Leadership in
Indonesian Power Sector
November, 2022
Asosiasi Produsen Listrik Swasta Indonesia
Agenda
4
JUST AND EQUITABLE ENERGY TRANSITION 3
GOVERNMENT REGULATIONS
DEVELOPMENT OF POWER INDUSTRY IN INDONESIA 2
OVERVIEW OF APLSI
1
Introduction APLSI
Asosiasi Produsen Listrik Swasta Indonesia
Indonesian Independent Power Producer Association
• APLSI is a forum for Indonesia’s private investors in the electricity sector
• We give voice to leaders of the Indonesian energy as agents of the national economy for the service of the Nation
• Engaging transparently with crucial energy stakeholders and partners
• Developing capabilities and championing the interests of private investors
• Supporting the Government of Indonesia’s national climate initiatives that foster diversification of energy sources
• Contributing to Indonesia’s national electricity program
Roles & Objectives Members
Chairman’s Welcome
Arthur Simatupang
Chairman Welcome you to APLSI.
We are proud to represent Indonesia’ leaders of the energy sector.
Energy is a crucial and basic contributor to our national economy, and we believe in the power of open and transparent collaboration.
The need for just energy transition and diversification of energy sources from public as well as private players gives Indonesia’s energy sector global relevance. In that light, we invest significant resources into producing thought leadership of global impact.
I urge you to partner and collaborate with us.
Arthur Simatupang
Chairman
APLSI Leadership
Lokita Prasetya
DSS Energy and Infrastructure Vice Chair
Dharma Djojonegoro
Adaro Power Vice Chair
Priamanaya Djan
Priamanaya Group General Secretary
Adrian Lembong
Adaro Energy Treasurer
Agenda
OVERVIEW APLSI
DEVELOPMENT OF POWER INDUSTRY IN INDONESIA
1
2
4
JUST AND EQUITABLE ENERGY TRANSITION 3
GOVERNMENT REGULATIONS
Indonesia is Blessed With Abundant Renewables Resources: Great Investment Opportunities In Clean Energy
The utilization of NRE resources currently is only 2.5% from total potential while Indonesia has abundant and well distributed NRE resources:
• GEOTHERMAL potential is available mostly in Java, Sumatera and Sulawesi islands
• HYDRO potential is available all across Indonesia, more specifically in Kaltara, NAD, Sumbar, Sumut and Papua.
• SOLAR potential is projected to be well over 207.8 GW and available all across Indonesia, more specifically in areas with greater level of radiation such as NTT, Kalbar and Riau
• WIND potential (>6 m/s) is abundant especially in NTT, Kalsel, Jabar, Sulsel, NAD and Papua.
• OCEAN potential is available all across Indonesia, more specifically Maluku, NTT, NTB dan Bali.
TOTAL INSTALLED CAPACITY OF NRE
10.4 GW (2.5%)
OCEAN GEOTHERMAL
BIOENERGY WIND HYDRO SOLAR
17.9 GW
23.9 GW
67.8 GW 60.6 GW 94.6 GW 207.8 GW*
0 MW*)(0%) 2,130.7 MW (8.9%)
1,905.3 MW (5.8%) 154.3 MW (0.25%)
6,121 MW (8.16%) 153.5 MWp (0.07%) TOTAL
POTENTIAL OF
437.4 GW
NREIndonesia is Committed to Developing Renewable Energy Power Plant 2021-2030 – Green RUPTL
▪ The addition of renewable power plants is targeted to reach 20.9 GW (51.6% of total PLN power plants in the 2021-2030 RUPTL)
▪ New renewable energy development adjusts grid balance and stability
▪ Renewable energy power plants are estimated to create 281,566 jobs
No PP 2021 2022 2023 2024 2025 2026 2027 2027 2029 2030 Total
1 Panas Bumi (PLTP) 136 108 190 141 870 290 123 450 240 808 3,355
2 PLTA 400 53 132 87 2,478 327 456 1,611 1,778 1,950 9,272
3 PLTM 144 154 277 289 189 43 - 2 13 6 1,118
4 PLTS 60 287 1,308 624 1,631 127 148 165 172 157 4,680
5 PLTB - 2 33 337 155 70 - - - - 597
6 PLT Bio 12 43 88 191 221 20 - 15 - - 590
7 PLT EBT–Base - - - - - 100 265 215 280 150 1,010
8 PLT EBT- Peaker - - - - - - - - - 300 300
Total 752 648 2,028 1,670 5,544 978 991 2,458 2,484 3,370 20,923 PLT EBT
5,237 MW 230
193 117 110
300 1,180
3,108 4,521 Fosil
PLTA/M & PS PLT EBT Base PLTP PLT EBT Peaker
PLT Bio PLTS PLTB
SUMATERA
PLT EBT 1,741 MW 70
86 100
304
1,181 1,063 Fosil
PLTA/M & PS PLTS PLT EBT Base PLT Bio PLTB
KALIMANTAN
PLT EBT 2,261 MW 75
50 130
176 230
1,600 Fosil 896
PLTA/M & PS PLT EBT Base PLTS PLTB PLTP PLT Bio
SULAWESI
PLT EBT 2,050 MW 27
106 185 181
450 1,101
1,324 Fosil
PLTS PLT EBT Base PLTP PLTA/M & PS PLT Bio PLTB
MALUKUPAPUA NUSA TENGGARA
232 260
1,915 2,906
4,321
11,848
JAVA MADURA BALI
PLT EBT 9,634 MW Fosil
PLTA/M & PS PLTS PLTP PLTB PLTS PLT Bio
Agenda
OVERVIEW APLSI
DEVELOPMENT OF POWER INDUSTRY IN INDONESIA 1
2
4
JUST AND EQUITABLE ENERGY TRANSITION 3
GOVERNMENT REGULATIONS
ETM Southeast Asia Partnership
• A regional effort.
• Use an MDB as the vehicle.
• Currently doing a feasibility study and will start a pilot project in 2023.
Energy Transition is a Key Strategy Towards Green Energy: Indonesia Follows a Two-track Approach
An energy transition strategy accelerates the shift in energy mix toward renewables using blended finance
• Public or philanthropic finance is used to incentivize private investment to (1) accelerate retirement of fossil fuel plants and (2) increase investment in renewables. The foundation of Indonesia’s energy transition is a just transition.
• Indonesia is following a two-track approach – (i) implement an ETM pilot by 2022 and launch a national country platform for energy transition; (ii) join the regional effort supported by the ETM Southeast Asia Partnership.
GOI ETM Pilot Project
• A national effort to accelerate the process.
• Will choose one CFPP for piloting the early retirement.
• Targeting the end of 2022 to start the pilot project,
• To have a country platform for upscaling and
institutionalization of the blended finance mechanism.
Agenda
OVERVIEW APLSI
DEVELOPMENT OF POWER INDUSTRY IN INDONESIA 1
2
4
JUST AND EQUITABLE ENERGY TRANSITION
3
GOVERNMENT REGULATIONS
Indonesia Power Generating Industry Regulation after the Ratification of Paris Agreement
Law 16/2016 Ratification
of the Paris Agreement Law 11/2020 Job Creation Law
Law 32/2009 Environmental Protection and Management, Law
Law 30/2007 Energy
PR 98/2021 Implementation of Carbon Pricing to Achieve The NDC Target and Control Over Greenhouse Gas Emissions
in The National Development
PR 112/2022 Acceleration of Renewable Energy Development for Power Supply
Law 26/2007 Spatial Planning and Law
Law 27/2007 Management of Coastal Areas and Small Islands
Law 4/2009 Mineral and Coal Mining and Law
Law 30/2009 Electricity
Law 21/2004 Geothermal Energy
MEMR Decree No.188K/HK.02/MEM.L/2021 RUPTL 2021-2030
Amendment and Synchronize
Discussion on Draft on New Law and Implementing Regulations Involving Private Sector
1. MEMR Regulation regarding the guidelines for the Electricity Sales and Purchase Agreement (PJBL).
2. MEMR Regulation regarding the purchase price of EBT electricity.
3. MEMR Regulation concerning the
assignment mechanism from the minister to PT PLN (Persero) regarding the
purchase of electricity which is wholly or partly built by the central and local governments,
4. MEMR Regulation regarding geothermal development support to add PSP and PSPE data.
5. MEMR Regulation concerning Coal-firing
Bill on Renewable
Energy 5 MEMR Regulation 2 MEMR Decree 2 MoF & MSoE
1. MEMR Decree regarding the roadmap for net zero emissions in the energy sector by 2060,
2. MEMR Decree regarding the roadmap for accelerating the termination of the operational period of PLTU and the
determination of the PLTU operation to be accelerated
Incentives and support for
priority use of domestic products as well as derivative rules
regarding risk mitigation and financing facilities.
