Energizing Energy Transition in

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Jakarta, November 15th 2018

Ministry of Energy and Mineral Resources

Energizing Energy Transition in Indonesia’s Power Sector

Indonesia Energy Transition Dialogue Forum 2018

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Energy Mix Target on 2025 - 2050

2025 2050

Role of energy As development capital

Renewable mix 23% 31%

Energy supply 400 MTOE 1,030 MTOE

Power Plant Capacity 136 GW (NRE> 45 GW)

443 GW (NRE> 167 GW) Energy elasticity < 1 < 1

Electricity

/capita/year 2,500 kWh 7,000 kWh

Electrification Ratio 100% 100%

New and renewable Coal

Oil Gas

23%

25%

30%

22%

2025 400 MTOE

31%

20%

25%

24%

2050 1,030

MTOE

2025 RE 45 GW

1. Geothermal PP, 7.2 GW 2. Hydro PP, 17.9 GW 3. Small Hydro PP, 3 GW 4. Bioenergy PP, 5.5 GW 5. Solar PP, 6.5 GW 6. Wind PP, 1.8 GW 7. Others, 3.1 GW

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58.41%

22.92%

12.67%

2018 2017

Coal

6.00%**

**Include Biofuel

59.20%

12.32%

Renewable Energy

6.18%^**

Fuel oil

22.30%

Gas

The primary energy mix in power generation is a percentage of electricity production (GWh) by each energytype.

Reducing the electricityproduction cost to achieve competitive and affordable tariff.

Decreasing the use of fuel oil power generation.

PRIMARY ENERGY MIX FOR POWERGENERATION

Third Quarter -2018

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The GOI also committed to participate on global sustainable action as pledged by President Joko Widodo, at the 21st COP 2015 in Paris, known as Paris Agreement and during the

Conference on Parties (COP) 22 at Morocco last November 2016, Indonesia committed :

 To reduce greenhouse gas emission in 2030 to 29% on its own efforts.

 With International support, the reduction of greenhouse gas emission is targeted up to 41%.

National Commitment in Global Climate Change

President of The Republic of Indonesia:

“Emition mitigation in energy sector conducted in several ways:

 Switch fuel subsidy into productive sector;

 Enhancement of renewable energy use about 23% of total national energy consumption by 2025;

 Waste to energy management.

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RENEWABLE ENERGY UTILIZATION

REDUCTION

23.38 29.64 31.60 33.9

36.0

40.1

TARGET Realization Q3

2014 2015 2016 2017 2018

ENCOURAGE CO ² ^EMISSIONS

Million TonCO²

As a nationalcommitment in reducing emissions

(according to ActNo.16 concerning Ratification of the Paris Agreement to the UNFCCC and President

Regulation No.61/2011 concerning National ActionPlan on Green House Gas Reduction)

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POWER PURCHASE AGREEMENT FROM RENEWABLE ENERGY HAVE BEEN SIGNED IN 2017

1,214.2

MW Geothermal 1Unit

86 MW

(7%)

Minihydro 49 Unit

286.8 MW

(23%)

Solar 6 Unit (4%)

Biomass 5 Unit

32.5 MW

(3%) Biogas 5 Unit

9.8 MW

(1%)

Hydro 4 Unit

754 MW

(62%)

CONTRACTS

70

2014 2015 2016 2017

THE PROGRESS OF RENEWABLEENERGY POWER GENERATION CONTRACTS (2014-2017)

23

70

Contracts

14 14

Contracts Contracts

Contracts

1,829MW 116MW

Operation

45 MW

Q3 2018

Construction

26 40 4

Financial Close Preparation

1,214.2 MW

1,251MW

2014 2015 2016 2017

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RENEWABLE ENERGY DEVELOPMENT

Third Quarter -2018

140 MW Geothermal Power Generation additional capacity from Karaha #1 (30 MW) &

Sarulla #3 (110MW)

0-1,000 2014 1,750

1,500

1,250 2,000 2,250

GEOTHERMAL POWER GENERATION INSTALLED CAPACITY (MW)

INSTALLED SOLAR, MINIHYDRO/

MICROHYDRO & WIND POWER GENERATION(MW)

2014 2015 2016 2017

123 160 247 296

515

2018

Target

2018 Realization Third Quarter

2014 2015 2016 2017 2018

898.5 1,767.1 1,787.9 1,839.5 2,0301,857.5

2,058.5

1,808.5

1,948.5

1,403.5 1,438.5

1,643.5

Target

Q3 Realization

75 MW Sid+^rap

Target ThirdQuarter

BIOENERGY POWER GENERATION INSTALLED CAPACITY (MW)

Bioenergy Power Plant consisted of Biomass, Biogas, Municipal Waste, and Biofuel.

Mostly are off-grid power plant.

2015 2016 2017 2018

2014

19.1

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LOCATION South Sulawesi Build in Aug 2015 INSTALLEDCAPACITY 75 MW

INVESTMENT USD 150million

COMMERCIAL OPERATION DATE Early 2018

MANPOWER 4,480 worker ENVIRONMENT FRIENDLY

150,000

Electrify

household

each 450 VA

Sidrap Wind Power Plant

Jokowi: Seems like in Europe, but we are in Sidrap

SPESIFICATION

Wind turbine

Propeller width Capacity of each turbine Tower

30 57

80

^height

2.5

METER

Mega Watt

PRESIDENT of The Republic of Indonesia Joko Widodo when inaugurating the Sidrap Wind Power Generation in Watangpulu District, Sidenreng Rappang (Sidrap), South Sulawesi Province (2/7).

Sidrap Wind Power Generation Iis the first commercial scale wind and the largest power generation in Indonesia. This inauguration is a real commitment of the government in realizing 23% share of Renewable Energy in primary energy mix by 2025.

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Tolo Wind Power Plant, Jeneponto Regency

Man Power

950

 97% Local

 3 % Foreign

72

MW

COD Target 4^th Quarter 2018

160.7

Million USD

Investasi 2018

Affordable & Sustainable Energy

11,859

PPA Price (US$)

cent/kWh

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Sarulla Geothermal Power Plant (3x110 MW)

# Local Wisdom

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Blending 20% of biodiesel for all sector;

Rooftop Solar Photovoltaic for buildings (in progress);

Simplification of the licensed process, through application Online Single Submission (OSS);

Preparing other fiscal instrument (tax incentives and tax allowance);

Enhance the economic price for the electricity generated by renewable energy should be purchased by the utility, PT. PLN Persero, in a certain price;

Boosting geothermal development

increasing the utilization of biofuel, to reduce imported fuel oil.

Accelerating transition heading to 100% renewable energy, GOI also have a number of policy instruments and regulations such as:

1 2 3

4 5

6 7

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ELECTRIFICATION RATIO 2018

2

3

4

6

7

8

9

20

21

22 23

24

11 10

16 17 18 12

13 14 25

27

26 28

29 30

32

31

33 34

19 5

15 50-70 <50

Electrification Ratio in 2010 - 2019 (%)

Note: >70

East Nusa Tenggara 61.01%

Target Achievement

Realization Q3

70

60

0-50 80

90 84.35

80.51 76.56

72.95 67.15

88.30 91.16 95.35

97.50

100

2011 2012

2010 2013 2014 2015 2016 2017 2018 2019

98.05

*

The achievement for national electrification ratio until Q3 2018 has reach 98.05%, with the compositionas follows:

PLN 95.43%; Non-PLN 2.50%; and LTSHE 0.12%.

99.90

1

*unaudited

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SOLAR POWER ENERGY SAVING LAMPS (LTSHE)

Pre-electrification for 2,519 villages

Can light up to 6-12 hours or a maximum 60 hours in a single battery charge Ultra Efficient LED 3 Watt

= Incandescent lamp 25Watt Lithium Energy Storage Pack (Lithium Battery) Efficient Management Energy

175,782 household in 16provinces

REALIZATION 2017

LTSHE spec:

LTSHE component:

TARGET 2018 INDICATIVE PLAN 2019

1. Meranti Islands

1.West Lombok 4. Sumbawa

2.North Lombok 5. Dompu

3.East Lombok 6. Bima

79,556 household in 5 provinces

Riau

West Nusa Tenggara

1. South Buru 2. Buru

3. Central Maluku 4. EastSeram 5. Aru Islands

Maluku

1.Nabire 6. Asmat

2. Mamberamo Raya 7. Jaya Wijaya

3. Sarmi 8. Yalimo

4. Tolikara 9. Mount Bintang 5. Lanny Jaya

Papua

2. Teluk Bintuni 3. Fakfak 4. Manokwari

95,455 household

West Papua

Source of financing:

State Budget

1.Tambrauw 5. Mount Arfak 6. South Manokwari 7.Wondama Bay

2017-2019 > 350K household

Q3 Realization:

22,820 units installed and 87,742 units distributed

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Mrs. YAKON TABONI

Resident of Munak Village, Bulakme District, Jayawijaya Regency, Papua Province

Happy after

receiving the SolarPower Energy Saving Lamps from the government

- December 20, 2017-

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AOU VILLAGE

Pulau Tiga District, Asmat Regency, Papua Province

Nowadays,

it is already 100%

(pra) electrified with energy saving solar power lamps (LTSHE)

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ILPEN TABONI

Resident of NungguRugu Village, Bulakme District, Jayawijaya Regency, Papua Province

Now,

I can study at night

- Desember 20, 2017-

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BIMU VILLAGE RESIDENTS

Bulakme District, Jayawijaya Regency, PapuaProvince

Receive the energy saving solar power lamps (LTSHE) for free from the government

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Puldama District, 1,085 Unit

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Energizing Energy Transition in