GEOTHERMAL DEVELOPMENT IN INDONESIA
By:Sugiharto Harsoprayitno, M.Sc
Director of Geothermal Enterprise Supervision and Groundwater Management
DIRECTORATE GENERAL OF MINERAL, COAL AND GEOTHERMAL
MINISTRY OF ENERGY AND MINERAL RESOURCES
APEC EWG 38, BALINovember 2009
OUTLINE
Geothermal Policy
Geothermal Development Plan
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Geothermal Policy
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
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Government Regulations
I. Law No. 27/2003 on Geothermal
II. Government Regulation No. 59/2007 on Geothermal Business Activities
III.Ministerial RegulationsMEMR 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
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Pre-Survey Assignment to Business Entities is given to accelerate geothermal development in green field (before determined as WKP)
The Minister determines areas for Pre-Survey Assignment and offers them through medias and forums by Director General
Business Entities propose Pre-Survey Assignment request to The Minister attn. Director General cc: Head of Geological Agency, governor and regent/mayor
Application process uses first come first served system
One Business Entity can get one area of Pre-Survey Assignment
Pre-Survey Assignment has to be finished in one year (max)
MEMR Regulation No. 02/2009 on The Guidelines for Geothermal Pre-Survey Assignment
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MEMR Regulation No. 05/2009 * on The Guidelines for Electricity Purchasing Price by PT. PLN from Cooperation and
Other Business Entities
In designing the electricity purchasing, PT. PLN is obligated to make their own estimated price based on type of generation, location, capacity quantities, capacity factor and also some assumptions such as: level of local content components, fuel price, exchange rate and other macro economic indicators
PT. PLN request for approval of the electricity purchasing price to Minister of Energy and Mineral Resources
The electricity purchasing price can be adjusted considering on macro economic indicators and based on agreement (Power Purchase Agreement)
* Under Reviewed
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Government RegulationsIV.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…
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GEOTHERMAL WORKING AREA (WKP)
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Geothermal Development Plan
Projection of Power Generation Capacity NeededProjection of Power Generation Capacity Needed
Assumption:• Reverse Margin 30 %
(based on RUKN 2008 – 2027)
30,345 MW → Installed Capacity as of March 2009
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Geothermal potency 27 GW or equivalent to 219 Billions barrel
of oil
Installed Capacity 1,179 MW (4.3% of whole potency)
Geothermal Road Map Target 9,500 MW in 2025
Resource Potency
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Geothermal Area Distribution MapGeothermal Area Distribution Map
13Source : Geological Agency, MEMR (2008)
Geothermal Potential DistributionGeothermal Potential Distribution
LocationResources (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 50
Maluku 370 37 327 - - -
Kalimantan 45 - - - - -
Papua 50 - - - - -
Total 257 Locations8,683 4,320 11,369 1,050 2,288
Total : 1,17913,003 14,707
Total : 27,710
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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 Developer Installed 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 50
Total 1,179
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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
1.179 MW
2014
5.795 MW
Plus Crash Program Scenario Phase II
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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
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in MW
Distribution Area for Geothermal Development Plan 2009 – 2014(Based on 10,000 MW Power Development Acceleration Program Phase II)
4733 *
*) Total additional installed capacity 2009 - 2014
2009 2010 2011 2012 2013 2014Total Installed
CapacityTotal Installed
CapacityTotal Installed
CapacityTotal Installed
CapacityTotal Installed
CapacityTotal Installed
Capacity
1179 1249 1407 2380 3175 5795
Additional Installed Capacity
Additional Installed Capacity
Additional Installed Capacity
Additional Installed Capacity
Additional Installed Capacity
Additional Installed Capacity
117 70 158 973 795 2620
Distribution Area Distribution Area Distribution Area Distribution Area Distribution Area Distribution Area
Java - Bali Java - Bali Java - Bali Java - Bali Java - Bali Java - Bali117 5 - 330 445 1240
Sumatera Sumatera Sumatera Sumatera Sumatera Sumatera- 60 105 550 330 1240
Sulawesi Sulawesi Sulawesi Sulawesi Sulawesi Sulawesi- - 45 70 - 80
Nusa Tenggara Nusa Tenggara Nusa Tenggara Nusa Tenggara Nusa Tenggara Nusa Tenggara- 5 8 3 20 40
Maluku Maluku Maluku Maluku Maluku Maluku- - - 20 - 20
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save about 200,000 barrel oil per day (1 MW
equivalents to 42 barrel per day)
reduce emission about 28,398,000 t CO2/Year(6,000 t CO2e/MW/Year)
With Developing 4733 MW Geothermal Power Plant until 2014, could:
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NO FIELD REGENCY PROVINCEDEVELOPMENT
TARGETS (MW)
STATUS OF TENDER
PROCESS
1 Seulawah agam Aceh Besar Nangroe Aceh Darusalla 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 M Subang, Bandung and purwakarta West Java 100 Finished8 Jaboi Sabang Nangroe Aceh Darusalla 50 Finished9 Sokoria Ende East Nusa Tenggara 30 Finished10 Talang Mt. Solok West Sumatera 36 Preparation11 Blawan Ijen Bondowoso, Banyuwangi and Situbo East 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 Bante Serang 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
The Result of WKPThe Result of WKP’’s Tenders Tender
No. GWA Location The Winner Price Rp/kWh
1 Tampomas Mt.Sumedang & Subang Regency, West Java Province
Consortium PT. Wijaya Karya - PT. Jasa Sarana - PT. Resources Jaya Teknik Management Indonesia
589.00
2 Cisolok – Cisukarame
Sukabumi Regency, West Java Province Jabar Halimun Geothermal 630.00
3 Tangkuban Perahu
Subang, Bandung & Purwakarta Regency, West Java Province
Tangkuban Perahu Geothermal Power 533.60
4 JailoloHalmahera Barat Regency, North Maluku Province
PT. Star Energy Investment 1,727.54
5 SokoriaEnde Regency, East Nusa Tenggara Province
Consortium PT. Bakrie Power Resources - PT. Energy Management Indonesia
1,250.69
6 JaboiSabang Regency, Nangro Aceh Darussalam Province
Consortium PT. Bukaka Teknik Utama - PT. Dian Sakti Energi - PT. Global Energi Aliansi
1,705.00
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Geothermal Pre-Survey Assignment in 2008
NO LOCATION COMPANY DESCRIPTION
1.Guci, Central Java Province PT. Spring Energy Sentosa
Finished Assignment(In process of determining WKP)
2.Baturaden, Central Java Province PT. Trinergy
Finished Assignment(In process of determining WKP)
3.Muara Laboh, West Sumatra Province PT. Supreme Energy
Determined as WKP Liki Pinangawan
4. Pematang Belirang, Lampung Province PT. Supreme Energy
Determined as WKP Rajabasa Mt.
5. Kalianda, Lampung Province PT. Supreme Energy
6.Rantau Dedap, South Sumatra Province PT. Supreme Energy
Finished Assignment(In process of determining WKP)
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Geothermal Pre-Survey Assignment in 2009
NO LOCATION COMPANY DESCRIPTION
1. Wai Ratai, Lampung PT. Optima Nusantara Energi
On Going
2. Simbolon-Samosir, North Sumatera
PT. Optima Nusantara Energi
On Going
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No. Location Regency Province
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
7. Sembalun Lombok Timur West Nusa Tenggara
8. Ulumbu Manggarai East Nusa Tenggara
9. Mataloko Ngada East Nusa Tenggara
Areas offered for Pre-Survey Assignment
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