SlideShare a Scribd company logo
Legal Brief
Paving The Path for a Greener Future
via Presidential Regulation Number
112/2022
MAY, 2024
Background
A H R P L e g a l B r i e f
Key Legal Basis
In December 2015,representation of
Indonesian Government attended the
conference held by United Nation
Framework Convention on Climate
Change (“UNFCCC”) to contribute in an
endeavor to stabilize the greenhouse
gas concentration in the atmosphere
Result of the UNFCCC
Conference stipulated in the
Paris Agreement
Aim of the Paris Agreement
Indonesian Government ratified
the Paris Agreement under Law
Number 16 of 2016 on Ratification
of Paris Agreement to the
UNFCCC (“Law 16/2016”)
Indonesian Government enacted
Presidential Regulation Number
112 of 2022 on Acceleration of
Renewable Energy Development
for Power Supply (“PR 112/2022”)
1
2
3
4
In essence, the aims of the Paris Agreement are shrined under Article 2 of the Paris Agreement, namely:
1. Holding the increase in global average temperature below 2o C above pre-industrial levels and pursuing efforts to
limit the rise in temperature to 1.5o C above pre-industrial levels;
2. Enhancing the capacity to adapt to the negative effects of climate change, enhancing climate resilience, and
developing low greenhouse gas emissions without endangering food production; and
3. Preparing a consistent financing scheme to support the development of low-emission and climate-resilient
innovations.
How is affected to Indonesia?
Indonesian Government sets up a target, via Nationally Determined Contribution (NDC), to reduce
carbon emission unconditional (with own endeavour) from 29% (twenty nine percent) up to 31,89%
(thirty-one-point eight nine percent) in 2030, and conditional (together with international cooperation)
from 41% (forty one percent) up to 43,2% (forty-three-point two percent).
Source: Enhanced Nationally Determined Contribution Republic of Indonesia
Document accessed via UNFCCC website
Welcoming the Renewable Energy Era:
Towards the End of Coal-Fire Power Plants (1/2)
A H R P L e g a l B r i e f
An Effort to Energy Transition and The Early Retirement of CFPPs
Ministry of Energy Mineral and
Resources
(“MoEMR”)
Ministry of Finance
(“MoF”)
Ministry of State-
Owned Enterprises
(“MoSOE”)
The Ministers prepare a roadmap for
accelerating the end of the operational period
of Coal Fire Power Plants (“CFPPs”), which is
outlined in a sectoral planning document
Reduction of greenhouse
gas emissions from CFPPs
a
Strategy for accelerating
the end of the operational
period of CFPPs
b
Alignment among various
other policies
c
Art. 3 (3) (a) PR 112/2022
Art. 3 (3) (b) PR 112/2022
Art. 3 (3) (c) PR 112/2022
Art. 3 (2) PR 112/2022
Exemption Alert
a. CFPPs that have been stipulated in the Electricity Supply Business Plan prior to the enactment of this Presidential Regulation; or
b. CFPPs that meet the following requirements:
1. integrated with industries that are developed to enhance the added value of natural resources or included in National Strategic
Projects that significantly contribute to job creation and/or national economic growth;
2. committed to reducing greenhouse gas emissions by at least 35% (thirty five percent) within 10 years of operation compared to the
average emissions of CFPPs in Indonesia in 2021 through the development of technology, carbon offset, and/or the integration of
renewable energy; and
3. Operating no later than the year 2050.
The development of new CFPPs is still allowed, however there are some consideration under PR 112/2022, which are as follows:
In an effort to increase the proportion of Renewable Energy in the electricity energy mix, PT PLN (Persero) accelerates the termination of:
a. the operation of its own coal-fired power plants; and/or
b. the Power Purchase Agreement (“PPA”) contracts of coal-fired power plants developed by Independent Power Producers (“IPPs”),
The replacement of the electrical energy can be achieved with renewable energy generators, considering the conditions of electricity supply
and demand.
Art. 3 (4) PR 112/2022
Art. 3 (5) and (6) PR 112/2022
The implementation of the accelerated termination of the operation of its own CFPPs and/or the PPA of CFPPs developed by IPPs, as referred to
in Art. 3 (5) PR 112/2022 by PT PLN (Persero), takes into account at least the following criteria:
a. capacity;
b. age of the power plant;
c. utilization;
d. greenhouse gas emissions of the coal-fired
power plant;
e. economic added value;
f. availability of domestic and international financial support; and
g. availability of domestic and international technological support.
Art. 3 (7) PR 112/2022
MoF may provide fiscal support via financing frameworks, including blended finance sourced from the state budget and/or other legitimate
sources aimed at accelerating the energy transition, in the event of:
a. accelerate the termination of the operation of its own CFPPs and/or the PPA of CFPPs developed IPPs; or
b. accelerate the termination of the operation of its own CFPPs and/or the PPA of CFPPs developed by IPPs that require replacement with
Renewable Energy generators.
Art. 3 (9) and (10) PR 112/2022
Welcoming the Renewable Energy Era:
Towards the End of Coal-Fire Power Plants (2/2)
A H R P L e g a l B r i e f
In the first place requires written
approval from MoF and MoSOE
before being stipulated by MoEMR to
be ceased its operation.
CFPPs that undergo acceleration to be terminated
of its operation of its own CFPPs and/or the PPA of
CFPPs developed by Independent IPPs
CFPPs that undergo acceleration to be terminated
of its operation of its own CFPPs and/or the PPA
of CFPPs developed by IPPs that require
replacement with renewable energy generators
Art. 3 (9) (a) PR 112/2022
Art. 3 (9) (b) PR 112/2022
Under the regime of PR 112/2022. Renewable Energy Sources are
defined as the energy sources produced from sustainable energy
resources when managed properly, such as geothermal heat, wind,
bioenergy, sunlight, water flow and waterfalls, as well as ocean
movements and temperature differences in ocean layers.
The following are power plants from which PT PLN (Persero) could be
able to purchase electricity by utilizing renewable energy sources.
a. Hydroelectric Power Plants;
b. Geothermal Power Plants;
Art. 4 (1) PR 112/2022
Art. 4 (2) PR 112/2022
c. Biofuel Power Plants;
d. Wind Power Plants;
e. Biomass Power Plants;
f. Biogas Power Plants;
These power plants can be
power plants that are
entirely built by business
entities or entirely or partly
built by the central
government or local
governments, including
those originating from
bequest.
Art. 4 (3) PR 112/2022
In purchasing electricity
from power plants that
utilize renewable energy
sources as referred to in
Art. 4 (2) PR 112/2022, the
purchasing plan shall refer
to the Electricity Supply
Business Plan/ Rencana
Usaha Penyediaan Tenaga
Listrik (RUPTL)
g. Ocean Energy Power Plants; and
h. Photovoltaic Solar Power Plants.
Art. 4 (4) PR 112/2022
The purchase of electricity from Geothermal Power Plants includes
the purchase of geothermal steam equivalent to electricity for
Geothermal Power Plants.
Art. 4 (5) PR 112/2022 Art. 4 (6) PR 112/2022
The purchase of electricity from Photovoltaic Solar Power Plants
includes the purchase of electricity from floating solar power plants.
Pricing Mechanism for Renewable Energy-Based
Electrical Power
The purchase price of electrical power will be evaluated annually
by considering the latest average contract price of PT PLN
(Persero), which shall be conducted by MoEMR, MoF, and
MoSOE.
A H R P L e g a l B r i e f
The Purchase Price of Electrical Power from Power Plants
The purchase price means the price at the meeting point between the electrical equipment at the electrical power plant installation and the electrical power supply
installation equipment (generator busbar) and does not include the price of electrical power network facilities.
Shall be determined based on the agreement of the parties at a maximum of 30% (thirty percent) of the purchase price of electrical power and shall be
considered as an approval from the MOEMR. In the event that the price of electrical power grid facilities is more than 30% (thirty percent) of the
purchase price of electrical power, a price approval from the MoEMR must be obtained.
Photovoltaic Solar Power Plants or Wind Power Plants for all capacities that are equipped with batteries or other electrical energy storage facilities, the
price of battery facilities or other electrical energy storage facilities shall be determined based on the maximum benchmark price of 60% (sixty percent)
of the purchase price of electrical power and shall be considered as an approval from the MoEMR. In terms of the price of batteries or other electrical
energy storage facilities as is more than 60% (sixty percent) of the purchase price of electrical power, a price approval from the MoEMR must be
obtained.
The maximum benchmark price as stipulated by the Appendix I of PR 112/2022
(i) negotiation with the ceiling limit based on the maximum benchmark price;
(ii) without escalation during the PPA term; and
(iii) apply as a price approval from the MoEMR.
(i) negotiation with the ceiling limit based on the maximum benchmark price;
(ii) valid as the floor price;
(iii) escalation provisions may apply during the PPA and Agreements for the Sale
and Purchase of Geothermal Coal-fired Steam term; and
(iv) apply as a price approval from the MoEMR.
Applicable conditions for Geothermal Power Plant:
Applicable for Power Plants which are Entirely Built by Business Entities, such as:
• Biomass Power Plants;
• Biogas Power Plants; and
• Photovoltaic Solar Power Plants
• Hydroelectric Power Plants;
• Geothermal Power Plants;
• Wind Power Plants
Applicable for Power Plants which are Entirely or Partially Built by the
Government including those Originating from Grants, such as:
• Hydroelectric Power Plants;
• Geothermal Power Plants;
• Wind Power Plants;
Conditions for applying maximum benchmark price:
• Biomass Power Plants;
• Biogas Power Plants; and
• Photovoltaic Solar Power Plants
The agreement price, with or without the location factor
The purchase price of Electrical Power based on the agreed price
shall be implemented through a negotiation and must obtain a price
approval from the MoEMR.
Applicable for Power Plants which are Entirely Built by
Business Entities, such as:
• Hydroelectric Power Plants (as a peaker);
• Biofuel Power Plants; and
• Ocean Energy Power Plants
Applicable for Power Plants which are Entirely or Partially Built
by the Government including those Originating from Grants,
such as:
• Biofuel Power Plants; and
• Ocean Energy Power Plants
The Price of Electrical Power Grid Facilities
The Price of Battery or Other Electrical Energy Storage Facilities
PT PLN (Persero) may purchase excess energy from IPPs that utilize renewable energies. The term of the excess power sale and purchase
agreement shall be implemented for a minimum period of 3 (three) years and may be extended.
Source: Chapter II PR 112/2022
a b
Art. 6 jo. Art. 9 (1) jo. Art. 12 (1) PR 112/2022
Art. 6 (3) jo. Art. 9 (2) jo. Art. 12 (2) PR 112/2022
Art. 5 (4) PR 112/2022
Procurement of Renewable Energy-Based
Electrical Power (1/2)
A H R P L e g a l B r i e f
Direct Appointment
For the direct appointment of electricity purchases from:
a. Hydropower plants utilizing water from reservoirs, dams, or
irrigation channels, whose construction is multipurpose and
involves state-owned assets managed by the Directorate
General of Water Resources, Ministry of Public Works and
Housing, for all plant capacities; and
b. Geothermal power plants operated by holders of
Geothermal Permits, which serve as the designated entities
for electricity purchases.
Key Takeaways:
Direct Selection
The purchase of electricity through direct selection for all plant
capacities, is conducted for electricity purchases from:
a. Hydropower plants;
b. Photovoltaic solar power plants or wind power plants, with or
without battery facilities or other electrical energy storage
facilities, whether on government-provided land or using privately
owned land;
c. Biomass power plants or biogas power plants; and
d. Hydropower plants functioning as peakers, biofuel power plants,
or ocean energy power plants.
Art. 14 (3) PR 112/2022
The process of purchasing electricity through direct appointment
involves submitting documents and completing the Power
Purchase Agreement or Perjanjian Jual Beli Listrik (“PPA”)
signing, including document evaluation, within a maximum of 90
(ninety) calendar days.
The document evaluation mentioned above consists of
assessments in the following areas:
a. administrative;
b. technical; and
c. financial.
Art.15 PR 112/2022
Art. 14 (4) PR 112/2022
The purchase of electricity through direct selection is conducted by
offering the lowest price based on the highest benchmark price,
ensuring the process is transparent and fair without granting
privileges to any party.
Furthermore, the process of purchasing electricity through direct
selection begins with the submission of documents and ends with the
signing of the PPA, including document evaluation and price
negotiation, which must be completed within a maximum of 180 (one
hundred eighty) calendar days. Further details regarding the
procurement process through direct selection will be explained in
Slide 7 of this Legal Brief.
Art. 16 PR 112/2022
In the event that there is only one participating business entity after direct selection and re-
selection, the electricity purchase will be conducted through direct appointment. The
purchase price for electricity in this case will be determined through negotiation, with the
upper limit based on the highest benchmark price.
Art. 14 (5) & (6) PR 112/2022
• Hydropower plants that utilize water from reservoirs, dams, or irrigation channels, especially if these are multipurpose
projects managed by the ministry responsible for water resources;
• Geothermal power plants;
• Expansion projects for geothermal, hydro, photovoltaic solar, wind, biomass, or biogas power plants; and/or
• Excess power from hydro, biomass, or biogas power plants.
Under PR 112/2022, there are two methods for procuring electricity from renewable energy power plants, regardless of their capacity: direct
selection and direct appointment.
Generally, renewable energy projects are procured through direct selection. However, there are exceptions where direct appointment is
used:
Procurement of Renewable Energy-Based
Electrical Power (2/2)
A H R P L e g a l B r i e f
Direct Selection Procurement Process in PLN
The internal division of PLN
approves the RfP document
and the PPA draft
Procurement of the RfP
documents by prospective
business entities
Explanation meeting
Preparation of the RfP required
documents by tender
participants
Evaluation of the RfP and
clarification of administrative,
financial, and technical aspects
Evaluation of the
best price
Announcement of
the Prospective PPL
who has been
selected as the
winner
Objection
Preparation for FS
completeness and
Grid Study
documents
Evaluation of FS and
Grid Study
documents
Letter of Intent for
the Appointment
of the PPL
Signing of the PPA
The relevant PPA must be accompanied by:
1. Performance guarantee of 10% of the total investment until COD;
2. Electricity Supply Business License for Own Use or Izin Usaha Penyediaan
Tenaga Listrik untuk Kepentingan Sendiri ("IUPTLS"); and
3. Other completeness according to each renewable energy power plant.
Yes
No
No
Inviting prospective Power Plant
Developers or Pengembang
Pembangkit Listrik (“PPL”) listed in
the Selected Provider List (“SPL”)
Minutes of Approval
for the Results of
Direct Selection
Elimination
2
3
4
5
a
b 6
7
a
8
9
10
11
Notes:
: executed by procurement committee
: executed by PT PLN’s internal
: executed by bidders
: procurement process
: the end of procurement process
1A 1B
Government Incentives for Renewable Energy-Based
Power Plants
A H R P L e g a l B r i e f
Things to Note:
The Minister of Agrarian and Spatial Planning/National Land Agency and the Minister of Public Works and Public Housing are
mandated to provide support by prioritizing the development of electricity generating facilities based on Renewable Energy Sources
(EBT) in the national spatial planning allocation, as well as facilitating land-related permits and construction permits in order to reduce
investment costs for renewable energy utilization.
Article 23 (4) & (6) PR 112/2022
Provision of Government Facilities
In developing power plants that utilize
renewable energy sources, business
entities are granted incentives in both
fiscal and non-fiscal forms.
01
Art. 22 (1) PR 112/2022
Forms of Fiscal Incentives
• Income tax facilities;
• Import facilities such as exemption
from import duties and/or taxes;
• Land and building tax facilities;
• Support for geothermal development;
and/or
• Financing and/or guarantee facilities
through SOEs.
02
Art. 22 (2) PR 112/2022
Provision of Non-Fiscal Incentives
Non-fiscal incentives in this context are
provided by the Central Government and/or
Local Governments according to their
respective authorities and in accordance
with the provisions of the prevailing laws
and regulations.
04
Art. 22 (3) PR 112/2022
Support from Ministries/Agencies
The Minister of Energy and Mineral
Resources, relevant ministers, heads of
agencies, or local governments must
provide the necessary support for the
development of power plants utilizing
renewable energy sources, in accordance
with their respective authorities. Further
elaboration on this matter can be found in
Article 23 (2) to (13) PR 112/2022.
03
Art. 23 (1) PR 112/2022
Compensation for PLN
In the event that the purchase of electricity
from power plants utilizing renewable
energy sources by PT PLN (Persero) leads
to an increase in the basic cost of
electricity generation, PT PLN (Persero)
must be compensated for all expenses
incurred. The payment will be made in
accordance with the financial capability of
the state based on the provisions of the
prevailing laws and regulations.
05
Art. 24 PR 112/2022
Support for Geothermal Energy
In purchasing electricity from Geothermal
Power Plants, the Government may provide
support for the development of geothermal
energy in the form of: (i) assignment for
additional geothermal data and information;
(ii) assignment for preliminary surveys and
exploration; (iii) risk mitigation (derisking);
and (iv) financing facilities.
06
Art. 27 (1) PR 112/2022
Government support and/or government guarantees may be provided in
accordance with the provisions of law and regulations on the cooperation
between the government and business entities in infrastructure procurement.
A H R P L e g a l B r i e f
Incentives provided by the MoF to support the acceleration of the termination of CFPPs operation, acceleration of termination of PPAs of CFPPs,
and/or the development of renewable energy plants as a substitute for the acceleration of the termination CFPPs operation and/or acceleration of
termination of PPAs of CFPPs.
How Does Government Incentives in Financing the Energy Transition Platforms Work?
Funding Sources for Energy Transition Platform Facilities
a. State budget, by considering the state’s financial capacity;
b. Funding cooperation which consists of: (i) international financial institutions; and/or (ii) other institutions/agencies, by taking into account the
provisions on the fulfillment of criteria to be able to utilize the Energy Transition Platform facility and/or other related activities based on the funding
cooperation agreement; and/or
c. other forms of cooperation aside from the funding cooperation.
Related Parties
A role assigned to PT SMI (Persero), which has the following duties:
• coordinate with stakeholders in the management of the Energy
Transition Platform;
• assess the application for the provision of the Energy Transition
Platform facilities;
• provide recommendations to the Steering Committee based on the
assessment result as referred t in letter b;
• seek funding sources other than the State Budget which are allocated
for the Energy Transition Platform;
• provide Energy Transition Platform facilities to projects that meet the
requirements;
• conduct an evaluation of cooperation with third parties and report the
evaluation result to the Steering Committee; and
• provide input and/or consideration to the Steering Committee, if
necessary.
Established by MoF, which has the following duties:
• determine the projects that will be submitted in order to obtain the Energy
Transition Platform facility, including deciding the priority of utilization of
the Energy Transition Platform;
• propose a recommendation for the Energy Transition Platform facility
scheme;
• evaluate the policies and management of the Energy Transition Platform
as well as provide directions from the results of said evaluations;
• coordinate the settlement of Energy Transitional Platform management
issues; and
• develop inter-ministerial cooperation related to energy transition.
In order to assist in the implementation of duties and authorities of the
Steering Committee, MoF shall establish technical team and secretariat of
the Steering Committee to assist the Steering Committee.
Platform Manager Steering Committee
Facilities Provided
Loan Facilities or Other Forms of Financing Facilities through the Government Cooperation Scheme
with Business Entities
Government may grant assistance in the form of:
• implementation of government investment;
• government guarantees (from international financial institutions to
SOEs); and/or
• other supports as regulated in laws and regulations in the fiscal
sector.
Art. 24 (1) and (2) MoFR 103/2023 Art. 24 (1) and (5) MoFR 103/2023
Art. 3 (1) and (4) MoFR 103/2023
Art. 1(1) MoFR 103/2023
Art. 17 (1) MoFR 103/2023
Art. 12 (1) MoFR 103/2023
Art. 13 (1) MoFR 103/2023
Government Incentives in Financing the Energy
Transition Platforms (1/2)
Based on Article 3 paragraph (9) of Regulation of PR 112/2022 the government may provide fiscal support through funding and financing frameworks,
including blended finance aimed at accelerating the energy transition. To accommodate such, MoF issued MoF Regulation Number 103 of 2023 on the
Provision of Fiscal Support through the Funding and Financing Framework for the Acceleration of Energy Transition in the Electricity Sector (“MoFR
103/2023”).
The applicable criteria:
a. CFPP is owned by PT PLN (Persero), a subsidiary of PT PLN
(Persero), or private business entities;
b. in conformity with the roadmap for the acceleration of the
operational period termination of CFPP as prepared by the
MoEMR; and
c. taking into account the policies of the MoF.
Government Incentives in Financing the Energy
Transition Platforms (2/2)
A H R P L e g a l B r i e f
Eligible Power Plants to Enjoy Energy Transition Platform Facilities
CFPP project in which: (i) its operational period is terminated
early; or (ii) its PPA period is terminated early
1
Renewable energy plant development project as a replacement
for CFPP project which is terminated early
2
Art. 4 (1) (a) and (b) jo. Art. 5 MoFR 103/2023
The applicable criteria:
a. is included in the electricity supply business plan, both located
inside and outside the business area of PT PLN (Persero);
b. has the availability of technological support that has been running
and tested domestically and abroad for the development of
renewable energy plants;
c. is included in the project that may be categorized as green projects
or yellow projects based on Indonesia Green Taxonomy
documents issued by the Financial Services Authority;
d. is committed to implementing the principles of Environmental,
Social, and Corporate Governance (ESG) in the implementation of
electricity supply business activities; and/or
e. taking into account the policies of the MoF and MoEMR.
Art. 6 MoFR 103/2023
Eligible Parties to Enjoy Energy Transition Platform Facilities
PT PLN (Persero) and its subsidiaries
Business entities which hold license for
electricity supply business activities
Shareholders of entities which hold
license for electricity supply business
activities
Sponsors of business entities which hold
license for electricity supply business activities
Investors
Other prospective recipients of the relevant
Energy Transition Platform facilities
Source: Art. 25 (1) MoFR 10/2023
Transitional Provision of PR 112/2022
A H R P L e g a l B r i e f
At the time, PR 112/2022 comes into effect:
a. Power Purchase Agreements (PPAs) that have been signed; and
b. Power Purchase Agreements (PPAs) that have been signed,
before PR 112/2022 comes into effect, are declared to remain valid until the end of the PPAs.
Business entities that have obtained:
a. approval of electricity price and/or assignment of electricity purchase from the Minister, but have not yet signed the PPA; and/or
b. approval of geothermal steam price from the MoEMR, but have not yet signed the Power Purchase Agreement for Geothermal
Steam (“PPAG”),
the implementation process of electricity price and/or electricity purchase or geothermal steam price shall be carried out in
accordance with the provisions of the legislation before the PR 112/2022.
Art. 30 PR 112/2022
Art. 31 PR 112/2022
Art. 32 PR 112/2022
a. Negotiation processes among the parties before PR 112/2022 comes into effect may continue until an agreement on the
purchase price of electricity or the purchase price of steam for Geothermal Power Plants is reached.
b. In the event of an agreement on the purchase price of electricity or the purchase price of steam as mentioned in paragraph (1):
i. equal to or lower than the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for
Geothermal Power Plants as stipulated in the PR 112/2022, changes to the PPA or PPAG may be signed by the parties
without the MoEMR’s approval; or
ii. higher than the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for PLTP as
stipulated in the PR 112/2022, the agreement on the purchase price of electricity from Geothermal Power Plants or the
purchase price of steam for Geothermal Power Plants shall obtain the MoEMR's approval before changes to the PPA or
PPAG are signed by the parties.
c. The agreement on the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for Geothermal
Power Plants as mentioned in point (a) must be reached no later than 6 (six) months after PR 112/2022 comes into effect.
d. In the event that no agreement is reached within 6 (six) months as mentioned in point (c) settlement will be conducted according
to the renegotiation mechanism agreed upon in the PPA or PPAG.
Business entities that:
a. have obtained the Geothermal Permit/Izin Panas Bumi before PR 112/2022 comes into effect; and
b. have not yet obtained the approval of electricity price from the MoEMR,
the implementation process of electricity purchase and the price of electricity purchase shall be carried out in accordance with the
provisions of PR 112/2022.
Art. 33 PR 112/2022
Business entities that:
a. have been designated as the administrator of water resources for power generation or designated as prospective developers of
Hydroelectric Power Plants before the PR 112/2022 comes into effect; and
b. have not yet signed the PPA with PT PLN (Persero),
the implementation process of purchasing electricity will utilize a direct appointment mechanism and provisions regarding the
purchase price of electricity in accordance with the provisions of the PR 112/2022.
Art. 34 PR 112/2022
Hanif Julianto Firman
hanif@ahrplaw.com
We will continue to follow the developments on this topic and provide additional information as it
becomes available. If you have any questions on this topic, please contact:
Indira Jauhara Pratiwi
indira@ahrplaw.com
Cut Hasri Nabila
nabila@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee
concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it
applies to your circumstances before deciding to take any action.
World Capital Tower 19th floor
Jl. Mega Kuningan Barat No.3, Kuningan
Jakarta 12950 Indonesia
P: +6221 50917915
+6221 50917916
E: office@ahrplaw.com
www.ahrplaw.com

More Related Content

Similar to Paving The Path for a Greener Future via Presidential Regulation Number 112/2022.pdf

Renewables will shape Argentina’s new energy matrix
Renewables will shape Argentina’s new	energy matrixRenewables will shape Argentina’s new	energy matrix
Renewables will shape Argentina’s new energy matrix
Doris Capurro
 
Gujarat Wind Power Policy 2013
Gujarat Wind Power Policy 2013Gujarat Wind Power Policy 2013
Gujarat Wind Power Policy 2013
Spark Network
 
Final project jrrm
Final project jrrm Final project jrrm
Final project jrrm
JosRaulRujanoMaldona
 
Korea's energy policies and cooperation opportunities between Australia and K...
Korea's energy policies and cooperation opportunities between Australia and K...Korea's energy policies and cooperation opportunities between Australia and K...
Korea's energy policies and cooperation opportunities between Australia and K...
Yonki Hyungkeun PARK
 
Mep1623 power plant cost 1
Mep1623 power plant cost 1Mep1623 power plant cost 1
Mep1623 power plant cost 1
Subzero Bill
 
LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...
LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...
LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...
Dr. Oliver Massmann
 
Nihat Dincmen IOG 2014 2015 Final Thesis
Nihat Dincmen IOG 2014 2015 Final ThesisNihat Dincmen IOG 2014 2015 Final Thesis
Nihat Dincmen IOG 2014 2015 Final Thesis
Nihat Dincmen
 
Sostenibilidad Energética y Regulación renovable
Sostenibilidad Energética y Regulación renovableSostenibilidad Energética y Regulación renovable
Sostenibilidad Energética y Regulación renovable
Funseam - Fundación para la Sostenibilidad Energética y Ambiental
 
Indonesia's emission cap and trade in power sector - Bayu Nugroho, MEMR
Indonesia's emission cap and trade in power sector - Bayu Nugroho, MEMRIndonesia's emission cap and trade in power sector - Bayu Nugroho, MEMR
Indonesia's emission cap and trade in power sector - Bayu Nugroho, MEMR
OECD Environment
 
22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptx
22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptx22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptx
22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptx
SUBRATAMUKHOPADHYAY9
 
Wind Force Newsletter Feb, Edition, 2012
Wind Force Newsletter   Feb, Edition, 2012Wind Force Newsletter   Feb, Edition, 2012
Wind Force Newsletter Feb, Edition, 2012
rupeshsingh_1
 
Lowering-Clean-Energy-Risk-Through-Government-Regulation-presentation-Chrisna...
Lowering-Clean-Energy-Risk-Through-Government-Regulation-presentation-Chrisna...Lowering-Clean-Energy-Risk-Through-Government-Regulation-presentation-Chrisna...
Lowering-Clean-Energy-Risk-Through-Government-Regulation-presentation-Chrisna...
OECD Environment
 
CCS Forum Report - Summary report - July 2016 with FSC
CCS Forum Report - Summary report - July 2016 with FSCCCS Forum Report - Summary report - July 2016 with FSC
CCS Forum Report - Summary report - July 2016 with FSC
Alexandra Howe
 
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...
Dr. Oliver Massmann
 
Review on Optimization of Microgrid Using Various Optimization Techniques
Review on Optimization of Microgrid Using Various Optimization TechniquesReview on Optimization of Microgrid Using Various Optimization Techniques
Review on Optimization of Microgrid Using Various Optimization Techniques
IJAEMSJORNAL
 
A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...
A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...
A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...
electricitygovernance
 
Overview of the energy sector in zambia case of renewable energy
Overview of the energy sector in zambia   case of renewable energyOverview of the energy sector in zambia   case of renewable energy
Overview of the energy sector in zambia case of renewable energy
Jerry Sakala
 
Lag 05 mgl k-electric 13-03-2019
Lag 05 mgl k-electric 13-03-2019Lag 05 mgl k-electric 13-03-2019
Lag 05 mgl k-electric 13-03-2019
abdul basit
 
ITM Power Corporate Brochure
ITM Power Corporate BrochureITM Power Corporate Brochure
ITM Power Corporate Brochure
Rebecca Markillie
 
Solar Power Project (45 MW): Bulgarian Electricity Market Study
Solar Power Project (45 MW): Bulgarian Electricity Market  Study  Solar Power Project (45 MW): Bulgarian Electricity Market  Study
Solar Power Project (45 MW): Bulgarian Electricity Market Study
Simeon Arnaudov
 

Similar to Paving The Path for a Greener Future via Presidential Regulation Number 112/2022.pdf (20)

Renewables will shape Argentina’s new energy matrix
Renewables will shape Argentina’s new	energy matrixRenewables will shape Argentina’s new	energy matrix
Renewables will shape Argentina’s new energy matrix
 
Gujarat Wind Power Policy 2013
Gujarat Wind Power Policy 2013Gujarat Wind Power Policy 2013
Gujarat Wind Power Policy 2013
 
Final project jrrm
Final project jrrm Final project jrrm
Final project jrrm
 
Korea's energy policies and cooperation opportunities between Australia and K...
Korea's energy policies and cooperation opportunities between Australia and K...Korea's energy policies and cooperation opportunities between Australia and K...
Korea's energy policies and cooperation opportunities between Australia and K...
 
Mep1623 power plant cost 1
Mep1623 power plant cost 1Mep1623 power plant cost 1
Mep1623 power plant cost 1
 
LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...
LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...
LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...
 
Nihat Dincmen IOG 2014 2015 Final Thesis
Nihat Dincmen IOG 2014 2015 Final ThesisNihat Dincmen IOG 2014 2015 Final Thesis
Nihat Dincmen IOG 2014 2015 Final Thesis
 
Sostenibilidad Energética y Regulación renovable
Sostenibilidad Energética y Regulación renovableSostenibilidad Energética y Regulación renovable
Sostenibilidad Energética y Regulación renovable
 
Indonesia's emission cap and trade in power sector - Bayu Nugroho, MEMR
Indonesia's emission cap and trade in power sector - Bayu Nugroho, MEMRIndonesia's emission cap and trade in power sector - Bayu Nugroho, MEMR
Indonesia's emission cap and trade in power sector - Bayu Nugroho, MEMR
 
22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptx
22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptx22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptx
22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptx
 
Wind Force Newsletter Feb, Edition, 2012
Wind Force Newsletter   Feb, Edition, 2012Wind Force Newsletter   Feb, Edition, 2012
Wind Force Newsletter Feb, Edition, 2012
 
Lowering-Clean-Energy-Risk-Through-Government-Regulation-presentation-Chrisna...
Lowering-Clean-Energy-Risk-Through-Government-Regulation-presentation-Chrisna...Lowering-Clean-Energy-Risk-Through-Government-Regulation-presentation-Chrisna...
Lowering-Clean-Energy-Risk-Through-Government-Regulation-presentation-Chrisna...
 
CCS Forum Report - Summary report - July 2016 with FSC
CCS Forum Report - Summary report - July 2016 with FSCCCS Forum Report - Summary report - July 2016 with FSC
CCS Forum Report - Summary report - July 2016 with FSC
 
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...
 
Review on Optimization of Microgrid Using Various Optimization Techniques
Review on Optimization of Microgrid Using Various Optimization TechniquesReview on Optimization of Microgrid Using Various Optimization Techniques
Review on Optimization of Microgrid Using Various Optimization Techniques
 
A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...
A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...
A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...
 
Overview of the energy sector in zambia case of renewable energy
Overview of the energy sector in zambia   case of renewable energyOverview of the energy sector in zambia   case of renewable energy
Overview of the energy sector in zambia case of renewable energy
 
Lag 05 mgl k-electric 13-03-2019
Lag 05 mgl k-electric 13-03-2019Lag 05 mgl k-electric 13-03-2019
Lag 05 mgl k-electric 13-03-2019
 
ITM Power Corporate Brochure
ITM Power Corporate BrochureITM Power Corporate Brochure
ITM Power Corporate Brochure
 
Solar Power Project (45 MW): Bulgarian Electricity Market Study
Solar Power Project (45 MW): Bulgarian Electricity Market  Study  Solar Power Project (45 MW): Bulgarian Electricity Market  Study
Solar Power Project (45 MW): Bulgarian Electricity Market Study
 

More from AHRP Law Firm

Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...
Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...
Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...
AHRP Law Firm
 
Initial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdf
Initial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdfInitial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdf
Initial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdf
AHRP Law Firm
 
Introducing New Government Regulation on Toll Road.pdf
Introducing New Government Regulation on Toll Road.pdfIntroducing New Government Regulation on Toll Road.pdf
Introducing New Government Regulation on Toll Road.pdf
AHRP Law Firm
 
Initial Public Offering of Mining Companies: Matters to be Considered.pdf
Initial Public Offering of Mining Companies: Matters to be Considered.pdfInitial Public Offering of Mining Companies: Matters to be Considered.pdf
Initial Public Offering of Mining Companies: Matters to be Considered.pdf
AHRP Law Firm
 
The Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdf
The Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdfThe Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdf
The Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdf
AHRP Law Firm
 
The Intricacies of Proceedings in the Constitutional Court.pdf
The Intricacies of Proceedings in the Constitutional Court.pdfThe Intricacies of Proceedings in the Constitutional Court.pdf
The Intricacies of Proceedings in the Constitutional Court.pdf
AHRP Law Firm
 
Indonesia’s Model Document for Sustainable Procurement Selection for Construc...
Indonesia’s Model Document for Sustainable Procurement Selection for Construc...Indonesia’s Model Document for Sustainable Procurement Selection for Construc...
Indonesia’s Model Document for Sustainable Procurement Selection for Construc...
AHRP Law Firm
 
Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...
Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...
Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...
AHRP Law Firm
 
Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....
Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....
Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....
AHRP Law Firm
 
Simplification and Ease of User Data Verification: The Regulatory Framework f...
Simplification and Ease of User Data Verification: The Regulatory Framework f...Simplification and Ease of User Data Verification: The Regulatory Framework f...
Simplification and Ease of User Data Verification: The Regulatory Framework f...
AHRP Law Firm
 
Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...
Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...
Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...
AHRP Law Firm
 
Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...
Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...
Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...
AHRP Law Firm
 
FIFA Regulations and Indonesia Football Business.pdf
FIFA Regulations and Indonesia Football Business.pdfFIFA Regulations and Indonesia Football Business.pdf
FIFA Regulations and Indonesia Football Business.pdf
AHRP Law Firm
 
Understanding Buyback Regulations In Indonesia
Understanding Buyback Regulations In IndonesiaUnderstanding Buyback Regulations In Indonesia
Understanding Buyback Regulations In Indonesia
AHRP Law Firm
 
Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...
Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...
Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...
AHRP Law Firm
 
FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...
FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...
FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...
AHRP Law Firm
 
Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...
Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...
Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...
AHRP Law Firm
 
Empowering Change: Coal MIP Scheme - Transforming DMO Violation Penalties int...
Empowering Change: Coal MIP Scheme - Transforming DMO Violation Penalties int...Empowering Change: Coal MIP Scheme - Transforming DMO Violation Penalties int...
Empowering Change: Coal MIP Scheme - Transforming DMO Violation Penalties int...
AHRP Law Firm
 
K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...
K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...
K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...
AHRP Law Firm
 
Acceleration of the Usage EV Battery-powered Vehicle for Road Transportation.pdf
Acceleration of the Usage EV Battery-powered Vehicle for Road Transportation.pdfAcceleration of the Usage EV Battery-powered Vehicle for Road Transportation.pdf
Acceleration of the Usage EV Battery-powered Vehicle for Road Transportation.pdf
AHRP Law Firm
 

More from AHRP Law Firm (20)

Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...
Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...
Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...
 
Initial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdf
Initial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdfInitial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdf
Initial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdf
 
Introducing New Government Regulation on Toll Road.pdf
Introducing New Government Regulation on Toll Road.pdfIntroducing New Government Regulation on Toll Road.pdf
Introducing New Government Regulation on Toll Road.pdf
 
Initial Public Offering of Mining Companies: Matters to be Considered.pdf
Initial Public Offering of Mining Companies: Matters to be Considered.pdfInitial Public Offering of Mining Companies: Matters to be Considered.pdf
Initial Public Offering of Mining Companies: Matters to be Considered.pdf
 
The Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdf
The Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdfThe Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdf
The Establishment of Indonesia's First Crypto Bourse: a Regulatory Overview.pdf
 
The Intricacies of Proceedings in the Constitutional Court.pdf
The Intricacies of Proceedings in the Constitutional Court.pdfThe Intricacies of Proceedings in the Constitutional Court.pdf
The Intricacies of Proceedings in the Constitutional Court.pdf
 
Indonesia’s Model Document for Sustainable Procurement Selection for Construc...
Indonesia’s Model Document for Sustainable Procurement Selection for Construc...Indonesia’s Model Document for Sustainable Procurement Selection for Construc...
Indonesia’s Model Document for Sustainable Procurement Selection for Construc...
 
Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...
Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...
Second Amandement to the Law No. 11/2008: Streghtening Legal Protection and C...
 
Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....
Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....
Regulatory Reforms on Financial Technology Innovation with OJK Regulation No....
 
Simplification and Ease of User Data Verification: The Regulatory Framework f...
Simplification and Ease of User Data Verification: The Regulatory Framework f...Simplification and Ease of User Data Verification: The Regulatory Framework f...
Simplification and Ease of User Data Verification: The Regulatory Framework f...
 
Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...
Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...
Towards National Financial Inclusion and Credit Growth: Regulatory Framework ...
 
Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...
Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...
Issuance of Ministry of Energy and Mineral Resources Regulation No. 2 of 2024...
 
FIFA Regulations and Indonesia Football Business.pdf
FIFA Regulations and Indonesia Football Business.pdfFIFA Regulations and Indonesia Football Business.pdf
FIFA Regulations and Indonesia Football Business.pdf
 
Understanding Buyback Regulations In Indonesia
Understanding Buyback Regulations In IndonesiaUnderstanding Buyback Regulations In Indonesia
Understanding Buyback Regulations In Indonesia
 
Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...
Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...
Navigating the Complexities in Issuance of KKPR (Suitability of Spatial Utili...
 
FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...
FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...
FSRU procurement for Oil and Gas Upstream Business (clauses and legal concern...
 
Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...
Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...
Reducing the Incremental Capital Output Ratio (ICOR) from a legal perspective...
 
Empowering Change: Coal MIP Scheme - Transforming DMO Violation Penalties int...
Empowering Change: Coal MIP Scheme - Transforming DMO Violation Penalties int...Empowering Change: Coal MIP Scheme - Transforming DMO Violation Penalties int...
Empowering Change: Coal MIP Scheme - Transforming DMO Violation Penalties int...
 
K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...
K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...
K3 Compliance for Smelter Usage in Nickel Mining: A Look at Morowali Smelter ...
 
Acceleration of the Usage EV Battery-powered Vehicle for Road Transportation.pdf
Acceleration of the Usage EV Battery-powered Vehicle for Road Transportation.pdfAcceleration of the Usage EV Battery-powered Vehicle for Road Transportation.pdf
Acceleration of the Usage EV Battery-powered Vehicle for Road Transportation.pdf
 

Recently uploaded

Genocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptxGenocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptx
MasoudZamani13
 
Receivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptxReceivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
Patenting_Innovations_in_3D_Printing_Prosthetics.pptx
Patenting_Innovations_in_3D_Printing_Prosthetics.pptxPatenting_Innovations_in_3D_Printing_Prosthetics.pptx
Patenting_Innovations_in_3D_Printing_Prosthetics.pptx
ssuser559494
 
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdfV.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
bhavenpr
 
Business Laws Sunita saha
Business Laws Sunita sahaBusiness Laws Sunita saha
Business Laws Sunita saha
sunitasaha5
 
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence Lawyers
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence LawyersDefending Weapons Offence Charges: Role of Mississauga Criminal Defence Lawyers
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence Lawyers
HarpreetSaini48
 
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Massimo Talia
 
原版制作(PSU毕业证书)宾州州立大学公园分校毕业证学历证书一模一样
原版制作(PSU毕业证书)宾州州立大学公园分校毕业证学历证书一模一样原版制作(PSU毕业证书)宾州州立大学公园分校毕业证学历证书一模一样
原版制作(PSU毕业证书)宾州州立大学公园分校毕业证学历证书一模一样
osenwakm
 
From Promise to Practice. Implementing AI in Legal Environments
From Promise to Practice. Implementing AI in Legal EnvironmentsFrom Promise to Practice. Implementing AI in Legal Environments
From Promise to Practice. Implementing AI in Legal Environments
ssusera97a2f
 
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
gjsma0ep
 
The Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdfThe Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdf
veteranlegal
 
fnaf lore.pptx ...................................
fnaf lore.pptx ...................................fnaf lore.pptx ...................................
fnaf lore.pptx ...................................
20jcoello
 
Search Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement OfficersSearch Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement Officers
RichardTheberge
 
Incometax Compliance_PF_ ESI- June 2024
Incometax  Compliance_PF_ ESI- June 2024Incometax  Compliance_PF_ ESI- June 2024
Incometax Compliance_PF_ ESI- June 2024
EbizfilingIndia
 
Ease of Paying Tax Law Republic Act 11976
Ease of Paying Tax Law Republic Act 11976Ease of Paying Tax Law Republic Act 11976
Ease of Paying Tax Law Republic Act 11976
PelayoGilbert
 
What are the common challenges faced by women lawyers working in the legal pr...
What are the common challenges faced by women lawyers working in the legal pr...What are the common challenges faced by women lawyers working in the legal pr...
What are the common challenges faced by women lawyers working in the legal pr...
lawyersonia
 
Lifting the Corporate Veil. Power Point Presentation
Lifting the Corporate Veil. Power Point PresentationLifting the Corporate Veil. Power Point Presentation
Lifting the Corporate Veil. Power Point Presentation
seri bangash
 
在线办理(SU毕业证书)美国雪城大学毕业证成绩单一模一样
在线办理(SU毕业证书)美国雪城大学毕业证成绩单一模一样在线办理(SU毕业证书)美国雪城大学毕业证成绩单一模一样
在线办理(SU毕业证书)美国雪城大学毕业证成绩单一模一样
osenwakm
 
Matthew Professional CV experienced Government Liaison
Matthew Professional CV experienced Government LiaisonMatthew Professional CV experienced Government Liaison
Matthew Professional CV experienced Government Liaison
MattGardner52
 
Energizing Communities, Fostering Growth, Sustaining Futures
Energizing Communities, Fostering Growth, Sustaining FuturesEnergizing Communities, Fostering Growth, Sustaining Futures
Energizing Communities, Fostering Growth, Sustaining Futures
USDAReapgrants.com
 

Recently uploaded (20)

Genocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptxGenocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptx
 
Receivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptxReceivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptx
 
Patenting_Innovations_in_3D_Printing_Prosthetics.pptx
Patenting_Innovations_in_3D_Printing_Prosthetics.pptxPatenting_Innovations_in_3D_Printing_Prosthetics.pptx
Patenting_Innovations_in_3D_Printing_Prosthetics.pptx
 
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdfV.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
 
Business Laws Sunita saha
Business Laws Sunita sahaBusiness Laws Sunita saha
Business Laws Sunita saha
 
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence Lawyers
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence LawyersDefending Weapons Offence Charges: Role of Mississauga Criminal Defence Lawyers
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence Lawyers
 
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...
 
原版制作(PSU毕业证书)宾州州立大学公园分校毕业证学历证书一模一样
原版制作(PSU毕业证书)宾州州立大学公园分校毕业证学历证书一模一样原版制作(PSU毕业证书)宾州州立大学公园分校毕业证学历证书一模一样
原版制作(PSU毕业证书)宾州州立大学公园分校毕业证学历证书一模一样
 
From Promise to Practice. Implementing AI in Legal Environments
From Promise to Practice. Implementing AI in Legal EnvironmentsFrom Promise to Practice. Implementing AI in Legal Environments
From Promise to Practice. Implementing AI in Legal Environments
 
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
 
The Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdfThe Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdf
 
fnaf lore.pptx ...................................
fnaf lore.pptx ...................................fnaf lore.pptx ...................................
fnaf lore.pptx ...................................
 
Search Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement OfficersSearch Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement Officers
 
Incometax Compliance_PF_ ESI- June 2024
Incometax  Compliance_PF_ ESI- June 2024Incometax  Compliance_PF_ ESI- June 2024
Incometax Compliance_PF_ ESI- June 2024
 
Ease of Paying Tax Law Republic Act 11976
Ease of Paying Tax Law Republic Act 11976Ease of Paying Tax Law Republic Act 11976
Ease of Paying Tax Law Republic Act 11976
 
What are the common challenges faced by women lawyers working in the legal pr...
What are the common challenges faced by women lawyers working in the legal pr...What are the common challenges faced by women lawyers working in the legal pr...
What are the common challenges faced by women lawyers working in the legal pr...
 
Lifting the Corporate Veil. Power Point Presentation
Lifting the Corporate Veil. Power Point PresentationLifting the Corporate Veil. Power Point Presentation
Lifting the Corporate Veil. Power Point Presentation
 
在线办理(SU毕业证书)美国雪城大学毕业证成绩单一模一样
在线办理(SU毕业证书)美国雪城大学毕业证成绩单一模一样在线办理(SU毕业证书)美国雪城大学毕业证成绩单一模一样
在线办理(SU毕业证书)美国雪城大学毕业证成绩单一模一样
 
Matthew Professional CV experienced Government Liaison
Matthew Professional CV experienced Government LiaisonMatthew Professional CV experienced Government Liaison
Matthew Professional CV experienced Government Liaison
 
Energizing Communities, Fostering Growth, Sustaining Futures
Energizing Communities, Fostering Growth, Sustaining FuturesEnergizing Communities, Fostering Growth, Sustaining Futures
Energizing Communities, Fostering Growth, Sustaining Futures
 

Paving The Path for a Greener Future via Presidential Regulation Number 112/2022.pdf

  • 1. Legal Brief Paving The Path for a Greener Future via Presidential Regulation Number 112/2022 MAY, 2024
  • 2. Background A H R P L e g a l B r i e f Key Legal Basis In December 2015,representation of Indonesian Government attended the conference held by United Nation Framework Convention on Climate Change (“UNFCCC”) to contribute in an endeavor to stabilize the greenhouse gas concentration in the atmosphere Result of the UNFCCC Conference stipulated in the Paris Agreement Aim of the Paris Agreement Indonesian Government ratified the Paris Agreement under Law Number 16 of 2016 on Ratification of Paris Agreement to the UNFCCC (“Law 16/2016”) Indonesian Government enacted Presidential Regulation Number 112 of 2022 on Acceleration of Renewable Energy Development for Power Supply (“PR 112/2022”) 1 2 3 4 In essence, the aims of the Paris Agreement are shrined under Article 2 of the Paris Agreement, namely: 1. Holding the increase in global average temperature below 2o C above pre-industrial levels and pursuing efforts to limit the rise in temperature to 1.5o C above pre-industrial levels; 2. Enhancing the capacity to adapt to the negative effects of climate change, enhancing climate resilience, and developing low greenhouse gas emissions without endangering food production; and 3. Preparing a consistent financing scheme to support the development of low-emission and climate-resilient innovations. How is affected to Indonesia? Indonesian Government sets up a target, via Nationally Determined Contribution (NDC), to reduce carbon emission unconditional (with own endeavour) from 29% (twenty nine percent) up to 31,89% (thirty-one-point eight nine percent) in 2030, and conditional (together with international cooperation) from 41% (forty one percent) up to 43,2% (forty-three-point two percent). Source: Enhanced Nationally Determined Contribution Republic of Indonesia Document accessed via UNFCCC website
  • 3. Welcoming the Renewable Energy Era: Towards the End of Coal-Fire Power Plants (1/2) A H R P L e g a l B r i e f An Effort to Energy Transition and The Early Retirement of CFPPs Ministry of Energy Mineral and Resources (“MoEMR”) Ministry of Finance (“MoF”) Ministry of State- Owned Enterprises (“MoSOE”) The Ministers prepare a roadmap for accelerating the end of the operational period of Coal Fire Power Plants (“CFPPs”), which is outlined in a sectoral planning document Reduction of greenhouse gas emissions from CFPPs a Strategy for accelerating the end of the operational period of CFPPs b Alignment among various other policies c Art. 3 (3) (a) PR 112/2022 Art. 3 (3) (b) PR 112/2022 Art. 3 (3) (c) PR 112/2022 Art. 3 (2) PR 112/2022 Exemption Alert a. CFPPs that have been stipulated in the Electricity Supply Business Plan prior to the enactment of this Presidential Regulation; or b. CFPPs that meet the following requirements: 1. integrated with industries that are developed to enhance the added value of natural resources or included in National Strategic Projects that significantly contribute to job creation and/or national economic growth; 2. committed to reducing greenhouse gas emissions by at least 35% (thirty five percent) within 10 years of operation compared to the average emissions of CFPPs in Indonesia in 2021 through the development of technology, carbon offset, and/or the integration of renewable energy; and 3. Operating no later than the year 2050. The development of new CFPPs is still allowed, however there are some consideration under PR 112/2022, which are as follows: In an effort to increase the proportion of Renewable Energy in the electricity energy mix, PT PLN (Persero) accelerates the termination of: a. the operation of its own coal-fired power plants; and/or b. the Power Purchase Agreement (“PPA”) contracts of coal-fired power plants developed by Independent Power Producers (“IPPs”), The replacement of the electrical energy can be achieved with renewable energy generators, considering the conditions of electricity supply and demand. Art. 3 (4) PR 112/2022 Art. 3 (5) and (6) PR 112/2022 The implementation of the accelerated termination of the operation of its own CFPPs and/or the PPA of CFPPs developed by IPPs, as referred to in Art. 3 (5) PR 112/2022 by PT PLN (Persero), takes into account at least the following criteria: a. capacity; b. age of the power plant; c. utilization; d. greenhouse gas emissions of the coal-fired power plant; e. economic added value; f. availability of domestic and international financial support; and g. availability of domestic and international technological support. Art. 3 (7) PR 112/2022 MoF may provide fiscal support via financing frameworks, including blended finance sourced from the state budget and/or other legitimate sources aimed at accelerating the energy transition, in the event of: a. accelerate the termination of the operation of its own CFPPs and/or the PPA of CFPPs developed IPPs; or b. accelerate the termination of the operation of its own CFPPs and/or the PPA of CFPPs developed by IPPs that require replacement with Renewable Energy generators. Art. 3 (9) and (10) PR 112/2022
  • 4. Welcoming the Renewable Energy Era: Towards the End of Coal-Fire Power Plants (2/2) A H R P L e g a l B r i e f In the first place requires written approval from MoF and MoSOE before being stipulated by MoEMR to be ceased its operation. CFPPs that undergo acceleration to be terminated of its operation of its own CFPPs and/or the PPA of CFPPs developed by Independent IPPs CFPPs that undergo acceleration to be terminated of its operation of its own CFPPs and/or the PPA of CFPPs developed by IPPs that require replacement with renewable energy generators Art. 3 (9) (a) PR 112/2022 Art. 3 (9) (b) PR 112/2022 Under the regime of PR 112/2022. Renewable Energy Sources are defined as the energy sources produced from sustainable energy resources when managed properly, such as geothermal heat, wind, bioenergy, sunlight, water flow and waterfalls, as well as ocean movements and temperature differences in ocean layers. The following are power plants from which PT PLN (Persero) could be able to purchase electricity by utilizing renewable energy sources. a. Hydroelectric Power Plants; b. Geothermal Power Plants; Art. 4 (1) PR 112/2022 Art. 4 (2) PR 112/2022 c. Biofuel Power Plants; d. Wind Power Plants; e. Biomass Power Plants; f. Biogas Power Plants; These power plants can be power plants that are entirely built by business entities or entirely or partly built by the central government or local governments, including those originating from bequest. Art. 4 (3) PR 112/2022 In purchasing electricity from power plants that utilize renewable energy sources as referred to in Art. 4 (2) PR 112/2022, the purchasing plan shall refer to the Electricity Supply Business Plan/ Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) g. Ocean Energy Power Plants; and h. Photovoltaic Solar Power Plants. Art. 4 (4) PR 112/2022 The purchase of electricity from Geothermal Power Plants includes the purchase of geothermal steam equivalent to electricity for Geothermal Power Plants. Art. 4 (5) PR 112/2022 Art. 4 (6) PR 112/2022 The purchase of electricity from Photovoltaic Solar Power Plants includes the purchase of electricity from floating solar power plants.
  • 5. Pricing Mechanism for Renewable Energy-Based Electrical Power The purchase price of electrical power will be evaluated annually by considering the latest average contract price of PT PLN (Persero), which shall be conducted by MoEMR, MoF, and MoSOE. A H R P L e g a l B r i e f The Purchase Price of Electrical Power from Power Plants The purchase price means the price at the meeting point between the electrical equipment at the electrical power plant installation and the electrical power supply installation equipment (generator busbar) and does not include the price of electrical power network facilities. Shall be determined based on the agreement of the parties at a maximum of 30% (thirty percent) of the purchase price of electrical power and shall be considered as an approval from the MOEMR. In the event that the price of electrical power grid facilities is more than 30% (thirty percent) of the purchase price of electrical power, a price approval from the MoEMR must be obtained. Photovoltaic Solar Power Plants or Wind Power Plants for all capacities that are equipped with batteries or other electrical energy storage facilities, the price of battery facilities or other electrical energy storage facilities shall be determined based on the maximum benchmark price of 60% (sixty percent) of the purchase price of electrical power and shall be considered as an approval from the MoEMR. In terms of the price of batteries or other electrical energy storage facilities as is more than 60% (sixty percent) of the purchase price of electrical power, a price approval from the MoEMR must be obtained. The maximum benchmark price as stipulated by the Appendix I of PR 112/2022 (i) negotiation with the ceiling limit based on the maximum benchmark price; (ii) without escalation during the PPA term; and (iii) apply as a price approval from the MoEMR. (i) negotiation with the ceiling limit based on the maximum benchmark price; (ii) valid as the floor price; (iii) escalation provisions may apply during the PPA and Agreements for the Sale and Purchase of Geothermal Coal-fired Steam term; and (iv) apply as a price approval from the MoEMR. Applicable conditions for Geothermal Power Plant: Applicable for Power Plants which are Entirely Built by Business Entities, such as: • Biomass Power Plants; • Biogas Power Plants; and • Photovoltaic Solar Power Plants • Hydroelectric Power Plants; • Geothermal Power Plants; • Wind Power Plants Applicable for Power Plants which are Entirely or Partially Built by the Government including those Originating from Grants, such as: • Hydroelectric Power Plants; • Geothermal Power Plants; • Wind Power Plants; Conditions for applying maximum benchmark price: • Biomass Power Plants; • Biogas Power Plants; and • Photovoltaic Solar Power Plants The agreement price, with or without the location factor The purchase price of Electrical Power based on the agreed price shall be implemented through a negotiation and must obtain a price approval from the MoEMR. Applicable for Power Plants which are Entirely Built by Business Entities, such as: • Hydroelectric Power Plants (as a peaker); • Biofuel Power Plants; and • Ocean Energy Power Plants Applicable for Power Plants which are Entirely or Partially Built by the Government including those Originating from Grants, such as: • Biofuel Power Plants; and • Ocean Energy Power Plants The Price of Electrical Power Grid Facilities The Price of Battery or Other Electrical Energy Storage Facilities PT PLN (Persero) may purchase excess energy from IPPs that utilize renewable energies. The term of the excess power sale and purchase agreement shall be implemented for a minimum period of 3 (three) years and may be extended. Source: Chapter II PR 112/2022 a b Art. 6 jo. Art. 9 (1) jo. Art. 12 (1) PR 112/2022 Art. 6 (3) jo. Art. 9 (2) jo. Art. 12 (2) PR 112/2022 Art. 5 (4) PR 112/2022
  • 6. Procurement of Renewable Energy-Based Electrical Power (1/2) A H R P L e g a l B r i e f Direct Appointment For the direct appointment of electricity purchases from: a. Hydropower plants utilizing water from reservoirs, dams, or irrigation channels, whose construction is multipurpose and involves state-owned assets managed by the Directorate General of Water Resources, Ministry of Public Works and Housing, for all plant capacities; and b. Geothermal power plants operated by holders of Geothermal Permits, which serve as the designated entities for electricity purchases. Key Takeaways: Direct Selection The purchase of electricity through direct selection for all plant capacities, is conducted for electricity purchases from: a. Hydropower plants; b. Photovoltaic solar power plants or wind power plants, with or without battery facilities or other electrical energy storage facilities, whether on government-provided land or using privately owned land; c. Biomass power plants or biogas power plants; and d. Hydropower plants functioning as peakers, biofuel power plants, or ocean energy power plants. Art. 14 (3) PR 112/2022 The process of purchasing electricity through direct appointment involves submitting documents and completing the Power Purchase Agreement or Perjanjian Jual Beli Listrik (“PPA”) signing, including document evaluation, within a maximum of 90 (ninety) calendar days. The document evaluation mentioned above consists of assessments in the following areas: a. administrative; b. technical; and c. financial. Art.15 PR 112/2022 Art. 14 (4) PR 112/2022 The purchase of electricity through direct selection is conducted by offering the lowest price based on the highest benchmark price, ensuring the process is transparent and fair without granting privileges to any party. Furthermore, the process of purchasing electricity through direct selection begins with the submission of documents and ends with the signing of the PPA, including document evaluation and price negotiation, which must be completed within a maximum of 180 (one hundred eighty) calendar days. Further details regarding the procurement process through direct selection will be explained in Slide 7 of this Legal Brief. Art. 16 PR 112/2022 In the event that there is only one participating business entity after direct selection and re- selection, the electricity purchase will be conducted through direct appointment. The purchase price for electricity in this case will be determined through negotiation, with the upper limit based on the highest benchmark price. Art. 14 (5) & (6) PR 112/2022 • Hydropower plants that utilize water from reservoirs, dams, or irrigation channels, especially if these are multipurpose projects managed by the ministry responsible for water resources; • Geothermal power plants; • Expansion projects for geothermal, hydro, photovoltaic solar, wind, biomass, or biogas power plants; and/or • Excess power from hydro, biomass, or biogas power plants. Under PR 112/2022, there are two methods for procuring electricity from renewable energy power plants, regardless of their capacity: direct selection and direct appointment. Generally, renewable energy projects are procured through direct selection. However, there are exceptions where direct appointment is used:
  • 7. Procurement of Renewable Energy-Based Electrical Power (2/2) A H R P L e g a l B r i e f Direct Selection Procurement Process in PLN The internal division of PLN approves the RfP document and the PPA draft Procurement of the RfP documents by prospective business entities Explanation meeting Preparation of the RfP required documents by tender participants Evaluation of the RfP and clarification of administrative, financial, and technical aspects Evaluation of the best price Announcement of the Prospective PPL who has been selected as the winner Objection Preparation for FS completeness and Grid Study documents Evaluation of FS and Grid Study documents Letter of Intent for the Appointment of the PPL Signing of the PPA The relevant PPA must be accompanied by: 1. Performance guarantee of 10% of the total investment until COD; 2. Electricity Supply Business License for Own Use or Izin Usaha Penyediaan Tenaga Listrik untuk Kepentingan Sendiri ("IUPTLS"); and 3. Other completeness according to each renewable energy power plant. Yes No No Inviting prospective Power Plant Developers or Pengembang Pembangkit Listrik (“PPL”) listed in the Selected Provider List (“SPL”) Minutes of Approval for the Results of Direct Selection Elimination 2 3 4 5 a b 6 7 a 8 9 10 11 Notes: : executed by procurement committee : executed by PT PLN’s internal : executed by bidders : procurement process : the end of procurement process 1A 1B
  • 8. Government Incentives for Renewable Energy-Based Power Plants A H R P L e g a l B r i e f Things to Note: The Minister of Agrarian and Spatial Planning/National Land Agency and the Minister of Public Works and Public Housing are mandated to provide support by prioritizing the development of electricity generating facilities based on Renewable Energy Sources (EBT) in the national spatial planning allocation, as well as facilitating land-related permits and construction permits in order to reduce investment costs for renewable energy utilization. Article 23 (4) & (6) PR 112/2022 Provision of Government Facilities In developing power plants that utilize renewable energy sources, business entities are granted incentives in both fiscal and non-fiscal forms. 01 Art. 22 (1) PR 112/2022 Forms of Fiscal Incentives • Income tax facilities; • Import facilities such as exemption from import duties and/or taxes; • Land and building tax facilities; • Support for geothermal development; and/or • Financing and/or guarantee facilities through SOEs. 02 Art. 22 (2) PR 112/2022 Provision of Non-Fiscal Incentives Non-fiscal incentives in this context are provided by the Central Government and/or Local Governments according to their respective authorities and in accordance with the provisions of the prevailing laws and regulations. 04 Art. 22 (3) PR 112/2022 Support from Ministries/Agencies The Minister of Energy and Mineral Resources, relevant ministers, heads of agencies, or local governments must provide the necessary support for the development of power plants utilizing renewable energy sources, in accordance with their respective authorities. Further elaboration on this matter can be found in Article 23 (2) to (13) PR 112/2022. 03 Art. 23 (1) PR 112/2022 Compensation for PLN In the event that the purchase of electricity from power plants utilizing renewable energy sources by PT PLN (Persero) leads to an increase in the basic cost of electricity generation, PT PLN (Persero) must be compensated for all expenses incurred. The payment will be made in accordance with the financial capability of the state based on the provisions of the prevailing laws and regulations. 05 Art. 24 PR 112/2022 Support for Geothermal Energy In purchasing electricity from Geothermal Power Plants, the Government may provide support for the development of geothermal energy in the form of: (i) assignment for additional geothermal data and information; (ii) assignment for preliminary surveys and exploration; (iii) risk mitigation (derisking); and (iv) financing facilities. 06 Art. 27 (1) PR 112/2022
  • 9. Government support and/or government guarantees may be provided in accordance with the provisions of law and regulations on the cooperation between the government and business entities in infrastructure procurement. A H R P L e g a l B r i e f Incentives provided by the MoF to support the acceleration of the termination of CFPPs operation, acceleration of termination of PPAs of CFPPs, and/or the development of renewable energy plants as a substitute for the acceleration of the termination CFPPs operation and/or acceleration of termination of PPAs of CFPPs. How Does Government Incentives in Financing the Energy Transition Platforms Work? Funding Sources for Energy Transition Platform Facilities a. State budget, by considering the state’s financial capacity; b. Funding cooperation which consists of: (i) international financial institutions; and/or (ii) other institutions/agencies, by taking into account the provisions on the fulfillment of criteria to be able to utilize the Energy Transition Platform facility and/or other related activities based on the funding cooperation agreement; and/or c. other forms of cooperation aside from the funding cooperation. Related Parties A role assigned to PT SMI (Persero), which has the following duties: • coordinate with stakeholders in the management of the Energy Transition Platform; • assess the application for the provision of the Energy Transition Platform facilities; • provide recommendations to the Steering Committee based on the assessment result as referred t in letter b; • seek funding sources other than the State Budget which are allocated for the Energy Transition Platform; • provide Energy Transition Platform facilities to projects that meet the requirements; • conduct an evaluation of cooperation with third parties and report the evaluation result to the Steering Committee; and • provide input and/or consideration to the Steering Committee, if necessary. Established by MoF, which has the following duties: • determine the projects that will be submitted in order to obtain the Energy Transition Platform facility, including deciding the priority of utilization of the Energy Transition Platform; • propose a recommendation for the Energy Transition Platform facility scheme; • evaluate the policies and management of the Energy Transition Platform as well as provide directions from the results of said evaluations; • coordinate the settlement of Energy Transitional Platform management issues; and • develop inter-ministerial cooperation related to energy transition. In order to assist in the implementation of duties and authorities of the Steering Committee, MoF shall establish technical team and secretariat of the Steering Committee to assist the Steering Committee. Platform Manager Steering Committee Facilities Provided Loan Facilities or Other Forms of Financing Facilities through the Government Cooperation Scheme with Business Entities Government may grant assistance in the form of: • implementation of government investment; • government guarantees (from international financial institutions to SOEs); and/or • other supports as regulated in laws and regulations in the fiscal sector. Art. 24 (1) and (2) MoFR 103/2023 Art. 24 (1) and (5) MoFR 103/2023 Art. 3 (1) and (4) MoFR 103/2023 Art. 1(1) MoFR 103/2023 Art. 17 (1) MoFR 103/2023 Art. 12 (1) MoFR 103/2023 Art. 13 (1) MoFR 103/2023 Government Incentives in Financing the Energy Transition Platforms (1/2) Based on Article 3 paragraph (9) of Regulation of PR 112/2022 the government may provide fiscal support through funding and financing frameworks, including blended finance aimed at accelerating the energy transition. To accommodate such, MoF issued MoF Regulation Number 103 of 2023 on the Provision of Fiscal Support through the Funding and Financing Framework for the Acceleration of Energy Transition in the Electricity Sector (“MoFR 103/2023”).
  • 10. The applicable criteria: a. CFPP is owned by PT PLN (Persero), a subsidiary of PT PLN (Persero), or private business entities; b. in conformity with the roadmap for the acceleration of the operational period termination of CFPP as prepared by the MoEMR; and c. taking into account the policies of the MoF. Government Incentives in Financing the Energy Transition Platforms (2/2) A H R P L e g a l B r i e f Eligible Power Plants to Enjoy Energy Transition Platform Facilities CFPP project in which: (i) its operational period is terminated early; or (ii) its PPA period is terminated early 1 Renewable energy plant development project as a replacement for CFPP project which is terminated early 2 Art. 4 (1) (a) and (b) jo. Art. 5 MoFR 103/2023 The applicable criteria: a. is included in the electricity supply business plan, both located inside and outside the business area of PT PLN (Persero); b. has the availability of technological support that has been running and tested domestically and abroad for the development of renewable energy plants; c. is included in the project that may be categorized as green projects or yellow projects based on Indonesia Green Taxonomy documents issued by the Financial Services Authority; d. is committed to implementing the principles of Environmental, Social, and Corporate Governance (ESG) in the implementation of electricity supply business activities; and/or e. taking into account the policies of the MoF and MoEMR. Art. 6 MoFR 103/2023 Eligible Parties to Enjoy Energy Transition Platform Facilities PT PLN (Persero) and its subsidiaries Business entities which hold license for electricity supply business activities Shareholders of entities which hold license for electricity supply business activities Sponsors of business entities which hold license for electricity supply business activities Investors Other prospective recipients of the relevant Energy Transition Platform facilities Source: Art. 25 (1) MoFR 10/2023
  • 11. Transitional Provision of PR 112/2022 A H R P L e g a l B r i e f At the time, PR 112/2022 comes into effect: a. Power Purchase Agreements (PPAs) that have been signed; and b. Power Purchase Agreements (PPAs) that have been signed, before PR 112/2022 comes into effect, are declared to remain valid until the end of the PPAs. Business entities that have obtained: a. approval of electricity price and/or assignment of electricity purchase from the Minister, but have not yet signed the PPA; and/or b. approval of geothermal steam price from the MoEMR, but have not yet signed the Power Purchase Agreement for Geothermal Steam (“PPAG”), the implementation process of electricity price and/or electricity purchase or geothermal steam price shall be carried out in accordance with the provisions of the legislation before the PR 112/2022. Art. 30 PR 112/2022 Art. 31 PR 112/2022 Art. 32 PR 112/2022 a. Negotiation processes among the parties before PR 112/2022 comes into effect may continue until an agreement on the purchase price of electricity or the purchase price of steam for Geothermal Power Plants is reached. b. In the event of an agreement on the purchase price of electricity or the purchase price of steam as mentioned in paragraph (1): i. equal to or lower than the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for Geothermal Power Plants as stipulated in the PR 112/2022, changes to the PPA or PPAG may be signed by the parties without the MoEMR’s approval; or ii. higher than the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for PLTP as stipulated in the PR 112/2022, the agreement on the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for Geothermal Power Plants shall obtain the MoEMR's approval before changes to the PPA or PPAG are signed by the parties. c. The agreement on the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for Geothermal Power Plants as mentioned in point (a) must be reached no later than 6 (six) months after PR 112/2022 comes into effect. d. In the event that no agreement is reached within 6 (six) months as mentioned in point (c) settlement will be conducted according to the renegotiation mechanism agreed upon in the PPA or PPAG. Business entities that: a. have obtained the Geothermal Permit/Izin Panas Bumi before PR 112/2022 comes into effect; and b. have not yet obtained the approval of electricity price from the MoEMR, the implementation process of electricity purchase and the price of electricity purchase shall be carried out in accordance with the provisions of PR 112/2022. Art. 33 PR 112/2022 Business entities that: a. have been designated as the administrator of water resources for power generation or designated as prospective developers of Hydroelectric Power Plants before the PR 112/2022 comes into effect; and b. have not yet signed the PPA with PT PLN (Persero), the implementation process of purchasing electricity will utilize a direct appointment mechanism and provisions regarding the purchase price of electricity in accordance with the provisions of the PR 112/2022. Art. 34 PR 112/2022
  • 12. Hanif Julianto Firman hanif@ahrplaw.com We will continue to follow the developments on this topic and provide additional information as it becomes available. If you have any questions on this topic, please contact: Indira Jauhara Pratiwi indira@ahrplaw.com Cut Hasri Nabila nabila@ahrplaw.com This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your circumstances before deciding to take any action. World Capital Tower 19th floor Jl. Mega Kuningan Barat No.3, Kuningan Jakarta 12950 Indonesia P: +6221 50917915 +6221 50917916 E: office@ahrplaw.com www.ahrplaw.com