Indonesia is promoting solar PV development through regulations that establish quotas and subsidized feed-in tariffs for on-grid projects up to 5,000 MW by 2019. The regulations provide a framework for project development including online registration, power purchase agreements, licensing and meeting local content requirements. Solar PV suppliers must have a strong local presence to qualify for opportunities in both the off-grid and on-grid markets in Indonesia.

1. Hi-Lite on Indonesia Solar PV

2. Indonesia Solar PV Market
Off Grid Market On Grid Market
Ministerial Regulation
ESDM No. 19 2016
1. Ultimate power supply on
isolated area
2. Alternative power
supply/Hybrid users

3. Off Grid
• Ultimate power supply for isolated area
– Oil & Gas Offshore/On Shore Field
– Military/surveillance/border zone
– Mining activity
• Alternative/Hybrid power supply
– Hi rise office buildings, Apartments, Hospitals, Campus buildings, etc.
– Housing estates. (communal or stand alone).
– Export-Import Metering from PLN – offset scheme.
• Continuous marketing & sales activity

4. On Grid
• 20 years power off-take extendable contract from State Enterprise Power
Company (PLN) with subsidized tariff of US$ 0.145 – US$ 0.250/kWh-depends on
the location.
• Government open quota for certain areas up to 5,000 MW in 2019 to be fulfilled
by Solar PV suppliers.
• On line based proposal submission with First In First Serve scheme.
• Power connection to allocated PLN main distribution is provided by Solar PV
supplier.
• Fixed tariff without escalation.
• Payment in Indonesia Rupiah Currency based on Jakarta Interbank Spot Dollar
Rate.
• Indonesia National Industrial Standard and International Standard for installed
equipment and infrastructure.
• Need strong presence in Indonesia to fulfill local content requirement.

5. On Grid - Steps
1. On line registration for Solar PV developer candidates.
2. Capacity offer and determination of Solar PV developer as registered Solar PV
supplier-all on line process.
3. Power Purchase Agreement.
4. Financial close.
5. Licensing and Local Content Verification on equipment and construction.
6. Commercial Operation
On line
registration
Capacity
Offer
Power
Purchase
Agreement
Financial
Close
License &
Local
Content
Verification
Commercial
Operation

6. On Grid Solar PV National Distribution
Quota Capacity in Area Offer Limit
more than 100 MW 20 MW
10 - 100 MW 20% of the Quota Capacity
up to 10 MW no limit
Limitation on Quota Capacity Offer
80%of the offersare fulfilledbySolarPV providers
After2months:
Quotacapacitygetintonextphase
Feedintariff (price perkWh) basedonnextstage price
RequirementstoenternextQuotaCapacity

7. Quota Capacity Phase 1
1 DKI Jakarta
2 West Jawa
3 Banter
4 Central Jawa and DIY
5 East Jawa
6 Bali 16.0 5.0
7 Lampung 15.0 5.0
8 South Sumatera, Jambi & Bengkulu 15.0 10.0
9 Aceh 17.0 5.0
10 North Sumatera 16.0 25.0
11 West Sumatera 15.5 5.0
12 Riau and Riau islands 17.0 4.0
13 Bangka - Belitung 17.0 5.0
14 West Kalimantann 17.0 5.0
15 South Kalimantan and Central Kalimantan 16.0 4.0
16 East Kalimantan and North Kalimantan 16.5 3.0
17 North Sulawesi, Central Sulawesi, Gorontalo 17.0 5.0
18 South Sulawesi, South East Sulawesi and
West Sulawesi
16.0 5.0
19 West Nusatenggara 18.0 5.0
20 East Nusatenggara 23.0 3.5
21 Maluku and North Maluku 23.0 3.0
22 Papua and West Papua 25.0 2.5
14.5 150
Feed in Tariff -
Price UScent/kWh
Phase 1
Location AreaNo Quota
(MWp)

8. Local Content Issue
• Local content covers components and services required for Solar PV development.
Local content calculation and certification is verified by Minister of Industry. Solar
PV is based on Industrial Minister Regulation No. 54 - 2012.
• Limit of local content, as follows:
- Components 25.63%
- Services 100%
- Combination Components and Services 43.85%
• Technique of calculation is regulated under Inudstrial Minister Regulation No.
16/2011.

9. Ownership
Presidential Decree No. 44 - 2016
Capacity Local Ownership
x < 1 MW 100%
1 - 10 MW 51%
x > 10 MW 5%

10. Conclusion
• Potential market for Off-Grid and On-Grid market, where each segment need
different approach.
• Strong presence in local market is significant due to win market trust.
• Early market entry gives more benefit to acquire larger business opportunity.
• Need to establish legal entity as special purpose vehicle to be registered as Solar
PV supplier company-with minimum two sisters companies i.e., one company on
EPCI/Technology supplier and the other company for operation and maintenance.
Special Purpose Company
Solar PV Supplier/Operator
Asset Management
EPCI Company
Local Content
Operation & Maintenance
Local Sources