MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Alihuddin Sitompul
Director of Various New Energy and Renewable Energy

Munich, Germany, June 20th 2013

Energy and Mineral Resources for People’s Welfare
I. ENERGY POLICY 3
II. NATIONAL PRIMARY ENERGY MIX TARGET 4
III. EFFORTS TO INCREASE NRE UTILIZATION 6
IV. NRE DEVELOPMENT AND UTILIZATION STRATEGY 8
V. STRATEGIC ISSUES IN RELATION WITH GERMANY 9

Energy and Mineral Resources for People’s Welfare

1. ENERGY CONSERVATION: to increase energy efficiency on
supply and demand side, e.g. industrial, transportation,
household and commercial sector.
2. ENERGY DIVERSIFICATION: to increase the share of new and
renewable energy use in the national primary energy mix. e.g.:
NEW ENERGY RENEWABLE ENERGY
a. Liquified Coal a. Geothermal,
b. Coal Bed Methane b. Hydro,
c. Gasified Coal c. Bio-energy,
d. Nuclear d. Solar,
e. Hydrogen e. Wind,
f. Others methane f. Ocean wave and current.

Energy and Mineral Resources for People’s Welfare

 CURRENT CONDITION 2025 TARGET
2011 BY PRESIDENTIAL REGULATION NO. 5/2006

Geothermal Nuclear, Liquified

Biofuel
5% Hydro, Coal 2%
5%
Solar,
Wind,
and Other NRE 5%
ENERGY ELASTICITY= 1,65 ENERGY ELASTICITY LESS THAN 1 IN 2025
NON FOSSIL ENERGY SHARE≈ 5% OPTIMIZING NEW RENEWABLE ENERGY SOURCES

Energy and Mineral Resources for People’s Welfare

 RATIO OF
NO NEW & RENEWABLE ENERGY RESOURCES INSTALLED CAPACITY (IC) IC/RESOURCES (%)
1 2 3 4 5 = 4/3
1 Hydro 75,000 MW 6,848.46 MW 9.13%
2 Geothermal 29,164 MW 1,341 MW 4.6 %
3 Biomass 49,810 MW 1,644.1 MW 3.3%
4 Solar 4.80 kWh/m2/day 27.23 MW -
5 Wind 3 – 6 m/s 1.4 MW -
6 Ocean 49 GW ***) 0.01 MW ****) 0%
7 Uranium 3,000 MW *) 30 MW **) 0%
*) Only in Kalan – West Borneo ***) Source: National Energy Council
**) As a center of research, non-energy ****) BPPT’s Prototype
RATIO OF
PROVEN RESERVES PR/RESOURCES PRODUCTION RATIO OF PR/PROD
NO FOSSIL ENERGY RESOURCES (YEAR)*)
(PR) (%) (PROD)

1 2 3 4 5 = 4/3 6 7 = 4/6
1 Oil (billion barel) 7,408.24 3,741.33 0.505 0.314 12
2 Gas (TSCF) 150.70 103.35 0.685 2.98 35
3 Coal (billion ton) 161.3 28.17 17 0.317 89
4 Coal Bed Methane (TSCF) 453.3 - - - -
5 Shale Gas (TSCF) 574 - - - -

Energy and Mineral Resources for People’s Welfare

1. IMPROVING POLICY AND REGULATION
A few sub-sectors of renewable energy still has not been set. Therefore, GoI continues to improve
the regulation on development and utilization of renewable energy, including the preparation of new
renewable energy government regulations;
2. CREATING THE MARKET
through the supply and utilization of bio-fuel, obligating the National Electric Company (PT PLN) to
purchase electricity, the application of Indonesian National Standard (SNI), etc;
3. SUBSIDY
Subsidy for bio-fuel has been allocated since 2009. Subsidies are provided to cover the difference
between fuel prices and biofuel prices; distributed through PT Pertamina;
4. FEED-IN TARIFF
Be regulated through the Minister of Energy and Mineral Resources Regulation, which comprise the
non-negotiable selling price of electricity generated from renewable energy purchased by National
Electric Company.
5. INCENTIVES AND FACILITIES
Reduction of taxes and custom duties; simplicity of licensing procedures;
There will be no tendering process for RE power plant with capacity less than 10 MW (excluding for
Solar PV Power Plant)
Energy and Mineral Resources for People’s Welfare
6. FUNDING AND OTHER FINANCIAL SUPPORT
Providing fund to improve modern energy acess in remote and isolated area
7. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES
Education and training in the field of renewable energy;
Socialization;
Improving NRE networks, supporting the establishment of organization/association (IKABI, METI,
etc);
8. INCREASING RESEARCH IN THE FIELD OF NEW & RENEWABLE ENERGY
Scale up research cooperation;
Enhance type of research;
9. DEVELOPING COOPERATION WITH OTHER COUNTRIES AND INTERNATIONAL ORGANIZATION
Cooperation for capacity building;
Cooperation for technology transfer;
Lessons learned for the implementation of new renewable energy policies and programmes;
Acquire new renewable energy market (biofuel), and promote technology for NRE component.

Energy and Mineral Resources for People’s Welfare

1. Acceleration of RE utilization in the national electricity supply through the
development of Geothermal and Hydro Power Plant;
2. Enhancement of the electricity access in remote areas, small islands and
borderline with Micro Hydro and Solar Power Plant;
3. Development of Bioenergy Power Plant including the utilization of agricultural
waste and municipal solid waste to provide electricity as well as to preserve the
environment;
4. Development of wind power and ocean energy pilot project as a precondition
prior to the stage of commercialization;
5. Utilization of Biofuel (solid, gas and liquid) to substitute oil;
6. Commercial development of new energy (CBM and shale gas).

Energy and Mineral Resources for People’s Welfare

1. Enhancing and accelerating investment climate through the
new renewable energy partnership;
2. Knowledge and technology transfer in the field of new
renewable energy and energy conservation ;
3. Enriching partnership in education and capacity building as well
as technical assistance.

Energy and Mineral Resources for People’s Welfare

Energising Development (EnDev) Indonesia
Technical advisory and Capacity Building to RE off-grid installations,
currently to : 136 micro-hydro power plants and 117 PV mini-grids

12.06.2017 Page 10
 National Seminar on Solar Mini-grids in Indonesia
Partners Ministry of Energy and Mineral
Resources, EnDev Indonesia (GIZ)

1-day seminar on solar mini-grids in

Indonesia

Envisaged to be in conjunction with:

Renewable Energy Conference and

Exhibition (EBTKE CONEX 2013), 21-23
August 2013, Jakarta

Participants: Delegates from 84

Districts from across Indonesia, solar
technology suppliers, specialist
consultants and rural development
NGOs
12/06/2017 Page 11
 AHK Business Trip “PV Hybrid Systems”
AHK Business Trip on solar PV hybrid
systems (supported by the German
Federal Ministry for Economics and
Technology (BMWi)
Date: 16 – 20 September 2013
Venue: Jakarta, Indonesia
Programme:
• 16 Sep Technical Conference
• 17 – 18 Sep Business Meetings
• 19 – 20 Sep Site Visit
Participants: German technology &
service providers, Indonesian key
stakeholders (regulators, companies,
associations, etc.)

12/06/2017 Page 12
 MINISTRY OF ENERGY AND MINERAL RESOURCES
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540

e-mail: bahan_ebtke@yahoo.com

Energy and Mineral Resourceswww.ebtke.esdm.go.id

for People’s Welfare
 GEOTHERMAL FEED-IN TARIFF
(MEMR Regulation No. 22/2012)
1. CURRENT CONDITION
Hydro Power Plant installed capacity: 5,711 MW PRICE (cent US$/kWh)
NO AREA MEDIUM
Geothermal Power Plant installed capacity: 1,341 MW HIGH VOLTAGE
VOLTAGE
2. DEVELOPMENT PROGRAM 1 Sumatera 10 11,5
Improving coordination with permitting authorithy; 2 Jawa, Madura and Bali 11 12,5
3 South Sulawesi, West Sulawesi 12 13,5
Harmonizing regulation in the field of geothermal and and Southeast Sulawesi
hydropower; 4 North Sulawesi, Central Sulawesi, 13 14,5
Providing technical guidance, socialization and workshops in and Gorontalo
5 West Nusa Tenggara and East 15 16,5
order to improve the quality of human resources Nusa Tenggara
Accelerating the Phase II of 10,000 MW Program 6 Maluku and Papua 17 18,5
Increasing investment in geothermal energy sub-sector with:
• Price of electricity (Feed-in Tariff); ROAD MAP OF GEOTHERMAL DEVELOPMENT 2006 - 2025
(As In Presidential Regulation NO. 5/2006 about National Energy Policy)
• Auction of Geothermal Working Areas (GWA) under the
authority of the Central Government (Mount Lawu and
Ranau Lake);
• Development of 4 sites of geothermal project (exploration
drilling) ;
• Promotion, dissemination of information and cooperation
in geothermal side;

Energy and Mineral Resources for People’s Welfare

1. CURRENT CONDITION
HYDRO POWER, SOLAR AND WIND POWER FEED IN TARIFF
Micro/Mini Hydro Power Plant installed capacity: 230 MW (MEMR REGULATION NO 4 YEAR 2012)
Solar Power Plant installed capacity: 27.23 MW Price for Price for
WILAYAH High Voltage Medium Voltage
2. DEVELOPMENT PROGRAM (Rp/kWh) (Rp/kWh)
To encourage investment in Micro/Mini Hydro and Solar Jawa and Bali 656 1,004
PV Power Plant by cooperatives, private and other Sumatera and Sulawesi 787 1,205
business enterprises through the establishment of Feed- Kalimantan, West and 853 1,305
East Nusa Tenggara
in Tariff for Micro/Mini Hydro and Solar PV;
Maluku and Papua 984 1,506
Enhancing the capability of domestic manufacturer;
Improving capacity building and technical assistance; FiT is still in subject to revised
Mini and Micro Hydro will be increase from Rp. 656/kWh to
Providing government fund (APBN)
Rp. 975 – Rp.1,050/kWh
Solar PV will be USD 25 cents/kWh

Energy and Mineral Resources for People’s Welfare

 BIOMASS, BIOGAS, AND MUNICIPAL SOLID WASTE FEED-IN TARIFF
1. CURRENT CONDITION (MEMR REGULATION NO. 04 YEAR 2012)
Bioenergy power plant (on-grid) installed capacity: 71 NO. ENERGY CAPACITY ELECTRICITY BUYING PRICE NOTES
Miedium Voltage
MW
1. Biomass Up to 10 MW Rp. 975,- / kWh X F
Bioenergy power plant (off-grid) installed capacity: 2. Biogas Up to 10 MW Rp. 975,- / kWh X F Non MSW
612 MW 3.
Municipal Solid
Waste (MSW)
Up to 10 MW Rp. 1050,- / kWh Zero waste

2. DEVELOPMENT PROGRAM 4.
Municipal Solid
Waste
Up to 10 MW Rp. 850,- / kWh Landfill

Appropriate price of electricity (Feed in Tariff); Low Voltage

1 Biomass Up to 10 MW Rp. 1.325,- / kWh X F
Export management to secure the supply of biomass 2 Biogas Up to 10 MW Rp. 1.325,- / kWh X F Non MSW
power plant feedstock; 3
Municipal Solid
Up to 10 MW Rp. 1.398,- / kWh Zero waste
Waste (MSW)
Duty exemption of renewable energy equipment and 4
Municipal Solid
Up to 10 MW Rp. 1.198,- / kWh Landfill
Waste
simplification of the procedure ; Incentive Factor (F):
Jawa, Bali, Sumatera :F=1
Coordination with local governments and Kalimantan, Sulawesi, West and East Nusa Tenggara : F = 1,2
Maluku and Papua : F = 1,3
stakeholders to increase understanding related to the
Bioenergy Power Plant Installed Capacity
utilization of waste into electricity to drive domestic Municipal Soild
Waste Power
product. Plant
14,5 MW (19%)

Palm Shell
Power Plant
61 MW (86%)

Energy and Mineral Resources for People’s Welfare

1. CURRENT CONDITION
Wind Power Plant installed capacity : 1.4 MW
Ocean current/wave still in the stage of pilot project, a few small-scale pilot (10 kW)
were built, e.g. at Baron Beach, East Nusa Tenggara Province.
2. DEVELOPMENT PROGRAM
Conducting feasibility study and pilot project for wind and ocean current/wave
power in the potential area, e.g East Nusa Tenggara.
Increasing foreign partnership in terms of capacity building, technology transfer in
the development of wind and ocean current/wave power.
Encouraging domestic industrial competitiveness to manufacture components of
wind and ocean current/wave power.
Developing Feed-in Tariff for wind power.

Energy and Mineral Resources for People’s Welfare

1. CURRENT CONDITION
Fuel mixture with biofuels in the transportation and NATIONAL BIOFUEL PRODUCTION
industrial sectors are 7.5% and 2% respectively; 2009 – 2013
Installed capacity for biodiesel is 4.2 million kL and
production capacity about 2 million kL;
8,446 units of household biogas digester for cooking
were constructed.
2. DEVELOPMENT PROGRAM
Formulating biofuels market index price based on
economic price;
Accelerating biofuels distribution infrastructure;
Reducing cost of biogas investment through specific
funding scheme (Special Allocation Fund (DAK), soft
loans, social assistance, etc.);
Providing incentives (eg, tax reduction, green
company award).

Energy and Mineral Resources for People’s Welfare

PRODUCTION COST
The production cost is relatively higher than the conventional energy, means, it is difficult to compete with the
conventional energy.
INVESTMENT
The investment cost is quite high. However, investment in new renewable energy industry is quite in demand by
domestic investors.
Investment for upstream and downstream is not widely carried out in the country; most of the components are still
imported.
TECHNOLOGY
Some technologies have been developed by domestic manufacturer, such as small to medium-scale power plant and
biogas technology (non-electric).
Renewable energy technologies are still provided and dominated by foreign countries.
RAW MATERIAL AVAILABILITY
The potential of new renewable energy in Indonesia is very large. However, it still required integrated management in
the supplying and processing raw materials, especially for bioenergy feedstock.
HUMAN RESOURCE
Quantity and quality of human resources in the field of renewable energy is still quite limited.
Communities’ acceptance for new renewable energy is still relatively low, since most of the people feel more
comfortable using conventional energy.
Energy and Mineral Resources for People’s Welfare
NO RENEWABLE ENERGY
1 GEOTHERMAL- 6 STRATEGIC
ISSUES
2 BIOENERGY - 6 STRATEGIC
ISSUES
3 VARIOUS NEW AND RENEWABLE
ENERGY - 6 STRATEGIC ISSUES
Energy and Mineral Resources for People’s Welfare
STRATEGIC ISSUE
1. Acceleration of geothermal development;
2. Revision of Laws No. 27 Year 2003 on Geothermal;
3. The second revision of Government Regulation No. 59/2007 jo. Government Regulation
70/2010 on Geothermal Working Activity;
4. Revision of MEMR Regulation No. 11/2009 on Implementation Guidelines for Geothermal
Operations;
5. Total production of geothermal steam;
6. The number of non-tax revenues of the Geothermal.
1. Feed in Tariff (FIT) for utilization of Municipal Solid Waste for power plant;
2. Increase the utilization of Biofuels to be blended with PSO fuel;
3. Increase the utilization of Biofuels to be blended with non PSO fuel;
4. Increase the ability to supply bioenergy for domestic needs;
5. Increase the installed bioenergy power plant (on-grid);
6. Enhance the role of NREEC in regional development through the development of Self Sufficient
Village Program (Desa Mandiri Energi)-based on biofuel.
1. Increase national electrification ratio through the utilization of various new and renewable
energy;
2. Development of Self Sufficient Village Program through the utilization of solar and hydro energy;
3. Encourage private sector participation in the utilization of wind, hydro and solar energy;
4. Harmonization of inter-sectoral policies related to renewable energy development;
5. Sustainability of NRE power plant;
6. Increase power plant capacity of various NRE.