Summary PPA Regulation

Summary PPA Regulation
- PERMEN ESDM No.50 year 2017
a. Second Amendment
Permen ESDM No. 4 Tahun 2020 concerning the Second Amendment to the
Regulation of the Minister of Energy and Mineral Resources Number 50 of
2017 concerning the Utilization of Renewable Energy Sources for the
Provision of Electricity
b. First Amendment
Permen ESDM No. 53 Tahun 2018 concerning Amendments to the
Regulation of the Minister of Energy and Mineral Resources Number 50 of
2017 concerning the Utilization of Renewable Energy Sources for the
Provision of Electricity
Summary of the changes in the Second Amendment Permen ESDM No.

4 Tahun 2020:
Source : ESDM Ministry
1. Purchase process with conditional direct appointment
The direct appointment option is open with the following conditions:

emergency local electricity supply, excess power, additional generating
capacity, there is only one prospective provider, or hydropower that already
has a location permit from the Regional Government.
(see : article 4 section (1a) & (1b))
2. The cooperation scheme can be adjusted to BOO (Build, Own, Operate)

Since the issuance of Ministerial Regulation 4/2020, the cooperation
scheme in the PJBL according to the agreement of the parties by referring to
the provisions of the land law, while the PJBL signed before Ministerial
Regulation 4/2020 which still uses the BOOT scheme can be adjusted to
BOO.
(see : article 5 section(6))
3. Provision for hydropower reservoar/irrigation built by the Ministry of

PUPR
for the purchase of electricity from hydropower reservoar/irrigations built by
the Ministry of PUPR.
(see : article 7 )
4. Assignment of PLTSa
The purchase of electricity from PLTSais carried out based on an assignment
from the Minister of Energy and Mineral Resources to PT. PLN (Persero), to
buy electricity from PPL which has been designated as a PLTSa developer by
the Regional Government.
(see : article 10)
- Kepmen No.169.K.HK.02.MEM.M.2021
Regulation for BPP (Electricity Generation Basic Cost)

The status of this regulation is still valid.
MINISTERIAL REGULATION
Permen ESDM No.50 year Amendment I : Permen Amendment II : Permen

2017 No.53 Year 2018 No.04 year 2020
Article 1 Article 1 :
In this Ministerial In this Ministerial

Regulation: Regulation:
1. PT Perusahaan Listrik 1. PT Perusahaan Listrik
Negara (Persero), Negara (Persero), hereinafter
hereinafter referred to as referred to as PT PLN
PT PLN (Persero), means a (Persero), means a state-
state-owned enterprise owned enterprise established
established based on the based on the Government
Government Regulation Regulation Number 23 of
Number 23 of 1994 on 1994 on Transformation of
Transformation of Perusahaan Umum (Perum)
Perusahaan Umum Listrik Negara to become
(Perum) Listrik Negara to Perusahaan Perseroan
become Perusahaan (Persero).
Perseroan (Persero).
2. Renewable Energy Source
2. Renewable Energy means any source of energy
Source means any source generated from energy
of energy generated from resources that are
energy resources that are sustainable if managed
sustainable if managed properly, including
properly, including geothermal energy, wind,
geothermal energy, wind, bioenergy, solar energy,
bioenergy, solar energy, hydropower and ocean
hydropower and ocean energy.
energy.
3. Business Entity means
3. Business Entity means any legal entity in the forms
any legal entity in the of state-owned enterprises,
forms of state-owned
enterprises, region-owned region-owned enterprises,
enterprises, privately- privately-owned enterprises,
owned enterprises, or or cooperatives incorporated
cooperatives incorporated under Indonesian laws and
under Indonesian laws and carries out power supply
carries out power supply businesses.
businesses.
4. Power Plant Developers
4. Power Plant Developers (Pengembang Pembangkit
(Pengembang Pembangkit Listrik), hereinafter referred
Listrik), hereinafter referred to as PPL means a Business
to as PPL means a Entity in power supply in
Business Entity in power cooperation with PT PLN
supply in cooperation with (Persero) through the signing
PT PLN (Persero) through of power purchase/lease
the signing of power agreement.
purchase/lease agreement.
5. Power Generation means
5. Power Generation means the activity of producing
the activity of producing electricity.
electricity.
6. Power Generation Cost
6. Power Generation Cost (Biaya Pokok Penyediaan
(Biaya Pokok Penyediaan Pembangkitan), hereinafter
Pembangkitan), hereinafter referred to as BPP
referred to as BPP Pembangkitan, means the
Pembangkitan, means the cost of power supply by PT
cost of power supply by PT PLN (Persero) in Power
PLN (Persero) in Power Generation, excluding the
Generation, excluding the cost of power distribution.
cost of power distribution.
7. Photovoltaic Solar Power
7. Photovoltaic Solar Power Plant (Pembangkit Listrik
Plant (Pembangkit Listrik Tenaga Surya Fotovoltaik),
Tenaga Surya Fotovoltaik), hereinafter referred to as
hereinafter referred to as PLTS Fotovoltaik, means a
PLTS Fotovoltaik, means a power plant which converts
power plant which converts solar energy into electricity
solar energy into electricity by using photovoltaic
by using photovoltaic modules which are
modules which are interconnected directly to
interconnected directly to the power grid owned by PT
the power grid owned by PT PLN (Persero).
PLN (Persero).
8. Capacity Quota means 8. Capacity Quota means the
the maximum capacity of maximum capacity of power
power plant offered to plant offered to Business
Business Entity in a Entity in a certain period for
certain period for the the specified power purchase
specified power purchase price.
price.
9. Wind Power Plant
9. Wind Power Plant (Pembangkit Listrik Tenaga
(Pembangkit Listrik Tenaga Bayu), hereinafter referred to
Bayu), hereinafter referred as PLTB, means a power
to as PLTB, means a power plant which converts wind
plant which converts wind energy into electricity.
energy into electricity.
10. Hydro Power Plant
10. Hydro Power Plant (Pembangkit Listrik Tenaga
(Pembangkit Listrik Tenaga Air), hereinafter referred to
Air), hereinafter referred to as Tenaga Air, means a
as Tenaga Air, means a power plant which converts
power plant which converts energy into electricity from
energy into electricity from runoff river, reservoir/dam,
runoff river, reservoir/dam, or irrigation channel of
or irrigation channel of which the development is
which the development is multipurpose.
multipurpose.
11. Biomass Power Plant
11. Biomass Power Plant (Pembangkit Listrik Tenaga
(Pembangkit Listrik Tenaga Biomassa), hereinafter
Biomassa), hereinafter referred to as PLTBm, means
referred to as PLTBm, a power plant which
means a power plant which converts biomass energy into
converts biomass energy electricity.
into electricity.
12. Biogas Power Plant
12. Biogas Power Plant (Pembangkit Listrik Tenaga
(Pembangkit Listrik Tenaga Biogas), hereinafter referred
Biogas), hereinafter to as PLTBg, means a power
referred to as PLTBg, plant which converts biogas
means a power plant which energy into electricity.
converts biogas energy into
electricity. 13. Municipal Solid Waste
Power Plant (Pembangkit
13. Municipal Solid Waste Listrik Berbasis Sampah
Power Plant (Pembangkit Kota), hereinafter referred to
Listrik Berbasis Sampah as PLTSa, means a power
Kota), hereinafter referred plant that converts
to as PLTSa, means a municipal solid waste into
power plant that converts electricity.
municipal solid waste into
electricity. 14. Geothermal Power Plant
(Pembangkit Listrik Tenaga
14. Geothermal Power Panas Bumi), hereinafter
Plant (Pembangkit Listrik referred to as PLTP, means a
power plant which converts
Tenaga Panas Bumi), geothermal energy into
hereinafter referred to as electricity.
PLTP, means a power plant
which converts geothermal 15. Ocean Power Plant
energy into electricity. (Pembangkit Listrik Tenaga
Gerakan dan Perbedaan
15. Ocean Power Plant Suhu Lapisan Laut),
(Pembangkit Listrik Tenaga hereinafter referred to as
Gerakan dan Perbedaan PLTA Laut, means a power
Suhu Lapisan Laut), plant that converts ocean
hereinafter referred to as currents, waves, tidal, or
PLTA Laut, means a power ocean thermal energy
plant that converts ocean conversion into electricity.
currents, waves, tidal, or
ocean thermal energy 16. Biofuel Power Plant
conversion into electricity. (Pembangkit Listrik Tenaga
Bahan Bakar Nabati ),
16. Power Purchase
hereinafter referred to as PLT
Agreement (Perjanjian Jual
BBN, means a power plant
Beli Tenaga Listrik),
that converts liquid biofuel
hereinafter referred to as
into energy.
PJBL, means a power
purchase agreement
17. Power Purchase
between PPL and PT PLN
Agreement (Perjanjian Jual
(Persero).
Beli Tenaga Listrik),
17. Minister means the hereinafter referred to as
minister administering PJBL, means a power
government affairs in the purchase agreement between
energy and mineral PPL and PT PLN (Persero).
resources sector.
18. Minister means the
minister administering
government affairs in the
energy and mineral
resources sector.
Article 3 Article 3
(1) This Ministerial (1) This Ministerial

Regulation is a guideline Regulation is a guideline for
for PT PLN (Persero) in PT PLN (Persero) in power
power purchase from purchase from power plants
power plants utilizing utilizing Renewable Energy
Renewable Energy Sources. Sources.
(2) The Renewable Energy (2) The Renewable Energy
Sources as referred to in Sources as referred to in
section (1) include: section (1) include:
a. solar energy; a. solar energy;
b. wind; b. wind;
c. hydropower c. hydropower
d. biomass; d. biomass;
e. biogas; e. biogas;
f. municipal solid waste; f. municipal solid waste;
g. geothermal energy; and g. geothermal energy; and
h. ocean energy. h. ocean energy; and
(3) The power purchases i. Liquid biofuel.
from power plants utilizing
Renewable Energy Sources (3) The power purchases
by PT PLN (Persero) as from power plants utilizing
referred to in section (1) Renewable Energy Sources
and section (2) are: by PT PLN (Persero) as
referred to in section (1) and
a. power purchase from section (2) are:
PLTS Fotovoltaik;
a. power purchase from
b. power purchase from PLTS Fotovoltaik;
PLTB;
b. power purchase from
c. power purchase from PLTB;
Tenaga Air;
c. power purchase from
d. power purchase from Tenaga Air;
PLTBm;
d. power purchase from
e. power purchase from PLTBm;
PLTBg;
e. power purchase from
f. power purchase from PLTBg;
PLTSa;
f. power purchase from
g. power purchase from PLTSa;
PLTP; and
g. power purchase from
h. power purchase from PLTP; and
PLTA Laut.
h. power purchase from
PLTA Laut; and
i. power purchase from PLT
BBN.
Article 4 : Article 4 :
(1) Power purchase from (1) Power purchase from
power plants utilizing power plants utilizing
Renewable Energy Sources Renewable Energy
is conducted by PT PLN Sources, as reffered in
(Persero) through a direct the article 3 section (3) is
selection mechanism. conducted by PT PLN
(Persero) through a direct
selection mechanism.
(1a) The purchase of

electricity as referred to
in Article 3 section (3)
may be made through
direct appointment in the
event that:
a. local power system in

crisis or emergency
condition of electricity
supply;
b. purchase of excess
electricity (excess power),
including the purchase of
electricity through the
cooperation of the holder
of the electricity supply
business area;
c. additional of generating
capacity at the power
plant center which is
already operating in the
same location; or
d. purchase of electricity
from power plants using
renewable energy in the
event that there is 1 (one)
candidate for electricity
provider.
(1b) The direct selection

process as referred to in
paragraph (1) including
the qualification process,
bid submission and
evaluation, and the
signing of the PPA shall
be completed within a
maximum period of 180
(one hundred and eighty)
calendar days.
(1c) The direct

appointment process as
referred to in paragraph
(1a) including the
qualification process,
submission and
evaluation of bids,
and the signing of PPA is
completed within a
maximum period of 90
(ninety) calendar days.
(2) The power purchase (2) The power purchase
from power plants utilizing from power plants
Renewable Energy Sources utilizing Renewable
as referred to in section (1) Energy Sources as
on the basis of high referred to in section (1)
technology, wide-ranging on the basis of high
efficiency, and highly technology, wide-ranging
dependent on local efficiency, and highly
radiation level or weather dependent on local
such as solar and wind radiation level or weather
energy is conducted by PT (intermiten) is conducted
PLN (Persero) through a by PT PLN (Persero)
direct selection mechanism through a direct selection
based on Capacity Quota. mechanism based on
(3) PT PLN (Persero) is Capacity Quota
obligated to operate power
(3) PT PLN (Persero) is
plants utilizing Renewable
obligated to operate
Energy Sources as referred
power plants utilizing
to in section (1) and section
Renewable Energy
(2) for a capacity up to 10
Sources as referred to in
MW (ten megawatts) on a
section (1) and section
must-run basis.
(1a) on a must-run basis.
(4) PT PLN (Persero)

conducts the process of
electricity purchasing as
referred to in section (1)
and section (1a) in
accordance with the
Electricity Supply
Business Plan (RUPTL).
(5) The purchase of
electricity by PT PLN
(Persero) as referred to in
section (1) and section
(1a) is carried out for a
maximum of 30 (thirty)
years of the contract
period.
Article 5 Article 5

from PLTS Fotovoltaik by from PLTS Fotovoltaik by
PT PLN (Persero) as PT PLN (Persero) as
referred to in Article 3 referred to in Article 3
section (3) point a may be section (3) point a may be
done if: done if:
a. the local grid system is
able to connect to power
originated from solar
originated from solar
energy sources;
energy sources;
b. it is intended to reduce
b. deleted
BPP Pembangkitan in the
local grid system; and/or
c. deleted.
c. it meets power demand
in locations where there (2) Deleted.
are no other primary
energy sources.
(2) The power purchase
from PLTS Fotovoltaik as
referred to in section (1) is
conducted through a direct
selection mechanism based
on Capacity Quota.
(3) In the event that BPP (3) In the event that BPP
Pembangkitan of the local Pembangkitan of the local
grid system is higher than grid system is higher
the average national BPP than the average national
Pembangkitan, the power BPP Pembangkitan, the
purchase price from PLTS power purchase price
Fotovoltaik as referred to in from PLTS Fotovoltaik as
section (2) will be at the referred to in section (1)
maximum of 85% (eighty- will be at the maximum
five percent) of BPP of 85% (eighty-five
Pembangkitan of the local percent) of BPP
grid system. Pembangkitan of the local
grid system.
(4) In the event that the
BPP Pembangkitan of the (4) In the event that the
local grid system is equal BPP Pembangkitan of the
to or lower than the local grid system is equal
average national BPP to or lower than the
Pembangkitan, the power average national BPP
purchase price from the Pembangkitan, the power
PLTS Fotovoltaik as purchase price from the
referred to in section (2) PLTS Fotovoltaik as
will be determined based referred to in section (1)
on the agreement of the will be determined based
parties. on the agreement of the
parties.
(5) The BPP Pembangkitan
of the local grid system and (5) The BPP
the average national BPP Pembangkitan of the local
Pembangkitan as referred grid system and the
to in section (3) and section average national BPP
(4) are the BPP Pembangkitan as referred
Pembangkitan of the local to in section (3) and
grid system and the section (4) are the BPP
average national BPP Pembangkitan of the local
Pembangkitan in the grid system and the
previous year which have average national BPP
been determined by the Pembangkitan in the
Minister based on the previous year which have
proposal from PT PLN been determined by the
(Persero). Minister based on the
proposal from PT PLN
(Persero)).
from PLTS Fotovoltaik as
referred to in section (2) (6) Deleted.
uses the cooperative model
of Build, Own, Operate and
Transfer (BOOT). (7) Construction of power
(7) Construction of power grid for transferring
grid for transferring power power from PLTS
from PLTS Fotovoltaik to Fotovoltaik as reffered to
PT PLN (Persero) the section (1) to PT PLN
interconnection point may (Persero) interconnection
be done by PPL based on point may be done by PPL
business to business based on business to
mechanism. business mechanism.
Article 6 Article 6

from PLTB by PT PLN from PLTB by PT PLN
(Persero) as referred to in (Persero) as referred to in
Article 3 section (3) point b Article 3 section (3) point
may be done if: b may be done if::
originated from wind
originated from wind
energy sources;
energy sources;
b. it is intended to reduce
b. deleted;
BPP Pembangkitan in the
local grid system; and/or c. deleted.
c. it meets power demand
(2) Deleted.
in locations where there
are no other primary (3) In the event that the
energy sources. BPP Pembangkitan of the
(2) The power purchase local grid system is
from PLTB as referred to in higher than the average
section (1) is conducted national BPP
through a direct selection Pembangkitan, the power
mechanism based on purchase price from PLTB
Capacity Quota. as referred to in section
(1) will be at the
(3) In the event that the maximum of 85% (eighty-
BPP Pembangkitan of the five percent) of BPP
local grid system is higher Pembangkitan of the local
than the average national grid system.
BPP Pembangkitan, the
power purchase price from
PLTB as referred to in
section (2) will be at the
maximum of 85% (eighty-
five percent) of BPP
Pembangkitan of the local
grid system.
(4) In the event that the (4) In the event that the
BPP Pembangkitan of the BPP Pembangkitan of the
local grid system is equal local grid system is equal
to or lower than the to or lower than the
average national BPP average national BPP
Pembangkitan, the power Pembangkitan, the power
purchase price from the purchase price from the
PLTB as referred to in PLTB as referred to in
section (2) will be section (1) will be
determined based on the determined based on the
agreement of the parties. agreement of the parties.
(5) The BPP Pembangkitan (5) The BPP
of the local grid system and Pembangkitan of the local
the average national BPP grid system and the
Pembangkitan as referred average national BPP
to in section (3) and section Pembangkitan as referred
(4) are the BPP to in section (3) and
Pembangkitan of the local section (4) are the BPP
grid system and the Pembangkitan of the local
average national BPP grid system and the
Pembangkitan in the average national BPP
previous year which have Pembangkitan in the
been determined by the previous year which have
Minister based on the been determined by the
proposal from PT PLN Minister based on the
(Persero). proposal from PT PLN
(Persero).
from PLTB as referred to in (6) Deleted.
section (2) uses the
cooperative model of Build, (7) Construction of power
Own, Operate and Transfer grid for transferring
(BOOT). power from PLTB as
reffered to section (1) to
(7) Construction of power
PT PLN (Persero)
grid for transferring power
interconnection point
from PLTB to PT PLN
may be done by PPL
(Persero) interconnection
based on business to
point may be done by PPL
business mechanism.
business mechanism.
Article 7 Article 7
(1) The power purchase 1) The power purchase

from Tenaga Air by PT PLN from Tenaga Air by PT
(Persero) as referred to in PLN (Persero) as referred
Article 3 section (3) point c to in Article 3 section (3)
is power purchase for all point c is power purchase
Tenaga Air capacities. for all Tenaga Air
capacities.
from Tenaga Air by PT PLN (2) The power purchase
(Persero) as referred to in from Tenaga Air by PT
section (1) may originate PLN (Persero) as referred
from Tenaga Air which is: to in section (1) may
originate from Tenaga Air
a. power from the runoff
which is:
river; or
a. power from the runoff
b. power from
river; or
reservoir/dam or irrigation
channel of which the b. power from
development is reservoir/dam or
multipurpose. irrigation channel of
which the development is
multipurpose.
from Tenaga Air by PT PLN
(3) Deleted.
section (2) is conducted
through a direct selection
mechanism.
(4) Tenaga Air that
(4) Tenaga Air with utilizes:
maximum capacity of 10
MW (ten megawatts) must a. the flow or waterfall of
be capable to operate with river water as referred to
a capacity factor of at least in section (2) letter a with
65% (sixty-five percent), the capacity:
and that with capacity of
more than 10 MW (ten 1. up to 10 MW (ten
megawatts) is capable to megawatts) must be able
operate with a capacity to operate with a capacity
factor which depends on factor of at least 65%
the system requirements. (sixty five percent); or
2. greater than 10 MW
(ten megawatts) operating
with a capacity factor
according to system
requirements;
b. flow or waterfall of
water from
reservoirs/dams or
irrigation canals whose
construction is
multipurpose as referred
to in paragraph (2) letter
b may operate with a
capacity factor below 65%
(sixty five percent) in
accordance with the
readiness of the generator
and/or system
requirements.
BPP Pembangkitan of the
local grid system is higher
than the average national
local grid system is
higher than the average
national BPP
Tenaga Air as referred to in
Pembangkitan, the power
purchase price from
maximum equal to the BPP
Tenaga Air as referred to
in section (1) will be at
grid system.
the maximum equal to
(6) In the event that the the BPP Pembangkitan of
BPP Pembangkitan of the local grid system.
power system in Sumatera,
Java, and Bali or other
BPP Pembangkitan of
local grid systems are
power system in
equal to or lower than the
Sumatera, Java, and Bali
average national BPP
or other local grid
systems are equal to or
purchase price from
lower than the average
Tenaga Air will be
national BPP
determined based on the
agreement of the parties.
purchase price from
(7) The BPP Pembangkitan Tenaga Air as reffered in
of the local grid system and section (1) determined
the average national BPP based on the agreement
Pembangkitan as referred of the parties.
(6) are the BPP (7) The BPP
Pembangkitan of the local Pembangkitan of the local
grid system and the grid system and the
average national BPP average national BPP
Pembangkitan in the Pembangkitan as referred
previous year which have to in section (5) and
been determined by the section (6) are the BPP
Minister based on the Pembangkitan of the local
proposal from PT PLN grid system and the
(Persero). average national BPP
Pembangkitan in the
previous year which have
been determined by the
Minister based on the
(Persero).
from Tenaga Air as referred
to in section (3) uses the
cooperative model of Build, (8) Deleted.
Own, Operate and Transfer
(BOOT). (9) Construction of power
grid for transferring
(9) Construction of power power from Tenaga Air as
grid for transferring power reffered in section (1) to
from Tenaga Air to PT PLN PT PLN (Persero)
(Persero) interconnection interconnection point
point may be done by PPL may be done by PPL
based on business to based on business to
business mechanism. business mechanism.
Article 7A
(1) Power Purchasing

from Tenaga Air from
reservoar/Dam or
irrigation canal where the
construction is multi-
purpose as referred to in
Article 7 section (2) letter
b which is built by the
winner of the business
entities partner selection
for the utilization of state-
owned water resources in
the event of providing the
infrastructure for Tenaga
Air carried out based on
the assignment from the
Ministry to PT PLN
(Persero).
(2) This Ministerial
Regulation applies as an
assignment for the
purchase of electricity as
(1) and applies as a direct
appointment for the
purchase of electricity by
PT PLN (Persero).
(3) The purchase price of
electricity from Tenaga
Air utilizing hydropower
from reservoirs/dam or
irrigation canal which
construction is
multipurpose as referred
to in section (1) is based
on the agreement of the
parties.
in paragraph (3) shall
obtain the approval of the
Minister.
(5) To obtain the approval
of the Minister as referred
in section (4), PT PLN
(Persero) proposes to the
Minister to give approval
for the purchase price of
electricity from Tenaga
Air as referred to in
section(4) by attaching
documents containing at
least:
a. profile of partners of
the state-owned water
resources utilization in
the event of providing
Air that has been
determined;
b. location and capacity
of Hydropower;
c. Commercial Operation
Date (COD) plan;
d. determination letter of
the winner of the
selection of partner
business entities for
state-owned water
Air;
e. agreement on the
purchase price of
electricity;
f. data and information of
the share ownership and
company management of
the partner companies of
the state-owned water
infrastructure for
hydropower up to the
final beneficiary level;
g. cost structure and
financial model of the
purchase price of
electricity; and
h. Verification certificate
for the results of the
feasibility study and the
connection study from PT
PLN (Persero) stating that
the hydropower project is
feasible.
(6) The construction of an
electric power network for
power evacuation from
Hydropower as referred to
in paragraph (1) to the
connection point of PT
PLN (Persero) can be
carried out by PPL based
on a mutually beneficial
mechanism (business to
business).
6. The construction of
electricity network for
power evacuation from
Tenaga Air as referred to
in section(1) to the
connection point of PT
PLN (Persero) may carried
out by PPL based on a
mutually beneficial
business).
Article 8 Article 8
from PLTBm by PT PLN from PLTBm by PT PLN
Article 3 section (3) point d Article 3 section (3) point
may only be made to PPL d may only be made to
having sufficient supply of PPL having sufficient
feedstock for continuous supply of feedstock for
operation of PLTBm during continuous operation of
PJBL period. PLTBm during PJBL
period.
from PLTBm by PT PLN
(2) Deleted.
section (1) is conducted (3) In the event that the
through a direct selection BPP Pembangkitan of the
mechanism. local grid system is
higher than the average
national BPP
local grid system is higher
purchase price from
than the average national
PLTBm as referred to in
grid system..
Pembangkitan of the local (4) Dalam hal BPP
grid system. Pembangkitan di sistem
ketenagalistrikan
setempat sama atau di
bawah rata-rata BPP
local grid system is equal
Pembangkitan nasional,
to or lower than the
harga pembelian tenaga
listrik dari PLTBm
sebagaimana dimaksud
purchase price from
pada ayat (1), ditetapkan
berdasarkan kesepakatan
section (2) is determined
para pihak.
based on the agreement of
the parties. (5) The BPP
(5) The BPP Pembangkitan Pembangkitan of the local
of the local grid system and grid system and the
the average national BPP average national BPP
Pembangkitan as referred Pembangkitan as referred
to in section (3) and section to in section (3) and
(4) are the BPP section (4) are the BPP
Pembangkitan of the local grid system and the
grid system and the average national BPP
average national BPP Pembangkitan in the
Pembangkitan in the previous year which have
previous year which have been determined by the
been determined by the Minister based on the
Minister based on the proposal from PT PLN
proposal from PT PLN (Persero).
(Persero).
(6) Deleted
from PLTBm as referred to
in section (2) uses the
(BOOT). power from PLTBm as
reffered in section(1) to
(7) Construction of power PT PLN (Persero)
grid for transferring power interconnection point
from PLTBm to PT PLN may be done by PPL
(Persero) interconnection based on business to
point may be done by PPL business mechanism
business mechanism.
Article 9 Article 9
(1) The power purchase (1 The power purchase

from PLTBg by PT PLN from PLTBg by PT PLN
Article 3 section (3) point e Article 3 section (3) point
may only be made to PPL e may only be made to
having sufficient supply of PPL having sufficient
feedstock for continuous supply of feedstock for
operation of PLTBg during continuous operation of
PJBL period. PLTBg during PJBL
period
from PLTBg by PT PLN (2) Deleted
section (1) is conducted
through a direct selection .
mechanism.
(3) In the event that the BPP Pembangkitan of the
BPP Pembangkitan of the local grid system is
local grid system is higher higher than the average
than the average national national BPP
power purchase price from Pembangkitan, the power
PLTBg as referred to in purchase price from
section (2) will be at the PLTBg as referred to in
maximum of 85% (eighty- section (1) will be at the
five percent) of BPP maximum of 85% (eighty-
Pembangkitan of the local five percent) of BPP
grid system..
BPP Pembangkitan of the (4) In the event that the
local grid system is equal BPP Pembangkitan of the
to or lower than the local grid system is equal
average national BPP to or lower than the
Pembangkitan, the power average national BPP
purchase price from PLTBg Pembangkitan, the power
as referred to in section (2) purchase price from
will be determined based PLTBg as referred to in
on the agreement of the section (2) will be
parties. determined based on the
(5) The BPP Pembangkitan
of the local grid system and (5) The BPP
the average national BPP Pembangkitan of the local
Pembangkitan as referred grid system and the
to in section (3) and section average national BPP
(4) are the BPP Pembangkitan as referred
Pembangkitan of the local to in section (3) and
grid system and the section (4) are the BPP
average national BPP Pembangkitan of the local
Pembangkitan in the grid system and the
previous year which have average national BPP
been determined by the Pembangkitan in the
Minister based on the previous year which have
proposal from PT PLN been determined by the
(Persero). Minister based on the
(Persero).
from PLTBg as referred to
in section (2) uses the (6) Deleted.
cooperative model of Build,
Own, Operate and Transfer (7) Construction of power
(BOOT). grid for transferring
power from PLTBg as
(7) Construction of power reffered in section(1) to
grid for transferring power PT PLN (Persero)
from PLTBg to PT PLN interconnection point
(Persero) interconnection may be done by PPL
point may be done by PPL based on business to
based on business to business mechanism.
business mechanism.
Article 10 Article 10

from PLTSa is obligated to from PLTSa is obligated
be conducted by PT PLN to be conducted by PT
(Persero) as referred to in PLN (Persero) as referred
Article 3 section (3) point f to in Article 3 section (3)
in order to assist the point f in order to assist
Government and/or local the Government and/or
government in overcoming local government in
or handling municipal solid overcoming or handling
waste issues. municipal solid waste
issues.
(2) The PLTSa as referred
to in section (1) may use (2) The PLTSa as referred
methane gas harvesting to in section (1) may use
and utilization methods of methane gas harvesting
sanitary landfill, anaerobic and utilization methods
digestion, or similar of sanitary landfill,
methods from the waste anaerobic digestion, or
collection or through similar methods from the
heat/thermal utilization by waste collection or
using thermo chemical through heat/thermal
technology. utilization by using
thermo chemical
(3) The power purchase technology.
from PLTSa by PT PLN
(Persero) as referred to in (3) The power purchase
section (1) is conducted in from PLTSa by PT PLN
accordance with the (Persero) as referred to in
provisions of laws and section (1) is conducted
regulations. in accordance with the
provisions of laws and
regulations.
(3a) The Assignment

from Ministry to PT PLN
(Persero) as reffered in
section (3) applies as :
a. Direct appointment for
the power purchasing by
PT PLN(Persero) and
b. price agreement of the
power purchasing price
(3b) To obtain an
assignement from
Ministry as reffered to in
section(3); governor or
regent/mayor according
with its own authority
proposed to Minstry to
assign the purchasing of
electricity from PLTSa by
PT PLN (Persero) from
PPL determined as the
PLTSa developer by
attach documents consist
at least :
a. PLTSa developer profile

assigned or determined;
b. PLTSa location and
capacity ;
Date (COD) plan;
d. Assignment letter of
the Regional-owned
company or
determination of the
winner of the PLTSa
developer competition
from the regional
government;
e. Agreement of the Power
Purchasing Price;
f. Data and information of
theshare ownership and
the developer company
management until the
level of the end receiver;
g. Cost structure and
selling price ; and
h. Verification
certification of the
Feasibility Study and
Interconnection Study
result from PT PLN
(persero) stated the
PLTSa project is feasible.
(4) In the event that the (4) Dalam hal BPP In the
BPP Pembangkitan of the event that the BPP
local grid system is higher Pembangkitan of the local
than the average national grid system is higher
BPP Pembangkitan, the than the average national
power purchase price from BPP Pembangkitan, the
PLTSa as referred to in power purchase price
section (3) will be at the from PLTSa as referred to
maximum of the BPP in section (1) will be at
Pembangkitan of the local the maximum of the BPP
(5) In the event that the grid system.
BPP Pembangkitan of
power system in Sumatera, (5) In the event that the
Java, and Bali or other BPP Pembangkitan of
local grid systems are power system in
equal to or lower than the Sumatera, Java, and Bali
average national BPP or other local grid
Pembangkitan, the power systems are equal to or
purchase price from PLTSa lower than the average
will be determined based national BPP
on the agreement of the Pembangkitan, the power
parties. purchase price from
PLTSa as reffered in
(6) The BPP Pembangkitan section(1 will be
of the local grid system and determined based on the
the average national BPP agreement of the parties.
Pembangkitan as referred
to in section (4) and section (6) The BPP
(5) are the BPP Pembangkitan of the local
Pembangkitan of the local grid system and the
grid system and the average national BPP
average national BPP Pembangkitan as referred
Pembangkitan in the to in section (4) and
previous year which have section (5) are the BPP
been determined by the Pembangkitan of the local
Minister based on the grid system and the
proposal from PT PLN average national BPP
(Persero). Pembangkitan in the
(7) Construction of power been determined by the
grid for transferring power Minister based on the
from PLTSa to PT PLN proposal from PT PLN
(Persero) interconnection (Persero).
point may be done by PPL (7) Construction of power
based on business to grid for transferring
business mechanism. power from PLTSa to PT
PLN (Persero)
(8) PLTSa developers may interconnection point
be given facilities in the may be done by PPL
form of incentives in based on business to
accordance with the business mechanism
(8) PLTSa developers as
regulations.
reffered in the section (3)
may be given facilities in
the form of incentives in
accordance with the
regulations.
.

from PLTP by PT PLN from PLTP by PT PLN
Article 3 section (3) point g Article 3 section (3) point
may only be made to PPL g may only be made to
having geothermal working PPL having geothermal
area in accordance with working area in
proven reserves after accordance with proven
exploration. reserves after exploration.
from PLTP by PT PLN from PLTP by PT PLN
section (1) is conducted in section (1) is conducted
accordance with the in accordance with the
provisions of laws and provisions of laws and
regulations. regulations.
(3) In the event that the (3) In the event that the
BPP Pembangkitan of the BPP Pembangkitan of the
local grid system is higher local grid system is
than the average national higher than the average
BPP Pembangkitan, the national BPP
power purchase price from Pembangkitan, the power
PLTP as referred to in purchase price from PLTP
section (2) will be at the as referred to in section
maximum of the BPP (2) will be at the
Pembangkitan of the local maximum of the BPP
grid system.
BPP Pembangkitan of
power system in Sumatera,
BPP Pembangkitan of
Java, and Bali or other
power system in
local grid systems are
Sumatera, Java, and Bali
equal to or lower than the
or other local grid
systems are equal to or
lower than the average
purchase price from PLTP
national BPP
will be determined based
on the agreement of the
purchase price from PLTP
parties.
will be determined based
(5) The BPP Pembangkitan on the agreement of the
of the local grid system and parties.
the average national BPP
(5) The BPP
grid system and the
(4) are the BPP
grid system and the
to in section (3) and
section (4) are the BPP
Pembangkitan in the
grid system and the
Minister based on the
Pembangkitan in the
(Persero).
(6) The power purchase Minister based on the
from PLTP as referred to in proposal from PT PLN
section (2) uses the (Persero).
cooperative model of Build,
(6) Deleted.
Own, Operate and Transfer
(BOOT). (7) Construction of power
grid for transferring
(7) Construction of power
power from PLTP to PT
grid for transferring power
PLN (Persero)
from PLTP to PT PLN
interconnection point
(Persero) interconnection
may be done by PPL
point may be done by PPL
business mechanism.
business mechanism.
(1) The power purchase (1) Deleted.
from PLTA Laut by PT PLN
(Persero) as referred to in (2) In the event that the
Article 3 section (3) point h BPP Pembangkitan of the
is conducted through a local grid system is
direct selection higher than the average
mechanism. national BPP
(2) In the event that the purchase price from PLTA
BPP Pembangkitan of the Laut as referred to in
local grid system is higher Article 3 section (3) letter
than the average national h, will be at the
BPP Pembangkitan, the maximum of 85% (eighty-
power purchase price from five percent) of BPP
PLTA Laut as referred to in Pembangkitan in the
section (1) will be at the local gri system..
five percent) of BPP (3) In the event that the
Pembangkitan in the local BPP Pembangkitan of the
grid system. local grid system is equal
to or lower than the
(3) In the event that the average national BPP
BPP Pembangkitan of the Pembangkitan, the power
local grid system is equal purchase price from PLTA
to or lower than the Laut as referred to in
average national BPP Article 3 section (3) letter
Pembangkitan, the power h, will be determined
purchase price from PLTA based on the agreement
Laut as referred to in of the parties
section (1) will be
(4) The BPP Pembangkitan (4) The BPP
of the local grid system and Pembangkitan of the local
the average national BPP grid system and the
Pembangkitan as referred average national BPP
to in section (2) and section Pembangkitan as referred
(3) are the BPP to in section (2) and
Pembangkitan of the local section (3) are the BPP
grid system and the Pembangkitan of the local
average national BPP grid system and the
Pembangkitan in the average national BPP
previous year which have Pembangkitan in the
been determined by the previous year which have
Minister based on the been determined by the
proposal from PT PLN Minister based on the
(Persero). proposal from PT PLN
(5) The power purchase (Persero).
from PLTA Laut as referred
to in section (1) uses the (5) Deleted
(BOOT). power from PLTA Laut as
(6) Construction of power reffered to in Article 3
grid for transferring power section (3) letter h
from PLTA Laut to PT PLN sebagaimana dimaksud
(Persero) interconnection dalam Pasal 3 ayat (3)
point may be done by PPL huruf h to PT PLN
based on business to (Persero) interconnection
business mechanism. point may be done by PPL
business mechanism.
Article 12A – Power Article 12A- Power

Puchasing from Biofuel Puchasing from Biofuel
(PLT BBN) (PLT BBN)
(1) The purchase of (1) The purchase of

electricity from PLT BBN by electricity from PLT BBN
PT PLN (Persero) as referred by PT PLN (Persero) as
to in Article 3 section (3) referred to in Article 3
letter i may only be made to paragraph (3) letter i may
PPL that have sufficient only be made to PPL that
sources of fuel supply have sufficient sources of
(feedstock) for the continuity fuel supply (feedstock) for
of PLT BBN operations the continuity of PLT
during the PJBL period. BBN operations during
the PJBL period.
(2) The purchase of
electricity from PLT BBN by (2) Deleted.
PT PLN (Persero) as referred
to in paragraph (1) is carried
out through a direct election
mechanism.
(3) The purchase price of electricity from PLT BBN
electricity from PLT BBN is as referred to in
determined based on the section(1) is determined
agreement of the parties. based on the agreement
(4) The purchase of of the parties.
electricity from PLT BBN as
referred to in section (2) uses (4) Deleted.
the pattern of building,
owning, operating and
transferring (Build, Own,
Operate, and
Transfer/BOOT).
(5) The construction of an (5) The construction of an
electric power network for electric power network for
power evacuation from PLT power evaluation from
BBN to the connection point PLT BBN as referred to in
of PT PLN (Persero) may be section (1) to the
carried out by PPL based on connection point of PT
a mutually beneficial PLN (Persero) may be
mechanism (business to carried out by PPL based
business). on a mutually beneficial
business).
The power purchase as (1) Purchase of electricity

referred to in Article 5 to from:
Article 12 is required to a. PLTS Fotovoltaik as
obtain the power selling referred to in Article 5;
price approval by the b. PLTB as referred to in
Minister. Article 6;
c. PLTA from Tenaga Air
utilizes energy from river
water flows/falls as
referred to in Article 7
section (2) letter a;
d. PLTBm as referred to
in Article 8;
e. PLTBg as referred to in
Article 9;
f. PLTP as referred to in
Article 11;
g. PLTA Laut as referred
to in Article 12; and
h. PLT BBN as referred to
in Article 12A,
shall obtain approval of

the electricity selling
price from the Minister.
(2) The approval of the
selling price of electricity
from the Minister as
(1) must be requested by
PT PLN (Persero) no later
than 5 (five) working days
as of the completion of
the procurement process.
(3) The application for
approval of the electricity
selling price as referred to
in section (2) shall be
accompanied by the
following documents:
a. developer appointment
letter;
b. minutes of selling price
agreement;
c. approval of the Board
of Directors of PT PLN
(Persero);
d. data and information

of the share ownership
and developer company
management until to the
end receiver;and
e. cost structure and
selling price.
CHAPTER IXA
GUIDANCE AND
SUPERVISION
Article 18A
(1) PT PLN (Persero) shall

report to the Ministry
after signing the
PJBL(PPA) accompanied
by an official copy of the
PJBL.
(2) The reporting as
shall be carried out no
later than 5 (five) working
days as of the signing of
the PJBL.
(3) PPL shall report the
progress of the
construction of power
plants utilizing renewable
energy sources to the
Minister every 3 (three)
months from the date of
signing the PJBL as
up to the Commercial
Operation Date (COD)
with a copy to the
Director General of New
Energy. Renewable and
Energy Conservation,
Director General of
Electricity, and Directors
of PT PLN (Persero)
through an online
application system.
online application system
as referred to in section
(3) is not yet available,
report on the progress of
the construction of a
power plant utilizing
renewable energy sources
shall be submitted in
writing.
CHAPTER IXB
OTHER PROVISIONS
Article 18B
(1) Power plants utilizing

Renewable Energy
Sources which are
partially or wholly built
by the government other
than those built based on
the Regulation of the
Minister of Energy and
Mineral Resources
Number 39 of 2017
concerning the
Implementation of
Physical Activities of
Utilization of the New and
Renewable Energy and
Energy Conservation as
amended by Minister of
Energy and Mineral
Resources Regulation
Number 12 of 2018,
including those from
grant financing, the
mechanism for
purchasing electricity is
carried out based on an
assignment from the
Minister to PT PLN
(Persero).
(2) The assignment from
the Minister to PT PLN
paragraph (1) applies as:
a. direct appointment for
the purchase of electricity
by PT PLN (Persero); and
b. approval of the
purchase price of
electricity.
(3) To obtain the
assignment from the
Minister as referred to in
section (2), the head of
the agency/institution,
governor, or
regent/mayor proposes to
the Minister to give an
assignment to purchase
electricity.
(4) The proposal as
is accompanied by a
document containing at
least:
a. the profile of the
business entity
designated as the
manager of the power
plant utilizing Renewable
Energy Sources;
b. location and capacity
of power plants utilizing
Renewable Energy
Sources;
Date (COD) plan;
d. letter of determination
for the manager of the
power plant utilizing
Renewable Energy
Sources;
e. agreement on the
electricity selling price;
f. data and information of
the share ownership and
management of the
developer company up to
the end receiver level;
g. cost structure and
selling price; and
h. Verification certificate
of the results of the
feasibility study and the
connection study from PT
PLN (Persero) stating that
the power plant project
utilizing Renewable
Energy Sources is
feasible.
in section (1) shall be
Article 26A
At the time this

Ministerial Regulation
applies, for PPL who have
signed the PJBL based on
the provisions of the
Regulation of the Minister
of Energy and Mineral
Resources Number 50 of
2017 concerning
Utilization of Renewable
Energy Sources for the
Electric Power Provider
(State Gazette of the
Republic of Indonesia
year 2017 Number 1107),
the cooperation pattern
in the PJBL may be
adjusted into a pattern of
cooperation to build,
own, and operate (Build,
Own, and Operate/BOO)
with due observance of
the provisions of laws
and regulations of land
and civil sector.
Article 26B
At the time this

applies, the mechanism
for purchasing electricity
from Tenaga Air which
already has a permit
related to the location
from the Regional
Government and/or the
authorized
agency/institution prior
to this Ministerial
Regulation, is carried out
through a direct
appointment mechanism.
Article 27A
At the time this

applies, Regulation of the
Mineral Resources
Number 44 year 2015
concerning the Purchase
of Electricity by PT
Perusahaan Listrik
Negara (Persero) from
Municipal Waste Based
Power Plants (State
Gazette of the Republic of
Indonesia of 2015
Number 2051), is revoked
and declared not
applicable.
Article 27B
At the time this

applies, provisions
regarding the use of the
pattern of cooperation
build, own, operate, and
transfer (Build, Own,
Operate, and
Transfer/BOOT) in the
power purchase
agreement as stipulated
in the Regulation of the
Mineral Resources No. 10
of 2017 concerning the
Principles of PJBL (State
Gazette of the Republic of
Indonesia of 2017
Number 151) as amended
several times, recently by
Regulation of the Minister
of Energy and Mineral
Resources Number 10
year 2018 concerning the
Second Amendment to
the Regulation of the
Resources Mineral
Resources Number 10
year 2017 concerning the
Principles of the Power
Purchase Agreement
(State Gazette of the
Republic of Indonesia of
2018 Number 256), is
declared invalid as long
as it is for power plants
that utilize renewable
energy sources.

Summary PPA Regulation

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Summary PPA Regulation

- PERMEN ESDM No.50 year 2017

Summary of the changes in the Second Amendment Permen ESDM No.

Source : ESDM Ministry

1. Purchase process with conditional direct appointment

The direct appointment option is open with the following conditions:

2. The cooperation scheme can be adjusted to BOO (Build, Own, Operate)

3. Provision for hydropower reservoar/irrigation built by the Ministry of

Regulation for BPP (Electricity Generation Basic Cost)

Permen ESDM No.50 year Amendment I : Permen Amendment II : Permen

In this Ministerial In this Ministerial

(1) This Ministerial (1) This Ministerial

(1a) The purchase of

a. local power system in

(1b) The direct selection

(1c) The direct

(4) PT PLN (Persero)

(1) The power purchase (1) The power purchase

(1) The power purchase (1) The power purchase

(1) The power purchase 1) The power purchase

(1) Power Purchasing

(1) The power purchase (1 The power purchase

(1) The power purchase (1) The power purchase

(3a) The Assignment

a. PLTSa developer profile

(1) The power purchase (1) The power purchase

Article 12A – Power Article 12A- Power

(1) The purchase of (1) The purchase of

The power purchase as (1) Purchase of electricity

shall obtain approval of

d. data and information

(1) PT PLN (Persero) shall

(1) Power plants utilizing

At the time this

At the time this

At the time this

At the time this

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