits to have the
target of mitigation in 2030 from renewable energy sub sector is 170.42 million ton CO 2e