Energy and Mineral Resources for Peolple’s Prosperity MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA ENERGY AS THE STRATEGIC RESOURCES

MEMREnergy and Mineral Resources for Peolple’s Prosperity 1

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

ENERGY AS THE STRATEGIC RESOURCES TO FULFILL NATION’S GROWTH AND PROSPERITY, AND THE ROLE

AND PROSPECT OF GEOTHERMAL

Indonesia International Geothermal Convention and Exhibition (IIGCE) 2014 “Enhancing Geothermal Development to Meet Energy Demand Through Policy Breakthrough”

Jakarta , 4 June 2014

By:Minister of Energy and Mineral Resources


CONTENTS

I. INDONESIAN ARCHIPELAGO

3

II. BACKGROUND

4

III.GEOTHERMAL POTENTIAL RESOURCES

5

IV.POLICY AND LEGAL FRAMEWORK

7

V. CHALLENGES IN GEOTHERMAL

DEVELOPMENT

10

VI.INVESTMENT OPPORTUNITIES

11

VII.CONCLUSION

12


Republic of IndonesiaRepublik Indonesia

Flag National emblemMotto: "Bhinneka Tunggal Ika" (Old Javanese)

"Unity in Diversity"National ideology: PancasilaAnthem: Indonesia Raya

Capitaland largest city

Jakarta6°10.5′S 106°49.7′E

Official languages Indonesian

Area - Land 1,904,569 km2 (15th)

735,358 sq mi - Water (%) 4.85

Population - 2011 census 237,424,363 (4th) - Density 124.66/km2 (84th)

322.87/sq miGDP (nominal)

- Total $946.391 billion (16th) - Per capita $3,816(105th)

I. INDONESIAN ARCHIPELAGO

Source : Wikipedia (2013)


Oil

20 %

Gas30 %

Coal 33 %

NRE17 %

Gov. Reg. NO. 5/2006

CURRENT ENERGY CONDITION

II. BACKGROUND

Oil 49,7 %

Gas 20,1 %

Coal24,5 %

NRA5,7%

INDONESIA AS NET OIL IMPORTER

TOTAL PRIME ENERGY: 1176 JUTA BOE

CURRENT CONDITION 2025

Note:NRE = New and Renewable EnergyNEP = National Energy PolicyNEB = National Energy Board


PLTP SIBAYAK: 12 MW

PLTP GUNUNG SALAK: 377 MWPLTP WAYANG WINDU: 227 MW

PLTP KAMOJANG: 200 MW

PLTP DARAJAT: 270 MW PLTP DIENG: 60 MW

PLTP LAHENDONG: 80 MW

Note:

Installed

Ready to be developed

Detail Survey

Preliminary Survey

PLTP ULUBELU: 110MW

PLTP ULUMBU: 5 MW

No IslandNumber of

LocationTotal Installed

1 Sumatera 93 12.837 1222 Java 71 9.757 11343 Bali-Nusa Tenggara 33 1.872 7,54 Kalimantan 12 145 5 Sulawesi 70 3.153 806 Maluku 30 1.071 7 Papua 3 75 Total 312 28.910 1.343,5

Source: Geological Agency, MEMR (2013)

III. GEOTHERMAL POTENTIAL RESOURCES (1/2)


6

ACEH 2 WKP Jaboi: 70 MW Seulawah Agam: 130 MW

NORTH SUMATERA 5 WKP Sibayak – Sinabung: 130 MW Sibual – Buali: 750 MW Sipaholon Ria-ria: 75 MW Sorik Marapi: 200 MW Simbolon Samosir : 155 MW

JAMBI 1 WKP Sungai Penuh: 70

MW SOUTH SUMATERA 2 WKP Lumut Balai: 250 MW Rantau Dedap: 106 MW

BANTEN 2 WKP Kaldera Danau Banten: 115 MW G. Endut: 80 MW

WEST SUMATERA 4 WKP Bukit Kili: 83 MW Gn Talang: 35 MW Liki Pinangawan: 400 MW Bonjol: 200 MW

LAMPUNG 4 WKP Gn.Rajabasa: 91 MW Suoh Sekincau: 230 MW Waypanas – Ulubelu: 556

MW Way Ratai :105 MW

WEST JAVA 10 WKPCiater - Tgkban Perahu: 60 MW Cibeureum–Parabakti: 485 MWCibuni: 140 MWCisolok Cisukarame: 45 MWGn. Tampomas: 50 MWGn. Tgkuban Perahu: 100 MWKamojang-Darajat: 1465 MWKaraha Cakrabuana: 725 MWPangalengan: 1106 MWG. Ciremai: 150 MW

CENTRAL JAVA 5 WKP Baturaden: 175 MW Dataran Tinggi Dieng: 780 MW Guci: 79 MW Gn. Ungaran: 100 MW Umbul Telomoyo : 72 MW EAST JAVA 3 WKP

Blawan – Ijen: 270 MW Gn. Iyang Argopuro: 295 MW Telaga Ngebel: 120 MW

BALI 1 WKP Tabanan: 276 MW

WEST NUSA TENGGARA 2 WKP Hu'u Daha: 65 MW Sembalun : 100 MW

EAST NUSA TENGGARA 5 WKP Atadei: 40 MW Sokoria: 30 MW Ulumbu: 199 MW Mataloko: 63 MW Oka Ile Ange : 40 MW

MALUKU 1 WKP Tulehu: 100 MW

NORTH MALUKU 2 WKP Jailolo: 75 MW Songa Wayaua: 140 MW

NORTH SULAWESI 2 WKP Kotamobagu: 410 MW Lahendong-Tompaso: 358 MW

GORONTALO 1 WKP Suwawa: 110 MW

CENTRAL SULAWESI 2 WKP Marana: 35 MW Bora Pulu : 152 MW

Total : 58 GWA

BENGKULU 2 WKP Tmbg Sawah-Hululais: 873 MW Kepahiyang : 180 MW

CENTRAL JAVA & EAST JAVA 1 WKP Gunung Lawu : 195 MW

SOUTH SUMATERA & LAMPUNG 1 WKP Danau Ranau: 210 MW

Lisence – Issued : 38 GWAsTender on Progress : 2 GWAsTender Preparation : 13 GWAsTender – Failed : 5 GWAs

III. GEOTHERMAL POTENTIAL RESOURCES (2/2)


Geothermal Potential

Preliminary Survey

ExplorationFeasibility

StudyExploitation Utilization

Government/ Local Gov./

Business EntitiesBusiness Entities

Geothermal Business Permit (IUP)

Determination of GWA

Tender Process

IUP Issuance

GEOTHERMAL BUSINESS PROCESS

Note: - GWA : Geothermal Working Area (concession)

IV. POLICY AND LEGAL FRAMEWORK (1/3)


Direktorat Jenderal Energi Baru, Terbarukan dan Konservasi EnergiKementerian Energi dan Sumber Daya Mineral

Law No. 27/2003 On Geothermal.

Government Regulation No. 59/2007 on Geothermal Bussiness Activities.

Presidential Regulation No. 04/2010 on Assignment to PT. PLN (Persero) to Accelerate The Development of Power Plant from Renewable Energy, Coal and Gas

Ministry Regulation of Minister of Energy And Mineral Resources1) MR No. 11/2008 on the Procedure for GWA Determination

2) MR No. 02/2009 on Guidelines for Geothermal Preliminary Survey Assignment (as amendment of MR. 05/2007)

3) MR No. 11/2009 on Guidelines for Implementation of Geothermal Business , jo. MR No. 18/2012

4) MR No. 21/2013 on Revision of MR No. 15/2010 on The List of Power Plant Acceleration Projects Using Renewable Energy, Coal, and Gas and Related Transmission



1. Improving and harmonizing regulations in Geothermal Business;

2. Developing a comprehensive pricing structure;

3. Provide fiscal incentives for geothermal development;

4. Joint agreement between Ministry of Energy and Mineral Resorces and Ministry of Forest;

5. Acceleration program in electricity generation, geothermal power is expected to contributed 4,965 MW;

6. Government guarantees on the feasibility of PT. PLN.



Land-use IssuesMost identified reservoirs lie underneath forestry areas. It is estimated that up to 70 percent of the potential geothermal resources are located within forestry areas (conservation forest, protected forest and production forest).

Solution:Improving and harmonizing regulations regarding geothermal (Amend Law No. 27/2003 on Geothermal).

PricingElectricity price from geothermal energy still considers has not reached its economic value;

Solution:Restructure the tariff model based on region and commercial on date (New MR for new geothermal energy tariff).

V. CHALLENGES IN GEOTHERMAL DEVELOPMENT


Recent Updates: Determined of 9 new WKPs with potential of 1.030 MW:

Graho Nyabu: 200 MW Gn. Talang – Bukit Kili: 65 MW Gn. Arjuno Welirang: 185 MW Gn. Pandan: 60 MW Gn. Wilis: 50 MW Songgoriti: 35 MW Gn. Gede Pangrango: 85 MW Gn. Hamiding: 265 MW Talaga Ranu: 85 MW

9 WKPs are going to be tendered in the near future; 12 Preliminary Survey Assignment on new prospect area.

VI. INVESTMENT OPPORTUNITIES


Indonesia holds tremendous geothermal power potential; Installed capacity of geothermal power plant is only1,343.5 MW; Optimum utilization will significantly reduce dependence on fossil fuel

and improve national energy security; Restructuring Geothermal Business to allow private participation in

geothermal development; Whilst some supporting policies are in place, acceleration of

geothermal development in Indonesia needs international support in terms of finance, technology, human resources as well as technical assistance.

VII. CONCLUSION


Go Green Indonesia !

www.ebtke.esdm.go.id

Thank You

Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540e-mail: [email protected]

MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION


Direktorat Jenderal Energi Baru, Terbarukan dan Konservasi EnergiKementerian Energi dan Sumber Daya Mineral

Road Map of Geothermal Development until 2025 can be described in the following table :

Development Plan Installed (MW)

Development Plans (MW)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Addition power plant capacity (MW) 1.343,5 115,0 2,5 62,0 35,0 279,0 553,5 1.223,5 1.420,0 890,0 264,0 339,0 690,0 30,0 75,0

Total Development Capacity (MW) 1.343,5 1.341,0 1.343,5 1.405,5 1.440,5 1.719,5 2.273,0 3.486,5 4.926,5 5.816,5 6.080,5 6.419,5 7.109,5 7.139,5 7.214,5

ROADMAP OF GEOTHERMAL DEVELOPMENT UNTIL 2025

The development plans can be achieved with the following note: 1. To harmonized regulation across sectors (MEMR, Forestry, Finance, Local Government, etc.);2. Simplification of licensing in the geothermal sector; 3. Optimizing the geothermal potential at large fields managed especially PGE’s GWA; 4. The price of electricity from geothermal energy, fit to the economic development of the field; 5. The policies of national banking that support geothermal development;

GEOTHERMAL DEVELOPMENT POLICY AND STRATEGIES


Prominent development / leading program for geothermal sector for the last 6 years are :

1. 58 Geothermal Working Areas (GWA) has been stated consist of : 19 existing GWA; dan 39 GWA after Indonesian Law No 27 Years 2003.

2. Geothermal power plant Installed capacity reached 1,343,5 MW in 2014;

3. Total steam production from 2009 to 2014 reached 419,868,437 Tons;

4. Total electricity production from 2009 to 2014 reached 56,452,771 MWh;

5. Realization of Investment from 2009 to 2013 reached IDR. 21.16 Trillion;

6. Realization of Revenues of Government Shares Realisasi from 2009 to 2013 reached IDR 4.734,76 Billion, consist of: Component of Tax amount IDR 1,499.57 billion ; State revenue (non-tax revenue) amount IDR 2,045.78 billion.

PERFORMANCE ACHIEVEMENTS OF GEOTHERMAL ENERGY SECTOR

DEVELOPMENT YEARS 2009 – 2014


Note :Currency 1 USD = IDR 12.000*) Target

No. Indikator Kinerja SatuanTahun

2009 2010 2011 2012 2013 2014*

1. GWA Determination Amount GWA 5 3 5 8 6 6

2. Geothermal Power Plant Installed Capacity MW 1.189 1.189 1.226 1.336 1.343,5 1.405,5

3. Steam Production Thousands Ton 68.059,9 69.391,2 68.723,4 68.769,7 69.295,6 75.628,4

4. Electricity Production GWh 9.184 9.259 9.253,8 9.355,9 9.332,3 10.067,6

5. Realization of Investment IDR Billion 2.437 2.327 2.457 2.077 4.514 7.348

6. Revenues of Government Shares IDR Billion 821,15 803,36 898,46 1.140,00 1.071,79 579,65

PERFORMANCE ACHIEVEMENTS OF GEOTHERMAL ENERGY SECTOR

DEVELOPMENT YEARS 2009 – 2014

Documents

Energy and Mineral Resources for Peolple’s Prosperity MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA ENERGY AS THE STRATEGIC RESOURCES