The document discusses Indonesia's national energy policy and targets for renewable energy. Key points: 1) Indonesia has a target of 23% renewable energy by 2025, equivalent to 45GW of capacity, to meet energy needs, expand access, and reduce emissions. 2) A new regulation provides incentives for renewable energy projects through guaranteed pricing and priority dispatch. 3) There is significant potential for renewable energy development across Indonesia, especially in solar, geothermal, and hydro. The regulation aims to accelerate renewable energy development across the country.

1. 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

2. KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL
1. Introduction
National Electrification Ratio
1. The National Energy Policy
2. National Committment on Emission Reduction
3. The Ministry of Energy And Mineral Resources’s
Regulation Number 50 Year 2017
4. Incentives To Support Renewable Energy Sector
5. Challenges and Breakthrough
6. The Contribution of NRE for Reducing GHG Emission
1
2
3
4
5
O U T L I N E
6
7
8

3. I. INTRODUCTION: NRE ROLE
• Increased energy supply;
R The NRE target is 23% by 2025, equivalent to 45
GW.
• AcceleraEng the provision of modern energy access;
R The electrificaEon raEo target is 97% in 2019.
• ContribuEng to the GHG reducEon program;
R Indonesia 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.

4. INDONESIA’S RENEWABLE ENERGY POTENTIAL
4
G
443,2 GW 8,80 GW
(2% Based on potential)

5. Total: 75.091 MWSource: RUEN

6. Total: 19.385 MW
Aceh:
1.538 MW
Sumut:
1.204 MW
Sumbar & Riau:
1.637 MW
,
Sumsel, Jambi, Bengkulu,
& Lampung: 1.355 MW
Jabar & Banten:
719 MW
Jateng & DIY:
1.049 MW
Jatim:
1,142 MW
Kalseltengtim &
Kaltara: 7.976 MW
Kalbar:
124 MW
Sulutenggo:
598 MW
Sulselrabar:
1.070 MW
Papua &
Papua Barat:
618 MW
Maluku & Maluku
Utara : 214 MW
Bali & Nusra:
141 MW
Source: RUEN

7. II. NATIONAL ELECTRIFICATION RATIO7
> 70
50 - 70
< 50
NOTE:
ACEH
96.85
SUMUT
97.60
RIAU
91.86
JAMBI
91.38
BABEL
100.00
KEPRI
76.97
BENGKULU
93.80
LAMPUNG
89.75
SUMBAR
87.55
SUMSEL
85.93
BANTEN
100.00
JABAR
99.47 DIY
89.63
DKI JAKARTA
97,89
JATENG
94,50
BALI
94.42
JATIM
90,65
KALBAR
87.88
NTB
79.93
NTT
59.17
PAPUA
48.74
PABAR
89,84
MALUKU
87.50
MALUT
99.05
SULTRA
76.79
SULSEL
94.77
KALSEL
90.50
KALTENG
75,76
KALTARA
86.23
KALTIM
99.09
SULBAR
83.76
GORONTALO
89.08
SULTENG
83.47
SULUT
92.47
92.80%
67.15 72.95 76.56 80.51 84.35 88.3 91.16 92.75 95.15 97.35
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
unEl Juni 2017 NaEonal ElectrificaEon
RaEo is
RealizaEon and target of the NaEonal
ElectrificaEon RaEo

8. III. THE NATIONAL ENERGY POLICY

9. New and Renewable Energy
Oil
Gas
Coal
23%
25% 30%
22% 5%
46%
31%
18%
194
MTOE
~ 400
MTOE
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
2013
2025
Gas
Coal
NRE
Oil
THE NATIONAL ENERGY MIX TARGETS BY 2025
(GOVERNMENT REGULATION NO. 79/2014)

10. 2025
Geothermal 7.2 GW
Hydro 21 GW
Bioenergy 5.5 GW
Solar 6.4 GW
Wind 1.8 GW
Other NRE 3.1 GW
Totall 45 GW
8,66
10,80
11,73
12,94
15,81
18,48
24,66
29,28
35,74
41,01
45,04
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PLTP PLT Bioenergi PLTA Mini Hidro PLTS PLT Bayu PLT Laut Total
10
New and Renewable Energy Target By 2025
2015 2025
Total Installed Capacity 55 GW 135 GW
NRE Power Plant Capacity
8.7 GW
(15.7%)
45 GW
(33%)

11. 3
IV. National Committment On Emission Reduction
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)
Indonesia commits to reduce (its GHG emission) by 29% from BAU level
by 2030 and 41% with internaDonal assistance

12. V. THE MINISTRY OF ENERGY AND MINERAL RESOURCES’S
REGULATION NUMBER 50 YEAR 2017 : “UTILIZATION OF
RENEWABLE ENERGY SOURCES FOR THE ELECTRIC POWER
PROVISION”

13. 101 99
58 59 45
310
342
119 108
77
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017
BBM/LPG Listrik Total
Subsidi Energi | Triliun Rupiah
“Producing electricity, as much
as it can be, shall the operaEonal
cost be relaEvely as much, it
means the producEon is not
efficient. Such condiEon makes
our industry not compeEEve."
- Ignasius Jonan
Cheaper price leads to a beLer
development economy, including the
industrial sector.
“
“
“Energy subsidy in the State
Budget should be going for a
more equitable
development.”
* 2016 angka realisasi unaudited | 2017 angka APBN
Accelerating Efficiency in Electricity Provision
Electricity provision should be efficient
so that electricity subsidy will not
burden the State Budget, thus a beLer
electricty price for the people.
Energy Subsidy | Trilion Rupiah
Electricity Oil/LPG

14. Renewable Energy UElizaEon for a more even and affordable
Electricity Provision for the people
RegulaZon of the Minister MEMR Number 50 Year 2017
Mechanism
through direct elecEon in capacity quota
Type of Power Plants
1. Solar
2. Wind
3. Hydro
4. Biomass
5. Biogas
6. Municipal Waste
7. Geothermal
8. Ocean Movement
and OTEC
Solar and Wind
Electricity Purchase Price
q Solar
q Wind
q Biomass
q Biogas
q Ocean
Movement
and OTEC
If GeneraZon BPP (Biaya Pokok Penyediaan/ Cost of
ProducZon) at region’s electrificaEon system :
>
≤
The naZonal BPP on average maximum price 85% of
region’s GeneraEon BPP
The naZonal BPP on average
BPP based on agreement (business to business)
If GeneraZon BPP at region’s electrificaEon system > the naEonal BPP
on average Maximum price 100% of region’s GeneraEon
BPP
1.
3. Geothermal and Municipal Waste based on Geothermal and Municipal Waste regulaEon
q Municipal
Waste
q Geother-
mal
q Hydro 2. If GeneraZon BPP at region’s electrificaEon system ≤ the naEonal BPP
on average Price based on agreement (business to business)
1.
Note:
• 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
Hydro, Biomass, Biogass and
Ocean Movement and OTEC
2. through direct elecEon

15. KEMENTERIAN ESDM 15
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
4.9
10.9
13.1
17.6 17.9
18.9 19.
Babel Maluku NTB Riau Aceh Sulutenggo NTT
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
17.9
18.9 19.2
22.9
23.9
26.9
33.4
Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
18.9 19.2
22.9
23.9
26.9
33.4
tenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
3.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
TB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
Indonesia RE Investment Opportunities.
A huge potential of RE is available and remain attractive on 13 priority areas
RE Potential
Giga Watt (GW)
1.36
0.08
Sulselrabar Kalselteng
PLTSa
PLTP
Total
1.36
0.08
Sulselrabar Kalselteng
PLTSa
PLTP
Total
9,28
7,89
10,39
8,83
10,14
8,62
Bangka: 13,66
Belitung: 12,17
Bangka: 11,61
Belitung: 10,34
10,20
8,67
12,43
10,57
12,75
10,84
13,54
11,51
17,32
14,72
13,68
11,63
17,52
14,89
8,10
6,89
9,04
7,68
Regional grid
BPP cent$/kWh
100% Regional grid
BPP
85% Regional grid
BPP
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
4.9
10.9
13.1
17.6 17.9
18.9 19.2
22.9
23.9
26.9
33.4
Babel Maluku NTB Riau Aceh Sulutenggo NTT Sumut Kaltim Kalbar Papua
PLTSa
PLTBg
PLTBm
PLTP
PLTMH
PLTA
PLTB
PLTS
Total
There are around 210 GW of RE
potential in the 13 priority areas
that have remain attractive
economics (regional grid BPP >
national BPP)
“
Municipal
Waste
Biogas
Biomass
Geothermal
Micro Hydro
Large Hydro
Wind
Solar PV
Total

16. The Investment Coordina2ng Board of the Republic of Indonesia
16
TAX ALLOWANCE
IMPORT DUTY FACILITY
Gov’t Regulation No.9/2016
145 business segments
Eligible for tax
allowance, expanded
from 129 segments in
the previous
regulation.
30 % of investment value
Reduction of corporate
net income tax for 6 years,
5% each year.
Under certain requirements
among others: investment value or export
orientation, manpower absorption, local
content.
Import duty on Machineries and
Equipments, goods, and raw materials for
producZon
• ExempEon of import duty on machineries and
equipments
• 2 years exempEon of import duty on raw
materials
• AddiEonal 2 years import duty exempEon for
raw materials if company using locally-
produced machineries and equipments (min
30%)
MoF Regulation No.176/PMK.
011/2009 jo. MoF Regulation
No. 76/PMK.011/2012 jo. MoF
Regulation 188/PMK.010/2015
TAX HOLIDAY
MoF Regulation No.159/PMK.010/2015
5-15 years
Tax relief facility, starEng from the
commencement of commercial
producEon. Can be extended for Max. 20
years under certain consideraEon.
Pioneer Industry:
1. Upstream metal;
2. Oil refinery;
3. Basic organic-chemical from oil and gas;
4. Machinery industry that manufacture industrial machine;
5. Processing industry based on commodity from agriculture,
forestry and fishery;
6. TelecommunicaEon, informaEon and communicaEon;
7. Sea transport;
8. Processing industry as main industry located in Special
Economic Zone (SEZ); and or
9. Infrastructure (economical, non-PPP scheme)
Max . 1 00 %
10-100% ReducZon of corporate income
tax for Pioneer Industry. Max. 50% for
industry that implement high technology with
investment plan
IDR 500 M – less than 1 Trillion.
IDR
1 trillion
Minimum investment plan
(USD 80 million). Or Minimum IDR 500
Billion if introduce new technology
VI. Incentives to Support New and Renewable Energy
MoF RegulaZon No. 66/PMK.
010/2015
Import duty on Capital Goods for
Development and Expansion of
Power GeneraZon Industries for
Public Purpose.

17. VII. CHALLENGES AND BREAKTHROUGH

18. Ø Hydro potential mostly located in protected forests and far
from demand.
Ø Social and environmental issues (land acquisition).
18
CHALLENGES

19. Ø 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.
Ø Based on new tariff, 32 hydropower projects have been
signed the PPA on 2 August 2017 with a total capacity of
175,79 MW.
Ø 11 hydropower projects have been signed the PPA on
8 September 2017 with a total capacity of 291,4 MW.
Ø Hydropower sustainability assessment protocol has been
ratified. This is expected to smooth the development of
hydropower in considering the social and environmental
issues.
Ø Simplifying license process.
19
BREAKTHROUGH
Note:
BPP is the cost of provision of electricity by PT PLN (Persero) in Power GeneraEon

20. 3
Nationally Determined Contribution’s Target
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.
VIII. THE CONTRIBUTION OF NRE FOR REDUCING GHG EMISSION
M Ton (CO2e) M Ton (CO2e)

21. KEMENTERIAN ENERGI
& SUMBER DAYA MINERAL
www.ebtke.esdm.go.id
Jalan Pegangsaan Timur No. 1 Menteng, Jakarta Pusat 10320; Telp/Faks : 021-31924540
MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA
DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION