Energy elasticity < 1,

Optimizing and increasing NRE

share on national energy mix

Energy conservation, clean and

efficient technology

Reducing GHG emission

Oil 25%

Gas 22%

Coal 30%

NRE 23%

Oil 25%

Gas 22%

Coal 30%

Geothermal 7%

Hydro 3%

Bioenergy 10%

Others NRE 3%

2025 TARGET

Government creates electricity market at least through :

Setting the price of primary energy such as coal, gas, hydro and geothermal for power generation

Progressive electricity tariffs

Application of feed in tariff mechanism in determining the price of renewable energy

PRICE AND SUBSIDY

1

Based on National Energy Policy, the target of New Renewable Energy is 23 % of national energy mix by 2025. Bioenergy will share 10%, hydro 3%, geothermal 7% and other NRE of 3%.

ADDITIONAL CAPACITY FOR ELECTRICITY

GENERATION

NRE

16.954

MW

+ 42.968

MW

NRE

11.330

MW

PLN

53.352

MW

PLN

96.320

MW

2014 2019

+ 5.623

+ 37.345

82%

18%

79%

21%

87%

13%

COAL*)

GEOTHERMAL 1.751

HYDRO 2.508

BIOENERGY 1.131

OTHER NRE 233

INVESTMENT: 20,4 Billion US$ or around Rp. 255 Trillion

(for NRE power plant).

FOSSIL = OIL, NATURAL GAS, COAL

*) To generate 1 MW coal power plant will consume

3000 Ton/year, and 1 million US$/MW investment,

and need 3.0-3.5 years from FCCOD.

FOSSIL

79.366

MW

FOSSIL

42.022

MW

2

a) Improvement of the national electricity supply through the development of

Geothermal and Hydro Power Plant;

b) Improvement of the electricity access in remote areas, small islands and

border areas with Micro Hydro and Solar Power Plant;

c) Development of Bioenergy Power Plant including agricultural waste and

municipal solid waste to provide electricity as well as to improve the

environmental;

d) Development of wind power and ocean energy plant pilot project in order to

prepare the stage of commercialization;

e) Utilization of Biofuel for substitution of fuel oil; and

f) Development of new energy (Coal Bed Methane and gasified coal);

3