NREEC Investment Guide Book (Print Ver) (ENG) (7447)

New, Renewable Energy and Energy Conservation Investment Guide Book 2017
New, Renewable Energy

and
Energy Conservation
1
Published by:
Directorate General of New, Renewable Energy and Energy Conservation (EBTKE)
Ministry of ESDM of the Republic of Indonesia
Supervisory Committee
Wawan Supriatna Secretary of the Directorate General of EBTKE
Dadan Kusdiana Head of KLIK Bureau
Faisal Rahadian Minister’s Expert in the field of EBTKE
Steering Committee
Yunus Saefulhak Director of Geothermal Directorate
Sudjoko Harsono Adi Director of Bioenergy Directorate
Maritje Hutapea Director of Various Renewable Energy Directorate
Ida Nuryati Finahari Director of Energy Conservation Directorate
Coordinator Team
Linda Agustina Head of Legal Division
Qatro Romandhi Head of Planning and Report Division
Bintara Head of Geothermal Investment & Cooperation Sub Division
Elis Heviati Head of Bioenergy Investment & Cooperation Sub Division
Feby Misna Head of Various RE Investment & Cooperation Sub Division
Gita Lestari Head of Energy Conservation Cooperation & Technical
Guidance Sub Division
Executive team
Writer Luna Mutiara
PIC for Coordination Bambang Wijiatmoko, Rakhma Wardani
PIC for Geothermal Roy Hendra, Annisa Hasanah
PIC for Bioenergy Nita Apriliani Puteri, Citra Wanurmarahayu
PIC for Various RE Fazri Aditya Pramadya, Tony Susandy
PIC for Energy Conservation Fanit Akmal, Ifan Aminurakhman
PIC for Data Abdurrahman Arum, Agung Feinnudin, Adinda Permatasari
Design and Lay Out Okto Berbudi, Luna Mutiara
Translator Luna Mutiara,
i
PREFACE
Within the current decade, the need of energy is already immense. Energy
efficiency is a necessary attempt to increase Indonesia’s competitiveness at an
international stage. The fulfillment of Indonesia’s massive energy demand
requires the participation of the government and all levels of society. Efficient
and optimal energy utilization will directly enhance Indonesia’s national energy
security.
Indonesia’s government participation in greenhouse gasses emission reduction

is performed by increasing clean energy utilization. Clean energy utilization is
able to reduce emission resulting from the fossil fuel usage. Energy efficiency and
renewable energy are one of the solutions in increasing clean energy usage
which resulted in the declination of greenhouse gas emission.
This guide book is arranged to facilitate general public, stakeholders, potential

investor, and the government in obtaining information concerning energy
efficiency and renewable energy investment in Indonesia.
As a guidebook for investors to know Indonesia’s real condition, opportunities

and challenges of investing, this book can be used as the preliminary information
before investing in energy efficiency and renewable energy in Indonesia.
Information is highly needed in implementation of investment projects as

investors expect the investment climate in Indonesia can run well, safe and
generate investment returns as expected. With the investment in energy
efficiency and renewable energy, the increase of Indonesia’s energy security,
the decrease on the number of the unemployed, and the improved health and
well-being due to the energy availability are expected.
The increase of clean energy demand is a huge opportunity and at a time, a

challenge to the investor in investing on energy efficiency and renewable
energy in Indonesia.
ii
Hopefully, the formulation of this book may be one of the reliable sources of
information that can improve energy efficiency and renewable energy
investments in Indonesia.
Regards,
Jakarta, September 2017

Directorate General of EBTKE
Rida Mulyana
iii
LIST OF ABBREVIATION
SOB State Owned Budget or Anggaran Pendapatan Dan Belanja Negara (APBN)
APSE Assignment of Preliminary Surveys and Exploration
B to B Business To Business
BOOT Build Own Operate Transfer
COD Commercial Operation Date
CPO Coconut Palm Oil
Directorate General of Energi Baru Terbarukan Dan Konservasi Energi or New,
DGEBTKE
Renewable Energy and Energy Conservation
DGE Directorate General of Electricity
EPP Electricity Purchase Price
EPPL Local Electricity Purchase Price
EPPn National Electricity Purchase Price
ESCO Energy Service Company
FS Feasibility Study
GWA Geothermal Working Area
IPP Independent Power Producer
KEN Kebijakan Energi Nasional or National Energy Policy
LGBEC Local Government & Business Entity Cooperation
MESDM Ministry of Energi Dan Sumber Daya Mineral or Energy and Mineral Resources
NRE New and Renewable Energy
POME Palm Oil Mill Effluent
PPA Power Purchase Agreement
RUEN Rencana Umum Energi Nasional or National General Planning on Energy
RE Renewable Energy
SAB Special Allocated Budget
LIST OF UNIT
BoE barrel of oil equivalent
ToE tonnes of oil equivalent
GWh giga watt hour
iv
kWh kilo watt hour

MW mega watt
Mwe mega watt electricity
MWp mega watt peak
v
LIST OF CONTENT
PREFACE .............................................................................................................................................. ii
LIST OF ABBREVIATION ...................................................................................................................... iv
LIST OF CONTENT ............................................................................................................................... vi
INTRODUCTION: INDONESIA CONCISE ........................................................................................... 1
1. STATISTIC.......................................................................................................................... 3
2. ENERGY ROADMAP ....................................................................................................... 4
3. NATIONAL ELECTRIFICATION SYSTEM CONDITION .................................................... 8
RE INVESTMENT REGULATION.......................................................................................................... 12
1. RE INVESTMENT REGULATION LIST .............................................................................. 13
2. INVESTMENT THROUGH IPP SCHEME ......................................................................... 17
3. INVESTMENT THROUGH STATE OWNED BUDGET SCHEME ...................................... 28
4. INVESTMENT THROUGH SPECIAL ALLOCATED BUDGET .......................................... 31
5. INVESTMENT THROUGH LOCAL GOVERNMENT & BUSINESS ENTITY

COOPERATION (LGBEC) SCHEME ............................................................................................ 34
6. INVESTMENT TRHOUGH RURAL ELECTRIFICATION SCHEME .................................... 36
RE COMMODITY: GEOTHERMAL .................................................................................................... 38
1. POTENTIAL ..................................................................................................................... 39
2. INSTALLED CAPACITY .................................................................................................. 41
3. GOVERNMENT TARGET AND PLANNING .................................................................. 47
4. INVESTMENT FLOW ....................................................................................................... 48
5. GOVERNMENT’S BREAKTHROUGH ............................................................................ 52
RE COMMODITY: SOLAR PHOTOVOLTAIC .................................................................................... 54
1. POTENTIAL ..................................................................................................................... 55
RE COMMODITY: MICROHYDRO ................................................................................................... 61
1. POTENTIAL ..................................................................................................................... 62
vi
RE COMMODITY: WIND ................................................................................................................... 68
1. POTENTIAL ..................................................................................................................... 69
RE COMMODITY: MUNICIPAL SOLID WASTE ................................................................................. 73
1. POTENTIAL ..................................................................................................................... 74
RE COMMODITY: BIOMASS/BIOGAS ............................................................................................. 78
1. POTENTIAL ..................................................................................................................... 79
RE COMMODITY: BIOFUEL ............................................................................................................... 87
1. POTENTIAL ..................................................................................................................... 88
4. BIOFUEL COMMERCE BUSINESS LICENSING FLOW .................................................. 93
5. MARKET PRICE INDEX (MPI) ........................................................................................ 94
ENERGY CONSERVATION ................................................................................................................ 96
1. ENERGY SAVINGS POTENTIAL AND IMPLEMENTATION ........................................... 97
2. GOVERNMENT TARGET AND PLANNING ................................................................ 102
3. ESCO CONCEPT......................................................................................................... 104
4. ESCO LICENSING FLOW ............................................................................................ 106
ANNEX 1: ENERGY CONSERVATION STAKEHOLDERS ................................................................ 107
ANNEX 2: STAKEHOLDERS CONTACT LIST .................................................................................... 111
vii
Introduction:
Indonesia Concise
INTRODUCTION: INDONESIA
CONCISE
i
Energy Equality for

Indonesia
Expanding from Sabang to Merauke, Indonesia with its two million square kilometers
coverage ranked 7th as the largest country in the world. Indonesia's strategic geographical
position resulted into the country’s natural resources abundance which support its
agriculture, forestry, marine, fisheries, livestock, plantation, mining and also energy sectors.
Indonesia is home to 260 million people making it the fourth country with the largest
population in the world. With its economic growth that is projected to increase by 5.2% by
2017 as stated by The World Bank, Indonesia’s needs are greatly increasing. The World
Economic Forum had released a report on the achievement of countries in the world in the
economic field where out of 140 countries, Indonesia ranked 10th in market size, 33rd in
macroeconomic environment, and 36th in business sophistication.
This economic growth rate is inseparable from the growth of energy supply infrastructure.
The renewable energy market becomes attractive given the limitations and negative
impacts of fossil fuel usage and is supported by the abundant availability of renewable
natural resources. Indonesia’s economic background, energy availability, and renewable
energy achievement targets can be seen in the tables and pictures below.
2
1. STATISTIC
2.
Table 1. Indonesia’s statistic
Statistic Unit 2014 2015 2016
Population Million 252.2 255.5 258.7
Population growth % 1.35 1.31 1.27
Regional GDP based on 2017

Trillion Rupiahs 10,562 11,469.95 12,837.98
price
Regional GDP growth in
% 5.2 4.98 5.26
constant price at 2000
Economic growth % 5.0 4.9 5.0
Yearly inflation % 8.4 3.4 3.0
Statistic Unit 2020 2025 2030
Population projection Million 271 284.8 296.4
Source : Badan Pusat Statistika
3
2. ENERGY ROADMAP
In 2015, Indonesia with its energy needs of 166 MTOE fulfilled its needs mainly by using oil.
Figure 1 shows that renewable energy had been used to generate 5% from the total
national energy mix back in 2015. The installed capacity of renewable energy power plant
in 2015 was 8,215.5 MW out of the total potential of 443,208 MW. In other words, only 1.9%
of the total renewable energy potential had been successfully utilized.
5%
Oil
26%
Gas
46%
Coal
Renewables
23%
Figure 1. National energy mix in 2015

Source: Presidential Regulation No. 22/2017 concerning RUEN
Referring to KEN (Kebijakan Energi Nasional, or National Energy Policy) that is reported in
Government Regulation No. 79/2014, the realization of renewable energy use within the
national energy mix is targetted to reach a minimum of 23% in 2025 and 31.2% in 2050. RUEN
(Rencana Umum Energi Nasional or General planning on national energy) is the integration
of KEN which was established thorugh Presidential Regulation No. 22/2017 which specifies
the detail of KEN.
RUEN states that Indonesia still requires at least 92.3 MTOE of energy that is coming from
renewable resources out of the national energy needs (400.3 MTOE) to achieve the target
of 23% renewable energy usage by 2025. Meanwhile, for 2050, Indonesia aims to achieve
renewable energy usage of 315.7 MTOE out of the national energy needs (1,012.3 MTOE).
To achieve this target, the Government had established the 42 GW renewable energy
4
development planning originating from geothermal, hydro, bioenergy, solar, and wind
resources. Figure 2 shows Indonesia’s energy roadmap based on KEN and RUEN.
23% 25%
Oil
Gas
Coal
Renewables
30% 22%
20%
31% Oil
Gas
Coal
24% Renewables
25%
Figure 2. National energy mix target in 2025 (above) and 2050 (below)
Aside from regulating the RE target usage, RUEN also focuses on the improvement of
energy usage efficiency which by far has not been the focus of the Government’s strategy.
The implementation of energy conservation is one of the focus which aims to secure the
energy availability to achieve a sustainable, national energy security. The target of this
enegy conservation implementation is to save 52.3 MTOE worth of energy or 17.4% from
the Business as Usual (BAU) scheme in 2025 and 407.6 MTOE or 38.9% in 2050 respectively.
Through RUEN, the Government also aims to reduce the energy elasticity lower than 1.
Energy elasticity is the ration between the final energy consumption growth and GDP
growth within the same period of time. Energy elasticity lower than 1 shows an efficient
energy use and vice versa. Indonesia’s energy elasticity target that is stated in RUEN is 0.84
5
by 2025 and 0.46 by 2050. The historical energy elasticity of Indonesia is presented in Figure
3.
4,0 3500
4.0
3042
3,5
3.5 2909
2770 3000
2618
3,0
Trilion Rupiah or Milion BOE

3.0 2465
2314 2500
Energy Elasticity
2,5
2.5 2179
2082
1964 2.0
2.2
2,0
2.0 2000
1.6
1,5
1.5 1.1 1500
1,0 0.8
1.0 0.7
0.6
0,3 1000
0,5
0.5
835.9 871.8
793.9 790.6 804
0,0
0.0 699.2 731.2 500
641.6 664
2007
2008
2009
2010
2011
2012
2013
2014
2015
Year
Energy Elasticity GDP (Trillion Rupiah) Energy Consumption (Million BOE)
Figure 3. Historical energy elasticity

Source: Handbook of Energy and Economy Statistic of Indonesia 2016
Aside from energy elasticity, the Government also use the term “energy intensity” which is
the total energy consumption per GDP. The historical energy intensity of Indonesia is
presented in Figure 4.
6
3,8
3.8
3.55
3,6
3.6 3.5
3.34
3,4
3.4
Energy Intensity (BoE per capita)
3.18 3.19
3,2
3.2
2.98
3
3.0
2.84 2.86
2.77 2.75
2.8
2,8 2.72 2.72
2.64
2.56
2.6
2,6 2.5
2.47
2.4
2,4
2.2
2,2
2.0
2
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2015
2012*
2013*
2014*
Year
Figure 4. Historical energy intensity

Source: Handbook of Energy and Economy Statistic of Indonesia 2016
7
3. NATIONAL ELECTRIFICATION SYSTEM CONDITION

4.
The Ministry of ESDM’s principle of energy equity is focused on providing equal access
to energy throughout Indonesia through infrastructure development. The regulations
underlying the development of energy infrastructure are formulated by considering
the electrification distribution that is still centralized within the Western part of
Indonesia. Therefore, the development of energy infrastructure will be focused on the
Eastern part of Indonesia where the electrification ratio is still considerably low. This
section provides an insight on Indonesia’s national electrification system condition.
Table 2. Electrification ratio per province

Household Household No. of Electrification
Appliances Appliances Household ratio
PROVINCE (PLN) (Non-PLN) (x1000) (%)
(a) (b) (c) (a+b)/c*100%

Aceh 1,117,644 7,013 1,186,781 94.77
North
2,969,104 68,405 3,260,881 93.15
Sumatera
West Sumatera 1,019,650 8,251 1,235,451 83.20
Riau 1,094,868 262,454 1,521,790 89.19
Riau Isl. 368,116 13,544 519,053 73.53
South
1,521,598 54,959 1,959,939 80.44
Sumatera
Jambi 668,488 54,828 847,813 85.32
Bengkulu 405,220 7,765 473,089 87.30
Bangka
342,916 6,137 349,170 99.97
Belitung
Lampung 1,654,630 93,682 2,063,818 84.71
Jakarta 2,471,231 84 2,477,315 99.76
Banten 2,954,911 9,759 3,099,937 95.64
West Java 11,689,345 64,956 12,469,059 94.27
Central Java 8,282,146 10,602 9,077,494 91.36
Yogyakarta 951,582 1,130 1,104,401 86.27
East Java 9,318,882 8,560 10,759,136 86.69
Bali 975,075 3,688 1,097,405 89.19
8
West Nusa
965,046 14,275 1,345,867 72.77
Tenggara
East Nusa
579,969 69,957 1,108,326 58.64
Tenggara
West
832,735 85,522 1,114,599 82.38
Kalimantan
Central
403,361 45,886 646,043 69.54
Kalimantan
South
923,096 7,826 1,072,831 86.77
Kalimantan
East
728,280 81,611 848,820 95.41
Kalimantan
North
98,896 10,186 148,448 73.48
Kalimantan
North Sulawesi 542,385 8,786 618,132 89.17
Central
489,587 49,285 677,310 79.56
Sulawesi
South Sulawesi 1,655,019 75,181 1,959,479 88.30
South East
349,561 37,376 562,066 68.84
Sulawesi
West Sulawesi 164,016 56,058 286,143 76.91
Gorontalo 197,187 13,274 265,794 79.18
Maluku 261,961 33,301 348,184 84.80
North Maluku 172,269 54,391 239,958 94.46
West Papua 290,328 45,898 732,033 45.93
Papua 146,158 13,158 192,632 82.70
TOTAL 56,605,260 1,377,788 65,669,197 88.30
Source: Statistik Ketenagalistrikan 2016, DGE MESDM
9
Table 3. Rural electrification ratio per province

No. of No. of electrified village
PROVINCE
Village Village Percentage %
Aceh 6,512 6,501 99.83
North Sumatera 6,104 6,068 99.41
West Sumatera 1,145 1,143 99.83
Riau 1,835 1,834 99.95
Riau Isl. 415 415 100.00
South Sumatera 3,237 3,237 100.00
Jambi 1,551 1,548 99.81
Bengkulu 1,532 1,522 99.35
Bangka Belitung 381 381 100.00
Lampung 2,632 2,632 100.00
Jakarta 267 267 100.00
Banten 1,551 1,551 100.00
West Java 5,962 5,962 100.00
Central Java 8,578 8,578 100.00
DI, Yogyakarta 438 438 100.00
East Java 8,502 8,502 100.00
Bali 716 716 100.00
West Nusa Tenggara 1,141 1,138 99.74
East Nusa Tenggara 3,270 3,250 99.39
West Kalimantan 2,109 2,094 99.29
Central Kalimantan 1,569 1,568 99.94
South Kalimantan 2,008 2,002 99.70
East Kalimantan 1,026 1,026 100.00
North Kalimantan 479 472 98.54
North Sulawesi 1,836 1,836 100.00
Central Sulawesi 1,986 1,985 99.95
South Sulawesi 3,030 3,028 99.93
South East Sulawesi 2,272 2,261 99.52
West Sulawesi 648 647 99.85
Gorontalo 736 736 100.00
Maluku 1,088 1,076 98.90
North Maluku 1,196 1,195 99.92
West Papua 1,567 1,305 83.28
Papua 4,871 2,757 56.60
TOTAL 82,190 79,671 96.94
Source: Statistik Ketenagalistrikan 2016, DGE MESDM
10
Figure 5. National operating system reserve condition

Source: DGE, MESDM, December 2016
11
Regulation
In NRE Investment
RE INVESTMENT REGULATION
12
1. RE INVESTMENT REGULATION LIST

2.
The Government’s plan in developing electrical infrastructure by utilizing renewable
resources in Indonesia is inseparable from the participation of the private sector. The
Government, in this case DGEBTKE, cooperates with relevant ministries in drafting the rules
underlying the development activities and renewable energy investment in general. These
regulations are structured in such a way as to achieve an energy-sustaining Indonesia with
the concept of energy equity.
Table 4. EBTKE regulations in general
Government Regulations
No. Year Topic Notes
79 2014 KEN
18 2015 Income tax facilities for investment in certain Hydrogen, coalbed
business fields and / or in certain areas methane, liquefied
coal, gasified coal,
geothermal, hydro,
solar, wind, and tidal
Presidential Regulations
4 2010 Assignment to PT. PLN to accelerate power
plant development using EBT, coal, and gas
22 2017 RUEN
Minister of ESDM Regulations
38 2016 Acceleration of electrification in borders, Solar, wind, hydro,
underdeveloped and isolated rural areas, biomass, biogas,
and small populated island through the waste to energy,
implementation of small-scale power supply geothermal, nuclear,
hydrogen, coalbed
methane, liquefied
coal, and gasified
coal
03 2017 Operational guidance for the Microhydro, solar, and
implementation of physical special household biogas
allocation funds for the assignment of small-
scale energy sector
10 2017 Principal of the power purchase agreement Geothermal, hydro (>
10 MW), and biomass
13
39 2017 Implementation of physical activity of new, Solar, minihydro,

renewable energy and energy conservation microhydro, wind,
utilization biomass, biogas,
waste to energy,
biofuel, and others
48 2017 Supervision of business activities in the energy Geothermal and
and mineral resources sectors biofuel
49 2017 Amendment to ESDM Minister's regulation No.
10/2017 on the principal of the power
purchase agreement
50 2017 Renewable energy sources utilization for Solar photovoltaic,
electricity provision wind, hydro,
minihydro, microhydro
biomass, biogas,
waste to energy,
geothermal, and
ocean
Minister of Industry Regulations
54 2012 Guidelines on the use of domestic local Hydro, geothermal,
content for the development of electricity solar, coal (including
infrastructure biomass)
05 2017 Amendment to Industrial Minister Regulations Solar
No. 54/2012
Minister of Internal Affair Regulation
96 2016 Payment of service availability within the
framework of cooperation between local
governments and business entities for the
provision of regional infrastructure
Table 5. Geothermal regulations
Constitution
No. Year Topic
21 2014 Geothermal
Government Regulations
9 2012 Types and tariffs on non-tax state revenue type applicable within
MESDM
28 2016 Value and procedure on geothermal production bonus allocation
14
7 2017 Geothermal for indirect utilization

11 2009 Operation of geothermal business activities
14 2015 The procedures for the imposition, collection, and payment of non-tax
state revenue derived from geothermal activities at the Directorate
General of new, renewable energy and energy conservation
44 2016 The form and procedure of placement and disbursement of
geothermal exploration commitments
14 2017 Delegation of authority to grant electricity business permit in the
framework of a one stop integrated services to the head of investment
board
21 2017 Management of mud and powder waste from geothermal drilling
23 2017 Tata cara rekonsiliasi, penyetoran, dan pelaporan bonus produksi
panas bumi
36 2017 Procedure of reconciling, depositing, and reporting of geothermal
production bonuses
37 2017 About geothermal working areas for indirect utilization
Minister of Finance Regulations
177 2007 Exemption of import duties on the imported goods for upstream oil, gas,
and geothermal activities
89 2015 Procedures for giving the income tax facility for investment in certain
business fields and / or in certain regions and assets transfer and
sanctions for taxable stock companies given facilities of income tax
107 2015 The fourth amendment to the regulation of the Minister of Finance
number 154/pmk/03/2010 concerning the collection of income tax
article 22 in connection with the payment of the delivery of goods and
activities in the field of import or business activity in other fields
142 2015 The treatment of value added tax and sales tax on luxury goods on
import of taxable goods exempted from import duty
268 2015 The procedure for granting facilities that is the exemption of the
imposition of value added tax on the import and / or delivery of certain
taxable goods of a strategic nature and the procedure of payment of
certain taxable value added taxable goods which have been
exempted and the imposition of sanctions
172 2016 Reduction of property tax on mining sector for geothermal utilization
activity at the exploration stage
15
Table 6. Solar photovoltaic regulations

No. Year Topic
33 2017 Procedures for providing energy-efficient solar lamps for people who
do not have access to electricity
Minister of Industry Regulations
04 2017 Provisions and procedures for the assessment of the domestic local
content level for solar power generation
Table 7. Bioenergy regulations

No. Year Topic
32 2008 Provision, utilization and administration of biofuels as alternative fuels
25 2013 The first amandment of the Minister of ESDM Regulation No. 32/2008
20 2014 The second amandment of the Minister of ESDM Regulation No.
32/2008
12 2015 The third amandment of the Minister of ESDM Regulation No. 32/2008
26 2016 Provision and utilization of biodiesel-based fuels in the framework of
financing by the palm oil plantation fund management body
Minister of ESDM Decree
2026K 2017 Biofuel market price index for June 2017
Table 8. Energy conservation regulations

No. Year Topic
14 2012 Energy management
13 2012 Electricity consumption savings
14 2016 Implementation of energy service company
16
2. INVESTMENT THROUGH IPP SCHEME

3.
Private sector, in this case acts as the Independent Power Producer (IPP), is able to invest
in renewable energy through the regulations that are already issued by the Government.
Minister of ESDM Regulation No. 50/2017 regulates electricity purchase price and
investment mechanism for various RE commodity.
2.1 Electricity purchase price
Electricity produced by IPP will be purchased by PT. PLN as the state owned company that
is responsible in providing electricity transmission and distribution to public. Therefore, IPP’s
electricity price refers to the local Electricity Production Price (EPP) released by PT. PLN that
has been established by the Minister of ESDM. The regulation stated that electricity
benchmark price will be different for regions with local EPP (EPP L) lower than national EPP
(EPPn) and regions with EPPL higher than EPPn. The detail of this regulation is presented in this
matrix.
Table 9. RE purchase price matrix
Energy Benchmark price

Mechanism/notes
source EPPL > EPPn EPPL ≤ EPPn
 Developer has to own GWA
Negotiation between
Geothermal Max 100% BPPL  Pattern: BOOT
Stakeholders
 Component E: B to B
Negotiation between  Pattern: BOOT
Hydro Max 100% BPPL
Stakeholders  Component E: B to B
Negotiation between
Waste Max 100% BPPL  Component E: B to B
Stakeholders
Solar  Direct selection based on

Negotiation between capacity quota
Max 85% BPPL
Stakeholders  Pattern: BOOT
Wind  Component E: B to B
Biomass  Developer has to own

Negotiation between feedstock source
Max 85% BPPL
Stakeholders  Pattern: BOOT
Biogas  E Component: B to B
Negotiation between  Pattern: BOOT
Ocean Max 85% BPPL
Stakeholders  Component E: B to B
17
PT. PLN had released the regional EPP list for 2016 which is established by the Minister
through the Minister of ESDM Decree No.1404 K/20/MEM/2017. This price list is provided in
the table below. Along with electricity pricing, this table also provides regional existing grid
characteristic with respect to the RE penetration at each region. The benchmark of current
electricity purchase price is based on the EPP of the previous year. Monthly actual EPP can
be obtained from PT. PLN (limited).
Table 10. Regional EPP and grid capacity
EPP/kWh Capacity Peak RE

Region / Distribution / EPP/kWh
NO load Penetra
System / Sub System (Rp.) (US ) (MW)
(MW) tion (%)
A SUMATERA 1,194 8.89
1 NORTHERN SUMATERA
A. ACEH 1,383 10.39 601.1 494 1

a.1 Put au Weh 1,733 13.02
a.2 Put au Simeuleu 1,817 13.65
B. NORTH SUMATERA 1,235 9.28 3,300.5 1,732 19
b.1 Nias 2,049 15.4

CENTRAL & SOUTHERN
2
SUMATERA
A. WEST SUMATRA 1,074 8.07 804.9 572 43
a.1 Mentawai isl. 2,096 15.75
B. RIAU & RIAU ISL. 1,349 10.14 1,178.2 918 13
b.1 Bintan 1,583 11.9
b.2 Tanjung Balai Karimun 1,706 12.82
b.3 Natuna 2,089 15.70 17 14.7 0

b.4 Anambas 2,149 16.15
C. S2JB (SOUTH SUMATRA,
1,046 7.86 2,993.9 1,640 8
JAMBI, BENGKULU)
c.1 Enggano isl. 2,322 17.45
D. LAMPUNG 1,034 7.77 991.1 858 29
3 BANGKA 1,817 13.66 378.6 181 4

4 BELITUNG 1,619 12.17 378.6 181 4
18
5 OTHER SMALL SUB SYSTEMS 2,096 15.75
B JAWA BALI 868 6.52

1 JAKARTA 867 6.51 3,691 5,951.4 0
a. Kepulauan Seribu (Non Sea
2,332 17.52
Cable Connection Jawa Bali)
2 BANTEN 866 6.51 6,310 3,165.6 0
a Panjang Isl. 2,332 17.52
3 WEST JAVA 866 6.51 8,177.5 6,651 37
4 CENTRAL JAVA 866 6.52 5,625 6

a Karimun Jawa 2,332 17.52
5 EAST JAVA 870 6.54 9,475 5,263 3
a Madura Isolated 2,332 17.52

b Bawean 1,964 14.76
c Gili Ketapang 2,332 17.52
6 BALI 881 6.62 998 860 0

a 3 Nusa System (Nusa
Penida, Nusa Lembongan, 1,745 13.11
Nusa Ceningan)
C KALIMANTAN 1,373 10.31
1 WEST KALIMANTAN 1,655 12.43 585 430 0

SOUTH & CENTRAL
2 1,203 9.04 895.6 754.9 3
KALIMANTAN
EAST & SOUTH EAST
3 1,357 10.2 940.4 553.1 1
KALIMANTAN
D SULAWESI & NUSA TENGGARA 1,421 10.68

NORTH & CENTRAL SULAWESI &
1 1,696 12.75 1,161.1 586.5 35
GORONTALO
a Nothern Sulawesi
1,669 12.54
(Manado, Gorontalo)
b Toli - Toli 2,026 15.22 24 7
19
c Tahuna 2332 17.52 14.1 7.8 8
d Palu (Grid Sulbagsel) 1,016 7.63

e Luwuk 1,759 13.22 32.7 27
SOUTH, SOUTH EAST, & WEST
2 1,078 8.1 1,599.87 1,123.6 29
SULAWESI
a Southern Sulawesi 1,016 7.63
b Kendari 1,801 13.53 112.2 83.3 0
c Bau - Bau 2,137 16.06 36.5 26.7 0
d Selayar 2,114 15.88 10.1 6.3 0

3 WEST NUSA TENGGARA 1,821 13.68 445.9 310.8 1
a Bima 1,880 14.12 46.72 43.75 0

b Lombok 1,629 12.24 335.54 222.8 0
c Sumbawa 1,978 14.87 57.59 40.73 0
4 EAST NUSA TENGGARA 2,332 17.52 392.6 176 26
a Sumba 1,887 14.18
b Timor 2,226 16.73

c Western Flores 1,751 13.16
d Eastern Flores 2,070 15.55
E MALUKU & PAPUA 2,008 15.09

1 MALUKU & NORTH MALUKU 2,305 17.32 235.1 145.8 0
a Ambon 1,680 12.62 88.3 53 0

b Seram 2,330 17.51
c Saparua 1,626 12.22 3.2 1.5 0

d Buru 1,728 12.98
e Ternate - Tidore 1,971 14.81 40 32 0

f Sanana 1,881 13.61 3.2 2.5 0
g Bacan 1,881 13.61 5.6 4.8 0
h Halmahera (Tobelo,
1,685 12.67 30.2 17.8 0
Malifut, Jailolo, Sofifi, Maba)
20
i Daruba 1,587 11.93 4.7 58.6 0
j Tual 1,657 12.45 13.8 7.6 0

k Dobo 2,063 15.5 4 3.1 0
l Saumiaki 1,686 12.67 8.5 2.8 0

2 PAPUA & WEST PAPUA 1,802 13.54 414.8 216.1 13
a Jayapura 1,959 14.72 153.5 69 0

b Sarmi 2,332 17.52
c Biak 1,753 13.17 21.9 10.7 0

d Serui 1,778 13.36 8.5 4.5 0
e Nabire 7,604 12.06 23.5 13.4 0

f Wamena 2,332 17.52 9.6 4.5 100
g Timika 1,786 13.42 28 18.9 0
h Merauke 1,704 12.8 18.2 16.4 0
i Tanah Merah 1,704 12.8 0
j Manokwari 1,760 13.23 31.6 15.5 0
k Sorong 1,305 9.81 57.2 36.9 0
l Teminabuan 2,332 17.52 3.6 1.3 0

m Fak - Fak 2,332 17.52 6.6 4.5 100
n Kaimana 2,332 17.52 7 2.8 0
o Bintuni 2,332 17.52 7 3 0
p Raja Ampat 2,332 17.52
AVERAGE 983 7.39
21
2.2 Investment flow for various RE power plants
In accordance with the Minister of ESDM Regulation No. 50/2017 and company regulations
from PT. PLN, The procurement mechanism of RE power plants is divided into several
categories. This categorization is organized by the power plant’s type and generating
capacity. The detail on procurement mechanism distribution is presented at the table
below.
Table 11. RE power plants procurement mechanism matrix
Regional PLN Distribution Unit Central PLN
Power Plant Capacity Power Plant Capacity
Hydro ≤ 10 MW Hydro > 10 MW
Biomass ≤ 10 MW Biomass > 10 MW
Biogas ≤ 10 MW Biogas > 10 MW
Solar PV ≤ 10 MW Solar PV > 10 MW
Wind ≤ 10 MW Wind > 10 MW
Geothermal All Capacity
Waste All Capacity
Ocean All Capacity
Hybrid All Capacity
New Energy
(Gasified Coal,
All Capacity
Liquified Coal,
Nuclear, etc)
Within the procurement scheme through direct election, PT. PLN will invite PPD (Power Plant
Developer) candidates who are in the LSP (List of Selected Providers) to follow the election
process. Below we will explain the qualification process of LSP.
22
List of Selected Provider (LSP) Qualification Procedure
Company Document Submission

@ IPP to BKPM
Qualification Announcement
@ Central/Regional PT. PLN
Registration & Qualification

Document Pickup
@ IPP
Qualification Explanation Meeting

Application Document Submission

@ IPP
Requirements:
 General Information
Qualification Evaluation & Due  Administrative Requirements
Dilligence  Technical Requirements
@ Central/Regional PT. PLN  Financial Requirements
 Others
Qualification Result Announcement

Pre-qualification criteria for LSP

Refute Period
@ Central/Regional PT. PLN Administration 10 %
Business & Corporate
15 %
Organization
Qualification Result Ratification Technical Experience &
30 %
@ Central/Regional PT. PLN Service Support
Financial Capability 45 %
LSP requirement score ≥ 70

LIST OF SELECTED PROVIDERS
23
Direct Selection Mechanism by PT. PLN
Invitation for prospective PPD

from the LSP
RFP Document Pickup

@ IPP
Explanation Meeting
RFP Document Preparation

@ IPP
RFP Application Evaluation &

Clarification
Best Price Evaluation & Winner

Announcement
Refute Period
Requirements:
FS & IS Document Preparation
 Company profile
@ IPP
 Feasibility Study (FS)
 Interconnection Study (IS)
FS & IS Document Evaluation  Licenses
@ Central/Regional PT. PLN  Environment assessment
 Technical & financial ability
 Performance deposit 10%
PPD Establishment & PPA  Business License for Electricity
Signature  Others
@ IPP & Central/Regional PT. PLN
24
Geothermal electricity purchase procedure from tendering process
GWA Tender
@ DGEBTKE
Ranking & Winner

Establishment
@ DGEBTKE
Issuance of Geothermal
License
@ DGEBTKE
Assignment of Electricity
Purchasing to PT. PLN
@ DGEBTKE
HoA Signature During the

Exploration Period
@ IPP & DGEBTKE
Exploration Result & Purchase

Price Discussion
@ IPP & PT. PLN Central
Approval of Minister of ESDM

@ DGEBTKE
Requirements:
 Company profile
 Feasibility Study (FS)
PPA Signature
 Interconnection Study (IS)
@ IPP & PT. PLN Central
 Licenses
 Environment assessment
Financial Close  Technical & financial ability
@ IPP  Performance deposit 10%
 Business License for Electricity
Procurement & COD  Others
@ IPP
25
2.3 Licensing in BKPM
Several licenses concerning investment are available in Central BKPM (Badan Koordinasi
Penanaman Modal or Investment Coordination Board). Types of licenses that are
accommodated by BKPM are listed as follows:
1. Preliminary Company Document

 Investment License
 Deed of Establishment and Approval
 Tax Registration Number
 Certificate of Company Registration
 The Foreign Workers Recruitment Plan
 Work Permit
 Importer Identification Number
 Customs Registration Number
 Letter on Land Availability Information
2. Temporary Business License for Electricity

Publishing period: 20 working days or 3 hours using one stop integrated services with
the presence of the Director of the Company in Central BKPM office.
3. Business License for Electricity

Publishing period: 30 working days after application document is properly received
and meets the requirements
4. Operational License
and validated based on inspections and tests.
5. Determination of Business Area

and validated.
6. Business License for Electricity Support Services

and validated.
26
7. Assignment of Geothermal Preliminary Survey (AGPS)

Publishing period: Evaluation period is 15 working days after application document
is properly received and validated. AGPS decree will be issued after the approval of
AGPS proposals based on evaluation
8. Approval of Geothermal Supporting Business

Publishing period: Geothermal registration certificate, 7 working days after
application document is properly received and validated.
9. Permission for the Use of Geothermal Explosive Material Warehouse

and validated.
Application forms and the detail of the 3 hours licensing services for energy sector are
presented in the Minister of ESDM Regulation No.15/2016 and its amendment in Minister of
ESDM Regulation No.13/2017.
2.4 Investment Agreement
Power purchase agreement (PPA) is signed by both IPP/developer and PT. PLN as the state
owned company that is responsible to purchase IPP’s electricity production. The principles
of this PPA are elaborated in the Minister of ESDM Regulation No. 10/2017 and No. 49/2017
which regulates commercial aspects for various RE power plant including:
1. PPA can be valid until 30 years;

2. Transaction forms:
Delivery or pay: If the IPP cannot afford the electricity distribution according to
the agreed capacity due to the IPP’s fault, then the IPP will be penalized.
Take or pay: If PT. PLN cannot afford to absorb electricity with the capacity that
has been agreed in PPA because of PT. PLN’s error, then PT. PLN must pay a
penalty to the IPP for a certain period. The amount of the penalty is set
proportionally according to the investment component.
3. Agreement between IPP and PT. PLN regarding component E can be established.
Component E is the component of transmission costs from power plants to PT.
PLN’s substations. This Agreement can be arranged in the PPA for Component E.
Dynamic information regarding development planning, pre-feasibility study, and PPA

model will be provided by PT. PLN according to their respective jurisdiction.
27
3. INVESTMENT THROUGH STATE OWNED BUDGET SCHEME
Indonesia’s state owned budget (SOB) for RE sector is managed by The Ministry of ESDM
through DGEBTKE. This budget is allocated as the development capital at the regional
level. According to the Minister of ESDM Regulation No.39/2017, physical activity related to
NRE development through SOB is energy utilization activity, both directly and indirectly from
NRE resources for electric and non-electric power generation as well as increasing energy
efficiency. The scope of physical activity of NRE and energy conservation utilization
includes the development, procurement and / or installation on:
a. Installation of electricity power generator from NRE resources;
b. Installation of Bioenergy based fuel (non-electric);
c. Energy efficient appliances;
d. Revitalization/rehabilitation of NRE and energy conservation utilization
installations; and/or
e. Physical activity of other NRE and energy conservation utilization
The procurement mechanism through the SOB scheme is shown in the following chart:
Application
The proposed activities are based on:
@ DGEBTKE
a. Application from the Provincial
Government to the Minister through
the Director General
Evaluation
b. National programs, Ministerial
@ DGEBTKE
programs or cooperation
agreements between Ministries
Establishment
@ DGEBTKE
The evaluation consists of:

Procurement a. Aministrational evaluation,
@ DGEBTKE application completeness check,
including the legality of signing
b. Technical evaluation, validation of
Handover conformity between proposal
@ Local Government documents and actual conditions in
the field
28
The detail of NRE and energy conservation infrastructure development through SOB
scheme:
1. Activity proposal:
Proposal from Local Government with the following requirements:

a. Written proposal by the Governor to the Ministry c.q. EBTKE Director General
b. Proposal with supporting documents including:
 Planning document;
 Statement letter including:
 The ability to receive and manage
 Willingness to provide training and assistance to the manager or
beneficiary
 Validity of all supporting documents submitted;
 Assigning a potential operator.
c. Special additional documents for:
 Electricity Supply Installation from NRE resources, including:
 Technical Design;
 Procurement timeline until operation;
 Statement of land availability for development, procurement and / or
installation;
 The statement of coordination with PT. PLN regarding the development
plan of power distribution network.
 Bioenergy based fuel (non-electric) procurement installation:
 Technical Design;
 Statement of land availability for development, procurement and / or
installation;
Proposals from Ministries / state institutions and working units within the Ministry based
on national program, Ministerial program, or cooperation agreements between
Ministries / other institutions. The respective working unit within the Ministry or state
institutions has to apply for proposal of Physical Activity of NRE and energy
conservation utilization to the Minister through the Director General.
2. Evaluation of proposals, including:

a. Administrative evaluation: Examination of proposal documents and checking its
completeness according to the requirements of the proposed activities.
b. Technical evaluation: Checking the conformity between supporting documents
and special additional documents submitted based on actual conditions in the
field accordingly
29
3. Establishment
The Director General on behalf of the Minister shall determine the Physical Activity of
NRE and Energy Conservation utilization in accordance with the availability of budget
of the Directorate General in the budget year prior to the procurement
implementation. This establishment is granted for the proposals that meet the
requirements after administrative and technical evaluation.
4. Procurement
The procurement of Physical Activity of NRE and Energy Conservation utilization shall
be conducted by the Directorate General in accordance with the provisions of
legislation in the field of Government goods / services procurement.
5. Handover
The Director General shall deliver the results of Physical Activity of NRE and Energy
Conservation utilization to the proposer as outlined in the Official Report on the
Handover of Physical Activity of NRE and Energy Conservation utilization. The result of
this physical activity shall be in good condition and in accordance with the provisions
of the legislation.
6. Power purchase transaction with PT.PLN

The operator of the Physical Activity Result can conduct electricity sale and purchase
transactions with license holders of electricity supply business, with the following tariff
Table 12. Electricity purchase price according to the SOB scheme

Purchase
No. Power Plant Type Price
(Rp./kWh)
1 Solar Power Plant 750
2 Minihydro & Microhydro Power Plant 500
3 Wind Power Plant 750
4 Biomass Power Plant 950
5 Biogas Power Plant 600
6 Municipal Solid Waste Power Plant 1,000
30
4. INVESTMENT THROUGH SPECIAL ALLOCATED BUDGET

4.
Special Allocated Budget is provided for local governments to build small-scale renewable
energy power plants to increase electrification ratio and accelerate economic
development especially in remote areas. Technical guidance for Special Allocated Budget
shall be regulated in the Minister of ESDM Regulation No. 03/2017. Special Allocated
Budget’s main objectives are:
1. The development of NRE including:

a. Electricity provisions from off grid minihydro or microhydro power plant with
the capacity of 1.5 MW;
b. Electricity provisions from centralized and/or decentralized solar power plant
with the total capacity of 2.1 MWp;
c. Biogas production of 2,000 m3/day;
d. Revitalization on off grid solar, minihydro, and microhydro power plants.
2. Rural electricity including:
a. Construction of grids and household connections to 195,000 household
targets;
b. Construction of 140 km low-voltage grids to distribute electricity to household
targets
Special Allocated Budget criteria:
1. For the development of NRE, including:

a. All eligible proposing regions / provinces that pass the technical assessment
results;
b. Proposal submitted through the Governor letter;
c. Low accessibility to modern energy;
d. Livestock pattern and potential that can be utilized as biogas fuel;
e. Public facilities that require electricity but are not yet included in the grid
connection planning;
f. The existence of NRE potential;
g. For minihydro and microhydro power plant development: each location
shall be equipped with planning documents (FS and DED);
h. For centralized solar power plant development: each location shall be
equipped with planning/design document;
i. For solar, minihydro, and microhydro power plant rehabilitation: each
location shall be equipped with technical document;
j. The existence of clarity regarding the use of land of Special Allocated Budget
recipient location;
31
k. The existence of clarity regarding potential users and beneficiaries of the

planned power plant.
2. For rural electricity, including:

a. Low-income communities living near low-voltage grids;
b. Location close to power distribution network.
Administrative document completeness for minihydro, microhydro, and solar power plant
includes:
1. Letter of proposal from the Governor;

2. Recapitulation of the number of recipients:
 Per District/City;
 Per Sub-District;
 Per Village/ Administrative Village.
3. Data of recipient (community) candidates:
 Name;
 Address;
 ID Number;
 Distance from existing grids.
4. For target household locations that are accompanied by the addition of low
voltage grid:
 Documents of understanding of joint operation cooperation with PT. PLN;
 Number of target households to be electrified by the addition of grids.
Administrative document completeness for biogas provision includes:
1. Letter of proposal from the Governor;

2. Recapitulation attachment which consists of:
 Statement on the provision of land for development;
 List of potential recipients which consists of:
 Name, ID Number;
 Location up to village;
 data on raw material availability (number of livestock and breeding
pattern.
 Technical specification (digester type, capacity, number of unit);
 Budget Plan and data support per unit price;
 Photograph of location and biogas development plan;
 A brief study of socio-economic parameters;
All proposals are submitted via these following web: sinergi.ebtke.esdm.go.id
and e-planning.bappenas.go.id
32
Technical document completeness for Special Allocated Budget includes:
1. Details of the Budget per target household accompanied by Self-calculated

Price;
2. End Voltage at the receiving village location;
3. Coordinate point of rural electricity recipient village.
For additional grids:
1. Details of the Budget with Self-calculated Price;

2. Technical drawing of the grid extension planning;
3. Photos of connection point with the existing pole;
4. Local electricity condition;
5. The grid’s starting and end point coordinates.
33
5. INVESTMENT THROUGH LOCAL GOVERNMENT &

BUSINESS ENTITY COOPERATION (LGBEC) SCHEME
5.
The LGBEC scheme is a cooperation scheme between local Government, in this case
Provincial Government, and business entities on the provision of infrastructure for public
interest. Investment through LGBEC is regulated within the Minister of Internal Affair
Regulation No. 96/2016
According to this scheme, State Owed Enterprises, Regional Owed Enterprises, and private
business entities (in the form of limited liability company, foreign legal entity, and
cooperative) which won a tender or direct appointment may form a limited liability
company which is called the LGBEC Implementing Enterprise. The person in charge of the
cooperation project is the Head of District or Regional Owed Enterprise that provides or
organizes the infrastructure section. The payment of infrastructure services shall be based
on LGBEC agreement based on Local Regulations and Regional Head Regulations
concerning Regional Owned Budget. Stages of implementation of LGBEC include:
1st Stage – LGBEC Planning, consists of:
a. Preparation of LGBEC fund budget plan;

b. Identification and determination of LGBEC;
c. Budgeting of LGBEC planning stage;
d. Further decision-making on the sustainability of the LGBEC plans;
e. Preparation of the List of LGBEC Plans; and
f. LGBEC categorization.
2nd Stage – LGBEC Preparation, consists of:
a. Pre Feasibility Study (initial and final assessment of Pre Feasibility Study);
b. Stipulation of procedure for return of investment of Executing Enterprises;
c. Government Support Plan and / or Government Guarantee; and
d. Land acquisition for LGBEC.
3rd Stage – LGBEC Transaction, consists of:
a. Market Sounding;
b. Determination of LGBEC location;
c. Procurement of Executing Enterprise which covers the preparation and execution
of the Procurement Entity; (Pengadaan Badan Usaha Pelaksana yang
mencakup persiapan dan pelaksanaan pengadaan Badan Usaha Pelaksana
d. LGBCE agreement signing; and
34
e. Financial close within 12 months.
LGBEC planning documents which consist of preliminary study result (Outline Business
Case), Preparation study (Final Business Case), and Projection of payment calculation shall
further be submitted by the local Government (Governor/Regent/Mayor) to the Minister of
Internal Affair. Supports can be given by the central Government to LGBEC projects
including:
1. Project preparation support, Project Development Facility (PDF);

2. Fiscal contribution in the form of financial or Viability Gap Fund (VGF); and
3. Guarantee support.
35
6. INVESTMENT TRHOUGH RURAL ELECTRIFICATION SCHEME
Through the Minister of ESDM Regulation No. 38/2016, the Government provides
opportunities for enterprises in the provision of electricity and small-scale electricity
infrastructure (up to 50 MW) in remote, border, and underdeveloped rural areas as well as
small populated islands. The permitted RE sources include: nuclear, coal methane gas,
liquefied coal, gasified coal, geothermal, wind, bioenergy, solar, waterflow, waterfall, and
the movement and differences in sea layer temperature. This rural electrification scheme
consists of two types namely by utilizing subsidy funds and without utilizing subsidy funds.
Implementation stage:
1. The Governor proposes a Business Region after coordinating with PT. PLN to the
DGEBTKE
2. DGEBTKE on behalf of the Minister of ESDM stipulates Business Area
3. Selection of Business Entities (technical and financial ability of the Business Entity,
BPP of electricity, and electrification target)
4. Electricity Power Supply Business License by the Governor
5. DGEBTKE issues assignment of electricity supply to the proposed Business Entity
Business Liability:
1. Prioritize and comply with the minimum level of use of domestic goods and / or
services
2. Create a business plan in accordance with the laws and regulations
3. Striving to achieve an electrification ratio of at least 95% within 5 years after being
assigned
4. Build electricity infrastructure no later than 1 year after receiving the assignment
5. Provide electricity along with its distribution grid and report on business activities of
the electricity supply every 6 months to the DGEBTKE
36
Electricity purchase price:
The Electricity tariff for the subsidy scheme uses the electricity tariff of PT. PLN for household
consumer group with 450 VA installed power as a benchmark. The amount of electricity
subsidy is determined by the following calculation:
𝑺 = −(𝑻 − 𝑬𝑷𝑷(𝟏 + 𝑴)) 𝒙 𝑽
S = Electricity subsidy
T = Electricity tariff for household consumer group with 450 VA installed power
released by PT. PLN (Rp/kWh)
EPP = Low voltage electricity purchase price (Rp/kWh)
M = Margin (%) which is determined by the Director General of EBTKE based on the
business area’s geographical condition
V = Volume of electrical energy usage per unit of connection per month
Electricity tariffs in non-subsidized schemes shall be stipulated by the Minister or the

Governor based on their authority or in accordance with the tariff of electric power of PT.
PLN.
37
RE Commodity
Geothermal
RE COMMODITY:
GEOTHERMAL
38
Indonesia which is located around the Equator area and bypassed by the ring of fire has
an enormous geothermal potential. Based on a survey conducted by the Geological
Agency and the Ministry of ESDM, Indonesia has a total geothermal resource potential of
more than 11 GW and geothermal reserves of more than 17 GW. Currently, only 1,698 MW
out of those number has been utilized. Of the 23% of renewable energy mix target by 2025,
geothermal is targeted to contribute at least 16% or 7.2 GW. To achieve this target, the
government has set a roadmap for geothermal development until 2025.
Until mid-2017, Indonesia was listed as the 3rd country with the largest geothermal utilization
in the world after United States (3,450 MW) and the Philippines (1,870 MW). Considering the
abundant potential and geothermal exploitation that has been done since 1980, the
Ministry of ESDM targets to increase geothermal utilization as Indonesia’s local wisdom to
surpass the Philippines by 2018 with an installed capacity of 2,023.5 MW and the United
States by 2021 with an installed capacity of 3,559.5 MW. This section will discuss the
potential, existing condition, government plan, geothermal investment flow, and
breakthrough from the government regulation side to support the acceleration of
geothermal sector’s development.
1. POTENTIAL
Table 13. Geothermal potential (MW)
Resource Reserve
Province Total
Speculative Hypothetic Total ExpectedPossible Proven
West Java 1,225 934 2,159 1,687 543 1,535 3,765
North Sumatera 300 134 434 1,996 - 320 2,316
Central Java 130 387 517 949 115 280 1,344
Lampung 600 643 1,243 1,319 - 20 1,339
West Sumatera 532 269 801 1,035 - - 1,035
East Java 105 257 362 1,012 - - 1,012
South Sumatera 273 645 918 964 - - 964
Bengkulu 357 223 580 780 - - 780
North Sulawesi 55 73 128 540 150 78 768
39
East Nusa
226 403 629 748 - 15 763
Tenggara
Jambi 348 74 422 566 15 40 621
North Maluku 190 7 197 580 - - 580
Central Sulawesi 349 36 385 368 - - 368
Banten 100 161 261 365 - - 365
Aceh 640 340 980 332 - - 332
Bali 70 22 92 262 - - 262
Maluku 370 84 454 220 - - 220

West Nusa
- 6 6 169 - - 169
Tenggara
South Sulawesi 172 120 292 163 - - 163
West Sulawesi 316 53 369 162 - - 162
Gorontalo 129 11 140 110 - - 110

South East
200 25 225 98 - - 98
Sulawesi
Yogyakarta - - - 10 - - 10
Bangka Belitung 100 6 106 - - - -
West Papua 75 - 75 - - - -
West Kalimantan 65 - 65 - - - -
South
50 - 50 - - - -
Kalimantan
North
20 30 50 - - - -
Kalimantan
Riau 41 - 41 - - - -
East Kalimantan 18 - 18 - - - -
TOTAL 7,056 4,943 11,999 14,435 823 2,288 17,546

40
2. INSTALLED CAPACITY
Indonesia has a lot of promising geothermal potential to be developed further, therefore

the opportunities to invest are wide open. The Government of Indonesia has set as many
as 70 Geothermal Working Areas (GWA) consisting of:
 10 GWAs are operating commercially
 29 GWAs are in the middle of exploration or exploitation period
 1 GWA is in the process of Geothermal License issuance;
 30 GWAs are in preparation for auction and assignment
Table 14. Installed capacity of operating geothermal power plants
Capacity
No GWA Location Name Developer
(MW)
Sibayak- North PT. Pertamina
1 Sibayak 12
Sinabung Sumatera Geothermal Energy
Star Energy
Cibereum
2 West Java Salak Geothermal Salak 377
Parabakti
Ltd
Ulubelu- PT. Pertamina
3 Lampung Ulubelu 220
Way Panas Geothermal Energy
Dataran
Central
4 Tinggi Dieng PT. Geo Dipa Energy 60
Java
Dieng
Star Energy
Wayang
Pangaleng Geothermal 227
5 West Java Windu
an Wayang Windu Ltd.
Patuha PT. Geo Dipa Energy 55
PT. Pertamina
Kamojang 235
Geothermal Energy
Kamojang
6 West Java Star Energy
Darajat
Darajat Geothermal Salak 270
Ltd I
Lahendong North PT. Pertamina
7 Lahendong 120
-Tompaso Sulawesi Geothermal Energy
East Nusa
8 Ulumbu Ulumbu PT. PLN 10
Tenggara
41
East Nusa
9 Mataloko Mataloko PT. PLN 2,5
Tenggara
North
10 Sibual-Buali Sarulla Sarulla Operation Ltd. 110
Sumatera
TOTAL 1,698.5
Source: Geothermal Directorate, June 2017
Table 15. GWAs in exploitation stage
Potential
No GWA Location Plan (MW) Developer
(MW)
PT. Pertamina
1 Sungai Penuh Jambi 208 145
Geothermal Energy
Tambang PT .Pertamina
2 Bengkulu 873 340
Sawah Hululais Geothermal Energy
Marga Bayur - South PT. Pertamina
3 1.066 285
Lumut Balai Sumatera Geothermal Energy
Karaha West PT .Pertamina
4 725 50
Cakrabuana Java Geothermal Energy
Buyan Bratan
5 Bali 276 65 Bali Energy Ltd.
Bedugul
West
6 Cibuni 140 10 KJK Teknosa
Java
7 Tulehu Maluku 100 20 PT. PLN
Liki
West PT. Supreme Energy
8 Pinangawan 400 220
Sumatera Muaralaboh
Muaralaboh
42
Table 16. GWAs in exploration stage
Potential Plan
No GWA Location Developer
(MW) (MW)
PT. Bakrie Darmakarya
1 Telaga Ngebel East Java 120 165
Energi
PT. Sabang
2 Jaboi Aceh 50 10
Geothermal Energi
East Nusa PT. Sokoria Geothermal
3 Sokoria 30 30
Tenggara Indonesia
PT. Medco Cahaya
4 Blawan Ijen East Java 270 110
Geothermal
Sorik Marapi-
North PT. Sorik Marapi
5 Roburan- 200 240
Sumatera Geothermal Power
Sampuraga
Kaldera Danau PT. Synthesa Banten
6 Banten 115 110
Banten Geothermal
PT. Supreme Energy
7 Gn. Rajabasa Lampung 91 220
Rajabasa
South PT. Supreme Energy
8 Rantau Dedap 106 220
Sumatera Rantau Dedap
Central PT. Sejahtera Alam
9 Baturaden 175 180
Java Energy
Central PT. Spring Energy
10 Guci 79 55
Java Sentosa
Central
11 Gn. Ungaran 100 55 PT. Giri Indah Sejahtera
Java
Cisolok West PT. Jabar Rekind
12 45 45
Cisukarame Java Geothermal
East Java
PT. Pertamina
and
13 Gunung Lawu 195 110 Geothermal Energy
Central
Lawu
Java
PT. Enel Green Power
14 Way Ratai Lampung 150 55
Optima Way Ratai
Gunung West
15 65 20 PT. Hitay Daya Energy
Talang-Bukit Kili Sumatera
Candi Umbul Central
16 72 55 PT. Geo Dipa Energy
Telomoyo Java
Tangkuban West
17 100 60 PT. PLN
Perahu Java
43
East Nusa
18 Atedai 40 10 PT. PLN
Tenggara
North
19 Songa Wayaua 140 10 PT. PLN
Maluku
Gunung West PT. Wijaya Karya Jabar
20 50 45
Tampomas Java Power
Gunung Arjuna West
21 185 110 PT. Geo Dipa Energy
Welirang Java
Table 17. GWA in process and preparation for assignment/tender
Potential
No GWA Location Plan (MW) COD
(MW)
1 Jailolo North Maluku 75 20 2025
2 Sekincau Lampung 230 220 2025
3 Kotamobagu North Sulawesi 410 80 2025
4 Iyang Argapuro East Java 295 55 2025
5 Kepahiang Bengkulu 180 110 2025

Simbolon
6 North Sumatera 150 110 2025
Samosir
7 Bora Pulu Central Sulawesi 123 40 2025
8 Graho Nyabu Jambi 200 110 2025

Gn. Gede
9 West Java 85 55 2025
Pangrango
10 Gn. Endut Banten 80 40 2025
11 Gn. Ciremai West Java 150 110 2025

Gn.
12 Aceh 130 55 2025
Geureudong
Gn.
13 West Java 160 110 2025
Galunggung
14 Lainea South East Sulawesi 60 20 2025
15 Tanjung Sakti Bengkulu 70 55 2025

South Sumatera and
16 Danau Ranau 210 40 2022
Lampung
44
17 Sembalun West Nusa Tenggara 100 20 2025
18 Suwawa Gorontalo 110 20 2024
19 Bonjol West Sumatera 200 60 2025
20 Marana Central Sulawesi 36 20 2025
21 Telaga Ranu North Maluku 85 5 2025
22 Gn. Hamiding North Maluku 265 20 2025
23 Oka Ile Ange East Nusa Tenggara 40 10 2024
24 Gn. Wilis East Java 50 20 2025

Sipaholon Ria-
25 North Sumatera 75 20 2023
ria
26 Gn. Pandan East Java 60 40 2025
27 Songgoriti East Java 35 20 2025
28 Hu’u Daha West Nusa Tenggara 65 20 2025
29 Gn. Sirung East Nusa Tenggara 125 5 2025
30 Wapsalit Maluku 26 - -
45
Figure 6. Planning map of 70 GWA development

Source: Geological Agency & Directorate of Geothermal , July 2017
46
3. GOVERNMENT TARGET AND PLANNING
Table 18. Development planning for geothermal energy until 2025 (MW)
No Province 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1 West Java 1,194 1,194 1,194 1,269 1,449 1,569 1,767 1,767 1,917 1,972
2 Lampung 165 220 220 220 220 220 275 495 605 825
North
3 122 232 342 347 507 587 587 587 717 717
Sumatera
Central
4 60 70 70 80 140 200 420 640 710 710
Java
5 East Java - - - - 55 165 165 220 440 520
6 Bengkulu - - 55 110 140 140 255 255 340 505
South
7 - 55 110 110 201 201 256 371 371 505
Sumatera
West
8 - - - 80 80 80 100 100 300 300
Sumatera
North
9 100 125 130 150 150 170 170 170 210 250
Sulawesi
10 Aceh - - - 10 10 10 65 65 120 230
11 Jambi - - - 55 60 115 115 145 145 200
12 Banten - - - - - - 110 110 150 150
East Nusa
13 12.5 12.5 12.5 42.5 77.5 82.5 92.5 102.5 102.5 117.5
Tenggara
North
14 - - - - - - 20 20 55 70
Maluku
Central
15 - - - - - - - - - 60
Sulawesi
West Nusa
16 - - - - - - - - 20 40
Tenggara
South East
17 - - - - - - - - - 20
Sulawesi
18 Gorontalo - - - - - - - - 20 20
19 Maluku - - - 20 20 20 20 20 20 20
20 Bali - - - - - - - - - 10
Total
1,653.5 1,908.5 2,133.5 2,493.5 3,109.5 3,559.5 4,417.5 5,067.5 6,242.5 7,241.5
Capacity
Total
215 255 225 360 616 450 858 650 1,175 999
Additional
47
4. INVESTMENT FLOW
Table 19. Geothermal investment flow through GWA tender scheme
No. Entity Activity Notes

BKPM & Ministry of
Administration & Approval of
1 Law and Human
Capital Investment Permit
Rights
GWA Tender and the Geothermal
2 MESDM - DGEBTKE
License issuance
Electricity Supply Establishment
3 PT. PLN Letter Issuance for Prospective
Developer
Temporary Electricity Power Supply Estimated duration:

4 BKPM
Business License (EPSBL) Issuance 3 hours
Location permit
Estimated duration
Regional Environmental permit (UKL/UPL)*
5 for location permit:
Government Hinder Ordonantie
14 working days
Building permit
Ministry of Public
Permit for Water Resources Estimated duration:
6 Works and Human
Management, SIPA issuance 7 working days
Settlements
Estimated duration:
Forest Lease Permit for Protected / 52 working days
Ministry of Production Forest
7 Environment and
Forestry Permit for Utilization of Geothermal 56 working days
Environment Services for
Conservation Forest
8 Developer Exploration
Feasibility Study and

9 MESDM - DGEBTKE Environmental Impact Analysis * for
exploitation activity
10 PT. PLN Power Purchase Agreement
11 DGEBTKE Financial Closing
12 Developer Exploitation
48
Electricity Power Supply Business

13 BKPM
License (EPSBL) Issuance
Location permit Estimated duration

14 Local Government Hinder Ordonantie for location permit:
Building permit 14 working days
15 Developer Construction
16 Developer Certificate of operation

Commercial Operation Date
17 Developer
(COD)
* If involving forest use, the environment permit (UKL/UPL and Environmental Impact
Analysis) comes from the Ministry of Environment and Forestry
Table 20. Geothermal investment flow through Assignment of Preliminary Surveys and
Exploration (APSE) scheme
No. Entity Activity Notes
BKPM & Ministry of

Administration & Approval of
1 Law and Human
Capital Investment Permit
Rights
Application for assignment of
2 MESDM - DGEBTKE
preliminary surveys and exploration
Location permit
Estimated duration
Regional Environmental permit (UKL/UPL)*
3 for location permit:
Government Hinder Ordonantie
14 working days
Building permit
Ministry of Public
Permit for Water Resources Estimated duration:
4 Works and Human
Management, SIPA 7 working days
Settlements
Estimated duration:
Forest Lease Permit for Protected / 52 working days
Production Forest
Ministry of
5 Environment and
Permit for Utilization of Geothermal 56 working days
Forestry
Environment Services for
Conservation Forest
49
6 Developer Exploration
Feasibility Study and

7 MESDM - DGEBTKE Environmental Impact Analysis * for
exploitation activity
Setelah itu
8 MESDM - DGEBTKE Limited Tender mendapat Izin
Panas Bumi (IPB)
Electricity Supply Establishment
9 PT. PLN Letter Issuance for Prospective
Developer
Temporary Electricity Power Supply Estimasi durasi:

10 BKPM
Business License (EPSBL) Issuance 3 jam
11 PT. PLN Power Purchase Agreement
12 MESDM - DGEBTKE Financial Closing
13 Developer Exploitation
Electricity Power Supply Business

14 BKPM
License (EPSBL) Issuance
Location permit
15 Local Government Hinder Ordonantie
Building permit
16 Developer Construction
17 Developer Certificate of operation

Commercial Operation Date
18 Developer
(COD)
50
Legal Base
1. Principal License
The Head of BKPM Regulation No. 15/2015
2. Temporary Permit of Undertakings of Electricity Supply Issuance
The Minister of ESDM Regulation No. 15/2016
3. Environmental permit (UKL/UPL) & Environmental Impact Analysis (AMDAL)
The Minister of Environment and Forestry Regulation No. 5/2012
4. Permit for Water Resources Management (SIPA)
The Minister of Public Works and Housing Regulation No. 1/2016
5. Permit for Utilization of Geothermal Environment Services
6. Forest Lease Permit
7. Power Purchase Agreement
8. Electricity Power Supply Business License
The Minister of ESDM Regulation No.35/2014
9. Certificate of operation
51
5. GOVERNMENT’S BREAKTHROUGH
6.
The Indonesian Government is currently eager to improve and accelerate geothermal
development. To that end, the Government seeks to improve the investment climate for
existing developers and new investors within the geothermal sector in Indonesia. In
achieving these objectives, the Government had made various efforts, among others:
1. Improvement and harmonization of regulations in the geothermal business sector,

among others, the revision of Law of the Republic of Indonesia No. 27 of 2003 on
Geothermal by Law No.21 of 2014;
2. GWA auction process based on work program and exploration commitment
submitted by bidders;
3. Opening opportunities for geothermal developers to participate in the
geothermal Assignment of Preliminary Surveys and Exploration (APSE);
4. On the pricing policy side, the Government through the Minister of ESDM
Regulation No. 12/2017 has set tariffs based on the local Electricity Production
Price (EPP). If the local EPP is lower than the national average EPP then the tariff
is determined based on the agreement of the involved parties;
5. In order to accelerate the new GWA auction process, the government will revise
the auction mechanism so that the auction process is simpler, transparent and
bankable;
6. Coordinate with related parties to accelerate and simplify the licensing process;
7. The Ministry of ESDM and the Ministry of Forestry have signed an MoU on the
acceleration of geothermal utilization permits within the areas of production
forests, protected forests, and conservation forests;
8. To optimize the utilization of geothermal in the national electricity supply, the
Government is currently developing a pricing structure that reflects today’s
economic value so that it is competitive, which covers upstream and
downstream sides, taking into account the capacity and technology of the
electricity generation, as well as the reservoir’s quality;
9. The Government provides Geothermal Fund for geothermal exploration activities
to reduce risks in the early stages and increase the bankability of geothermal
projects;
10. The Government of Indonesia continues to improve the capabilities,
competence and professionalism of human resources through training, short
training and further education through cooperation with local and international
education institutions;
11. The Government has assigned GWA to state-owned enterprises engaged in
geothermal activities;
12. Simplification of geothermal permits, and
52
13. The government provides fiscal incentives for geothermal development in the
form of;
Tax Allowance (Government Regulation No. 18/2015, the Minister of ESDM

Regulation No. 16/2015 and the Minister of Finance Regulation No. 89/2015).
Facilities:
1. A net income reduction of 30% of the investment value for 6 years (investment
tax credit)
2. Accelerated depreciation and amortization
3. The establishment of dividend income tax 10%
4. Loss compensation of 5-10 years;
Import Duty Facility (the Minister of Finance Regulation No. 177/2007, the Minister
of Finance Regulation No. 142/2015 and the Minister of Finance Regulation No.
107/2016).
Operation of goods and machinery on the operation of geothermal upon these
condition:
1. Goods can not be produced domestically
2. Goods are already produced domestically but not yet meet the required
specifications
3. Goods are already produced domestically but the amount is not yet sufficient
for the industry.
Property Taxes Exemption (the Minister of Finance Regulation No. 172/2016)

1. Property taxes over the earth body up to 100% for the Exploration stage
2. These facilities can be kept by Geothermal License holder for 5 years and 2
years of extention.
Geothermal business opportunities are not limited to geothermal power plants with large
capacity. Other business opportunities in the geothermal sector include:
 Direct utilization of geothermal for agriculture, hot spring bath, tourism, and so on.
 Small capacity power plants.
 Low-enthalpy geothermal potential.
 Services company to support geothermal’s core business.
53
RE Commodity
Solar Photovoltaic
RE COMMODITY: SOLAR
PHOTOVOLTAIC
54
Solar photovoltaic is the second focus of Indonesia’s renewable energy infrastructure

development. This is shown by the large target of solar energy development as much as
6.5 GW by 2025 as stated in RUEN. Solar energy sources are present throughout Indonesia
with a constant intensity throughout the year, making this choice of generator suitable to
increase electrification ratio especially in underdeveloped and isolated areas. The
increasing need for solar energy development, along with the decrease in the solar
electricity production cost which is in line with the increasing maturity of the technology
makes this market attractive for both domestic and foreign investors. This section will discuss
the potential, existing condition, and government plans in developing solar photovoltaic.
1. POTENTIAL
Table 21. Solar photovoltaic potential
Potential Potential
No Province No Province
(MW) (MW)
1 West Kalimantan 20,113 18 West Sumatera 5,898
2 South Sumatera 17,233 19 North Kalimantan 4,643
3 East Kalimantan 13,479 20 South East Sulawesi 3,917
4 North Sumatera 11,851 21 Bengkulu 3,475
5 East Java 10,335 22 North Maluku 3,036
6 West Nusa Tenggara 9,931 23 Bangka Belitung 2,810
7 West Java 9,099 24 Banten 2,461
8 Jambi 8,847 25 Lampung 2,238
9 Central Java 8,753 26 North Sulawesi 2,113
10 Central Kalimantan 8,459 28 Papua 2,035
11 Aceh 7,881 27 Gorontalo 1,218
12 Riau Isl. 7,763 29 Maluku 2,020
13 South Sulawesi 7,588 30 West Sulawesi 1,677
14 East Nusa Tenggara 7,272 31 Bali 1,254
15 West Papua 6,307 32 Yogyakarta 996
16 Central Sulawesi 6,187 33 Riau 753
17 South Kalimantan 6,031 34 Jakarta 225
TOTAL 207,898
55
Figure 7. Solar photovoltaic energy potential map

Source: p3tkebtke, Badan Penelitian dan Pengembangan MESDM, http://www.p3tkebt.esdm.go.id/ , 2017
56
Table 22. Installed capacity of solar photovoltaic power plant (kW)
IPP
No Province SOB/SAB PLN Total
ESDM
1 East Nusa Tenggara 1,684 1,980 6,000 9,664
2 South Sulawesi 2,615 1,300 3,915
3 Nusa Tenggara Baraat 1,514 1,670 3,184
4 West Papua 2,550 2,550
5 Gorontalo 280 2,000 2,280
6 South Kalimantan 180 180
7 Bali 2,140 2140
8 Maluku 1,220 890 2,110
9 Papua 1,795 300 2,095
10 South East Sulawesi 1,095 850 1,945
11 East Kalimantan 1,000 430 1,430
12 Riau Isl. 1,130 200 1,330
13 North Kalimantan 1,315 1,315
14 Bangka Belitung 1,165 40 1,205
15 North Sulawesi 270 930 1,200
16 Lampung 1,135 1,135
17 West Sumatera 930 190 1,120
18 West Kalimantan 930 180 1,110
19 Riau 975 975
20 Central Kalimantan 640 640
21 Aceh 565 565
22 North Maluku 535 535
23 South Sumatera 520 520
24 Jambi 510 510
25 North Sumatera 355 355
57
26 West Sulawesi 235 235

27 Bengkulu 190 190
28 Central Java 180 180
29 East Java 180 180
30 Central Sulawesi 170 170
31 West Java 75 75
32 Banten 55 55
33 Yogyakarta 35 35
34 Jakarta 15 15
TOTAL 28,183 8,960 8,000 45,143
*Nptes: IPP ESDM projects are based on the Minister of ESDM Regulation No. 17/2013
Source: Statistik EBTKE 2016 and Statistik Ketenagalistrikan 2016, DGE MESDM
8 Head of Agreement (HoA) and MoU had been signed in early 2017 for projects
concerning RE sector, in particular, solar photovoltaic focused projects. The details of these
projects are listed in the table below:
Table 23. Signed HoA and MoU on solar photovoltaic that had been signed
Cap
No. Location Type Notes
(MW)
1 Gorontalo, Gorontalo 10 HoA -
Pringgabaya, West Nusa
2 5 HoA -
Tenggara
3 Sengkol, West Nusa Tenggara 5 HoA -
4 Selong, West Nusa Tenggara 5 HoA -
5 Kuta, West Nusa Tenggara 5 HoA -
Lombok, Bangka, Karimun Isl, Hybrid power plant,
6 - MoU
Kupang, Minahasa, Gorontalo solar and diesel/gas
Sumbawa, Bima, Lombok,
Ambon, Madura, Waena, Hybrid power plant,
7 - MoU
Bombana, Bangka Belitung, solar and diesel/gas
Nias
Selayar Isl, Kei Kecil, Hybrid power plant,
8 - MoU
Ambon Isl, Buru Isl solar, wind, and hydro
58

4.
Table 24. Development planning for solar photovoltaic energy until 2025 (MW)
No Province 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
East Nusa
1 14.2 15.0 15.0 20.3 40.5 96.8 159.6 238.0 320.7 414.9
Tenggara
West
2 1.3 1.6 15.1 24.3 43.8 88.3 140.9 209.2 282.4 366.4
Kalimantan
3 Gorontalo 4.7 9.7 9.7 19.7 19.7 35.7 65.4 128.8 218.6 343.3
South
4 1.1 1.1 12.8 20.0 35.8 71.7 114.1 169.3 228.5 296.6
Sumatera
West Nusa
5 4.9 25.2 90.2 90.2 90.2 90.2 112.3 167.2 225.4 292.0
Tenggara
West
6 0.5 0.5 2.4 9.8 23.3 60.5 100.7 150.4 202.6 261.8
Sulawesi
7 Jambi 1.0 3.0 7.1 13.6 27.1 60.7 98.6 146.7 197.9 256.3
East
8 1.9 2.0 8.4 15.3 27.7 56.1 89.3 132.5 178.9 232.1
Kalimantan
North
9 17.7 57.7 57.7 57.7 57.7 57.7 86.2 128.0 176.2 224.1
Sumatera
Central
10 1.4 11.4 11.4 31.4 31.4 52.7 86.2 128.4 173.1 224.1
Sulawesi
Central
11 1.1 1.1 6.7 13.4 23.7 52.5 85.0 126.5 170.6 221.1
Kalimantan
12 Papua 8.2 19.4 19.4 39.4 39.4 50.7 84.2 125.7 169.3 218.8
South East
13 2.4 9.6 9.6 10.5 21.6 49.7 81.9 122.1 164.6 212.9
Sulawesi
14 Aceh 0.8 2.8 6.2 12.7 22.5 50.2 81.3 121.0 163.2 211.4
North
15 4.6 9.6 9.6 9.7 18.9 47.3 78.3 116.8 157.3 203.5
Maluku
Central
16 0.4 0.4 6.7 12.3 22.1 44.6 71.7 106.6 143.8 186.4
Java
17 East Java 0.6 3.4 7.7 13.2 23.1 44.9 71.7 106.4 143.6 186.4
South
18 7.0 8.1 8.1 11.5 21.2 43.8 70.8 105.2 142.0 184.0
Sulawesi
19 Maluku 5.3 10.3 15.3 15.3 17.6 41.9 69.6 103.8 139.9 180.8
West
20 4.1 4.1 5.0 15.0 19.0 39.8 64.6 96.1 129.5 167.8
Papua
21 West Java 0.3 0.4 6.8 11.5 20.2 39.3 62.7 93.1 125.6 163.0
South
22 3.9 3.9 4.8 9.7 18.1 38.0 61.5 91.5 123.5 160.0
Kalimantan
59
23 Bengkulu 0.7 0.7 3.1 8.2 16.5 37.3 61.2 91.3 123.0 159.2
West
24 2.0 2.9 4.6 9.3 17.2 35.9 58.1 86.4 116.6 151.0
Sumatera
25 Lampung 1.6 1.6 2.1 6.5 13.5 31.3 51.6 77.0 103.8 134.3
26 Riau Isl. 1.1 1.1 5.8 9.5 16.5 31.5 50.2 74.4 100.5 130.4
North
27 3.8 3.8 3.8 5.6 11.5 26.5 43.7 65.1 87.8 113.6
Sulawesi
Bangka
28 1.6 3.6 3.6 5.9 11.7 25.9 42.4 63.2 85.2 110.3
Belitung
29 Bali 7.5 8.2 8.2 8.2 108.2 108.2 108.2 108.2 108.2 108.2
North
30 0.6 0.6 3.6 6.6 12.0 24.3 39.1 58.1 78.5 101.7
Kalimantan
31 Banten 0.2 0.3 2.1 5.1 10.0 22.2 36.3 54.0 72.9 94.3
32 Riau 1.0 1.0 1.0 4.1 9.0 21.8 36.2 54.1 72.8 94.2
33 Yogyakarta 0.1 0.1 1.1 3.7 8.0 18.9 31.3 46.8 63.0 81.5
34 Jakarta 0.2 0.3 0.3 0.7 1.4 3.2 5.3 7.9 10.7 13.8
Total
107.8 224.5 375 550 900 1,600 2,500 3,700 5,000 6,500
Capacity
Total
29.3 116.6 150.5 175 350 700 900 1,200 1,300 1,500
Additional
60
RE Commodity
Microhydro
RE COMMODITY:
MICROHYDRO
61
Hydro energy has been widely used to meet Indonesia's electricity needs. Hydro energy in
Indonesia alone has a potential of 75 GW with a development plan of 18 GW by 2025.
However, DGEBTKE as the Directorate General under the Ministry of ESDM is not responsible
for the development of large scale hydropower. The development of large scale
hydropower is currently under the jurisdiction of the DGE while DGEBTKE is responsible for
the development of small-scale hydro power plants namely minihydro (with the capacity
of 1-10 MW) and microhydro (with capacity below 1 MW). Minihydro and microhydro itself
has a potential of 19 GW with a development plan of 3 GW by 2025. This section will
elaborate the potential, existing condition, and the Government’s plan in developing
minihydro and microhydro.
1. POTENTIAL
Table 25. Minihydro dan microhydro potential

Potential Potential
No. Province No. Province
(MW) (MW)
1 East Kalimantan 3,562 18 Maluku 190
2 Central Kalimantan 3,313 19 South Kalimantan 158
3 Aceh 1,538 20 West Kalimantan 124
4 West Sumatera 1,353 21 Gorontalo 117
5 North Sumatera 1,204 22 North Sulawesi 111
6 East Java 1,142 23 Bengkulu 108
7 Central Java 1,044 24 East Nusa Tenggara 95
8 North Kalimantan 943 25 Banten 72
9 South Sulawesi 762 26 West Nusa Tenggara 31
10 West Java 647 27 Bali 15
11 Papua 615 28 West Sulawesi 7
12 South Sumatera 448 29 Yogyakarta 5
13 Jambi 447 30 West Papua 3
14 Central Sulawesi 370 31 Riau Isl. -
15 Lampung 352 33 Bangka Belitung -
16 South East Sulawesi 301 34 Jakarta -
17 Riau 284 TOTAL 19,385
62
Figure 8. Microhydro energy potential map
Source: p3tkebtke, Badan Penelitian dan Pengembangan MESDM, http://www.p3tkebt.esdm.go.id/, 2016
63
Table 26. Installed capacity of minihydro and microhydro (MW)
IPP
No Province SOB/SAB PT. PLN Total
ESDM*
1 West Java 0.024 34.74 34.764
2 North Sumatera 0.477 29 29.477
3 South Sulawesi 0.293 4.78 17.7 22.773
4 Central Sulawesi 0.021 2.55 10 12.571
5 South Sumatera 0.043 11.6 11.643
6 West Nusa Tenggara 0.43 0.1 10.8 11.33
7 West Sumatera 0.229 9.328 9.557
8 Gorontalo 0.12 5.3 5.42
9 Banten 3 3
10 Central Java 2.24 2.24
11 West Papua 0.876 0.876
12 West Kalimantan 0.687 0.687
13 Jambi 0.018 0.5 0.518
14 Central Kalimantan 0.299 0.299
15 Papua 0.283 0.283
16 East Nusa Tenggara 0.22 0.22
17 West Sulawesi 0.172 0.172
18 North Kalimantan 0.087 0.087
19 Lampung 0.08 0.08
20 Riau 0.056 0.056
21 Maluku 0.03 0.03
22 South East Sulawesi 0.016 0.016
23 North Sulawesi 0.014 0.014
24 Aceh 0
25 Bali 0
64
26 Bangka Belitung 0
27 Bengkulu 0
28 Yogyakarta 0
29 Jakarta 0
30 East Java 0
31 South Kalimantan 0
32 East Kalimantan 0
33 Riau Isl. 0
34 North Maluku 0
TOTAL 4.475 7.43 134.208 146.113
*Nptes: IPP ESDM projects are based on the Minister of ESDM Regulation No. 19/2015
Source: Statistik EBTKE 2016 and Statistik Ketenagalistrikan 2016, DGE MESDM
65

4.
Table 27. Development planning for minihydro and microhydro until 2025 (MW)
No. Province 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
North
1 40.8 48.9 93.9 150.8 160.8 170.8 236.3 236.3 289.8 352
Sumatera
Central
2 0.5 0.5 28.9 28.9 59.5 93.3 122.3 164.8 199.5 243.9
Kalimantan
3 West Java 23.3 48.3 91.3 113.8 132.1 167.6 178.1 195.3 219.7 237.4
East
4 0.8 0.8 13.4 13.4 32.7 71.5 97.8 144.9 173.9 173.9
Kalimantan
East Nusa
5 5.2 5.6 23.6 25.2 46.7 66.4 85.7 111 134.9 163.5
Tenggara
West
6 20.1 37.8 37.8 77.8 91.2 91.2 111.8 117.8 142.5 142.5
Sumatera
7 Aceh 1.1 1.1 9.3 11.5 21.8 44.6 81.7 88.5 107.7 132.4
8 Papua 3.7 8.4 13.6 27.4 28.5 46.5 61.4 84 101.5 124.5
South
9 39.4 48.6 68.9 97.3 107.3 107.3 109 109 122.3 122.3
Sulawesi
10 Central Java 8.3 9.2 9.2 16.2 25.3 25.3 39 47.8 91.9 119
11 West Sulawesi 5.1 5.1 13.3 13.3 27.3 43.2 56.7 76.6 92.6 113.4
12 Bengkulu 0.7 0.7 0.7 0.7 0.7 7.4 13.4 29.4 34.4 95.4
Central
13 42.3 43.5 43.5 74.6 74.6 74.6 76 76 90 90
Sulawesi
South East
14 2.9 7.7 7.7 12.7 14 29.4 40.1 58.8 70.7 88
Sulawesi
15 Jambi 0.3 0.3 4.4 4.4 11.4 27.4 37.9 57.3 68.7 86.0
16 Maluku - - 3.3 37.1 42.1 42.1 42.1 50.7 60.7 76.2
West Nusa
17 13.3 13.3 14.6 32 32 32 32.3 49 58.7 73.6
Tenggara
18 North Maluku - - 3.2 3.2 8.7 22.5 31.2 47.8 57.2 71.8
19 East Java 1.7 1.7 1.7 1.7 4.5 4.5 8.9 37.1 49.2 63
20 Gorontalo 4.1 4.1 4.1 6.1 6.1 16.4 24.1 40.6 48.2 61.7
21 Banten 4.3 15.3 15.3 16.8 21.8 34.8 43.3 43.3 58.3 58.3
22 Lampung 0.6 0.6 0.6 0.6 0.6 10.1 31.8 35.1 41.2 54.4
66
South
23 1.3 1.3 2.7 2.7 2.7 20.2 30.2 30.2 36.2 52.4
Sumatera
West
24 0.9 1.0 2.3 17.5 17.5 17.5 17.5 29.7 34.7 46.2
Kalimantan
25 Riau 0.2 0.2 0.2 0.2 0.2 0.2 2.4 20.5 22.9 33.8
North
26 0.1 0.1 0.1 0.1 0.1 0.1 0.1 14.4 14.4 28.4
Kalimantan
North
27 8.2 8.2 8.7 16.4 16.4 19.7 19.7 19.7 26.1 26.1
Sulawesi
South
28 0.1 0.1 0.1 0.1 0.1 0.1 0.1 15.1 16.3 25.8
Kalimantan
29 Bali 0.0 0.0 1.4 1.4 1.4 1.4 7.3 7.3 23.5 23.5
30 West Papua 1.0 1.0 2.0 11 11 11 11 11.1 11.5 19.8
31 Yogyakarta 0.2 0.2 0.2 0.2 0.8 0.8 0.8 0.8 0.8 0.8
Total
230.5 313.7 520 815.1 1,000 1,300 1,650 2,050 2,500 3,000
Capacity
Total
33.1 83.2 206.3 295.1 184.9 300 350 400 450 500
Additional
67
RE Commodity
Wind
RE COMMODITY: WIND
68
Until now, wind energy is still not widely utilized since there is no regulation governing the
purchase of wind power electricity by PT. PLN. With the issuance of the Minister of ESDM
Regulation No. 50/2017, the interest in developing wind energy in Indonesia is shared by
many business entities. Since 2017, the development of Jeneponto wind power plant (72
MW) and Sidrap wind power plant (75 MW) had entered it’s construction phase. Indonesia
posesses 60 GW of wind energy potential which spreads in several regions in Java, Sulawesi,
and Eastern part of Indonesia such as Nusa Tenggara, Maluku, and Papua. In order to
achieve the target of 1.8 GW wind power plant development, the participation of private
sector is greatly required.
1. POTENTIAL
Table 28. Wind energy potential (wind speed > 4 m/s)

Potensi Potensi
No. Provinsi No. Provinsi
(MW) (MW)
1 East Nusa Tenggara 10,188 18 Riau Isl., 922
2 East Java 7,907 19 Central Sulawesi 908
3 West Java 7,036 20 Aceh 894
4 Central Java 5,213 21 Central Sulawesi 681
5 South Sulawesi 4,193 22 West Kalimantan 554
6 Maluku 3,188 23 West Sulawesi 514
7 West Nusa Tenggara 2,605 24 North Maluku 504
8 Bangka Belitung 1,787 25 West Papua 437
9 Banten 1,753 26 West Sumatera 428
10 Bengkulu 1,513 27 North Sumatera 356
11 South East Sulawesi 1,414 28 South Sumatera 301
12 Papua 1,411 29 East Kalimantan 212
13 North Sulawesi 1,214 30 Gorontalo 137
14 Lampung 1,137 31 North Kalimantan 73
15 Yogyakarta 1,079 32 Jambi 37
16 Bali 1,019 33 Riau 22
17 South Kalimantan 1,006 34 Jakarta 4
TOTAL 60,647
69
Figure 9. Wind energy potential map
Source: p3tkebtke, Badan Penelitian dan Pengembangan MESDM, http://www.p3tkebt.esdm.go.id/, 2016
70

2.
Table 29. Development planning for wind energy until 2025 (MW)
No. Province 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1 West Java 0.89 0.89 80.89 160.89 250.89 250.89 250.89 250.89 250.89 410.89
East Nusa
2 0.10 0.10 0.10 5.10 31.18 131.05 174.97 216.68 261.10 266.10
Tenggara
South
3 0.52 70.52 70.52 130.52 170.52 170.52 170.52 230.52 230.52 230.52
Sulawesi
4 Banten 0.02 0.02 0.02 35.02 70.02 70.02 70.02 70.02 70.02 150.02
5 Maluku 0.00 0.00 0.00 5.00 10.00 41.34 67.85 86.92 108.83 113.83
West
6 - - - - - 33.14 52.07 66.28 82.39 82.39
Sulawesi
West Nusa
7 0.02 0.02 0.02 5.02 5.02 23.15 43.47 56.72 72.39 72.39
Tenggara
8 Papua - - - - - 23.14 41.62 54.01 68.54 68.54
9 Yogyakarta 0.06 0.06 50.06 50.06 50.06 50.06 50.06 50.06 50.06 60.06
South East
10 0.03 0.03 0.03 0.03 0.03 14.40 32.59 43.43 56.65 56.65
Sulawesi
11 East Java 0.11 0.11 0.11 0.11 0.11 0.11 14.58 27.63 46.76 46.76
12 Central Java 0.07 0.07 0.07 0.07 0.07 0.07 12.32 22.35 36.90 36.90
Central
13 - - - - - - 14.72 22.89 34.15 34.15
Kalimantan
14 Aceh - - - - - - 13.33 21.29 32.39 32.39
15 Bengkulu - - - - - - 10.43 17.61 27.82 27.82

West
16 - - - - - - 10.24 17.41 27.63 27.63
Kalimantan
17 Lampung - - - - - - 5.86 12.43 22.24 22.24
North
18 0.48 0.48 0.48 0.48 0.48 0.48 2.84 9.85 20.79 20.79
Sulawesi
19 Bali 1.54 1.54 1.54 6.54 11.54 11.54 11.54 11.54 11.54 11.54
20 West Papua - - - - - - - 1.40 10.51 10.51

Bangka
21 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 9.08 9.08
Belitung
South
22 - - - - - - - - 8.79 8.79
Kalimantan
71
23 Jakarta 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
North
24 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002
Maluku
North
25 - - - - - - - - - -
Sumatera
West
26 - - - - - - - - - -
Sumatera
27 Riau - - - - - - - - - -
28 Riau Isl. - - - - - - - - - -
29 Jambi - - - - - - - - - -
South
30 - - - - - - - - - -
Sumatera
East
31 - - - - - - - - - -
Kalimantan
North
32 - - - - - - - - - -
Kalimantan
33 Gorontalo - - - - - - - - - -
Central
34 - - - - - - - - - -
Sulawesi
Total Capacity 3.92 73.92 203.92 398.92 600 820 1,050 1,290 1,540 1,800
Total
0.85 70 130 195 201.08 220 230 240 250 260
Additional
72
Buku Saku Investasi Energi Terbarukan & Efisiensi Energi di Indonesia 2017
RE Commodity
Municipal Solid
Waste
RE COMMODITY: MUNICIPAL
SOLID WASTE
73
Municipal waste is a problem that arises in big cities as a by-product of urban activities. To
tackle this problem, the government through the Minister of ESDM Regulation no. 50/2017
encourages local governments and private parties to accelerate the development of
waste to energy. This section describes the potential, existing conditions, and the
Government target and planning of waste to energy development as a part of bioenergy
development.
1. POTENTIAL
Table 30. Municipal waste to energy potential
Potential Potential
No. Province No. Province
(MWe) (MWe)
1. West Java 559.32 19. South Kalimantan 18.58
2. East Java 366.83 20. Jambi 14.86
3. Central Java 278.44 21. East Kalimantan 14.71
4. Jakarta 126.12 22. Papua 12.12
5. Banten 116.55 23. Central Sulawesi 11.48
6. North Sumatera 99.49 24. Central Kalimantan 10.22
7. South Sumatera 62.17 25. North Sulawesi 9.83
8. Lampung 57.46 26. South East Sulawesi 9.74
9. South Sulawesi 33.12 27. Bengkulu 7.80
10. Riau 31.71 28. Maluku 6.90
11. Madura 30.77 29. Bangka Belitung 5.40
12. West Nusa Tenggara 27.79 30. West Sulawesi 5.09
13. Yogyakarta 27.09 31. North Maluku 4.55
14. West Kalimantan 22.86 32. Gorontalo 4.45
15. West Sumatera 22.69 33. Riau Isl. 3.30
16. Bali 21.68 34. West Papua 2.06
17. Aceh 20.68 35. North Kalimantan -
18. East Nusa Tenggara 20.44 TOTAL 2,066.29
Source: DGEBTKE, 2013
74
Table 31. Installed on-grid waste to energy power plant capacity (operating)
Capacity
No Location COD Developer
(MWe)
PT. Navigat Organic
1 Bekasi 2011 12
Energy Indonesia
PT. Navigat Organic
2 Bali 2012 2
Energy Indonesia
3 Bekasi 2013 PT. Navigat Organic 2
4 Surabaya 2015 PT. Sumber Organik 1.6
TOTAL 17.6
Source: PT. PLN, 2016
75

3.
Table 32. Development planning for bioenergy until 2025 (MW)
No. Province 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1 Riau 183.4 193.4 195.4 195.4 195.4 195.4 220.7 260.9 306.8 359
East Nusa
2 39.8 43.8 81 110.5 136.9 161.4 190.2 224 263.3 308.1
Tenggara
3 East Java 145.4 145.4 145.4 145.4 145.4 145.4 172.5 204.7 240.9 281.9
North
4 174.5 174.5 176.5 176.5 176.5 176.5 176.5 192.2 226.1 264.5
Sumatera
5 Jambi 104.4 104.4 104.4 104.4 108.9 132.2 157.1 185.5 218.1 255.2
West
6 30 31 41.2 75.3 100.7 120.3 142.3 167.9 197.3 230.9
Sulawesi
7 Central Java 98.5 98.5 98.5 98.5 98.5 111.3 134.5 159.6 187.8 219.8
South
8 98.6 101.1 101.1 101.1 101.1 110 132.7 157.4 185.2 216.7
Sumatera
9 West Java 121.8 121.8 121.8 121.8 121.8 121.8 131.7 157 184.9 216.4
Central
10 72.7 72.7 82.7 82.7 84.2 105 125.8 148.9 175.1 204.9
Kalimantan
11 Lampung 70.6 70.6 70.6 70.6 79.5 100.2 120.4 142.6 167.7 196.3
West
12 63.9 85.9 105.9 105.9 105.9 105.9 117.6 139.2 163.8 191.7
Kalimantan
13 Aceh 71.2 81 82.5 82.5 82.5 92.2 110.9 131.3 154.5 180.8
14 West Papua 10.2 10.2 10.8 49.8 75.5 92.0 109.5 129.3 152 177.9
West Nusa
15 31.1 32.1 32.1 46.5 74.6 91.6 109.3 129.2 151.9 177.8
Tenggara
South
16 66.8 66.8 66.8 66.8 66.8 81.9 99.6 118.4 139.4 163.1
Kalimantan
South East
17 20.8 20.8 20.8 38 65.5 81.1 97 114.7 134.9 157.9
Sulawesi
Central
18 26.5 26.5 26.5 33.6 63.1 78.9 94.6 112 131.8 154.2
Sulawesi
North
19 16.2 16.2 16.2 35.7 62.6 77.8 93 110.1 129.4 151.5
Maluku
20 Bengkulu 42.8 42.8 42.8 42.8 58.2 74.8 90.4 107.3 126.2 147.7
South
21 47.3 57.3 57.3 57.3 57.3 72.5 88.5 105.2 123.8 144.9
Sulawesi
76
22 Maluku 15.2 21.2 21.2 30.5 58.1 72.8 87.4 103.5 121.7 142.4
23 Gorontalo 23.8 23.8 29.8 29.8 53.6 68.3 82.3 97.6 114.8 134.3
West
24 46.1 47.1 47.1 47.1 47.6 66.2 81.6 97.4 114.7 134.2
Sumatera
East
25 46.2 58.3 67.8 67.8 67.8 67.8 67.8 67.8 76.7 89.8
Kalimantan
North
26 14.5 14.5 14.5 14.5 28.9 43.2 54.2 64.9 76.5 89.6
Sulawesi
27 Banten 24.8 24.8 24.8 24.8 24.8 41.2 53.2 64.1 75.7 88.6
28 Papua 21.2 21.2 31.2 31.2 31.2 41.8 52.4 62.8 74.1 86.7
Bangka
29 25.7 25.7 65.7 65.7 65.7 65.7 65.7 65.7 70.7 82.7
Belitung
30 Yogyakarta 15.4 15.4 15.4 15.4 20.2 35.7 46.3 56 66.1 77.3
North
31 - - - - 9 29.8 42.1 51.8 61.4 71.8
Kalimantan
32 Bali 12.1 12.1 12.1 12.1 12.1 19.2 29.7 37.3 44.3 51.8
33 Riau Isl. 14 14 14 14 14 14 16.2 22.1 26.6 31.1
34 Jakarta 6.2 6.2 6.2 6.2 6.2 6.2 6.2 11.8 15.8 18.4
Total Capacity 1801,6 1,881 2,030 2,200 2,500 2,900 3,400 4,000 4,700 5,500
Ttotal
130.6 79.4 149 170 300 400 500 600 700 800
Additional
*Biomass, biogas, and waste to energy are already included in the table
77
RE Commodity
Biomass & Biogas
RE COMMODITY:
BIOMASS/BIOGAS
78
The utilization of bioenergy in the form of biomass and biogas is commonly practiced
especially in plantation and livestock areas that have potential agriculture or livestock
waste. Agricultural industry residual such as palm oil waste can be used as a source of
biomass and biogas (POME) power plant. Meanwhile, livestock waste can be utilized as a
source of biogas heat for households. This section of the book discusses the potential for
biomass and biogas development as electricity sources, biogas for household potential,
and the state of biomass and biogas utilization development. The Government planning
for biomass and biogas development up to 2025 can be seen above in RE Commodities:
Municipal Solid Waste
1. POTENTIAL
Table 33. Biomass potential (palm, sugar cane, rubber, coconut, and paddy)
Potential (MWe)
No Province
Sugar
Palm Rubber Coconut Paddy Total
Cane
1 Riau 2,889.2 0.0 429.7 23.9 87.6 3,430.3
North
2 1,926.9 30.4 220.3 5.2 471.5 2,654.3
Sumatera
3 East Java 0.0 638.9 0.0 11.2 1,475.6 2,125.6
4 West Java 19.1 62.2 0.0 5.8 1,772.4 1,859.4
South
5 1,186.8 42.6 69.8 3.0 492.2 1,794.4
Sumatera
6 Jambi 839.7 0.0 687.4 6.3 95.9 1,629.2
7 Central Java 0.0 138.0 0.0 9.8 1,430.8 1,578.6
Central
8 1,213.6 0.0 149.0 3.9 99.1 1,465.5
Kalimantan
West
9 758.3 0.0 284.9 4.1 204.7 1,252.0
Kalimantan
South
10 574.3 0.0 386.0 1.6 280.6 1,242.6
Kalimantan
11 Aceh 646.5 0.0 233.3 2.5 240.2 1,122.5
12 Lampung 179.3 325.8 114.5 5.7 448.0 1,073.3
East
13 837.4 0.0 42.5 0.6 57.6 938.1
Kalimantan
West
14 485.1 0.0 55.1 4.8 336.9 881.9
Sumatera
79
15 South Sulawesi 25.3 21.7 0.0 4.6 696.3 747.8

16 Bengkulu 434.2 0.0 108.1 0.4 78.7 621.4
17 Banten 41.0 0.0 0.0 3.1 297.0 341.1
West Nusa
18 0.0 0.0 0.0 3.3 314.9 318.2
Tenggara
Central
19 117.5 0.0 0.0 11.1 158.7 287.3
Sulawesi
Bangka
20 214.3 0.0 0.0 0.2 3.4 217.9
Belitung
21 West Sulawesi 133.8 0.0 0.0 2.3 55.7 191.8
22 Yogyakarta 0.0 15.0 0.0 3.1 125.5 143.6
23 Bali 0.0 0.0 0.0 3.9 130.8 134.6
24 Madura 0.0 0.0 0.0 3.0 120.5 123.4
North
25 118.5 0.0 0.0 0.0 0.0 118.5
Kalimantan
South East
26 46.7 0.0 0.0 2.2 69.3 118.1
Sulawesi
27 North Sulawesi 0.0 0.0 0.0 14.7 89.0 103.6
East Nusa
28 0.0 0.0 0.0 3.4 90.1 93.5
Tenggara
29 Papua 41.7 0.0 0.0 13.3 15.6 70.6
30 Gorontalo 0.0 20.3 0.0 3.3 41.7 65.3
31 West Papua 33.1 0.0 0.0 1.0 4.5 38.5
32 North Maluku 0.0 0.0 0.0 14.1 9.4 23.5
33 Maluku 0.0 0.0 0.0 4.5 12.8 17.3
34 Riau Isl. 10.4 0.0 0.0 0.7 0.2 11.3
35 Jakarta 0.0 0.0 0.0 0.0 0.6 0.6
TOTAL 12,772.4 1,294.8 2,780.5 180.3 9,807.8 26,835.9
80
Table 34. Biomass potential (corn, cassava, woods, and manure)
Potential (Mwe)
No. Province
Corn Cassava Woods Manure Total
1 Riau 5.10 0.91 962.33 5.80 974.14
2 East Java 469.36 35.11 3.89 139.79 648.15
3 Central Java 261.72 39.18 5.13 70.30 376.34
4 Lampung 217.23 88.82 5.85 26.95 338.85
5 South Sulawesi 118.67 6.56 18.26 35.70 179.19
6 Jambi 4.06 0.64 147.58 4.35 156.64
7 North Sumatera 111.32 10.54 4.30 16.38 142.54
8 West Java 90.50 27.99 4.49 15.35 138.32
9 East Nusa Tenggara 63.99 16.82 18.10 28.25 127.17
10 Madura 89.75 5.29 0.10 31.74 126.87
11 South Sumatera 9.77 3.58 91.19 8.94 113.48
12 Gorontalo 53.78 0.15 0.10 6.67 60.71
13 Yogyakarta 29.78 9.17 0.00 13.64 52.59
14 West Sumatera 36.49 2.24 0.69 11.87 51.28
15 North Sulawesi 44.89 0.96 0.17 3.82 49.83
16 West Nusa Tenggara 21.41 1.30 0.86 24.88 48.46
17 West Kalimantan 19.03 3.00 7.49 5.56 35.08
18 Bali 9.57 1.65 0.00 23.13 34.35
19 Aceh 12.86 0.94 0.06 16.79 30.66
20 South Kalimantan 8.81 1.28 13.38 5.03 28.49
21 Central Sulawesi 17.64 1.14 1.21 8.37 28.36
22 Central Kalimantan 0.79 1.58 18.10 1.98 22.45
23 South East Sulawesi 10.56 3.11 0.85 7.76 22.27
24 Bengkulu 11.00 1.40 0.05 3.63 16.07
25 West Papua 0.28 0.37 12.23 2.97 15.85
26 Papua 0.88 0.89 8.76 1.50 12.03
27 East Kalimantan 1.54 1.29 5.11 3.29 11.24
81
28 West Sulawesi 5.24 0.54 0.27 2.64 8.69

29 Maluku 1.82 0.87 2.78 2.68 8.16
30 Banten 3.10 1.94 0.37 1.70 7.12
31 North Maluku 1.93 1.28 1.10 2.21 6.52
32 Bangka Belitung 0.30 0.34 0.00 0.28 0.93
33 Riau Isl. 0.13 0.11 0.00 0.63 0.87
34 Jakarta 0.01 0.01 0.00 0.06 0.08
35 North Kalimantan 0.00 0.00 0.00 0.00 0.00
TOTAL 1,733.3 271.0 1334.8 534.7 3,873.8
82
Table 35. Biogas to electricity potential
No POME CH4 Energy Total

No Province
Unit m3/year Ton/year GJ/year GJ/year
1 Riau 215 21,266,615 223,299,46 12,393,120 135,490,551
2 North Sumatera 88 13,601,485 142,815,59 7,926,265 86,655,667
3 Central Kalimantan 64 9,552,718 100,303,53 5,566,846 60,860,789
4 South Sumatera 45 7,657,993 80,408,92 4,462,695 48,789,411
5 West Kalimantan 58 5,865,603 61,588,83 3,418,180 37,370,015
6 Jambi 44 4,775,070 50,138,24 2,782,672 30,422,184
7 East Kalimantan 65 4,451,273 46,738,36 2,593,979 28,359,255
8 South Kalimantan 33 2,995,478 31,452,51 1,745,615 19,084,321
9 West Sumatera 0 2,470,333 25,938,49 1,439,586 15,738,598
10 Aceh 26 2,385,465 25,047,38 1,390,130 15,197,904
11 Bengkulu 26 1,917,548 20,134,25 1,117,451 12,216,781
12 Bangka Belitung 12 1,372,665 14,412,98 799,921 8,745,310
13 Lampung 12 1,139,695 11,966,80 664,157 7,261,048
14 West Sulawesi 798,635 8,385,67 465,405 5,088,139
15 Central Sulawesi 3 758,000 7,959,00 441,725 4,829,252
16 North Kalimantan 753,870 7,915,64 439,318 4,802,939
17 Papua 7 295,573 3,103,51 172,245 1,883,106
18 South Sulawesi 2 293,125 3,077,81 170,819 1,867,512
19 West Papua 217,335 2,282,02 126,652 1,384,651
20 South East Sulawesi 212,745 2,233,82 123,977 1,355,408
21 Riau Isl. 130,828 1,373,69 76,240 833,508
22 West Java 1 88,068 924,71 51,321 561,082
23 Banten 1 72,910 765,56 42,488 464,513
24 Gorontalo 303 3,18 176 1,927
25 Maluku 125 1,31 73 796
INDONESIA 702 83,073,453 872,271 48,411,054 529,264,666
Source: DG Forestry, the Ministry of Agriculture, 2016
83
Table 36. Household biogas potential (in thousand)
Commodity 2010 2011 2012 2013 2014*

Broiler chicken 986,872 1,177,991 1,244,402 1,344,191 1,481,872
Local chicken 257,544 264,340 274,564 276,777 286,538
Laying chicken 105,210 124,636 138,718 146,622 154,657
Duck 44,302 43,488 49,295 12,015 52,775
Goat 16,620 16,946 17,906 18,500 19,216
Sheep 10,725 11,791 13,420 14,926 15,716
Beef cattle 13,582 14,824 15,981 12,686 14,703
Pig 7,477 7,525 7,900 7,611 7,873
Buffalo 2,000 1,305 1,438 1,110 1,321
Dairy cows 488 597 612 444 483
Horse 419 409 437 434 455
Source: the Ministry of Agriculture, 2016
Notes:
 4 m2 digester requires 2-3 beef cattle or 7 pig

84
Table 37. Installed capacity of operating on-grid biomass and biogas power plant
Capacity
No Location COD Developer Source
(MW)
North PT. Growth
1 2006 Palm waste 9
Sumatera Sumatra 1
PT. Listrindo
2 Bangka 2006 Palm waste 5
Kencana
PT. Indah Kiat Pulp
3 Riau 2006 Palm waste 3
& Paper
PT. Belitung
4 Belitung 2010 Palm waste 7
Energy
North PT. Growth
5 2010 Palm waste 10
Sumatera Sumatra 2
North
6 2011 PT. Growth Asia Palm waste 10
Sumatera
North
7 2012 PT. Growth Asia Palm waste 10
Sumatera
8 Belitung 2014 PT. Austindo ANE POME 1.2
9 Gorontalo 2014 PT. PLN Corn 0.4
10 Jambi 2014 PT. Rimba Palma Palm waste 10
North
11 2015 PT. Victorindo Palm waste 3
Sumatera
North PT. Harkat
12 2015 Palm waste 10
Sumatera Sejahtera
PT. Meskom Agro
Sarimas
South PT. Maju Aneka
14 2015 POME 1
Kalimantan Sawit
South
15 2015 PT. Sukajadi Sawit POME 2.4
Kalimantan
South
16 2015 PT. Mutiara Bunda POME 2
Sumatera
South
17 2015 PT. Sampurna POME 2
Sumatera
PT. Riau Prima
Energy
North
19 2016 PTPN III Palm waste 1.8
Sumatera
85
North
20 2016 PT. Siringo-ringo POME 1
Sumatera
PT. Riau Prima
21 Riau 2016 Biomass 10
Energy
22 East Java 2016 PTPN X Biomass 2
PT. Rimba Palma
23 Jambi 2016 Biomass 10
2
24 Riau Isl. 2016 PT. Tanjung Batu Biomass 1
TOTAL ON-GRID CAPACITY 136.8
Table 38. Installed capacity of off-grid biomass and biogas power plant
Capacity
No Location Source
(MW)
Palm waste 335

POME 9
1 Sumatera
Sugar cane 66
Pulp & paper 955
2 Kalimantan Palm waste 91
Palm waste 2
3 Jawa-Bali
Sugar cane 142
Palm waste 11
4 Sulawesi
Sugar cane 11
5 Papua Palm waste 4
TOTAL OFF-GRID CAPACITY 1,626
86
RE Commodity
Biofuel
RE COMMODITY: BIOFUEL
87
In contrast to the previously mentioned bioenergy utilization, some biomass potentials can
also be utilized for the production of biofuels. The Government has set the policy of biofuel
as a mixture of fuel oil along with its roadmap as regulated in the Minister of ESDM
Regulation No. 32/2008 as last modified by the Minister of ESDM Regulation No. 12/2015.
The use of biofuel as a fuel oil mixture requires a commerce business license for biofuel. In
addition to the discussion on biofuel commerce business licensing flow, potentials, installed
capacity of producers, government plans, as well as the price of biofuel market indices are
also available in this chapter.
1. POTENTIAL
Table 39. CPO (Crude Palm Oil) for biofuel raw material
CPO
No. of Company
No Province Production
(unit)
(Ton/Year)
1 Riau 215 8,506,646
2 North Sumatera 88 5,440,594
3 Central Kalimantan 79 3,821,087
4 South Sumatera 67 3,063,197
5 West Kalimantan 58 2,346,241
6 Jambi 51 1,910,028
7 East Kalimantan 65 1,780,509
8 South Kalimantan 33 1,198,191
9 West Sumatera 0 988,133
10 Aceh 42 954,186
11 Bengkulu 34 767,019
12 Bangka Belitung 16 549,066
13 Lampung 12 455,878
14 West Sulawesi 319,454
15 Central Sulawesi 3 303,200
16 North Kalimantan 2 301,548
17 Papua 7 118,229
18 South Sulawesi 2 117,250
19 West Papua 86,934
88
20 South East Sulawesi 85,098

21 Riau Isl. 52,331
22 West Java 1 35,227
23 Banten 1 29,164
24 Gorontalo 121
25 Maluku 50
INDONESIA 776 33,229,381
Source: DG Forestry, the Ministry of Agriculture 2016
89
Table 40. Installed capacity of business entity with biofuel commerce business license
BIODIESEL BIOETHANOL
Year
MT (metric ton) kL MT (metric ton) kL
2007 1,907 2,191,954 42,900 55,000
2008 2,701,010 3,104,609 233,300 299,103
2009 3,670,973 4,219,509 264,679 339,333
2010 4,432,973 5,095,371 264,679 339,333
2011 4,474,373 5,142,957 264,679 339,333
2012 4,474,373 5,142,957 264,679 339,333
2013 4,912,193 5,646,199 324,679 416,256
2014 4,922,633 5,658,199 348,079 446,256
2015 7,062,616 8,117,949 348,079 446,256
2016 10,567,866 12,146,975 348,079 446,256
2017 11,679,064 13,424,214 348,079 446,256
Table 41. Installed capacity of active biofuel related business entity
BIODIESEL BIOETHANOL
Year
MT (metric ton) kL MT (metric ton) kL
2007 1,820,000 2,091,954 0 0
2008 2,471,330 2,840,609 0 0
2009 2,721,330 3,127,966 7,800 10,000
2010 3,411,330 3,921,069 7,800 10,000
2011 3,411,330 3,921,069 7,800 10,000
2012 3,411,330 3,921,069 7,800 10,000
2013 3,841,330 4,415,322 7,800 10,000
2014 3,851,770 4,427,322 31,200 40,000
2015 5,991,753 6,887,073 31,200 40,000
2016 9,497,003 10,916,098 31,200 40,000
2017 10,258,204 11,791,039 31,200 40,000
Source: DGEBTKE, August 2017
90
The roadmap of biofuel usage obligation as fuel oil mixture is regulated in the Minister of
ESDM Regulation no. 32/2008 which has been revised three times resulting in the Minister of
ESDM Regulation no. 12/2015.
Table 42. Minimum usage of Biodiesel (B100) as fuel oil mixture
April Jan Jan Jan

Sector Notes
2015 2016 2020 2025
Currently not
Household - - - -
specified
Micro Enterprise, Fishery
business, Agrobusiness, From total
15% 20% 30% 30%
Transportation, and requirement
Public Service (PSO)
Transportation (non From total
15% 20% 30% 30%
PSO) requirement
Industry and From total
15% 20% 30% 30%
commercial requirement
From total
Power plant 25% 30% 30% 30%
requirement
Table 43. Minimum usage of Bioethanol (E100) as fuel oil mixture
April Jan Jan Jan

Sector Notes
2015 2016 2020 2025
Currently not
Household - - - -
specified
Micro Enterprise, Fishery
business, Agrobusiness, From total
1% 2% 5% 20%
Transportation, and requirement
Public Service (PSO)
Transportation (non From total
2% 5% 10% 20%
PSO) requirement
Industry and From total
2% 5% 10% 20%
commercial requirement
From total
Power plant - - - - requirement
*PSO = Public Service Obligation
91
Table 44. Minimum usage of pure Biooil as fuel oil mixture
April Jan Jan Jan

Sector Notes
2015 2016 2020 2025
From total
Industry 10% 20% 20% 20%
requirement
From total
Water transportation 10% 20% 20% 20%
requirement
From total
Air transport - 2% 3% 5%
requirement
From total
Power plant 15% 20% 20% 20%
requirement
In the transportation sector, the need for energy from biofuels as a mixture of fossil fuel
replacements is set forth in RUEN and is summarized in the following table.
Table 45. The need of biofuel mixture as fossil fuel replacement
Unit 2015 2016 2017 2018 2019 2020 2025 2030 2040 2050
MTOE 1.8 2.6 3.2 3.9 4.6 5.5 9.6 14.0 21.3 31.2
% 3.6 5.0 5.9 6.8 7.9 9.0 12.8 15.6 17.1 18.5
* Notes: Biofuel includes biodiesel, bioethanol, and bioavtur
92
4. BIOFUEL COMMERCE BUSINESS LICENSING FLOW
Biofuel Commerce Business

License Application
@ DGEBTKE  Administrational requirements
 Technical requirements
a. The source of raw material
acquisition statement (MoU with
Technical and
the supplier if the raw material is
Administrational Verification
supplied from other parties)
@ Directorate of Bioenergy
b. Biofuel Standards and Quality
(specification) Data as an
alternative fuel (SNI)
c. Biofuel names and trademarks as
Presentation, Data and an alternative fuel for retail
Business Plan Clarification, d. Information Feasibility
@ Directorate of Bioenergy (production, technology,
financial analysis, marketing, &
distribution)
e. Written statement on the stamp
on the ability of the
Site Visit f. Written statement on the stamp
@ Directorate of Bioenergy on the ability to meet safety and
health as well as on the
environment
Biofuel Commerce Business

Based on the Minister of ESDM
License Issuance
Regulation No. 32/2008
After meeting the
requirements and the
factory is ready to operate /
already commissioning
93
5. MARKET PRICE INDEX (MPI)
The market price index (MPI) is the basic price of biofuel purchases which is established by
the Government and is issued monthly. The formulation of MPI value is regulated by the
Minister of ESDM Decree. In 2016, this formulation is regulated in the Minister of ESDM Decree
No. 6034 K/12/MEM/2016. Afterwards, there was a modification on the formulation of
biodiesel MPI in 2017 which is regulated in the Minister of ESDM Decree No.
2026K/12/MEM/2017. This decree comes into force on May 5th 2017. MPI value formulation
can be seen in the table below.
Table 46. MPI formulation method
Biodiesel
MPI=(CPO average* + 100 USD/ton) x 870 Kg/m3 + Freight Fee
Bioethanol
MPI = (average of sugar cane drops in 3 months period* x 4.125 Kg/L) + 0.25
USD/L
Source: Minister of ESDM Decree No. 2026K/12/MEM/2017, May 5th 2017
Notes:
 *Issued by PT. KPBN (Kharisma Pemasaran Bersama Nusantara)
 The maximum amount of freight fee for each region is regulated in the Minister of
ESDM Decree No. 2026K/12/MEM/2017
 Exchange rate conversion refers to the average median rate issued by Bank
Indonesia
94
Table 47 pictures the historical MPI data in 2016 which refers to the Minister of ESDM Decree
No. 6034 K/12/MEM/2016.
Table 47. Monthly MPI value in 2016 in Indonesia
Biodiesel Price Bioethanol Price

Month (2016)
(US$/liter) (Rp/liter) (US$/liter) (Rp/liter)
January 0.512 6,954 0.566 7,841
February 0.513 7,112 0.57 7,903
March 0.565 7,687 0.555 7,560
April 0.608 8,026 0.586 7,739
May 0.673 8,891 0.598 7,891
June 0.656 8,737 0.602 8,013
July 0.626 8,402 0.607 8,148
August 0.596 7,835 0.818 10,757
September 0.646 8,483 0.828 10,876
October 0.685 9,028 0.833 10,986
November 0.635 8,262 0.841 10,943
December 0.665 8,779 0.832 10,993
Monthly
0.614 8,183 0.686 9,137.5
average
95
New, Renewable Energy and Energy Conservation Investment Guidance Book 2017
Energy
Conservation
ENERGY
CONSERVATION
96
Energy conservation is an effort to achieve energy efficiency targets set by the

Government. These targets are comprised of; the decrease of 17% energy consumption
from BaU scheme and the achievement of energy elasticity less than 1 by 2025. Investment
opportunities in the field of energy conservation is increasing with the issuance of the
Minister of ESDM Regulation No. 14/2012 on the obligation to conduct energy
management in the industrial field. Not only in industries, the Government also targets
energy savings in transportation, commercial, and household sectors. This following
chapter contains an explanation of energy savings potential, implementation, and
planning in the field of energy conservation, as well as a brief explanation on Energy
Service Company (ESCO) establishment permit.
1. ENERGY SAVINGS POTENTIAL AND IMPLEMENTATION
Table 48. Energy conservation program (2011-2015)
Year
Unit
2011 2012 2013 2014 2015
Saving potential
GWh 837 1532 556 515 4.1
Billion Rupiah 512 624 449 391 4.8
Kiloton CO2 646 1380 500 463 3.38
Saving achievement
GWh 128 46 184 71 0
Billion Rupiah 82 60 184 34 0
Kiloton CO2 94 41.4 163 30 0
Investment cost
Billion Rupiah 405 391 95 191 5

Source: Directorate of Energy Conservation, 2017
97
1.1 Investment Value of the Committed Energy Efficiency Projects
Ministry of ESDM US$ 404,464
BSN US$ 182,600
Ministry of Industry US$ 186,600

TOTAL
US$
Industry US$ 5,738,650
11,736,129
Bank US$ 3,043,435
GEF US$ 2,180,380
Total Energy Saving Total CO Saving New Power Plant

2
1,409,476,071 KWh Equicalent
938,358 ton CO
eq 2 32.5 MW
0.0083 12.5 US$/ton 361,111 US$

USD/KWh eq CO2 / MW
Source: United Nations Industrial Development Organization (UNIDO), 2017
98
Table 49. Committed energy efficiency projects
No. EE Implementation Investment Details
Rp 10.3 Billion
ISO 50001 Pilot Project, Energy
1 Management System
UNIDO
Rp 2.4 Billion
Street Lighting Project (ADB
2 Grant)
Pilot ADB
Rp 30.1 Billion
Energy Efficient Building
3 Projects
Swasta
Rp 1,377.6 Billion
JCM Projects (Bangunan &
4 Industri)
Private / JCM
Rp 21.5 Billion
LED Street Lighting
5 Local Government
Local Government / APBD
Rp 117.6 Billion
LED Street Lighting
6 Ministry of ESDM
Ministry of ESDM / SOB
99
1.2 Energy Savings in Street Lighting

As one of the efforts to support energy efficiency as well as Indonesia’s illumination program, the Government has been conducting the installation activity of public solar street lighting and the
replacement of energy-intensive street lighting lamps with more efficient LED lamps.
5,585 Solar Total

8,068 Retrofitted 13,653 Unit
Energy Saving : 6,05 GWh/ Year

Emission Reduction : 4,97 Million Ton CO /Year
2
Figure 10. Energy efficient street lighting distribution

100
Example of Electricity Savings on Street Lighting
Replacing 259 existing HPS Lamps (High Pressure Sodium) with LED Lights equipped with
smart system technology
Table 50. Before/after retrofitting comparison
Before After
Watt Energy Consumption Watt Energy Consumption
400 5.27 kWh/day 200 2.34 kWh/day
250 4.59 kWh/day 145 1.75 kWh/day
Table 51. Total electricity saving from energy efficient street lighting installation
Quantity Watt Substitution Saving (Watt) Total Saving (Watt)
99 200 400 200 19,800
160 145 250 105 16,800
259 36,600
Electricity bill saving 37%
Electricity usage saving 160 MWh/year
Green house gases emission reduction 128 Ton CO2/year
Street lighting implementation in public sector:
Average electricity usage of street lighting per province (2010)

2.85%
Street lighting power consumption addition to peak load at night
4.95%
Investment meter of 143.348 street lighting system
Rp. 286.7 M
Investment of dimming ballast installation on 220.000 street lighting
Rp. 770 M
Annual electricity saving potential from street lighting

2,042 GWh (65%) = peak load decrease by 446 MW
101
1200
1000
Energy Consumption (MTOE)
800
39%
BAU
600
RUEN
400 22%
17%
200
0
2015 2020 2025 2030 2035 2040 2045 2050
Figure 11. Energy consumption projection target
1,8
1.8
1,6 1.54
1.6
1,4
1.2
1.11
1,2 1.04
1.0
1,0
0.8
0.71 0.70 0.68 0.68 0.67
0,8
0.6
0,6 1.14
0.4 0.89 0.84
0,4
0.58 0.54 0.53 0.50
0.2
0,2 0.46
0.0
0,0
2015 2020 2025 2030 2035 2040 2045 2050
KEN BAU
Figure 12. Energy elasticity projection target
102
Investment Planning of Energy Efficiency in Various Sectors
Commercial 36 MBOE
Implementation:
Saving potential
• Energy audit/ IGA (Investment Grade
10-30 %
Audit)/ ESCO Pilot Project
• Energy efficiency standard
• Online monitoring system (Government
Building)
• Increasing public understanding in
commercial sector
Transportation 260
MBOE Implementation:
Saving potential • Public transportasi (BRT/MRT/LRT)
15-35 % • Fuel transition (oil to gas & biodiesel)
• Transportation management system
transportation sector
Industry 229 MBOE

Implementation:
Saving potential
10-30 % • Energy audit/IGA/ESCO
• Energy management/ISO 50001
• Online monitoring system
• Energy manager and auditor
certification
industrial sector
• Pilot Project
Household 110 MBOE

Implementation:
Saving potential
• Energy efficiency standard (Label /
15-30 %
MEPS)
household sector
103
3. ESCO CONCEPT
Energy Service Company – ESCO involved in planning, implementation, operation,

maintenance, measurement and verification activities in the field of Energy Conservation.
There are two kinds of ESCO business patterns including shared saving and guaranteed
saving pattern. The differences between these two patters are descibed as follow.
Figure 13. Business pattern: Shared Saving
Figure 14. Business pattern: Guaranteed Saving
104
Relationship Between Stakeholders
The relationship between stakeloders in each business pattern is illustrated in the following
figures
Figure 15. Stakeholders relationship in share saving scheme
Figure 16. Stakeholders relationship in guaranteed saving scheme
105
4. ESCO LICENSING FLOW
As regulated in the Minister of ESDM Regulation No. 12/2012, ESCO companies are required
to register their companies before doing business in Indonesia. Stages of ESCO online
registration through DGEBTKE website can be seen in the following figure.
Submission of Application
Through EBTKE Website Requirements:
www.ebtke.esdm.go.id a. Deed of Establishment &
@ ESCO Business license
b. Have 1 or more certified
energy auditors (information
Admission of Application regarding certified energy
Documents auditor/manager is
@ Director General of EBTKE accessible here
@ Director of Energy aplikasi.ebtke.esdm.go.id/po
Conservation me/)
c. List of supporting equipment
d. Financial capabilities that
Verification of Application
have been verified by
Documents
financial audit institutions or
@ Sub Directorate of
those reported to state
Development of Energy
financial institutions.
Conservation Business
Issuance of Certification of
Registration
@ Director General of EBTKE
through the Head of Sub
Directorate of Development
of Energy Conservation
Business
Currently there are 5 companies listed as ESCO Company in DGEBTKE. The details of these
five companies are listed in the Appendix section.
106
Annex 1
Energy Conservation
Stakeholders
ATTACHMENT 1:
ENERGY
CONSERVATION
STAKEHOLDERS
Test Laboratory Profile for Energy Saving Lamps
107
Test
Laboratory Address Contact
Capability
P3TKEBTKE (Pusat Jl. Cileduk Raya Kav. (T) 021 – 7203530 300
Penelitian 109 Cipulir (F) 021 – 7203525 Lamp/month
Pengembangan Kebayoran Lama
Teknologi Jakarta 12230
Ketenagalistrikan
Energi Baru,
Terbarukan dan
Konservasi Energi)
B2TKE – BPPT Kawasan Puspitek (T) 021 – 7560550 500
(Balai Besar Teknologi Gd.620-622 Serpong, 021 – 7560092 Lamp/month
Energi) Tanggerang - (F) 021 – 7560904
Banten
BARISTAND Jl. Jagir Wonokromo (T) 031 – 8410054 800
(Balai Riset dan No. 360 (F) 031 – 8410480 Lamp/month
Standardisasi) Surabaya 60244
PT. SUCOFINDO Jl. Arteri Tol Cibitung, (T) 021 – 88321176 2280
Bekasi 17520 (F) 021 – 88321166 Lamp/month
B4T Jl. Sangkuriang No. (T) 022 – 2504088 600
(Balai Besar Barang 14 022 – 2504828 Lamp/month
dan Bahan Teknik) Bandung 40135 022 – 2510682
(F) 021 – 2502027
108
Product Certification Institution for Air Conditioning Devices
Laboratory Address Contact

BARISTAND Jl. Jagir Wonokromo No, (T) 031 – 8410054
(Balai Riset dan 360 (F) 031 – 8410480
Standardisasi) Surabaya 60244
Balai Sertifikasi Industri Jl. Cikini IV No,5 Jakarta (T) 021 – 31925807
Pusat 10330 021 – 31925808
(F) 021 – 31925806
021 – 31925805
TUV Reinland Infinia Park Blok B92-93 (T) 021 – 83795571
Jl. Dr. Saharjo No,45 (F) 021 – 83795572
Jakarta 12850
PT. SUCOFINDO Graha Sucofindo B1 (T) 021 – 7983666 ext,
floor 2062, 2605, 2614
Jl. Raya Pasar Minggu (F) 021 – 7987015
Kav.34
Jakarta 12780
109
List of Registered ESCO in DGEBTKE
No. Name Details

Address:
Jl. Raya Sukamantri No.33,
Sukaraya, Karangbahagia,
PT. Tigapena Sigma Bekasi, West Java 17530
1
Energy
Tel:
(021) 7869764
Address:
Graha Pura Lantai 3, Jalan
Pancoran Indah 1 No. 52,
PT. Energy
Pancoran, Jakarta 12780
2 Management
Indonesia EMI
Tel:
(021) 79193431
Address:
Graha Sucofindo Lt 13, Jl Pasar
PT. Superintending
Minggu Kav 34, Jakarta 12780
Company of
3
Indonesia
Tel:
SUCOFINDO
(021) 7983666
Address:
Jl. Pegangsaan Dua Km. 2, No.
64, Jakarta
PT. Fokus Indo
4
Lighting
Tel:
(021) 4612110
Address:
Wisma Mampang Lt., Raya No.1,
Jl. Mampang Prpt. Raya No.2,
Jakarta 12790
5 PT. Tracon Industri
Tel:
(021) 7974367
110
Annex 2
Stakeholders
Contact List
ATTACHMENT 2:
STAKEHOLDERS
CONTACT LIST
111
Institution Contact
Ministry of ESDM T : +62 21 398 300 77
Jl. Pegangsaan Timur No.1 E : info@ebtke.esdm.go.id
Menteng Jakarta Pusat W : www.ebtke.esdm.go.id
Investment Coordinating T : +62 21 525 2008

Board (BKPM) E : info@bkpm.go.id
Jl. Jend Gatot Subroto No.44 W : www.bkpm.go.id
Jakarta 12190, PO BOX 3186
Ministry of Internal Affairs T : +62 21 345 0038

Jl. Medan Merdeka Utara F : +62 21 385 1193;
No. 7
Jakarta Pusat 348 302 61; 384 6430
E : pusdatin@kemendagri.go.id
W : www.kemendagri.go.id/
Ministry of Finance T : +62 21 344 9230

Gedung Djuanda I Lt. 9 F : +62 21 350 0842
Jl. Dr.Wahidin Raya No 1
Jakarta 10710 E : webmail.kemenkeu.go.id
W : www.kemenkeu.go.id
PT. PLN T : +62 21 725 1234, 726 1122

Jl. Trunojoyo Blk. M-I No.135, F : +62 21 722 1330
RT.6/RW.2, Melawai, Kby.
Baru, Kota Jakarta Selatan, E : pln123@pln.co.id
Daerah Khusus Ibukota W : http://www.pln.co.id/
Jakarta 12160
112

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New, Renewable Energy and Energy Conservation Investment Guide Book 2017

New, Renewable Energy

Indonesia’s government participation in greenhouse gasses emission reduction

This guide book is arranged to facilitate general public, stakeholders, potential

As a guidebook for investors to know Indonesia’s real condition, opportunities

Information is highly needed in implementation of investment projects as

The increase of clean energy demand is a huge opportunity and at a time, a

Jakarta, September 2017

kWh kilo watt hour

LIST OF ABBREVIATION ...................................................................................................................... iv

LIST OF CONTENT ............................................................................................................................... vi

INTRODUCTION: INDONESIA CONCISE ........................................................................................... 1

2. ENERGY ROADMAP ....................................................................................................... 4

3. NATIONAL ELECTRIFICATION SYSTEM CONDITION .................................................... 8

1. RE INVESTMENT REGULATION LIST .............................................................................. 13

2. INVESTMENT THROUGH IPP SCHEME ......................................................................... 17

3. INVESTMENT THROUGH STATE OWNED BUDGET SCHEME ...................................... 28

4. INVESTMENT THROUGH SPECIAL ALLOCATED BUDGET .......................................... 31

5. INVESTMENT THROUGH LOCAL GOVERNMENT & BUSINESS ENTITY

6. INVESTMENT TRHOUGH RURAL ELECTRIFICATION SCHEME .................................... 36

RE COMMODITY: GEOTHERMAL .................................................................................................... 38

2. INSTALLED CAPACITY .................................................................................................. 41

3. GOVERNMENT TARGET AND PLANNING .................................................................. 47

4. INVESTMENT FLOW ....................................................................................................... 48

5. GOVERNMENT’S BREAKTHROUGH ............................................................................ 52

RE COMMODITY: SOLAR PHOTOVOLTAIC .................................................................................... 54

2. INSTALLED CAPACITY .................................................................................................. 57

3. GOVERNMENT TARGET AND PLANNING .................................................................. 59

RE COMMODITY: MICROHYDRO ................................................................................................... 61

2. INSTALLED CAPACITY .................................................................................................. 64

3. GOVERNMENT TARGET AND PLANNING .................................................................. 66

RE COMMODITY: WIND ................................................................................................................... 68

2. GOVERNMENT TARGET AND PLANNING .................................................................. 71

RE COMMODITY: MUNICIPAL SOLID WASTE ................................................................................. 73

2. INSTALLED CAPACITY .................................................................................................. 75

3. GOVERNMENT TARGET AND PLANNING .................................................................. 76

RE COMMODITY: BIOMASS/BIOGAS ............................................................................................. 78

2. INSTALLED CAPACITY .................................................................................................. 85

RE COMMODITY: BIOFUEL ............................................................................................................... 87

2. INSTALLED CAPACITY .................................................................................................. 90

3. GOVERNMENT TARGET AND PLANNING .................................................................. 91

4. BIOFUEL COMMERCE BUSINESS LICENSING FLOW .................................................. 93

5. MARKET PRICE INDEX (MPI) ........................................................................................ 94

ENERGY CONSERVATION ................................................................................................................ 96

1. ENERGY SAVINGS POTENTIAL AND IMPLEMENTATION ........................................... 97

2. GOVERNMENT TARGET AND PLANNING ................................................................ 102

3. ESCO CONCEPT......................................................................................................... 104

4. ESCO LICENSING FLOW ............................................................................................ 106

ANNEX 1: ENERGY CONSERVATION STAKEHOLDERS ................................................................ 107

ANNEX 2: STAKEHOLDERS CONTACT LIST .................................................................................... 111

Energy Equality for

Statistic Unit 2014 2015 2016

Population Million 252.2 255.5 258.7

Population growth % 1.35 1.31 1.27

Regional GDP based on 2017

Economic growth % 5.0 4.9 5.0

Yearly inflation % 8.4 3.4 3.0

Statistic Unit 2020 2025 2030

Population projection Million 271 284.8 296.4

Source : Badan Pusat Statistika

Figure 1. National energy mix in 2015

Trilion Rupiah or Milion BOE

Energy Elasticity GDP (Trillion Rupiah) Energy Consumption (Million BOE)