MINISTRY OF ENERGY AND MINERAL RESOURCES

Policy, Target, and Breakthrough in Hydro to Support

National Energy Policy and Paris Agreement

Maritje Hutapea
Director of Various New and Renewable Energy
Presented at The 6th Indo EBTKE ConEx 2017 in conjuction with Bali Clean Energy
Forum 2017
Balai Kartini, Jakarta, 14th September 2017
OUTLINE KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

11. Introduction

2 National Electrification Ratio

31. The National Energy Policy

42. National Committment on Emission Reduction

3. The Ministry of Energy And Mineral Resourcess

5 Regulation Number 50 Year 2017

64. Incentives To Support Renewable Energy Sector

7
5. Challenges and Breakthrough

6.
8 The Contribution of NRE for Reducing GHG Emission
 I. INTRODUCTION: NRE ROLE

Increased energy supply;

RThe NRE target is 23% by 2025, equivalent to 45
GW.
AcceleraEng the provision of modern energy access;
RThe electricaEon raEo target is 97% in 2019.
ContribuEng to the GHG reducEon program;
RIndonesia commiNed 29% GHG reducEon by 2030,
the energy sector is targeted to contribute 314
million tonnes of CO2 emissions reducEon.
As a driver of green economy.
INDONESIAS RENEWABLE ENERGY POTENTIAL

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

4
Source: RUEN Total: 75.091 MW
 Aceh:
1.538 MW
Kalseltengtim &
Kaltara: 7.976 MW
Sumut:
1.204 MW
Kalbar: Maluku & Maluku
Sulutenggo:
124 MW 598 MW Utara : 214 MW
Sumbar & Riau:
1.637 MW
Papua &
Papua Barat:
618 MW

Sumsel, Jambi, Bengkulu,

& Lampung: 1.355 MW Jateng & DIY: Sulselrabar:
1.049 MW 1.070 MW

Jabar & Banten:

719 MW Jatim: Bali & Nusra:
Source: RUEN
1,142 MW 141 MW Total: 19.385 MW
7 II. NATIONAL ELECTRIFICATION RATIO
ACEH
KALTIM
99.09
unEl Juni 2017 NaEonal ElectricaEon
96.85 JAMBI KALTARA GORONTALO RaEo is
91.38
92.80%
SUMUT 89.08
86.23
97.60
KEPRI SULUT MALUT
RIAU KALBAR
76.97 87.88 SULTENG 92.47 99.05
91.86
83.47
PABAR
BABEL 89,84
100.00 PAPUA

SULBAR
48.74
83.76

SUMBAR DKI JAKARTA

JATENG
87.55 97,89 94,50 KALTENG KALSEL MALUKU
75,76 90.50 87.50
BENGKULU
SULSEL
93.80 SULTRA
94.77
76.79
SUMSEL
85.93
JABAR JATIM
LAMPUNG
89.75 99.47 DIY 90,65 NTB NTT
89.63 BALI 79.93 59.17
BANTEN 94.42
NOTE: 100.00
91.16 92.75 95.15 97.35
84.35 88.3
> 70 72.95 76.56 80.51
67.15
50 - 70 RealizaEon and target of the NaEonal
< 50 ElectricaEon RaEo
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
III. THE NATIONAL ENERGY POLICY
 THE NATIONAL ENERGY MIX TARGETS BY 2025
(GOVERNMENT REGULATION NO. 79/2014)

New and Renewable Energy

Oil
2025
Gas
2013
Gas
Coal
NRE
18%
5% 22% 23%

194 ~ 400
MTOE 46% MTOE
31%
30% 25%
Coal
Oil

2013 2025
Power Plant 51 GW 135 GW
Energy ConsumpEon 0,8 TOE/capita 1,4 TOE/capita
Electricity ConsumpEon 776 KWh/capita 2.500 KWh/capita
 New and Renewable Energy Target By 2025
10 45,04
2025
Geothermal 7.2 GW
41,01
Hydro 21 GW
35,74 Bioenergy 5.5 GW

29,28 Solar 6.4 GW

Wind 1.8 GW
24,66 Other NRE 3.1 GW
18,48
15,81
Totall 45 GW
12,94
11,73
10,80
8,66

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PLTP PLT Bioenergi PLTA Mini Hidro PLTS PLT Bayu PLT Laut Total

2015 2025

Total Installed Capacity 55 GW 135 GW

NRE Power Plant Capacity

8.7 GW 45 GW
(15.7%) (33%)
3
IV. National Committment On Emission Reduction

Indonesia commits to reduce (its GHG emission) by 29% from BAU level
by 2030 and 41% with internaDonal assistance

The commitment of President Joko Widodo

in COP 21 December 2015 in Paris, Indonesia
will reduce GHG emissions by 29% with its
own abilities and 41% with international
support.

Government through the Ministry LHK signed the Paris

Agreement on April 22, 2016.
(Paris Agreement has been signed by 180 parties)
V. THE MINISTRY OF ENERGY AND MINERAL RESOURCESS
REGULATION NUMBER 50 YEAR 2017 : UTILIZATION OF
RENEWABLE ENERGY SOURCES FOR THE ELECTRIC POWER
PROVISION
Accelerating Efficiency in Electricity Provision

Electricity provision should be ecient

so that electricity subsidy will not
burden the State Budget, thus a beLer
electricty price for the people.
Energy Subsidy | Trilion Rupiah
Subsidi Energi | Triliun Rupiah Energy subsidy in the State
400 Budget should be going for a
350 342 more equitable
300 310
development.
250
200
150
119 108
100
77
50 101 99
Producing electricity, as much 58 59 45
0
as it can be, shall the operaEonal 2013 2014 2015 2016 2017
cost be relaEvely as much, it Oil/LPG
BBM/LPG Listrik Total
Electricity
means the producEon is not * 2016 angka realisasi unaudited | 2017 angka APBN

ecient. Such condiEon makes

our industry not compeEEve." Cheaper price leads to a beLer
development economy, including the
- Ignasius Jonan industrial sector.
 Renewable Energy UElizaEon for a more even and aordable
Electricity Provision for the people
RegulaZon of the Minister MEMR Number 50 Year 2017
Type of Power Plants
1. Solar 5. Biogas
2. Wind 6. Municipal Waste
3. Hydro 7. Geothermal
4. Biomass 8. Ocean Movement
and OTEC

Mechanism
1. Solar and Wind through direct elecEon in capacity quota

Hydro, Biomass, Biogass and

2. through direct elecEon
Ocean Movement and OTEC
3. Geothermal and Municipal Waste based on Geothermal and Municipal Waste regulaEon

Electricity Purchase Price

If GeneraZon BPP (Biaya Pokok Penyediaan/ Cost of

q Solar
q Wind
ProducZon) at regions electricaEon system : q Municipal 1. If GeneraZon BPP at regions electricaEon system > the naEonal BPP
100%
>
q Biomass Waste Maximum price
on average of regions GeneraEon
q Biogas The naZonal BPP on average maximum price 85% of q Geother- BPP
regions GeneraEon BPP mal
q Ocean
Movement q Hydro 2. If GeneraZon BPP at regions electricaEon system
the naEonal BPP
The naZonal BPP on average on average
and OTEC
Note:
BPP based on agreement (business to business)
Price based on agreement (business to business)

ConstrucEon of the transmission interconnecEon between the IPP and the PLN grid may be done through business to business basis.
Based on Build, Own, Operate, and Transfer/BOOT scheme
 33.4

Indonesia RE Investment Opportunities. 33.4 33.4 26.9 PLTSa

A huge potential of RE is available and remain attractive on
22.9
13 23.9
priority areas PLTBg
26.9 26.9 PLTSa PLTSa
33.4 33.4
33.4
19.2
33.4
PLTBm
23.9 23.9 PLTBg PLTBg 18.9
22.9 22.9
17.6 17.9 Regional grid RE Potential PLTP
PLTBm26.9 PLTBm 33.4
PLTSa 26.926.9 PLTSa
PLTSa 26.9 Giga Watt PLTSa
(GW)
18.9 19.2 18.9 19.2 BPP cent$/kWh
17.9
PLTP
23.9 PLTP
13.1 PLTBg
23.9
23.9 PLTBg22.9
PLTBg 23.9 PLTMH
PLTBg
22.9 22.922.9
100% Regional grid
10.9
PLTMH PLTMH PLTBm PLTBm BPP
PLTBm 26.9 PLTSa
Municipal
Waste PLTA
PLTBmLarge Hydro
18.9 19.2 18.918.9 19.219.2 18.9 19.2 18.9 19.
17.6 17.9 17.617.6 17.917.9 PLTA PLTA 17.6 17.9 17.6 17.9
PLTP 22.9
PLTP 23.9
PLTP 85% Regional grid
33.4
PLTBg
Biogas PLTPPLTB
Wind

3.1 13.113.1
4.9 PLTB PLTB
13.1 PLTMH PLTMH BPP
PLTMH 13.1 PLTBm PLTMH
18.9 19.2
Biomass PLTS
Solar PV
10.910.9 PLTS 10.9
17.6
PLTS
17.9 PLTA PLTA
PLTA 10.9
26.9 PLTSa PLTA
PLTP
Geothermal Total
Total
Total Total PLTB PLTB 23.9
PLTB PLTBg PLTB
4.9 4.9 4.9
13.1
22.9 4.9 PLTMH
Micro Hydro
Babel
Kalbar Maluku NTB Riau PLTS Aceh PLTS Sumut
PLTS PLTBm PLTS
Aceh NTTSulutenggo
tenggo Sumut NTTKaltim Sumut
Kalbar Kaltim
Papua
10.9
Papua
PLTSa 18.9 Sulutenggo
19.2
NTT
PLTSa Kaltim Kalbar Papua
PLTA
10,39 9,28 17.6 Total
17.9 Total
Total PLTP Total
8,83 PLTP PLTP
7,89
13.1
PLTB
PLTMH
TB Babel Maluku
Riau
Babel MalukuSulutenggo
Aceh NTBNTB NTTRiau
Riau Babel
AcehSulutenggo
Sumut
Aceh Sulutenggo
Kaltim Maluku
Kalbar
NTTNTT NTB Riau
Sumut Kaltim
Papua
Sumut Aceh
Kalbar Sulutenggo
Kaltim Kalbar Papua
Papua NTT Sumut
Babel Kaltim
Maluku Kalbar
NTB Papua
Riau Aceh Sulutenggo NTT
4.9 10.9 Total Total
10,14 12,43 10,20 12,75 PLTS
PLTA
10,57 8,67 10,84
8,62 17,32 PLTB
Total
33.4 33.4 33.4
4.9
14,72 PLTS
1.36 1.36
Babel Maluku NTB Riau 0.08 Aceh Sulutenggo NTT 0.08
Sumut Kaltim Kalbar Papua
26.9 Total
26.9 26.9PLTSa PLTSa
22.9
23.9
22.9
23.9
22.9
23.9 PLTBg PLTBg
Babel Sulselrabar
Maluku NTBKalselteng
Riau Aceh Sulselrabar Kalselteng
Sulutenggo NTT Sumut Kaltim Kalbar Papua
Bangka: 13,66 9,04 8,10 19.2 19.2 19.2
PLTBm PLTBm
18.9 18.9 18.9
Belitung: 12,17 17.6 17.9
17.6 17.9
17.6 17.9
7,68 6,89 PLTP PLTP
Bangka: 11,61 PLTMH PLTMH
13.1 13.1 13.1
Belitung: 10,34
10.9 10.9 10.9 PLTA PLTA
PLTB PLTB
4.9 4.9 4.9
PLTS PLTS

There are around 210 GW of RE Total Total
potential in the 13 priority areas
Babel Babel
Maluku Maluku
NTB
Babel NTB
Riau
Maluku Riau
Aceh
NTB Aceh
Sulutenggo
Riau Sulutenggo NTT
NTT Sulutenggo
Aceh Sumut Sumut
Kaltim
NTT Kaltim
Kalbar
Sumut Kalbar
Papua
Kaltim Papua
Kalbar Papua
that have remain attractive 13,68 17,52 13,54
economics (regional grid BPP > 11,63 14,89 11,51
national BPP) 15
KEMENTERIAN ESDM
 VI. Incentives to Support New and Renewable Energy
TAX ALLOWANCE TAX HOLIDAY
Govt Regulation No.9/2016
30
% of investment value
Reduction of corporate
net income tax for 6 years,
5% each year.
145 business segments
Eligible for tax
allowance, expanded
from 129 segments in
the previous
regulation.
Under certain requirements
among others: investment value or export
orientation, manpower absorption, local
content.
IMPORT DUTY FACILITY
MoF Regulation No.176/PMK.
011/2009 jo. MoF Regulation
No. 76/PMK.011/2012 jo. MoF MoF Regulation No.159/PMK.010/2015
Regulation 188/PMK.010/2015 Tax relief facility, starEng from the
5-15 years commencement of commercial
producEon. Can be extended for Max. 20
years under certain consideraEon.
1
I m p o r t d u t y o n M a c h i n e r i e s a n d
trillion
Equipments, goods, and raw materials for IDR
Minimum investment plan
producZon (USD 80 million). Or Minimum IDR 500
ExempEon of import duty on machineries and Billion if introduce new technology
equipments
2 years exempEon of import duty on raw Max . 1 00 %
materials 10-100% ReducZon of corporate income
AddiEonal 2 years import duty exempEon for tax for Pioneer Industry. Max. 50% for
industry that implement high technology with
raw materials if company using locally- investment plan
produced machineries and equipments (min IDR 500 M less than 1 Trillion.
30%)
Pioneer Industry:
1. Upstream metal;
MoF RegulaZon No. 66/PMK. 2. Oil renery;
010/2015 3. Basic organic-chemical from oil and gas;
4. Machinery industry that manufacture industrial machine;
5. Processing industry based on commodity from agriculture,
Import duty on Capital Goods for forestry and shery;
Development and Expansion of 6. TelecommunicaEon, informaEon and communicaEon;
Power GeneraZon Industries for 7. Sea transport;
8. Processing industry as main industry located in Special
Public Purpose. Economic Zone (SEZ); and or
9. Infrastructure (economical, non-PPP scheme)
The Investment Coordina2ng Board of the Republic of Indonesia
16
VII. CHALLENGES AND BREAKTHROUGH
18
CHALLENGES

Hydro potential mostly located in protected forests and far

from demand.

Social and environmental issues (land acquisition).

19
BREAKTHROUGH
The tariff of electricity based on new and renewable energy is
determined based on BPP in order to make new and
renewable energy more competitive.
Based on new tariff, 32 hydropower projects have been
signed the PPA on 2 August 2017 with a total capacity of
175,79 MW.
11 hydropower projects have been signed the PPA on
8 September 2017 with a total capacity of 291,4 MW.
Hydropower sustainability assessment protocol has been
ratified. This is expected to smooth the development of
hydropower in considering the social and environmental
issues.
Simplifying license process.
Note:
BPP is the cost of provision of electricity by PT PLN (Persero) in Power GeneraEon
VIII. THE CONTRIBUTION OF NRE FOR REDUCING GHG EMISSION
3

Nationally Determined Contributions Target

M Ton (CO2e) M Ton (CO2e)

Notes : *Fugitive ** peatland fires

CM1 : counter measure (scenario condition without mitigation requirements-unconditional)
CM2 : counter measure (scenario condition with mitigation requirements-conditional)
At the first NDC, Indonesia has committed to reducing GHG emissions in the energy sector by 314
million tons of CO2 without international support, or reduced by 398 million tons of CO2 with
international support.
Indonesia has a National Energy Policy (KEN) to achieve independence and energy security. The
programs contained in the draft RUEN have an impact on reducing GHG emissions.
 KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL

MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION

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

www.ebtke.esdm.go.id