An introduction 3
Why Indonesia? 4
Market opportunities 5
The potential for hydropower in Indonesia is approximately 75,000 MW. To date, only 7,572 MW of
the small hydro potential is currently utilized. In line with the Presidential Regulation No 5/2006
regarding National Energy Policy, the government will take measures to add the capacity of
mini/ micro hydro power plants in order to achieve the overall 35 GW energy target set by the
Government.
Government support to
Increase utilization of
renewable energy, new
regulation requires PLN to
purchase renewable
based-electricity with
capacity up to 10 MW.
Sources: MEMR
The Investment Coordinating Board of the Republic of Indonesia
7
Indonesias Growing Energy Demands 2012-2021
and Investment Required by PLN in Energy
Java and
Bali :
Electricity demand is forecast to increase 8 times over the next decade according to the Coordinating
Minister of Maritime in November 2014 (*)
By 2031, its estimated that an additional 237 GW will need to be added to the current capacity.
Electricity demand in Java, Bali will grow by 7.8% P.A,while demand in Eastern & Western parts of
Indonesia to grow by 11.4% and 10.5% respectively.
PLN will need annual investment of USD 8 bn per year to meet the demand. IPP is endorsed &
encouraged where investment might peak in 2016 with USD 42 bn.
Sources: *: PLN, www.kabarenergi.com/berita-pertumbuhan-kebutuhan-listrik-di-indonesia-capai-8-per-tahun.html
The Investment Coordinating Board of the Republic of Indonesia
8
Global HydroPower Development in 2014
Sources: KPMG Global Tax Energy Report 2014 The Investment Coordinating Board of the Republic of Indonesia
9
Global New Investment in Renewable Projects & Fuels and
Asset Finance of Renewable Energy Assets by Sector
Sources: KPMG Global Tax Energy Report 2014 The Investment Coordinating Board of the Republic of Indonesia
10
ASEANs Population Access to Energy
Access to modern energy services is low in South East Asia relative to most other
parts of the world, with the exception of Brunei Darussalam, Malaysia, Thailand
and Singapore.
Indonesia accounts for almost half of the population of those living in the region
that lack access to electricity.
Electrification rates are also low in Cambodia (34%) and Myanmar (49%).
The Government has set a target to attract USD 96 Billion of investment by 2020,
comprising USD 68 Billion for power plants, USD 15 Billion for the development of
transmission and substations and another USD 13 billion for distribution.
Source: PLN
The Investment Coordinating Board of the Republic of Indonesia
13
Indonesias Hydro Power Potential and Realized
Capacity in 2013 (MW) *
Huge and abundant water resources across the country have placed Indonesia as one of top
countries in the world for hydro power plant investment
Maluku, Sumatera and Sulawesi are the top 3 of potential hydro power locations within the
country.
Source: PLN, Ministry of MEMR The Investment Coordinating Board of the Republic of Indonesia
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Indonesias Potential and Realized Hydro Power
Projects Based on PLNs 2013-2022 Plan (MW)
ACEH (50 MW ) NORTH SUMATERA (84 MW ) SOUTH SULAWESI (282 MW )
1. LAWE MAMAS (50 MW) - 2016 1. WAMPU (84 MW) 1. MALEA (182 MW)
2. BONTOBATU (100 MW)
3. KARAMA (800 MW )
Size of land: 90 ha
Current electricity
consumption in South
Sulawesi is 1,317 MW with a
deficit of 1,164 MW
Voith has been awarded the contracts for the supply of the
electro-mechanical equipment of two small hydropower projects
in Indonesia being an important success in the promising
hydropower market of South East Asia. The contracts have been
awarded by energy producer PT Medco Power.
Hubert Lienhard, President & CEO
Voith has been awarded the contracts for the supply of the
electro-mechanical equipment of two small hydropower
projects in Indonesia a successful example demonstrating
Southeast Asias promising hydropower market.
The two plants Pusaka I and III will be installed in the province of
West Java and have a capacity of 8,8 MW and 3 MW. The
contracts have been awarded by PT Pembangkitan Pusaka
Parahiangan, a subsidiary of the Indonesian energy producer PT
Medco Power.
* TIRASA (short for PT Bhakti Putra Bangsa, is a pioneering renewable energy developer
Universitas Gadjah Mada, along with the Ministry of Energy and Mineral Resources, have
worked together to provide research on renewable energy and prepared examples like
villages for renewable energy across Indonesia. The University and the Ministry conduct
education programs in Indonesia to reduce fuel fossil energy and has focused on micro
scale hydropower with high technology since 2014. The University has also worked with
foreign entities like The New Zealand Government in conducting research on renewable
energy in Indonesia.
http: ugm.ac.id
The Investment Coordinating Board of the Republic of Indonesia
25
Associations, institutes and centres of excellence
Guaranteed feed-in
Power Purchasing tariff up to Rp 656
Agreement (PPA) /kWh for medium
established to ensure voltage and up to
purchase of hydro Rp 1,004/kwh for
power low voltage
*Subject to location
Medium Voltage:
cent US$ 9,3
Low Voltage:
cent US$ 11
http://www.esdm.go.id
http://ebtke.esdm.go.id
Government
Ministry of Finance Regulation Ministry of Finance Regulation
Regulation
No. 159/PMK.010/2015 No.176/PMK.011/2009
No.18/2015
BKPM will provide further advice on which specific incentive(s) are applicable for your
planned hydropower-related investment
Source: BKPM (2015)
The Investment Coordinating Board of the Republic of Indonesia
32
Key Legislation:
This slide provides a concise summary of the key legislation governing
investment in Indonesias hydropower sector. BKPM can provide you with
further details on specific pieces of legislation.
Law No. 30/2009 on Electricity:
The Law states that the Government to prepare Regional Electricity Plan (RUKD) based on National
Electricity Plan (RUKN). The Law states taht regional authority can provide licenses for power projects
which are intra agency and do not involve the sale of electrciity to holders of a Central Government
issued license and also Central Government approves tariffs for IPPs.
Regulation from Minister of Energy and Mineral Resources No. 3/2015- Purchasing procedure on electricity
price from various power plants such as steam power plant, gas power plant, coal and hydro power plant
through direct selection and appointment. PLN will prepare the ISO (International Organization for
Standarization) and IEC (International Electrotechnical Commission). Ministry of Energy and Mineral
Resources will also focus and consider the local content for all electricity equipment to be utilized in
Indonesia.
Demonstrable
government support
Proven investment Up to 95% foreign
through increased
success stories in ownership options in
hydro power price,
Indonesias hydro various hydropower
tax holidays / relief
power sector operations
and risk exploration
fund
Invest in...
Kantor Representatif EU DESK di This presentation has been developed with the
BADAN KOORDINASI PENANAMAN MODAL (BKPM) support of:
REPUBLIK INDONESIA The European Union (EU) Desk at BKPM, part
Jl. Jend. Gatot Subroto No. 44, Jakarta 12190, Indonesia of EU-Indonesia Trade Cooperation Facility
P : +62 21 5274 803 (TCF) projects.
E : eu.tcf@bkpm.go.id
eudesk.bkpm@euind-tcf.com
W : www.bkpm.go.id
www.euind-tcf.com/eudesk/
2015 by Indonesia Investment Coordinating Board (BKPM). All rights reserved