GEOTHERMAL POTENCY IN INDONESIAGEOTHERMAL POTENCY IN INDONESIA

1

Geothermal Area Distribution MapGeothermal Area Distribution Map

Source : Geological Agency, MEMR (2008)

2

Geothermal Potential DistributionGeothermal Potential Distribution

Location

Resources (MWe) Reserve (MWe)Installed

Capacity (MWe)Speculative

Hypothetic

Probable Possible Proven

Sumatera 4,973 2,121 5,845 15 380 12

Java 1,960 1,771 3,265 885 1,815 1,117

Bali-Nusa Tenggara

410 359 973 - 15 -

Sulawesi 875 32 959 150 78 60

Maluku 370 37 327 - -  -

Kalimantan 45 - - - - - 

Papua 50 - - - - - 

Total 257 Locations

8,683 4,320 11,369 1,050 2,288Total : 1,189

13,003 14,707

  Total : 27,710  

4,3 % of Total Potency

3

Remarks:PGE : (Pertamina Geothermal Energy)CGS : (Chevron Geothermal Salak)CGI : (Chevron Geothermal Indonesia)SE : (Star Energy)GDE : (Geo Dipa Energy)

Existing Geothermal Production Areas

in MW

No. Location Province DeveloperInstalled Capacity

1 Sibayak North Sumatera PGE 12

2 Salak Mt. West Java PGE-CGS 375

3 Wayang Windu West Java PGE-SE 227

4 Kamojang West Java PGE 200

5 Darajat West Java PGE-CGI 255

6 Dieng Central Java GDE 60

7 Lahendong North Sulawesi PGE 60*

Total 1,189

4

* Power capacity of 10 MW from Lahendong Geothermal Power Plant Unit III is running behind schedule

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

Selling Price: In US Dollar

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) ProjectWKP holder will be granted as generally plan operation

Selling Price : In Rupiah

Implementation of Geothermal PoliciesImplementation of Geothermal Policies

Existing WKP

New WKP

5

Government Regulations

I. Law No. 27/2003 on Geothermal

II. Government Regulation No. 59/2007 on Geothermal Business Activities

III. 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

6

Government Regulations

IV.Tax facilities are provided in accordance with the Tax Regulations:

Government Regulation No. 62/2008 jo No. 1/2007 on Income Tax Facilities for Investment in Certain Business Fields and/or Certain Regions

→ 30% (thirty percent) net tax deduction of the total Investment, charged for 6 (six) years for 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 Avoid Agreement

MoF Decree No. 177/PMK.011/2007 on Custom Duties Exemption of Import Items for Upstream Activities in Oil & Gas and Geothermal & MoF Decree No. 242/PMK.011/2008 on Value Added Tax of Import Items Covered by Government for Upstream Exploration Activities in Oil & Gas and Geothermal on 2009 Budget

→ for the items haven’t been produced in Indonesia→ for the items have been produced in Indonesia but they haven’t

complied with the specification needed or the amount is insufficient

Continued…

7

The Road Map of Geothermal Development 2006 – 2025

WKP : Geothermal Working Area

(Based on President Decree No. 5/2006 on National Energy Policy)

Current Condition

2006

852 MW(Production)

2008

2012 2016

2020

2000 MW

3442 MW

4600 MW

6000 MW

9500 MW

(Target)

1148 MWExisting

WKP

1442 MWExisting

WKP

1158 MWExisting

WKP + New WKP

1400 MWNew WKP

3500 MWNew WKP

2025

1.189 MW

2014

5.805 MW

Plus Crash Program Scenario Phase II

8

AREA PLTU PLTGU PLTP PLTA TOTAL

JAVA - 1.200 2.137 1.000 4.337OUTSIDE JAVA 2.616 240 2.596 174 5.626

2.616 1.440 4.733 1.174 9.96326% 14% 48% 12% 100%

TOTAL

Geothermal Contribution on10,000 MW Power Development Acceleration Program Phase II

Notes:PLTU : Coal Fired Power PlantPLTGU : Combine Cycle Power PlantPLTP : Geothermal Power PlantPLTA : Hydro Power Plant 9

MW

MWNo. Sistem 2009 2010 2011 2012 2013 2014 Total

1 Jawa-Bali 117 5 0 330 445 1240 2137

2 Sumatera 0 60 105 440 275 1405 2285

3 Sulawesi 0 0 45 60 0 90 195

4 Nusa Tenggara 0 5 8 3 20 40 76

5 Maluku 0 0 0 20 0 20 40

117 70 158 853 740 2795 4733Total

• save about 200,000 barrel of oil per day

(1 MW equivalents to 42 barrel of oil per

day)

• reduce emission about 28 MtCO2/Year

(6,000 t CO2e/MW/Year)

With Developing 4733 MW Geothermal Power Plant until 2014, would:

10

NO FIELD REGENCY PROVINCEDEVELOPMENT TARGETS (MW)

STATUS OF TENDER

PROCESS

1 Seulawah agam Aceh Besar Nangroe Aceh Darusallam 160 Preparation2 Jailolo West Halmahera North Maluku 75 Finished3 Telaga Ngebel Ponorogo and Madiun East Java 120 On Going4 Ungaran Mt. Semarang and Kendal Central Java 100 On Going5 Tampomas Mt. Sumedang and Subang West Java 50 Finished6 Cisolok Cisukarame Sukabumi West Java 45 Finished7 Tangkuban Perahu Mt.Subang, Bandung and purwakarta West Java 100 Finished8 Jaboi Sabang Nangroe Aceh Darusallam 50 Finished9 Sokoria Ende East Nusa Tenggara 30 Finished10 Talang Mt. Solok West Sumatera 36 Preparation11 Blawan I jen Bondowoso, Banyuwangi and SitubondoEast Java 270 On Going12 Hu'u Daha Dompu West Nusa Tenggara 65 Preparation13 Sipaholan Ria-ria Noth Tapanuli North Sumatera 75 On Going14 Bukit Kili Solok West Sumatera 83 Preparation15 Sorik Marapi Roburan Mandailing Natal North Sumatera 200 Preparation16 Marana Donggala Central Sulawesi 36 Preparation17 Songa Wayaua South Halmahera North Maluku 140 Preparation18 Atadei Lembata East Nusa Tenggara 40 Preparation19 Suwawa Bone Bolanga and Gorontalo Gorontalo 110 Preparation20 Kaldera Danau BantenSerang and Pandeglang Banten 115 Preparation21 Rajabasa Mt. South Lampung Lampung 91 Preparation22 Liki Pinangawan Muara Laboh, Solok Selatan West Sumatera 400 On Going

2391TOTAL

New Geothermal Working Areas (WKP)New Geothermal Working Areas (WKP)Offered Through Tender ProcessOffered Through Tender Process

(after Law No. 27/2003 on Geothermal)As of Sept 2009

No. Location Regency Province

1111 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. Gn. Gede/Pangrango Bogor, Sukabumi, and Cianjur West Java

5. Malawa Maros, Pangkajene Kepulauan, Bone and Barru

South Sulawesi

6. Gn. Dua Saudara Bitung North Sulawesi

Areas offered for Pre-Survey Assignment

12

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIADIRECTORATE GENERAL OF MINERAL, COAL AND GEOTHERMAL

DIRECTORATE OF GEOTHERMAL ENTERPRISE SUPERVISION ANDGROUND WATER MANAGEMENT

Jl. Prof. Dr. Supomo, SH. No. 10 Jakarta 12870Phone : +62 21 83702847 Fax.: +62 21 83785103

www.djmbp.esdm.go.id