MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF MINERAL, COAL AND

GEOTHERMAL

GEOTHERMAL DEVELOPMENT IN INDONESIA

By:
Sugiharto Harsoprayitno, M.Sc
Director of Geothermal Enterprise Supervision and Groundwater Management

APEC EWG 38, BALI

November 2009
 OUTLINE

Geothermal Policy

Geothermal Development Plan

2
Geothermal Policy
 Implementation of Geothermal Policies

Existing New WKP

WKP
President Decree No 45/1991, No 49/1991, Law No. 27/2003
and No 23/1992
Business structure in the form of Permit:
Business structure based on JOC and ESC
Geothermal Mining Permit
Enterprise Permit for Electricity

34% of Net Operating Income (NOI), that had
included all kinds of taxes and retribution,
except personal tax.
Project Management : Under Pertamina (JOC)
and PLN (ESC)
Project Type:
Total (Integrated) Project
Partial Project
Selling Price: In US Dollar
Obligation to pay for taxes and royalty
Project Management :Under Permit Holder
Project Type:
Total (Integrated) Project
WKP holder will be granted as generally plan
operation
Selling Price : In Rupiah
4
 Government Regulations

I. Law No. 27/2003 on Geothermal

II. Government Regulation No. 59/2007 on Geothermal Business
Activities
III. Ministerial Regulations
MEMR Regulation No. 11/2008 on Mechanism for Determining
Geothermal Working Area
MEMR Regulation No. 02/2009 on The Guidelines for Geothermal
Pre-Survey Assignment
MEMR Regulation No. 05/2009 on The Guidelines for Electricity
Purchasing Price by PT. PLN from Cooperation and Other Business
Entities
MEMR Regulation No. 11/2009 on The Guidelines for Geothermal
Enterprises

5
 MEMR Regulation No. 02/2009 on
The Guidelines for Geothermal Pre-Survey Assignment

Pre-Survey Assignment to Business Entities is given to accelerate

geothermal development in green field (before determined as WKP)
The Minister determines areas for Pre-Survey Assignment and offers
them through medias and forums by Director General
Business Entities propose Pre-Survey Assignment request to The
Minister attn. Director General cc: Head of Geological Agency,
governor and regent/mayor
Application process uses first come first served system

One Business Entity can get one area of Pre-Survey Assignment

Pre-Survey Assignment has to be finished in one year (max)

6
 MEMR Regulation No. 05/2009 * on
The Guidelines for Electricity Purchasing Price by PT. PLN from Cooperation
and
Other Business Entities

In designing the electricity purchasing, PT. PLN is obligated to make

their own estimated price based on type of generation, location,
capacity quantities, capacity factor and also some assumptions such
as: level of local content components, fuel price, exchange rate and
other macro economic indicators

PT. PLN request for approval of the electricity purchasing price to

Minister of Energy and Mineral Resources

The electricity purchasing price can be adjusted considering on

macro economic indicators and based on agreement (Power Purchase
Agreement)

* Under Reviewed

7
 Government Regulations Continued

IV. Tax facilities are provided in accordance with the Tax Regulations:
Government Regulation No. 62/2008 jo No. 1/2007 on Income
Tax Facilities for Investment in Certain Business Fields and/or
Certain Regions
30% (thirty percent) net tax deduction of the total Investment, charged
for 6 (six) years for 5% (five percent) annually
Income tax charge for dividend paid to Foreign Tax Subject shall be 10%
(ten percent), or lower tariff according to effective Double Taxation Avoid
Agreement
MoF Decree No. 177/PMK.011/2007 on Custom Duties
Exemption of Import Items for Upstream Activities in Oil & Gas
and Geothermal & MoF Decree No. 242/PMK.011/2008 on Value
Added Tax of Import Items Covered by Government for
Upstream Exploration Activities in Oil & Gas and Geothermal on
2009 Budget
for the items havent been produced in Indonesia
for the items have been produced in Indonesia but they havent
complied with the specification needed or the amount is insufficient

8
GEOTHERMAL WORKING AREA (WKP)

9
 Geothermal
Development Plan
 Projection of Power Generation Capacity
Needed
(based on RUKN 2008 2027)

30,345 MW Installed Capacity as of March 2009

Assumption:
Reverse Margin 30 % 11
 Resource Potency

Geothermal potency 27 GW or equivalent to 219

Billions barrel of oil

Installed Capacity 1,179 MW (4.3% of whole potency)

Geothermal Road Map Target 9,500 MW in 2025

12
 Geothermal Area Distribution Map

Source : Geological Agency, MEMR (2008)

13
 Geothermal Potential Distribution

Resources (MWe) Reserve (MWe)

Installed
Location Speculativ Hypotheti
Probable Possible Proven Capacity (MWe)
e c

Sumatera 4,973 2,121 5,845 15 380 12

Java 1,960 1,771 3,265 885 1,815 1,117

Bali-Nusa
410 359 973 - 15 -
Tenggara
Sulawesi 875 32 959 150 78 50

Maluku 370 37 327 - - -

Kalimantan 45 - - - - -

Papua 50 - - - - -

Total 257 8,683 4,320 11,369 1,050 2,288

Total : 1,179
Locations 13,003 14,707

Total : 27,710

14
Existing Geothermal Production Areas
in MW

Installed
No. Location Province Developer
Capacity

1 Sibayak North Sumatera PGE 12

2 Salak Mt. West Java PGE-CGS 375

3 Wayang Windu West Java PGE-SE 227

4 Kamojang West Java PGE 200

5 Darajat West Java PGE-CGI 255

6 Dieng Central Java GDE 60

7 Lahendong North Sulawesi PGE 50

Total 1,179

15
 The Road Map of Geothermal Development 2006 2025
(Based on President Decree No. 5/2006 on National Energy Policy)

2006 200 2012 201 202 202

8 201 6 0 5
4

852 MW 2000 3442 4600 6000 9500

(Production) MW MW MW MW MW
(Target
)
1148 MW 1442 MW 1158 MW 1400 MW 3500 MW
Existing Existing Existing New WKP New WKP
WKP WKP WKP + New
WKP

1.179 MW
5.795
Current Condition
MWProgram
Plus Crash
Scenario Phase II

WKP : Geothermal Working Area

16
 Geothermal Contribution on
10,000 MW Power Development Acceleration Program Phase II

Notes:
PLTU : Coal Fired Power Plant
PLTGU : Combine Cycle Power Plant
PLTP : Geothermal Power Plant
PLTA : Hydro Power Plant

17
Distribution Area for Geothermal Development Plan 2009
2014
(Based on 10,000 MW Power Development Acceleration Program Phase II)

4733 *

in MW
*) Total additional installed capacity 2009 - 2014

18
 With Developing 4733 MW Geothermal Power
Plant until 2014, could:

save about 200,000 barrel oil per day (1

MW equivalents to 42 barrel per day)

reduce emission about 28,398,000 t

CO2/Year (6,000 t CO2e/MW/Year)

19
New Geothermal Working Areas (WKP)
Offered Through Tender Process
(after Law No. 27/2003 on Geothermal) As of Sept 2009
The Result of WKPs Tender

21
 Geothermal Pre-Survey Assignment in 2008

NO LOCATION COMPANY DESCRIPTION

Guci, Central Java Finished Assignment
Province PT. Spring Energy
1. (In process of determining
Sentosa
WKP)
Baturaden, Central Finished Assignment
2. Java Province PT. Trinergy (In process of determining
WKP)
Muara Laboh, West Determined as
3. Sumatra Province PT. Supreme Energy
WKP Liki Pinangawan
Pematang Belirang,
4. PT. Supreme Energy
Lampung Province Determined as
Kalianda, Lampung WKP Rajabasa Mt.
5. PT. Supreme Energy
Province
Rantau Dedap, South Finished Assignment
6. Sumatra Province PT. Supreme Energy (In process of determining
WKP)

22
 Geothermal Pre-Survey Assignment in 2009
N LOCATION COMPANY DESCRIPTION
O
Wai Ratai, Lampung PT. Optima On Going
1.
Nusantara Energi
Simbolon-Samosir, PT. Optima On Going
2.
North Sumatera Nusantara Energi

Areas offered for Pre-Survey Assignment

23
 MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA
DIRECTORATE GENERAL OF MINERAL, COAL AND GEOTHERMAL
DIRECTORATE OF GEOTHERMAL ENTERPRISE SUPERVISION AND
GROUND WATER MANAGEMENT
Jl. Prof. Dr. Supomo, SH. No. 10 Jakarta 12870
Phone : +62 21 83702847 Fax.: +62 21 83785103
www.djmbp.esdm.go.id