The document summarizes Indonesia's geothermal development plans and policies. It discusses (1) Indonesia's goal of reaching 9,500 MW of geothermal capacity by 2025 to meet growing energy needs, (2) the country's laws and regulations governing geothermal development, and (3) Indonesia's plans to offer new areas for geothermal exploration and development through pre-survey assignments and tenders to accelerate development.

1. GEOTHERMAL DEVELOPMENT IN INDONESIA
By:
Sugiharto Harsoprayitno, M.Sc
Director of Geothermal Enterprise Supervision and Groundwater Management
DIRECTORATE GENERAL OF MINERAL, COAL AND GEOTHERMAL
MINISTRY OF ENERGY AND MINERAL RESOURCES
APEC EWG 38, BALI
November 2009

2. OUTLINE
❑ Geothermal Policy
❑ Geothermal Development Plan
2

3. Geothermal Policy

4. ■ President Decree No 45/1991, No 49/1991,
and No 23/1992
■ Business structure based on JOC and ESC
■ 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
■ Law No. 27/2003
■ Business structure in the form of Permit:
❖ Geothermal Mining Permit
❖ Enterprise Permit for Electricity
■ 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
Implementation of Geothermal Policies
Existing WKP New WKP
4

5. 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

6. ❑ 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)
MEMR Regulation No. 02/2009 on
The Guidelines for Geothermal Pre-Survey Assignment
6

7. 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

8. Government Regulations
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 haven’t been produced in Indonesia
→ for the items have been produced in Indonesia but they haven’t complied with
the specification needed or the amount is insufficient
Continued…
8

9. GEOTHERMAL WORKING AREA (WKP)
9

10. Geothermal Development Plan

11. Projection of Power Generation Capacity Needed
Assumption:
• Reverse Margin 30 %
(based on RUKN 2008 – 2027)
30,345 MW → Installed Capacity as of March 2009
11

12. ● 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
Resource Potency
12

13. Geothermal Area Distribution Map
13
Source : Geological Agency, MEMR (2008)

14. Geothermal Potential Distribution
Location
Resources (MWe) Reserve (MWe) Installed Capacity
(MWe)
Speculative Hypothetic Probable Possible Proven
Sumatera 4,973 2,121 5,845 15 380 12
Java 1,960 1,771 3,265 885 1,815 1,117
Bali-Nusa Tenggara 410 359 973 - 15 -
Sulawesi 875 32 959 150 78 50
Maluku 370 37 327 - - -
Kalimantan 45 - - - - -
Papua 50 - - - - -
Total 257 Locations
8,683 4,320 11,369 1,050 2,288
Total : 1,179
13,003 14,707
Total : 27,710
14

15. Remarks:
PGE : (Pertamina Geothermal Energy)
CGS : (Chevron Geothermal Salak)
CGI : (Chevron Geothermal Indonesia)
SE : (Star Energy)
GDE : (Geo Dipa Energy)
Existing Geothermal Production Areas
in MW
No. Location Province Developer Installed 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

16. The Road Map of Geothermal Development 2006 – 2025
WKP : Geothermal Working Area
(Based on President Decree No. 5/2006 on National Energy Policy)
Current Condition
2006
852 MW
(Production)
2008 2012 2016 2020
2000 MW 3442 MW 4600 MW 6000 MW 9500 MW
(Target)
1148 MW
Existing WKP
1442 MW
Existing WKP
1158 MW
Existing WKP
+ New WKP
1400 MW
New WKP
3500 MW
New WKP
2025
1.179 MW
2014
5.795 MW
Plus Crash Program
Scenario Phase II
16

17. AREA PLTU PLTGU PLTP PLTA TOTAL
JAVA - 1.200 2.137 1.000 4.337
OUTSIDE JAVA 2.616 240 2.596 174 5.626
2.616 1.440 4.733 1.174 9.963
26% 14% 48% 12% 100%
TOTAL
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

18. in MW
Distribution Area for Geothermal Development Plan 2009 – 2014
(Based on 10,000 MW Power Development Acceleration Program Phase II)
4733 *
*) Total additional installed capacity 2009 - 2014
2009 2010 2011 2012 2013 2014
Total Installed
Capacity
Total Installed
Capacity
Total Installed
Capacity
Total Installed
Capacity
Total Installed
Capacity
Total Installed
Capacity
1179 1249 1407 2380 3175 5795
Additional Installed
Capacity
Additional Installed
Capacity
Additional Installed
Capacity
Additional Installed
Capacity
Additional Installed
Capacity
Additional Installed
Capacity
117 70 158 973 795 2620
Distribution Area Distribution Area Distribution Area Distribution Area Distribution Area Distribution Area
Java - Bali Java - Bali Java - Bali Java - Bali Java - Bali Java - Bali
117 5 - 330 445 1240
Sumatera Sumatera Sumatera Sumatera Sumatera Sumatera
- 60 105 550 330 1240
Sulawesi Sulawesi Sulawesi Sulawesi Sulawesi Sulawesi
- - 45 70 - 80
Nusa Tenggara Nusa Tenggara Nusa Tenggara Nusa Tenggara Nusa Tenggara Nusa Tenggara
- 5 8 3 20 40
Maluku Maluku Maluku Maluku Maluku Maluku
- - - 20 - 20
18

19. ● 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)
With Developing 4733 MW Geothermal Power Plant
until 2014, could:
19

20. NO FIELD REGENCY PROVINCE
DEVELOPMENT
TARGETS (MW)
STATUS OF
TENDER
PROCESS
1 Seulawah agam Aceh Besar Nangroe Aceh Darusallam 160 Preparation
2 Jailolo West Halmahera North Maluku 75 Finished
3 Telaga Ngebel Ponorogo and Madiun East Java 120 On Going
4 Ungaran Mt. Semarang and Kendal Central Java 100 On Going
5 Tampomas Mt. Sumedang and Subang West Java 50 Finished
6 Cisolok Cisukarame Sukabumi West Java 45 Finished
7 Tangkuban Perahu Mt.Subang, Bandung and purwakarta West Java 100 Finished
8 Jaboi Sabang Nangroe Aceh Darusallam 50 Finished
9 Sokoria Ende East Nusa Tenggara 30 Finished
10 Talang Mt. Solok West Sumatera 36 Preparation
11 Blawan Ijen Bondowoso, Banyuwangi and SitubondoEast Java 270 On Going
12 Hu'u Daha Dompu West Nusa Tenggara 65 Preparation
13 Sipaholan Ria-ria Noth Tapanuli North Sumatera 75 On Going
14 Bukit Kili Solok West Sumatera 83 Preparation
15 Sorik Marapi Roburan Mandailing Natal North Sumatera 200 Preparation
16 Marana Donggala Central Sulawesi 36 Preparation
17 Songa Wayaua South Halmahera North Maluku 140 Preparation
18 Atadei Lembata East Nusa Tenggara 40 Preparation
19 Suwawa Bone Bolanga and Gorontalo Gorontalo 110 Preparation
20 Kaldera Danau BantenSerang and Pandeglang Banten 115 Preparation
21 Rajabasa Mt. South Lampung Lampung 91 Preparation
22 Liki Pinangawan Muara Laboh, Solok Selatan West Sumatera 400 On Going
2391TOTAL
New Geothermal Working Areas (WKP)
Offered Through Tender Process
(after Law No. 27/2003 on Geothermal) As of Sept 2009

21. The Result of WKP’s Tender
No. GWA Location The Winner
Price
Rp/kWh
1 Tampomas Mt.
Sumedang &
Subang Regency,
West Java Province
Consortium PT. Wijaya Karya -
PT. Jasa Sarana - PT. Resources
Jaya Teknik Management
Indonesia
589.00
2
Cisolok –
Cisukarame
Sukabumi Regency,
West Java Province
Jabar Halimun Geothermal 630.00
3
Tangkuban
Perahu
Subang, Bandung &
Purwakarta Regency,
West Java Province
Tangkuban Perahu Geothermal
Power
533.60
4 Jailolo
Halmahera Barat
Regency, North
Maluku Province
PT. Star Energy Investment 1,727.54
5 Sokoria
Ende Regency, East
Nusa Tenggara
Province
Consortium PT. Bakrie Power
Resources - PT. Energy
Management Indonesia
1,250.69
6 Jaboi
Sabang Regency,
Nangro Aceh
Darussalam Province
Consortium PT. Bukaka Teknik
Utama - PT. Dian Sakti Energi - PT.
Global Energi Aliansi
1,705.00
21

22. Geothermal Pre-Survey Assignment in 2008
NO LOCATION COMPANY DESCRIPTION
1.
Guci, Central Java Province
PT. Spring Energy Sentosa
Finished Assignment
(In process of determining WKP)
2.
Baturaden, Central Java
Province
PT. Trinergy
Finished Assignment
(In process of determining WKP)
3.
Muara Laboh, West
Sumatra Province
PT. Supreme Energy
Determined as
WKP Liki Pinangawan
4.
Pematang Belirang,
Lampung Province
PT. Supreme Energy
Determined as
WKP Rajabasa Mt.
5.
Kalianda, Lampung
Province
PT. Supreme Energy
6.
Rantau Dedap, South
Sumatra Province
PT. Supreme Energy
Finished Assignment
(In process of determining WKP)
22

23. Geothermal Pre-Survey Assignment in 2009
NO LOCATION COMPANY DESCRIPTION
1.
Wai Ratai, Lampung PT. Optima Nusantara
Energi
On Going
2.
Simbolon-Samosir,
North Sumatera
PT. Optima Nusantara
Energi
On Going
23
No. Location Regency Province
1. Sungai Betung Kerinci and Pesisir Selatan Jambi and West Sumatera
2. Sungai Tenang Merangin Jambi
3. Ciseeng Bogor and Lebak West Java and Banten
4. Gn. Gede/Pangrango Bogor, Sukabumi, and Cianjur West Java
5. Malawa Maros, Pangkajene Kepulauan,
Bone and Barru
South Sulawesi
6. Gn. Dua Saudara Bitung North Sulawesi
7. Sembalun Lombok Timur West Nusa Tenggara
8. Ulumbu Manggarai East Nusa Tenggara
9. Mataloko Ngada East Nusa Tenggara
Areas offered for Pre-Survey Assignment

24. 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