TABLE OF CONTENTS
ABBREVIATIONS
PREAMBLE
NATIONAL ENERGY REGULATORY FRAMEWORK
FINANCIAL INCENTIVES REGULATORY FRAMEWORK
MINI HYDRO POWER
GEOTHERMAL
BIOMASS & BIOGAS
BIOFUEL
LARGE HYDRO
ENERGY EFFICIENCY
ELECTRICITY ACCESS
1
3
4
5
8
10
13
15
17
19
20
1
2
3
4
5
6
7
8
9
10
11
• Biodiesel (B108) is a Fatty Acid Methyl Esther (FAME) or Mono Alkyl Esther
product generated from plant materials and other biomass processed using
esterification method
• Bioethanol (E100) is a ethanol product generated from plant materials and
other biomass processed using biotechnological method
• Biofuel as other means of fuel is a type of fuel generated from plant materials
and/or other organic materials, which categorized as other fuel
• Biogas is a kind of gas, which is generated as an end product of anaerobic
biomass digestion by microorganism inside digester tank with methane 40% to
70% as main component and carbon dioxide
• Biogas Power plant is a type of power plant that generates electricity by
harnessing biogas energy.
• Biomass Power plant is a type of power plant that generate electricity by
harnessing biomass energy
• COD (Commercial Operation Date) - is the running date of power plant to
provide electricity to electrical system owned by PLN
• DJK (Direktorat Jenderal Ketenagalistrikan) - is a state agency conducting duty
an responsible for formulation and implementation of policies and also
technical standardization in the electrical power sector
• Electricity Supply License (Izin Usaha Penyediaan Tenaga Listrik/IUPTL) - is a
license to conduct business in supplying electricity for the public interest
• Energy Management is integrated activities to control energy consumption in
order to achieve effective and efficient utilization of energy to produce
maximum output through economical and structured technical measures to
minimized utilization of energy including energy for production process and
minimized raw and supporting materials
ABBREVIATIONS
1PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
• EBTKE (Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi) - is a state agency conducting duty an responsible for formulation and implementation of policies and also technical standardization in the new and renewable energy and energy conservation sector
• Geothermal is heat based energy source contained in hot water, steam, and rocks along with associated mineral and other gasses genetically inseparable inside geothermal
• Geothermal license is a license for indirect geothermal exploitation in a specific work area
• Geothermal power plant is a type of power plant that generate electricity by harnessing geothermal power
• WKP (Wilayah Kerja Pertambangan) - is work areas with coordinative boundaries utilized for indirect geothermal exploitation
• Hydropower Plant is a type of power plant that generate electricity by harnessing the power of waters stream, waterfalls, dam, or multi purpose irrigation channels
• MEMR - is Ministry of Energy and Mineral Resources
• Micro hydro power plant is small scale power plant with less than 1 MW of capacity which may originate from irrigation channels, rivers, and natural waterfalls
• PLN (Perusahaan Listrik Negara) - is a state owned company established based on government regulation no. 23/1994 on the re-enactment of state electricity public company to limited company
• PPA (Power Purchase Agreement) - is trade agreement on electricity between holder of electricity supply license and PLN.
• Pure Vegetable oil (B100) is a product generated from plant materials processed using mechanical and fermentative method.
• Solar Photovoltaic Power Plant is a type of power plant that generates electricity by converting solar energy to electricity using photovoltaic module.
• Wind Power Plant is a type of power plant that generates electricity by harnessing wind power.
2 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
PREAMBLE
There are ranges of policies and regulations
that govern the behavior of the energy sector
and significantly impact the decisions of
producers, consumers, investors and other
stakeholders. These policies and regulations
continue to be reviewed and, in the case of
new and renewable energy, continue to be
developed to address the specific
requirements of this emerging source of clean
energy.
As with policy makers who need accurate and
up-to-date information on the factors that
influence the decision-making process of the
private sector, investors need to be kept
informed about changes to policies and
regulations. It is in this latter context that this
document has been prepared and, in order to
support the changes underway for the
clean-energy sector, these guidelines will
continue to be improved and updated on a
regular basis.
3PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
• Governs prioritization of new
renewable energy (NRE) and energy
efficiency (EE) by government and
local government
• Provides incentives and disincentives
for EE and NRE
• Establishes energy prices based on
market mechanism with subsidies
still provided for low income groups
• Establishment of National Energy
Council
• Development of National and
Regional Energy Plans
• Ratio Electrification rate to reach
100% by 2020
• National Energy Mix (23% renewable
energy, 22% gas, 25% oil, 30% coal)
by 2025
• National Energy Mix (31% renewable
energy, 24% gas, 20% oil, 25% coal)
by 2050
• Decrease Final Energy Intensity by
1% each year till 2025
http://www.den.go.id/upload /ken/ppken.pdf (accessible per 28 July 2015)
http://www.dpr.go.id/dokjdih /document/uu/UU_2007_30.pdf (accessible per 28 July 2015)
NATIONAL ENERGY REGULATORY FRAMEWORK
Regulation Description LinkKey Points
EnergyUU 30/2007
NationalEnergyPolicy
PP 79/2014
Maximizing renewable energy, minimizing use of oil, optimizing use of gas and new energy; and use of coal for domestic purposes.
Strengthening financial policy instruments. Decentralized sources of electricity. Bottom up approach. Data Governance. Connecting the
research sector with industrial sector. Capacity building.
4 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
• GoI Support to PPP projects includes non-fiscal and fiscal supports
• Non fiscal support includes licensing, land provision, partial construction support and
• Fiscal support includes tax incentives and/or fiscal contribution
http://www.sjdih.kemenkeu.go.id
/fullText/2011/56TAHUN2011PE
RPRES.htm (accessed 2 July 2015)
http://www.sjdih.kemenkeu.go.id
/fulltext/2013/225~PMK.011~2013
Per.HTM (accessed 2 July 2015)
http://www.sjdih.kemenkeu.go.i
d/fullText/2012/223~PMK.011~20
12Per.HTM (accessed 2 July 2015)
http://www.jdih.kemenkeu.go.id
/fullText/2015/18TAHUN2015PP
.pdf (accessed 2 July 2015)
PPP in Infrastructure
Provision
PP 67/2005 as amended
by PP 56/2011
Business Viability
Guarantee Letter (BVGL)
PerMen Keu 225/PMK.011/
2013
Viability Gap Fund (VGF)
PerMen Keu 223/PMK.011/
2012
Tax AllowancePP 18 of 2015
FINANCIAL INCENTIVES REGULATORY FRAMEWORK
• Income tax facility for certain line of business including NRE industry with overall requirements:
a high value investment b high absorption of manpower c high local content in its products• Reduction of net income of 30%
(thirty percent) of the investment in the form of fixed assets, charged for 6 (six) years respectively at 5% (five percent) each year as of the Commercial Operation Date
• GoI provides fiscal support to enhance the financial viability but economically viable PPP projects
• As capital expenditure in the form of cash for a certain portion of the construction cost of the PPP project
• Requirements for VGF eligibility: a economically viable yet has not
met financial viability b the project is a users pay principle
project c investment value of IDR 100
billion d the project is operated by PPP
business unit based on open and competitive tender
e PPP agreement as the basis for asset transfer
f Feasibility study
• GoI provides guarantee for PT PLN’s financial obligation under default and/or termination risk based on the PPA with IPP
• BVGL may be given to the following phase:
a during project preparation phase b during project construction phase c partial or the entire project
operation phase
LinkKey PointsDescriptionRegulation
5PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
LinkKey PointsDescriptionRegulation
• Accelerated depreciation and amortization.
• Imposition of income tax on dividends which paid to foreign tax subject
• Compensation losses longer than 5 (five) years but not more than 10 (ten) years with the certain conditions
• Exemption from import duty on the import of machines, goods and materials for production for a period of 2 years.
• Import duty facility for a period of 4 years is granted to a company using locally-produced machines at least 30% of the total value of machines for its production.
Import Duty Facility
PerMen Keu76/PMK.011/
2012as amended by PerMen
Keu 176/PMK.011
/2009
Tax AllowancePerMen Keu 89/PMK.010
/2015
Tax and Custom
Facilities for Renewable
Energy Activities
PerMen Keu 21/PMK.011/
2010
• Reduction of net income of 30% (thirty percent) of the investment in the form of fixed assets, charged for 6 (six) years respectively at 5% (five percent) each year as of the Commercial Operation Date
• Accelerated depreciation and amortization.
• Imposition of income tax on dividends which paid to foreign tax subject of 10% (ten percent), or a lower rate according to the avoidance of double taxation agreement.
• Compensation losses longer than 5 (five) years but not more than 10 (ten) years with the certain conditions (e.g.: project location in industrial/bonded zone, developing economic and/or social infrastructure, minimum 70% of local material/components, deployment of local manpower, R&D on local product development, expanded business ventures, export)
• Income tax facilities: a Reduction of net income of 30%
(thirty percent) of the investment in the form of fixed assets, charged for 6 (six) years respectively at 5% (five percent) each year as of the Commercial Operation Date
b Accelerated depreciation and amortization.
http://www.sjdih.kemenkeu.go.id/fullText/2010/21~PMK.011~2010Per.HTM(accessed 2 July 2015)
http://www.sjdih.kemenkeu.go.id/fulltext/2015/89~PMK.010~2015Per.pdf(accessed 2 July 2015)
http://www.bkpm.go.id/img/file/PMK%20No_%2076%20tahun%202012.pdf(accessed 28 July 2015)
6 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
LinkKey PointsDescriptionRegulation
c Imposition of income tax on dividends which paid to foreign tax subject
d Compensation losses longer than 5 (five) years but not more than 10 (ten) years with the certain conditions
• VAT facility: a. VAT free for importing Taxed
Goods (machineries and equipment) for Renewable Energy Import duty facility (as regulated by Permenkeu 76/PMK.011/2012 and PMK 154/PMK.011/2008 as amended by PMK 154/PMK. 011/2012
• Tax facilities borne by the GoI
• Free of Import Duty for power generation industry:
a PT PLN (persero) b Holder of Public Electricity
Business License (Izin Usaha Ketenagalistrikan untuk Kepen- tingan Umum/IUKU) which has business area
c Holder of IUKU that has signed PPA with PLN with 100% purchasing commitment or signed a Financial Lease Agreement with PT PLN (Persero)
• Requirement of Free Import Duty Goods:
a Goods not yet produced domestically
b Goods that are produced domestically yet have not met the required specification
c Goods that are produced domestically yet have not met the required quantities
*The Free Import Duty Goods must be needed in the power generation Industry
• A taxpayer can be granted a tax relief facility for a period of between 5 and 10 years, starting from the commencement of its commercial production.
• After the expiration of the tax holiday, the taxpayer will be entitled to an income tax reduction of 50% for a further 2 years.
• Duration of the tax relief and reduction can be extended based on a decision by the Minister of Finance.
http://www.sjdih.kemenkeu.go.id/fulltext/2012/154~PMK.011~2012Per.HTM (accessed 20 July 2015)
http://www.bkpm.go.id/img/file/PERATURAN%20MENTERI%20KEUANGAN%20NOMOR.pdf (accessed 28 July 2015)
Import Duty Facility for Importing
Capital Goods for the
Construction and
Development of Power
Generation Industry for
Public interest
PMK 154/PMK.011
/2008 as amended by
PMK 128/PMK.011
/209 and PMK
154/PMK.011/2012
Tax Holiday
PerMen Keu 130/PMK.01
1/2011 as amended
by PerMen Keu
192/PMK.011/2014
7PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
LinkKey PointsDescriptionRegulation
• Provides the latest pricing on hydropower plants <10MW based on the water utilization (river or multi-use facility such as irrigation canals)
• Provide a way for some types of existing projects to get a price adjustment to this new tariff
• Governs the application process for connection and the PJBL process
• Review and grid study content• Specific processes for mini hydro
(up to 10MW), waste to energy (up to 10MW), and Solar PV
• KKO/KKF/K Risk• Technical requirements• Testing and commissioning
procedures
• Projects of less than 1 MW are closed to foreign investment.
• Projects of between 1 and 10 MW are limited to a maximum 49% foreign investment.
http://ebtke.esdm.go.id/regulation/8/peraturan.menteri (accessed 25 July 2015)
http://www.bkpm.go.id/img/PP_No_39_2014.pdf (accessed 25 July 2015)http://www.bkpm.go.id/img/file/Peraturan/Bahan%20Perpres%2039%20Tahun%202014%20dan%20Perbaikan%20Kemudahan%20Berusaha-ed.pdf (accessed 25 July 2015)
http://www.pln.co.id/dataweb/pjbl/Lampiran%20Pedoman%20Penyambungan%20PLT%20EBT%20ke%20JARDIS_final_signed.pdf (accessed 28 July 2015)
The purchase of electricity from hydropower plants (hydropower) with capacity up to 10 megawatts (MW ) by the State E l e c t r i c i t y Company ( PLN Persero)
PerMen ESDM
19/2015
List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment
PerPres 39/2014
• Guideline on connecting renewable energy based power plants to PLN’s distribution network
KepDir PT PLN
(PERSERO) 0357.K/DIR
/2014
MINI HYDRO POWER
Regulatory Framework
Tariff – Referring to PerMen ESDM No 19/2015
12
7.5
14.4
9
River flow ≤ 10 MW
Dam existing ≤ 10 MW
Adjustment from the lastregulation EMR Ministerial
Decree Number 22 Year 2014(Hydro Power ≤ 10 MW)
Medium Voltage (cent US$/kWh) Medium Voltage (cent US$/kWh)
( 1st year to 8th year) 9.3
( 9th year to 20th year)
Low Voltage (cent US$/kWh) Low Voltage (cent US$/kWh)
( 1st year to 8th year) 11
( 9th year to 20th year)
Medium Voltage (cent US$/kWh)
10.8 ( 1st year to 8th year)
6.75 ( 9th year to 20th year)
Low Voltage cent US$/kWh)
13 ( 1st year to 8th year)
8.1 (9th year to 20th year)
8 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
Investment Flow Chart
Investors & LendersRegional
Government Developers Other Parties Central Government
Deve
lopm
ent R
ights
Pow
er Sa
les
Agre
emen
t Pr
ojec
t Con
stru
ction
Reso
urce
Ass
essm
ent
Oper
ation
and
Mai
nten
ance
Initial seed capital*developers andinvestors couldalso be in one
package
Survey and siteselection
Prepare feasibilitystudy and
other technicalrequirements
Apply for permits
Submit to PLNPLN review &acceptance MEMR approves
Process permitapplications
MEMR appointsdevelopers
Apply for temproary supply licence andremaining permints.
Submit depositcertificate to MEMR
MEMR issuestemporary supply
licencesProvide 6 month
progress report toMEMR cc: PLN and DJK
Financial close &apply supply
permanent licences
PLN & Developerfinalize PPA
PLN & Developersfinalize PPA
Loans and/oradditional equity
Purchase PowerOperate Plant
Construct and commission of plant
Receive loan repayment and
dividends
Site Preparation and contracts for constructions
PLN providesconnection standards
issue permanent supply licences
9PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
http://esdm.go.id/regulasi/uu/doc_download/ 1484-peraturan- menteri-esdm-no16-tahun- 2014.html (accessed 25 July 2015)
bumn.go.id/data/ uploads/files/1/59.pdf (accessed 25 July 2015)
prokum.esdm.go.id/uu/ 2014/UU%2021%202014.pdf (accessed 25 July 2015)
• Classified geothermal as a non-mining activities
• Central government holds the authority for geothermal licensing.
• Defines process for licensing and pricing.
• Provide regulatory assurance for developers
• Governments hold the authority to determine geothermal prices.
• Allow higher foreign shareholding limits for geothermal projects between 1 and 10 MW located in eastern Indonesia.
• Oblige developers to provide collaterals for post-production activities.
GeothermalUU No. 21/2014
Geothermal Activities
PP 59/2007 as amended by PP 70/2010
Purchase of Electricity from PLTP or Purchase of Geothermal Steam for PLTP
PerMen ESDM 17/2014
GEOTHERMALRegulatory Framework
Tariff – Referring to PerMen ESDM 17/2014
Ceiling Price (cent US$/kWh)
Note: • Region I: Sumatera, Java, Bali• Region II: Sulawesi, Nusa Tenggara Barat, Nusa Tenggara Timur, Halmahera, Maluku, Papua, Papua Barat, and Kalimantan• Region III: areas in region I & II that is isolated and most of the electricity generated is from diesel power plant
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
11.8
12.2
12.6
13
13.4
13.8
14.2
14.6
15
15.5
15.9
17
17.6
18.2
18.8
19.4
20
20.6
21.3
21.9
22.6
23.3
25.4
25.8
26.2
26.6
27
274
27.8
28.3
28.7
29.2
29.6
LinkKey PointsDescriptionRegulation
• Define ceiling prices determination method.
• Listed applied ceiling prices for geothermal until 2025.
Year of COD Region I Region II Region III
PL
TP
Kam
oja
ng
- G
aru
t
10 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
Investors & Lenders RegionalGovernment
Developers Other Parties Central Government
Deve
lopm
ent R
ight
sPo
wer
Sal
esAg
reem
ent
Proj
ect C
onstr
uctio
nRe
sour
ce A
sses
smen
tOp
erati
on an
d M
ainte
nanc
e
Investment Flow Chart - Preliminary Assignment
11PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
Investors & Lenders Regional Government
Developers Other Parties Central Government
Deve
lopm
ent R
ight
sPo
wer
Sal
esAg
reem
ent
Proj
ect C
onst
ructi
onOp
erati
on a
nd M
aint
enan
ceRe
sour
ce A
sses
smen
t
MEMR designatesWKP
MEMR conducts tender
MEMR compliesresource data
MEMR awards WKP
Initial seedcapital Submit Proposal
Applies for permits
PLN and developersfinalize PPA
PLN and developers finalize PPA
Financial Close
MEMR issuessupply license
Explorationfunding
Process permit application
Conducts exploration &prepare feasibillity study
Field development, power plant construction
and commisioning
Loans and/or additional equity
Receive production bonus
Operate plant Receive loan
repayment and dividends
Purchase Power
Receive production bonus
Investment Flow Chart - Government Designated WKP
12 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
LinkKey PointsDescriptionRegulation
• Regulate assurance of electricity purchase by state owned electricity company (PLN).
• Regulate Feed in Tariff that must be complied by PLN for electricity generated by biomass and biogas power plant less than 10 MW
• Defines process for permit licensing
• Projects of less than 1 MW are closed to foreign investment.
• Projects of between 1 and 10 MW are limited to a maximum 49% foreign investment.
• Governs the application process for connection and the PJBL process
• Review and grid study content• Specific processes for mini hydro
(up to 10MW), waste to energy (up to 10MW), and Solar PV
• KKO/KKF/K Risk• Technical requirements• Testing and commissioning
procedures
http://prokum.esdm.go.id/permen/2014/Permen%20ESDM%2027%202014.pdf(accessed 25 July 2015)
http://www.bpn.go.id/Publikasi/Peraturan-Perundangan/Peraturan-Presiden/peraturan-presiden-republik-indonesia-nomor-39-tahun-2014-4594 (accessed 25 July 2015)
http://www.pln.co.id/dataweb/pjbl/Lampiran%20Pedoman%20Penyambungan%20PLT%20EBT%20ke%20JARDIS_final_signed.pdf (accessed 28 July 2015)
Purchase of Electricity from Biomass Power plant (PLTBm) and Biogas Power Generation (PLTBg) by PT PLN (Persero).
List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment
Guideline on connecting renewable energy based power plants to PLN’s distribution network
PerMen ESDM 27/2014
PerPres39/2014
KepDir PT PLN (PERSERO)0357.K/DIR/2014
BIOMASS & BIOGAS
Regulatory Framework
Biomass: Rp. 1.150/kWh: Medium Voltage
Rp. 1.500/kWh: Low Voltage
Biogas: Rp. 1.050/kWh: Medium Voltage
Rp. 1.400/kWh: Low Voltage
Tariff – Referring to PerMen ESDM 27/2014
PL
T B
iog
as (P
OM
E)
13PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
Investors & Lenders RegionalGovernment
Developers Other Parties Central Government
Deve
lopm
ent R
ights
Powe
r Sale
sAg
reem
ent
Proje
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nstru
ction
Reso
urce
Ass
essm
ent
Oper
ation
and
Main
tena
nce
• http://ebtke.esdm.go.id/post/2014/09/05/664/renewable.energy.guidelines.on.biomass-biogas.development.in.indonesia (accessed 28 July 2015)
Investment Flow Chart – (< 10 MW)
Detail biomass & biogas investment guideline
14 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
LinkKey PointsDescriptionRegulation
• Obligation to mix biofuel into fuel based in stages
• Prioritization in utilizing domestic biofuel
• Government of Indonesia guarantees the availability and distribution of Biofuel
• Index Market Price of Solar and Index Market Price of Biofuel are stipulated by the Minister
• Governs types of biofuel priorities for development
• Defines process for licensing and pricing.
• Collection and Utilization of Palm Oil Plantation Fund for biodiesel implementation.
• Obligation for biofuel distribution enterprise to blend biodiesel according to regulation.
• Description of types of biofuel and on which sector it is mandatory in.
• Timeframe and percentage for biofuel provision
http://www.jdih.kemenkeu.go.id/fullText/2014/191TAHUN2014perpres.pdf (accessed 25 July 2015)
http://prokum.esdm.go.id/permen/2008/permen-esdm-32-2008.pdf (accessed 25 July 2015)
http://jdih.esdm.go.id/peraturan/Perpres%20No.%2061%20Th%202015.pdf (accessed 25 July 2015)
http://jdih.esdm.go.id/peraturan/Permen%20ESDM%2012%20Thn%202015.pdf (accessed 25 July 2015)
http://www.jdih.kemenkeu.go.id/fullText/2015/114~PMK.05~2015Per.pdf (accessed 25 July 2015)
Provision, Distribution, and Retail Prices of Fuel Oil
PerPres 191/2014
Provision, utilization and administration Biofuel
PerMen ESDM 32/2008
Collection and Utilization of Palm Oil Plantation Fund
PerPres 61/2015
The Provision, Utilization, And The Marketing Of Biofuels (Biofuels) As Other Fuels
PerMen ESDM 12/2015
Service Tariff of Public Service Agency
PerMen Keu 114/PMK.05/2015
BIOFUELRegulatory Framework
• Amount of export tax levies applied to CPO and its derivatives.
• Amount of export tax levies applied to CPO-based biodiesel.
Ph
oto
: G
oo
gle
15PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
Investors & Lenders RegionalGovernment Developers Other Parties Central Government
Deve
lopm
ent R
ights
Powe
r Sale
sAg
reem
ent
Proje
ct Co
nstru
ction
Reso
urce
Ass
essm
ent
Oper
ation
and
Main
tena
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Investment Flow Chart
16 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
LinkKey PointsDescriptionRegulation
• Regulates IPP procurement process consist of a) direct appointment, b) direct selection, and c) open tender
• Regulates PPA negotiation process
• Governs off-grid systems to supply consumers.
• Defines process for licensing and pricing.
• Per Law No. 23 of 2014 on Regional Government, provincial government holds the authority for licensing and pricing of off-grid systems.
• Purchase by PLN can be done by open tender, direct appointment or direct selection.
• PLN develops its owner estimate based on several standards a) local content, b) price and quality of fuel, c) exchange rate and d) other macro economy indicator.
http://prokum.esdm.go.id/permen/2007/permen-esdm-04-2007.pdf (accessed 28 July 2015)
http://prokum.esdm.go.id/pp/2012/PP%2014%202012.pdf (accessed 25 July 2015)
http://prokum.esdm.go.id/permen/2009/permen-esdm-05-2009.pdf (accessed 28 July 2015)
Power for Power Purchase and/or lease of the network in the electricity supply business for public interest
PerMen ESDM 04/2007 as
amended by PerMen ESDM
01/2006
Electricity Supply Business Activities
PP 14/2012
Guidelines For The Purchase Of Electricity By PT. PLN (Persero)Cooperation From Or Other Business Entities
PerMen ESDM
05/2009
LARGE HYDRO
Regulatory Framework
Ph
oto
: G
oo
gle
17PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
Investors & Lenders RegionalGovernment
Developers Other Parties Central Government
Deve
lopm
ent R
ights
Powe
r Sale
sAg
reem
ent
Proje
ct Co
nstru
ction
Reso
urce
Ass
essm
ent
Oper
ation
and
Main
tena
nce
Detailed IPP guidelinehttp://www.pln.co.id/dataweb/ipp/bookletipp.pdf (accessed 28 July 2015)
Investment Flow Chart
18 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
LinkKey PointsDescriptionRegulation
• Governs responsibilities of government, local governments, private sectors, and the society in energy conservation
• Regulate obligation to establish new energy management system for users with consumption over 6,000TOE
• Regulate on standards and labeling.• Provide facilitation, incentives and
disincentives for energy consumer and producer of energy saving technology
• Direction and supervision of energy conservation
• Governs consumption savings for: Government buildings, State Enterprise buildings, Government officials’ residence, public lighting.
• Governs energy management and use for energy supply and utilization in which the permits was given a government body and/or an object of working agreement under a government body.
• Governs use of subsidized fuel by Government-owned vehicles, and transport vehicles of certain classes.
http://aplikasi.ebtke.esdm.go.id/pome/uploads/doc/PP%2070%202009.pdf (accessed 25 July 2015)
http://aplikasi.ebtke.esdm.go.id/popea/live/data/regulasi/1396494400.pdf (accessed 25 July 2015)
http://jdih.den.go.id/download/574/peraturan-menteri-esdm-no-142012 (accessed 25 July 2015)
http://jdih.esdm.go.id/peraturan/Permen%20ESDM%2001%202013.pdf (accessed 25 July 2015)
Energy Conservation
PP 70/2009
Energy Consumption Savings
PerMen ESDM
13/2012
Energy Management
PerMen ESDM
14/2012
Control of Oil Fuel Use
PerMen ESDM 1/2013
Regulatory Framework
ENERGY EFFICIENCY
19PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY
LinkKey PointsDescriptionRegulation
• Governs the development, utilization, supply, and distribution of Electricity
Defines delegation of authority between relevant parties
• Regulates the management and business of electricity
• Governs off-grid systems to supply consumers.
• Defines process for licensing and pricing.
• Per Law No. 23 of 2014 on Regional Government, provincial government holds the authority for licensing and pricing of off-grid systems.
• Projects of less than 1 MW are closed to foreign investment.
• Projects of between 1 and 10 MW are limited to a maximum 49% foreign investment.
• Governs technicalities on how the specific funds available from the 2015 national budget (APBN) can be utilized to fund renewable-energy-based electrical programs like Micro Hydro, Solar Mini-grid, and Solar-Wind Hybrid for village level needs.
• Aimed to provide reference for Working Units at Local level on how to tap the funds.
• Regulation specific line of coordination, distribution of tasks and responsibilities, and establish a monitoring/supervising mechanism.
http://prokum.esdm.go.id/uu/2009/UU%2030%202009.pdf (accessed 25 July 2015)
http://prokum.esdm.go.id/pp/2012/PP%2014%202012.pdf (accessed 25 July 2015)
http://www.gaikindo.or.id/wp-content/uploads/2015/05/PerPres-39_2014-lampiran-negative-list.pdf (accessed 25 July 2015)
http://jdih.esdm.go.id/peraturan/Permen%20ESDM%2010%20Thn%202015.pdf (accessed 25 July 2015)
ElectricityUU
30/2009
Electricity Supply Business Activities
PP 14/2012
List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment
PerPres 39/2014
Technical Guidance of Utilization of Specifically Allocated Funds in the Field of Electricity at the Village Level in the 2015 National Budget.
PerMen ESDM
10/2015
Regulatory Framework
ELECTRICITY ACCESS
Ph
oto
: G
oo
gle
20 PRACTICAL GUIDE TO INVESTMENT IN RENEWABLE ENERGY