© EBTKE KESDM - 2011
Geothermal Investment Opportunities
Geothermal Investment Opportunities
Geothermal Investment Opportunities
Geothermal Investment Opportunities
in Indonesia
in Indonesia
in Indonesia
in Indonesia
by:
Sugiharto Harsoprayitno, M.Sc
Director for Geothermal
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION
MINISTRY OF ENERGY AND MINERAL RESOURCES
© EBTKE KESDM - 2011
Geothermal Potency in Indonesia
• Potential Geothermal Indonesia is the largest in the world, 40% of
world reserves, amounting to 29.038 MW, spread over 276
locations
• Installed Capacity 1,189 MW (4% of whole potency), consists of
field: Sibayak 12 MW, Salak Mt. 375 MW, Wayang Windu 227 MW,
Kamojang 200 MW, Darajat 255 MW, Dieng 60 MW and Lahendong
60 MW
© EBTKE KESDM - 2011
Source : Geological Survey, MEMR(2010)
GEOTHERMAL POTENTIAL MAP
GEOTHERMAL POTENTIAL MAP
GEOTHERMAL POTENTIAL MAP
GEOTHERMAL POTENTIAL MAP
Already Developed
Ready to Developad
Detail Survey
Preliminary Survey
Note:
1
Sumatera
86
13,516
12
2
Java
71
10,092
1,117
3
Bali
5
296
4
Nusa Tenggara
22
1,471
5
Kalimantan
8
115
6
Sulawesi
55
2,519
60
7
Maluku
26
954
8
Papua
3
75
1,189
29,038
Install
Capacity
(MW)
Potency
(MW)
T otal
276
No.
Island
Number
© EBTKE KESDM - 2011
No.
Geothermal Working
Area/ Location
License Holder
Developer
Name of
Geothermal
Power Plant
Installed
Capacity
(MW)
1
Sibayak – Sinabung,
SUMUT
PT. Pertamina Geothermal
Energy (PGE)
PT. Pertamina Geothermal
Energy (PGE)
Sibayak
12
2
Cibeureum – Parabakti,
JABAR
PT. Pertamina Geothermal
Energy (PGE)
KOB - Chevron Geothermal
Salak, Ltd (CGS)
Salak
375
3
Pangalengan, JABAR
PT. Pertamina Geothermal
Energy (PGE)
KOB - Star Energy
Geothermal Wayang
Windu, Ltd (SEGWWL)
Wayang
Windu
227
4
Kamojang – Darajat,
JABAR
PT. Pertamina Geothermal
Energy (PGE)
PT. Pertamina Geothermal
Energy (PGE)
Kamojang
200
5
Kamojang – Darajat,
JABAR
PT. Pertamina Geothermal
Energy (PGE)
KOB - Chevron Geothermal
Indonesia, Ltd (CGI)
Darajat
255
6
Dataran Tinggi Dieng,
JATENG
PT. Pertamina Geothermal
Energy (PGE)
PT. Geo Dipa Energi (GDE)
Dieng
60
7
Lahendong – Tompaso,
SULUT
PT. Pertamina Geothermal
Energy (PGE)
PT. Pertamina Geothermal
Energy (PGE)
Lahendong
60
1.189
4
© EBTKE KESDM - 2011
REGULATIONS ON GEOTHERMAL ENERGY
I.
Law No. 27/2003 on Geothermal
II.
Government
Regulation No. 59/2007 jo Government Regulation No. 70/2010 on
Geothermal Business Activities
III.
Government Regulation No. 62/2008 jo No. 1/2007 on Income Tax Facilities
IV.
Presidential Regulation No. 4/2010 on Assignment to PT. PLN to Accelerate Power Plant
Development Using Renewable Energy, Coal and Gas
V.
Ministerial Regulations
MEMR Regulation No. 11/2008 on Mechanism for Determining Geothermal Working
Area
MEMR Regulation No. 02/2009 on The Guidelines for Geothermal Pre-Survey
Assignment
MEMR Regulation No. 05/2009 on The Guidelines for Electricity Purchasing Price by PT.
PLN from Cooperation and Other Business Entities
MEMR Regulation No. 11/2009 on The Guidelines for Geothermal Enterprises
MEMR Regulation No. 31/2009 on Purchasing Power by PT. PLN from Power Plant using
Small – Medium Scale of Renewable Energy
MEMR Regulation No. 15/2010 on Projects List of Power Plant Accelerated Development
using Renewable Energy, Coal and Gas as well as Related Transmission
MEMR Regulation No. 2/2011 on an Assignment to PLN to buy electricity from
© EBTKE KESDM - 2011
GOVERNMENT POLICIES TO SCALE UP GEOTHERMAL
DEVELOPMENT IN INDONESIA
1.
Presidential Regulation No. 04/2010 jo Ministerial Regulation No. 15/2010 (2
nd
Stage of 10,000 MW Crash Program) in order to speed up the development of
geothermal power to the amount of 3,967 MW by the year 2014 which will
require a total of US$ 12 Billions.
2.
Government provide fiscal incentives for geothermal:
■ Income Tax Facilities (Based on Government Regulation No. 62/2008 jo No.
1/2007) which provide:
- 30% (thirty percent) net income tax deduction of the total Investment, for
6 (six) years, 5% (five percent) annually
- Income tax charge for dividend paid to Foreign Tax Subject shall be 10%
(ten percent), or lower tariff according to effective Double Taxation
Avoidance Agreement
- Compensation of financial loss for more than 5-10 years
■ Custom Duties Exemption for Importing Items (based on MoF Decree No.
177/PMK.011/2007)
■ Value Added Tax of Import Items Covered by Government (based on MoF
Decree No. 22/PMK.011/2011)
© EBTKE KESDM - 2011
GOVERNMENT POLICIES TO SCALE UP GEOTHERMAL
DEVELOPMENT IN INDONESIA
3. Government support in the form of reducing upstream geothermal risk by
providing revolving funds (for exploration and FS), particularly for the Eastern
parts of Indonesia.
4. The GoI is in process of establishing a State-Owned Company in the geothermal
business to support its development.
5. To accelerate geothermal development, the Government offers a Preliminary
Survey Assignment to third part (investor) which provides “first right refusal”.
6. The Government has determined Regulations on Geothermal Price Structure
(based on MEMR Regulation No. 02/2011) :
•
Purchase price of electricity by PT PLN from a Geothermal Power Plant, as the
result of a GWA tender, is used for the Power Purchase Agreement, the electricity
price is final and non negotiable
•
Ceiling price for geothermal energy: US$ 9.7 cents/kWh
7. In order to enhance certainty in geothermal investment, the government has set
a Standard Power Purchase Agreement.
© EBTKE KESDM - 2011
President Decree No 45/1991, No 49/1991,
and No 23/1992
Business structure based on JOC and ESC
34% of Net Operating Income (NOI), that had
included all kinds of taxes and retribution,
except personal tax.
Project Management : Under Pertamina (JOC)
and PLN (ESC)
Project Type:
Total (Integrated) Project
Partial Project
Law No. 27/2003
Business structure in the form of Permit:
Geothermal Mining Permit
Enterprise Permit for Electricity
Obligation to pay for taxes and royalty
Project Management :Under Permit Holder
Project Type:
Total (Integrated) Project
WKP holder will be granted as generally plan
operation
Implementation of Geothermal Policies
Implementation of Geothermal Policies
Existing GWA
New GWA
© EBTKE KESDM - 2011
Big geothermal potential → development
in mid-big scale project
Existing projects as brown fields
→ detail data is unavailable
Conducive investment condition is
enough → attractive to investor (B to B
approach)
Small geothermal potential →
development in small scale project
Most of the area are green fields
→ detail data is not available
Not attractive to investor. Not only
need conducive investment
condition, but also funding support
from government
Government support in the form of
reducing upstream geothermal risk
(GoI allocates budget for exploration
and FS)
9
Development of Geothermal Energy
© EBTKE KESDM - 2011
MEMR
Prov.
Gov.
Corporation
PLN
GWA/WKP
Determination
Pre-Survey
GWA/WKP
Tendering
IUP
Issuance
E
le
ctr
ic
ity
P
ric
e
R
ep
or
t o
f
T
en
de
rin
g
P
ro
ce
ss
G
eo
th
er
m
al
P
ote
nti
al
Potential
Map
Surve
y
APBN
Survey
APBD
Prov.
Other PartiesAssignment
Evaluati
on
WKP
Rep.
WKP-N
WKP-P
WKP-K
(S3-N)
(S3-P)
(S3-K)
IUP-N
IUP-P
IUP-K
(S4-N)
(S4-P)
(S4-K)
Tender Winner
GEOTHERMAL VALUE CHAIN
(S-1)
(S-2)
(S-3)
(S-4)
(S-5)
PPA
(S-6)
Assignment
E
xp
lo
ra
t
io
n
(S-7)
(Current Regulations)
(S-0)
BUSINESS STADIUM (S-X)
Survey
APBD
Kab./
Kota
Pemda
Kab./
Kota
Units
Potential/
Stadium
E
xp
lo
ita
t
io
n
FS
Production/
Utilization
(S-8)
(S-9)
(S-10)
Tender Winner
Tender Winner
T
h
e
G
o
ld
e
n
B
ri
d
g
e
© EBTKE KESDM - 2011
Road Map
of Geothermal Development 2006 – 2025
Current Condition
2006
852 MW
(
Produksi)
2008
2012
2016
2020
2000
MW
3442
MW
4600
MW
6000
MW
9500
MW
(Target)
1148 MW
Existing
WKP
1442 MW
Existing
WKP
1158 MW
Existing
WKP + New
WKP
1400 MW
New WKP
3500 MW
New WKP
2025
1189 MW
(based on Presidential Decree No. 5/2006 on National Energy Policy)
Plus 2
ndPhase Crash
Program Scenario
© EBTKE KESDM - 2011
Presidential Regulation No. 04/2010 on Assignment to PT. PLN to Accelerate Power Plant
Development Using Renewable Energy, Coal and Gas
MEMR Regulation No. 15/2010 on Projects List of Power Plant Accelerated Development
using Renewable Energy, Coal and Gas as well as Related Transmission
Target for Geothermal Power Plant Development on Crash Program 10.000 MW
Phase II
-
Development for Production on Existing Field
: 645 MW
-
Development for not yet in production on Existing Field
: 1535 MW
-
New Development Geothermal Working Area
: 1787 MW
Total of Geothermal Development 3967 MW
STRATEGICAL TARGET FOR GEOTHERMAL DEVELOPMENT
2010 S.D 2014
© EBTKE KESDM - 2011
Geothermal Contribution on 2
nd
Phase 10,000 MW Power
Development Acceleration Program
(Based on Ministerial Decree No. 15/2010 on Projects List of Power Plant Accelerated
Development using Renewable Energy, Coal and Gas as well as Related Transmission)
Existing GWA→
→
→ 2180 MW
→
New GWA →
→
→ 1787 MW
→
Java →
→
→
→ 1970 MW
Outside Java →
→
→
→ 1997 MW
Additional Installed
Capacity of
Geothermal Power
Plant up to 2014 is
3,967 MW
Total investment needed for achieving this target is about 12 Billion USD (with
assumption, development cost of 1 MW = 3 Million USD)
With developing 3,967 MW Geothermal Power Plant until 2014, could reduce emission
© EBTKE KESDM - 2011
-
Development of 3,967 MW electricity from Geothermal in 10,000 MW
Crash Program Stage II up to the year 2014 is required more than US$
12,000 millions for the investment.
-
Development plan of 12,000 MW Geothermal Power Plant up to the
year 2025, international supports are needed.
-
Foreign ownership in Geothermal Business is allowed up to 95 %;
-
Business opportunities in geothermal sector:
Geothermal direct use;
Low temperature geothermal potential;
Small scale power plant.
Partners and Investors are welcomed to be parts of Indonesia
development as the largest geothermal producer.
INVESTMENT OPPORTUNITIES
INVESTMENT OPPORTUNITIES
INVESTMENT OPPORTUNITIES
INVESTMENT OPPORTUNITIES
© EBTKE KESDM - 2011
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION
MINISTRY OF ENERGY AND MINERAL RESOURCES
www.ebtke.esdm.go.id
www.energiterbarukan.net
Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950
Telp/Faks : 021-5250575
© EBTKE KESDM - 2011
NO
Geothermal Power
Plant Project
Status
Province
Estimation
of Capacity
(MW)
Installed
Capacity
2014 (MW)
Required
Financing 2014
(US$ Million)
1 Seulawah Agam
New WKP
Aceh
1x55
55
165
2 Jaboi
New WKP
Aceh
1x7
7
21
3 Sarulla 1
Existing WKP North Sumatera
3x110
330
990
4 Sarulla 2
Existing WKP North Sumatera
2x55
110
330
5 Sorik Merapi
New WKP
North Sumatera
1x55
55
165
6 Muaralaboh
New WKP
West Sumatera
2x110
220
660
7 Lumut Balai
Existing WKP South Sumatera
4x55
220
660
8 Rantau Dadap
New WKP
South Sumatera
2x110
220
660
9 Sungai Penuh
Existing WKP Jambi
2x55
110
330
10 Hululais
Existing WKP Bengkulu
2x55
110
330
11 Rajabasa
New WKP
Lampung
2x110
220
660
12 Ulubelu 3 dan 4
Existing WKP Lampung
2x55
110
330
13 Rawa Dano
New WKP
Banten
1x110
110
330
14 Kamojang 5 & 6
Existing WKP West Java
1x40 & 1x60
100
300
15 Cibuni
Existing WKP West Java
1x10
10
30
16 Cisolok-Cisukarame New WKP
West Java
1x50
50
150
17 Darajat
Existing WKP West Java
2x55
110
330
18 Karaha Bodas
Existing WKP West Java
1x30 & 2x55
140
420
19 Patuha
Existing WKP West Java
3x60
180
540
20 Salak
Existing WKP West Java
1x40
40
120
21 Tampomas
New WKP
West Java
1x45
45
135
22 Tangkuban Perahu I New WKP
West Java
2x55
110
330
NO
Geothermal Power
Plant Project
Status
Province
Estimation
of Capacity
(MW)
Installed
Capacity
2014 (MW)
Required
Financing 2014
(US$ Million)
23 Tangkuban Perahu II Existing WKP West Java
2x30
60
180
24 Wayang Windu
Existing WKP West Java
2x120
240
720
25 Batu Raden
New WKP
Central Java
2x110
220
660
26 Dieng
Existing WKP Central Java
1x55 & 1x60
115
345
27 Guci
New WKP
Central Java
1x55
55
165
28 Ungaran
New WKP
Central Java
1x55
55
165
29 Ijen
New WKP
East Java
2x55
110
330
30 Iyang Argopuro
Existing WKP East Java
1x55
55
165
31 Wilis/Ngebel
New WKP
East Java
3x55
165
495
32 Lahendong 5 dan 6 Existing WKP North Sulawesi
2x20
40
120
33 Kotamobagu 1 dan 2 Existing WKP North Sulawesi
2x20
40
120
34 Kotamobagu 3 dan 4 Existing WKP North Sulawesi
2x20
40
120
35 Bora
Open Area Central Sulawesi
1x5
5
15
36 Merana/Masaingi
New WKP
Central Sulawesi
2x10
20
60
37 Huu
New WKP
West Nusa Tenggara
2x10
20
60
38 Sembalun
Open Area West Nusa Tenggara
2x10
20
60
39 Atadei
New WKP
East Nusa Tenggara
2x2,5
5
15
40 Sukoria
New WKP
East Nusa Tenggara
2x2,5
5
15
41 Tulehu
Existing WKP Maluku
2x10
20
60
42 Jailolo
New WKP
North Maluku
2x5
10
30
43 Songa Wyaua
New WKP
North Maluku
1x5
5
15
3967
11.901
Total Development of Geothermal Power Plant until 2014
Geothermal Power Plant Projects included in Crash Program Phase II
© EBTKE KESDM - 2011
No.
GWA
IUP Holder
Field
Developer
Potency
(MW)
Installed
(MW)
1
Sibayak-Sinabung
PT. PGE
Sibayak
PT. PGE
124
12
2
Cibeureum - Parabakti (Gn.
Salak)
PT. PGE
Gn. Salak
CGS, Ltd
952
375
3
Pengalengan
PT. PGE
Wayang Windu
Star Energy Geothermal
Wayang Windu
400
227
Patuha
PT. Geo Dipa Energi
706
-4
Kamojang-Darajat
PT. PGE
Kamojang
PT. PGE
855
200
Darajat
CGI, Ltd
610
255
5
Dieng
PT. PGE
Dieng
PT. Geo Dipa Energi
780
60
6
Lahendong-Tompaso
PT. PGE
Lahendong
PT. PGE
358
60
7
Sibual-Buali
PT. PGE
Sarulla
SOL
1146
-8
Hululais - Tambang Sawah
PT. PGE
Hulu Lais
PT. PGE
873
-9
Lumut Balai
PT. PGE
Lumut Balai
PT. PGE
1066
-10
Sungaipenuh
PT. PGE
Sungai Penuh
PT. PGE
208
-11
Ulubelu
PT. PGE
Ulubelu
PT. PGE
556
-12
Karaha-Cakrabuana
PT. PGE
Karaha Bodas
PT. PGE
725
-13
Buyan Bratan (Bedugul)
PT. PGE
Bedugul
Bali Energy, Ltd
276
-14
Ulumbu
PT. PLN (Persero)
Ulumbu
PT. PLN (Persero)
199
-15
Tulehu
PT. PLN (Persero)
Tulehu
PT. PLN (Persero)
100
-16
Cibuni
KJK Teknosa
Cibuni
KJK Teknosa
140
-17
Iyang-Argopuro
PT. PGE
Iyang Argopuro
PT. PGE
295
-18
Kotamobagu
PT. PGE
Kotamobagu
PT. PGE
410
-19
Ciater
PT. Wahana
Sembada Sakti
Ciater
PT. Wahana Sembada Sakti
90
© EBTKE KESDM - 2011
NO
FIELD
REGENCY
PROVINCE
DEVELOP
MENT
TA RGETS
(MW)
STATUS OF TENDER PROCESS1
Seulawah agam
Aceh Besar
Nangroe Aceh Darusallam
160
On Going
2
Jailolo
West Halmahera
North Maluku
75
Finished
3
T elaga Ngebel
Ponorogo and Madiun
East Java
120
Finished
4
Ungaran Mt.
Semarang and Kendal
Central Java
100
Finished
5
T ampomas Mt.
Sumedang and Subang
West Java
50
Finished
6
Cisolok Cisukarame
Sukabumi
West Java
45
Finished
7
T angkuban Perahu Mt.
Subang, Bandung and purwakarta
West Java
100
Finished
8
Jaboi
Sabang
Nangroe Aceh Darusallam
50
Finished
9
Sokoria
Ende
East Nusa Tenggara
30
Finished
10
T alang Mt.
Solok
West Sumatera
36
Preparation
11
Blawan Ijen
Bondowoso, Banyuwangi and Situbondo
East Java
270
Finished
12
Hu'u Daha
Dompu
West Nusa Tenggara
65
Finished
13
Sipaholon Ria-ria
Noth Tapanuli
North Sumatera
75
Re-Tender
14
Bukit Kili
Solok
West Sumatera
83
Re-Tender
15
Sorik Marapi Roburan
Mandailing Natal
North Sumatera
200
Finished
16
Marana
Donggala
Central Sulawesi
36
Re-Tender
17
Songa Wayaua
South Halmahera
North Maluku
140
Preparation
18
Atadei
Lembata
East Nusa Tenggara
40
Finished
19
Suwawa
Bone Bolanga and Gorontalo
Gorontalo
110
Re-Tender
20
Kaldera Danau Banten
Serang and Pandeglang
Banten
115
Finished
21
Rajabasa Mt.
South Lampung
Lampung
91
Finished
22
Liki Pinangawan
Muara Laboh, Solok Selatan
West Sumatera
400
Finished
23
Suoh-Sekincau
West Lampung
Lampung
230
Finished
24
Rantau Dadap
Muara Enim, Lahat dan Pagar Alam
South Sumatera
106
Finished
25
Guci
T egal, Brebes and Pemalang
Central Java
79
Finished
26
Baturaden
Tegal, Brebes, Pemalang, Banyumas and PurbalinggaCentral Java
175
Finished
2981
TOTAL
New GWAs Offered Through Tender Process
(after Law No. 27/2003 on Geothermal)
As Total Project Scenario, IPP Scheme
As Total Project Scenario, IPP Scheme
As Total Project Scenario, IPP Scheme
© EBTKE KESDM - 2011
GWA Determination Plan - 2011
NO
Area
Province
Potency
(MWe)
Required Financing
(US$ Million)
1
Bonjol *
West Sumatera
200
600
2
Danau Ranau *
South Sumatera
210
630
3
Mataloko *
East Nusa Tenggara
63
189
4
Ciremei *
West Java
150
450
5
Gn. Endut *
Banten
80
240
6
Sembalun
West Nusa Tenggara
120
360
7
Wai Ratai
Lampung
194
582
8
Simbolon Samosir
North Sumatera
225
675
9
Telomoyo
Central Java
92
276
4,002
TOTAL
© EBTKE KESDM - 2011
No.
Location
Regency
Province
1.
Sungai Betung
Kerinci and Pesisir Selatan
Jambi and West Sumatera
2.
Sungai Tenang
Merangin
Jambi
3.
Ciseeng
Bogor and Lebak
West Java and Banten
4.
Malawa
Maros, Pangkajene Kepulauan,
Bone and Barru
South Sulawesi
5.
Gn. Dua Saudara
Bitung
North Sulawesi
6.
Ulumbu
Manggarai
NTT
7.
Gn. Gede/Pangrango
Bogor, Sukabumi, and Cianjur
West Java
Areas offered for Pre-Survey Assignment
(Announcement of Director General of New Renewable Energy and Energy
Conservation No. 104Pm/30/DJE/2011)
© EBTKE KESDM - 2011
FLOW OF GEOTHERMAL BUSINES PROSES
GWA
Winner
Buyer
Candidate
Local Government
Related Agencies
Power Purchaser
(PLN)
BUSINESS
ENTITY
REGULATOR
Selling
Price*)
Who has
the Send
er??
IUP Holder