MINISTRY ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF ELECTRICITY
ELECTRICITY POLICY DEVELOPMENT & INVESTMENT OPPORTUNITY IN INDONESIA
By: 1. Mr. Benhur PL. Tobing, Deputy Director for Electricity Cooperation 2. Mr. Wanhar, Deputy Director for Preparation of Electricity Program
March, 2014
I. CURRENT CONDITION
Energy & Mineral Resources for People Prosperity
Government Policy on Power Sector (Based on Law No. 30 Year 2009 on Electricity)
Objective of Electricity Development To ensure the availability of electricity in sufficient quantity, good quality and reasonable price in order to improve the welfare of the people (article 2 clause (2)).
Utilization of Primary Energy Source Primary energy sources from domestic and overseas shall be used optimally in accordance with National Energy Policy to ensure a sustainable supply of electricity (article 6 clause (1)). Utilization of domestic energy sources will be prioritized for national interests (article 6 clause (3)).
Energy and Mineral Resources for People Prosperity
Overview of Indonesia Electricity Condition Total installed capacity (2013): 47,328 MW (PLN 74%, IPP 22%, and PPU 4%) Electricity consumption (2013): 188 TWh (Household 41%, Industry 34%, Business 19%, Public 6%) Demand growth: 7.8 % (2013), 10.1 % p.a. (projected up to 2031) National electrification ratio (2013): 80.51% Several area are facing limited electricity supply Energy mix in power production (2013) : Coal 51.6%, Gas 23.6%, Oil 12.5%, Hydro 7.9%, Geothermal 4.4% Total investment in Power Sector (2012): ± USD 7.16 Billlion
104,431
97,958
92,310
85,152
386 359 334 310 287 266 246 208
Energy and Mineral Resources for People Prosperity
2022
2021
2020
2019
2018
2017
2016
188
2014
174
2012
2011
2010
2009
2022
2021
2020
2019
2018
2017
2016
2015
Projection & Planning based on RUPTL PLN 2013-2022
147
158
226
2015
75,883
65,310
59,911
53,933
51,214
47,328 2013
Electricity Consumption (TWh)
134
2014
45,253 2012
39,885
33,983 2010
2011
31,959 2009
Installed Capacity (MW)
2013
Power Generation Current Condition Power Generation by Owner PLN 74%
IPP 22%
PPU 4%
Total installed capacity is about 47,328 MW Power Generation by Type
Biomass 0.1% STPP-O/G 5%
Power generation is dominated by CFPP, then followed by CCPP, DPP, GTPP, HEPP, STPP-O/G, Geo PP, GEPP, MPP, CGPP, WPP, Biomass, MHPP, Solar PV and WTPP.
GTPP 9% CCPP 20%
GeoPP 3% DPP 12%
CFPP 41%
Electricity Production by Energy Mix
HEPP 9%
GEPP 0.4%
Solar PV 0.009% WTPP 0.002% MHPP 0.01%
WPP 0.1%
CGPP 0.1%
Oil share in electricity production is still high, because: Geothermal 4.4%
Gas 23.6% Coal 51.6%
Hydro 7.9%
There are many DPP outside of Java-Bali system, it is operating in base load as well as in peak load period to fulfill the demand Several CCPP and GTPP are operating utilizing oil as primary energy (in Java – Bali System).
Oil 12.5%
Energy & Mineral Resources for People Prosperity
MPP 0.1%
Electrification Ratio 2013 Category :
NAD 89,72%
Sumut 87,62% Riau 77,56%
Kaltim 80,45%
Kalteng 66,21%
Kepri 69,66%
> 70 %
Gorontalo 67,81%
Kalbar 95,55%
Sulut 81,82%
50 - 70 % Malut 87,67%
< 50 % Papua Barat 75,53%
Sumsel 70,90%
Sumbar 80,22%
Sulbar 67,60%
Sulteng 71,02%
Babel 97,13%
Jambi 75,14%
Jakarta 99,99%
Bengkulu 77,53% Lampung 77,55%
Sultra 62,51% Kalsel 81,61%
Bali 78,08%
Banten 86,27% Jabar 80,15%
Year Realization Based on Draft RUKN
Jateng 86,13%
DIY 80,57%
Jatim 79,26%
Maluku 78,36%
Sulsel 81,14% NTB 64,43%
Papua 36,41% NTT 54,77%
2008 2009 2010 2011 2012 2013 65.10% 65.79% 67.15% 72.95% 76.56% 80.51%
Energy and Mineral Resources for People Prosperity
2014
2015
2016
2017
81.51% 83.18% 86.37% 89.56%
II. ON GOING & FUTURE PLAN
Energy & Mineral Resources for People Prosperity
Fast Track Program (FTP) Phase I TOTAL : 34 PROJECT (9.927 MW)
1
2
Outside Jawa 25%
4
5
20
24
25
Jawa 75%
33
19 3
23
6
34
7
8
21
9 11 12 10 13
14 15
26
22
27
32
18 17
16
28
29
30
31
SUMATERA 8 PROJECTS (1.411 MW): 1. CFPP NAD – Nagan Raya (2x110 MW) 2. CFPP Sumut – Pangkalan Susu (2x220 MW) 3. CFPP Sumbar – Teluk Sirih (2x112 MW) 4. CFPP Riau – Tenayan (2x110 MW) 5. CFPP Kep. Riau -Tj. Balai Karimun (2x7 MW) 6. CFPP 3 Bangka – Bangka Baru (2x30 MW) 7. CFPP 4 Bangka – Belitung (2x16,5 MW 8. CFPP Lampung – Tarahan (2x100 MW)
: Under Construction (< 50%)
JAWA-BALI 10 PROJECTS (7.490 MW) 9. CFPP 1 Banten – Suralaya (1x625 MW) 10. CFPP 2 Banten – Labuan (2x300 MW) 11. CFPP 3 Banten – Lontar (3x315 MW) 12. CFPP 1 Jabar – Indramayu (3x330 MW) 13. CFPP 2 Jabar – Pelabuhan Ratu (2x350 MW) 14. CFPP 1 Jateng – Rembang (2x315 MW) 15. CFPP 2 Jateng – Adipala (1x660 MW) 16. CFPP 1 Jatim – Pacitan (2x315 MW) 17. CFPP 2 Jatim – Paiton (1x 660 MW) 18. CFPP 3 Jatim – Tj. Awar Awar (2x350 MW) : Under Construction (50% - 85%)
Energy and Mineral Resources for People Prosperity
KALIMANTAN 5 PROJECTS (625 MW) 19. CFPP 1 Kalbar – Parit Baru (2x50 MW) 20. CFPP 2 Kalbar – Bengkayang (2x27,5 MW) 21. CFPP 1 Kalteng – Pulang Pisau (2x60 MW) 22. CFPP Kalsel – Asam-Asam (2x65 MW) 23. CFPP Kaltim – Tl. Balikpapan (2x110 MW) SULAWESI 4 PROJECTS (220 MW) 24. CFPP 2 Sulut – Amurang (2x25 MW) 25. CFPP Gorontalo – Anggrek (2x25 MW) 26. CFPP Sultra– Kendari (2x10 MW) 27. CFPP Sulsel – Barru (2x50 MW) : Under Construction (≥ 85%)
: COD 1 unit
NUSA TENGGARA 4 PROJECTS (117 MW) 28. CFPP 1 NTB – Bima (2x10 MW) 29. CFPP 2 NTB – Lombok (2x25 MW) 30. CFPP 1 NTT – Ende (2x7 MW) 31. CFPP 2 NTT – Kupang (2x16,5 MW) MALUKU 2 PROJECTS (44 MW) 32. CFPP Malut – Tidore (2x7 MW) 33. CFPP Maluku – Ambon (2x15 MW) PAPUA 1 PROJECTS (20 MW) 34. CFPP 2 Papua – Jayapura (2x10 MW)
: COD all unit
Realization and Target COD of FTP I 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
MW 4000 3500 3000 1. 2. 3. 4.
2500
Jabar - Indramayu (3x330 MW) Banten – Suralaya (1x625 MW) Banten – Lontar #1 (315 MW) Jateng - Rembang 2x315 MW
2000 1. 2. 3. 4.
1500
Jateng – Adipala (1x660 MW) Jatim – Tj. Awar-awar (2x350 MW) NAD – Nagan Raya (2x110 MW) Sumut – Pangkalan Susu (2x220 MW) Sumbar – Teluk Sirih (2x112 MW) Kepri – Tj. Balai Karimun #1 (7 MW) Babel – Bangka Baru (2x30 MW) Babel – Belitung (2x16,5 MW) Riau – Tenayan (2x110 MW) Lampung – Tarahan Baru (2x100 MW) Kalbar – Parit Baru (2x50 MW) Kalbar – Bengkayang (2x27,5 MW) Kalteng – Pulang Pisau (2x60 MW) Kaltim – Teluk Balikpapan (2x110 MW) NTB – Lombok (2x25 MW) NTB – Bima (2x10 MW) NTT – Ende (2x7 MW) NTT – Kupang (2x16,5 MW) Gorontalo – Anggrek (2x25 MW) Sulsel – Barru #1 (50 MW) Sultra – Kendari #1 (10 MW) Maluku – Ambon (2x15 MW) Malut – Tidore (2x7 MW) Papua – Jayapura (2x10 MW)
Banten - Lontar #2 & #3 (630 MW) Jatim – Paiton (1x660 MW) Sulut – Amurang (2x25 MW) Sultra – Kendari #2 (10 MW)
3.550,0
2560 1000
1867 1350
500 0
Banten - Labuan#1
Banten - Labuan#2
300
300
2009
2010
2011 Realization 6.377 MW (64,2%)
Energy and Mineral Resources for People Prosperity
2012
1. Sulsel – Barru#2 (50 MW) 2. Kalsel - Asam-asam (2x65 MW) 3. Jatim – Pacitan (2x315 MW) 4. Jabar – Pelabuhan Ratu (3x350 MW) 5. Kepri – Tj. Balai Karimun #2 (7 MW)
2013
2014 Target 3.550 MW (35,8%)
Fast Track Program (FTP) Phase II TOTAL : 76 Proyek (17.918 MW) Java 71% SUMATERA
KALIMANTAN
• HEPP : 453 MW • GeoPP : 2.725 MW • CFPP : 400 MW TOTAL : 3.578 MW
• CFPP • GTPP TOTAL
SULAWESI
: 500 MW : 280 MW : 780 MW
• HEPP : 200 MW • GeoPP : 195 MW • CFPP : 200 MW TOTAL : 595 MW
JAVA – BALI • HEPP : 1.150 MW • GeoPP : 1.935 MW • CFPP : 9.720 MW TOTAL : 12.805 MW
Power Generation Compisition CFPP 10.870 MW (61%)
GeoPP 4.965 MW (28%)
GTPP 280 MW (1%)
MALUKU • GeoPP : 35 MW TOTAL : 35 MW
NUSA TENGGARA • GeoPP • CFPP TOTAL
: 75 MW : 50 MW : 125 MW
Renewable vs Non-Renewable
NonRenewable 11.150 MW (62%)
HEPP 1.803 MW (10%)
Energy and Mineral Resources for People Prosperity
Renewable 6.768 MW (38%)
Developer PLN 5.749 MW (32%) IPP 12.169 MW (68%)
Outside Java 29%
Projection of Electricity Demand 2013-2022
18 TWh 26 TWh
66 TWh
44 TWh
IT : 10,8%
Kalimantan: 10,7% Sulawesi: 10,8% Maluku: 10,9%
Sumatera: 10,6% Papua: 10% 188 TWh
385 TWh
2013 2022
Indonesia: 8,4%
144 TWh
275 TWh
JB : 7,6%
Nusa Tenggara: 11,1%
Average of national electricity demand growth 2013-2022 is about 8.4% annually. Source: RUPTL PLN 2013-2022
Energy & Mineral Resources for People Prosperity
Power Generation Development Planning
• Total additional capacity up to about 60 GW; • PLN and IPP projects only for on going and committed projects; • The project which doesn't has the developer yet as well as funding is called “unallocated projects”. Source: RUPTL PLN 2013-2022
Energy and Mineral Resources for People Prosperity
Target of Energy Mix for Power Production 2013
2022
(213 TWh)
(± 438 TWh) Geothermal 4.4%
Gas 23.6%
Coal 51.6%
Hydro 7.9%
Gas 16.3%
Geothermal 11.0%
Coal 66.0%
Oil 12.5%
Hydro 5.0%
Oil 1.7%
Electricity efficiency effort is conducted through diversification of primary energy in power generation (supply side) by optimizing utilization of gas, reduce of oil utilization, increasing coal utilization, and developing renewable energy power generation; Gas and coal are priority to reduce dependence on oil in power generation; Coal will to be mainstay as base load power plant and gas as load follower power plant. Source: RUPTL PLN 2013-2022
Energy & Mineral Resources for People Prosperity
III. CO2 EMISSION REDUCTION – CLEAN COAL TECHNOLOGY
Energy & Mineral Resources for People Prosperity
CO2 Emission From Electricity Sector Million Tons CO2
• Emission will increase from 125 million tons in 2011 to 275 million tons in 2020
300 250 200
• Most emission will come from coal combustion (almost 90%)
150 100 50 0 2011
2013
Total Emission
2015
2017
Emission from Coal
Energy & Mineral Resources for People Prosperity
2019
• For Java Bali: Grid emission factor will reduce from 0.78 kg CO2/kWh in 2011 to 0.75 kg/kWh in 2020.
Cleaner Use of Low Rank Coal • Indonesia’s power sector can be mistakenly regarded as more concern about growth and use of indigenous coal than concern about global climate challenge. • However, Indonesia would actually do better than just ‘grow first – cleanup later’ , it is seen from the fact that Indonesia have plan to develop large scale geothermal and small-medium-large scale hydro power, as well as clean coal technology. • PLN in its 10-year power development plan to 2022 set a policy that only SC/USC coal plants will be developed in Java for better efficiency and lower CO2 emissions.
• Gov of Indonesia (MEMR) and gov of Japan (JICA) are carried out a project study “Promotion of Clean Coal Technology (CCT) in Indonesia” from April 2011 to be July 2012. The CCT study team consists of Chubu Electric, JPower and Jcoal, with MEMR and PLN as counterpart team. Energy & Mineral Resources for People Prosperity
Clean Coal Technology [1/2] Rational for USC/IGCC introduction in Indonesia Technical availability Is USC & IGCC readily available ? → USC: readily available, IGCC: available in 2020 When can it be introduced in Indonesia? → USC: 2017, IGCC: 2025
Alignment with Indonesia’s Policy Is it possible to use low rank coal (LRC) ? → Yes, LRC can be utilized Does it contribute to GHG emission reduction ? → Yes, GHG emission amount will be reduced
Economic validity Is it economically viable ? → Yes, Generation cost will be lower than Sub-c or SC
Energy & Mineral Resources for People Prosperity
Clean Coal Technology [2/2] CCT Technology for Coal Fired Power Plants
USC Matured technology to achieve low electricity costs & low GHG emissions • Proven and
already commercialized technology • Introduced all around the world • Can utilize low rank coal with above average ash melting point • Economic superiority to SC • Lower GHG emission compared to SC
IGCC Promising technology to achieve low electricity cost, lower GHG emissions & LRC utilization • Technology yet to be commercialized • Will be introduced at the beginning of 2020s in commercial base in the world • Promising technology for low rank coal with low ash melting point • Economic superiority to SC and USC • Lower GHG emission compared to SC & USC
Target for introduction of USC and IGCC in Indonesia USC should be introduced for next new coal fired power plant project (2017) IGCC will be introduced around 2025, considering the development situation in the world
Energy & Mineral Resources for People Prosperity
Roadmap of CCT in Indonesia *) • After assessing relevant factors (technical availability, low rank coal availability, economic viability, technical challenges in introducing CCT and contribution to GHG emission reduction), the CCT study concludes that the CCT technology that can be adopted by Indonesia are USC and IGCC. • USC is commercially matured, already proven and well performed in many countries, can use low rank coal having above average ash melting point, has economic merit to SubC and SC, produces lower CO2 emissions.
• IGCC is a promising technology, yet not commercially matured, can use low rank coal with low ash melting point, its project cost is expected to drop and make it economical compared to SC and USC, lower CO2 emission than SC and USC. *) Source: The Project for Promotion of Clean Coal Technology (CCT) in Indonesia, Interim Report, October 2011, Jakarta, JICA Study Team.
Energy & Mineral Resources for People Prosperity
Roadmap of CCT in Indonesia *) SC, = 35-40% USC, 43% Bekasi (USC 2x600 MW)
Cirebon (SC 1x660 MW)
2011
2015
Paiton 3 (SC 1x815 MW)
2020 Central Java IPP (USC 2x1000 MW)
Indramayu #1 (USC 1000 MW)
IGCC 45-48% 2025
2000–3000 MW per year Indramayu #2 (USC 1000 MW) IGCC 1000 MW Class
*) Source: The Project for Promotion of Clean Coal Technology (CCT) in Indonesia, Interim Report, October 2011, Jakarta, JICA Study Team, with modification
Energy & Mineral Resources for People Prosperity
IV. INVESTMENT
Energy & Mineral Resources for People Prosperity
Investment Requirement 20.0
PLN’s Power Gen. : USD 37,7 billion PLN’s + IPP’s Power Gen.: USD 91,4 billion Transmission : USD 18,6 billion Distribution : USD 14,5 billion
18.0 16.0 14.0
Total PLN Total PLN+IPP
USD Billion
12.0 10.0
8.0 6.0 4.0 2.0 -
2013
2014
2015
2016
2017
2018
2019
2020
2021
Total PLN's Investment
Total PLN's + IPP's Investment
PLN's+ IPP's Power Gen.
Transmission
Distribution
PLN's Power Gen.
IPP’s investment share up to 2022 is about 43%.
Energy and Mineral Resources for People Prosperity
2022
: USD 70,8 billion : USD 124,5 billion
General Mechanism of Investment in Electricity PT. PLN (Persero) State-Owned Enterprise Investor (Foreign/ Domestic)
Ministry of Energy and Mineral Resources
Investment Coordinating Board
Directorate General of Electricity
Local Government
Ministry of Finance
Bidding Process Mechanism: Government Regulation No. 14/2012
• Local Permit • Environment Impact Analysis (AMDAL) • etc
Temporary Business Permit of Electricity (IUPL / IO Sementara)
Registration
Ministry of ESDM Regulation No. 10 of 2005
RUPTL 2012 - 2021
N
(Electricity Business Plan)
N
Direct Selection
Y Tender
Ap pro val
RUKN 2008-2027 (National Electricity General Plan) Ministrial Decree No. 2682 K/21/MEM/2008
President Regulation No. 36 of 2010. Regulation of Head of BKPM No. 12 of 2009
Direct Appointment
PPA
Permanent Business Permit of Electricity (IUPL / IO Tetap)
IUPL IO
Y
Ministry of ESDM Regulation No. 10 of 2005
Request for Import Duty Exemption Ministry of Finance Regulation PMK No. 128/PMK.0011/2009 Jo. PMK No. 154/PMK.0011/2008
Goods Import Plan (RIB) RUPTL project consist of: • Regular Project • FTP Phase I Project • FTP Phase II Project • Public Private Partnership Project
Dirjen Regulation No. 211.12/20/600.1/2012
N
Ap pro val
Y Examination of Feasible Operation (SLO) Ministerial Regulation No. 46 of 2006
Y Commercial
Certificate of Operational Feasible
Appr oval Pre-Operation
N
Energy and Mineral Resources for People Prosperity
Ap pro val
Construction
Investment Scheme (Based on Government Regulation No. 14/2012 on Activity of Electricity Provision Business)
Tender
• Basically power purchase by Tender
Direct Selection • Energy diversification for generation to non oil fuel.
Direct Appointment power
• IPP expansion more than needed
• Renewable energy, marginal gas, mine-mouth coal and other local energy sources; • Excess power; • Crisis condition or emergency of electricity supply; or. • Expansion of IPP which has already operation at the same location: o Capacity ≤ existing o Capacity > existing: − more efficient technology − environmental friendly − accordance with the requirement of electricity system
Energy & Mineral Resources for People Prosperity
The Government Supports FTP II Project The government guarantees the feasibility of PLN business in accordance to the provisions of legislation. Provide facilities such as exemption from import duty and other facilities regulated by the Ministry of Finance (MoF). PPP Project
The government provide “the government support” or “the government guarantee”.
If private as the initiator of the project, the government will provide some compensation: 1.
Additional value (max 10% of the initiator tender assessment); or
2.
Right to match by the initiator against the best offer in accordance with the results of the assessment in the tender process;
3.
Purchase of a joint project initiatives including intellectual property rights attached to them by the minister / head of institution / district head or by the winning bidder.
Energy & Mineral Resources for People Prosperity
Typical IPP Business Scheme An SPC shall be formed to execute the agreement and to build and operate the IPP project
Consortium: 2 to 4 companies
Lender
Company “X”
Foreign
JVA
Company “Y”
LA
25 % – 30%
FUEL Supply Contractor
A
Rp-Cent/kWh
C
Rp/kWh
D
Rp- Cent/kWh
70% – 75%
IPP
FSA
PPA
(Seller)
C
Cent/kW/year
B
A
Local
EPC
Contract
O&M
Contract
B
EPC Contractor
Energy and Mineral Resources for People Prosperity
D
PLN (Buyer)
JVA : Joint Venture Agreement LA : Loan Agreement PPA : Power Purchase Agreement FSA : Fuel Supply Agreement EPC : Engineering, Procurement & Construction O&M : Operation & Maintenance
O&M Contractor
Regulatory Frameworks (2 schemes of Government Guarantee) Public Private Partnership (PPP) Project
Fast Track Program II (FTP II) Project
Guarantee Agrement between GOI-IGGF-Developer
Business Viability Guarantee Letter from GOI to Developer
a. Presidential Regulation No 67 of 2005, 13 of 2010, and 56 of 2011
b. Presidential Regulation No 78 of 2010
c. Minister of Finance Regulation No 260/PMK.011/2010
IIGF
Assignment to PT PLN (Persero), to Accelerate the Development of Renewable Energy, Coal and Gas Fired Power Plants
Assignment to PT PLN (Persero), to Accelerate the Development of Renewable Energy, Coal and Gas Fired Power Plants
a. Presidential Regulation No 4 of 2010 and 48 of 2011
Guarantee for Infrastructure Project with scheme of the Cooperation with Private Developer through Infrastructure Entity Guarantor
b. Minister of Finance Regulation No 139/PMK.011/2011
Procedures for Providing the Business Viability Guarantee of PT PLN (Persero) for the Development of Renewable Energy, Coal and Gas Fired Power Plants through the Cooperation with Private Electricity Developer
c. Minister of Energy and Mineral Resources Regulation No 15 of 2010 and 01 of 2012
List of Projects of the Acceleration Development of Renewable Energy, Coal and Gas Fired Power Plants
Procedures for Providing Guarantee for Infrastructure Project through Public Private Partnership Scheme
Financiers
GOI
(ECA / Banks)
GA
Financiers
GOI
(ECA / Banks)
FA
BVGL
RA
FA
PLN
PPA
GA = Guarantee Agreement RA = Recourse Agreement
IPP Company PPA = Power Purchase Agreement FA = Financing Agreement
Energy and Mineral Resources for People Prosperity
PLN
PPA
IPP Company
BVGL = Business Viability Guarantee Letter GOI = Government of Indonesia IIGF = Indonesia Infrastructure Guarantee Fund
PPP Scheme
Procurement & Guarantee Processes Pre FS review and preparation of GAP Appointment of Consultants Pre-FS Finalisation
PPP scheme determined
One on Draft RFP one Submission released meetings EOI and PQ of GAP process
Award & Bid Signing Final RFP Submission & released Evaluation
Structuring Appraisal
Issuance of In-Principle Approval
Screening
Consultation
IIGF Guarantee Provision Process
Energy and Mineral Resources for People Prosperity
Signing of: 1. Power Purchase Agreement 2. Guarantee Agreement 3. Recourse Agreement
Government Guarantee for FTP2 Business Viability Guarantee Letter (BVGL) 2nd Fast Track Program (FTP 2) Guarantee to the Developer (in the form BVGL to be issued by Minister of Finance), stating that PLN will fulfill its Financial Obligations (a positive list) under the PPA
BVGL Issuance Process
A project is in the Fast Track Program List
IPP Project Procurement has been done (the agreed final draft of PPA is available)
Energy and Mineral Resources for People Prosperity
PLN to submit a request (proposal) for BVGL issuance for the Project, to be attached with, among others: •Project Feasibility Evaluation; •Final (agreed) draft of PPA; • Financial model of the project
MoF to evaluate the proposal. BVGL will be issued if the project is eligible for it.
IPP Procurement Timeline (FTP II & Reguler)
Energy and Mineral Resources for People Prosperity
Closing Government will continue to improve community access to energy, particularly electrical energy through the addition of generation capacity. The government gradually reduces dependence on oil fuel in power generation by optimizing the energy sources. The government continues to build a conducive investment climate particularly in the electricity sector in order to encourage private sector participation to invest in the development of environmentally friendly technologies. Indonesia will reduce the dependence on oil through diversification of primary energy in power generation. Increasing of coal utilization is one way to reduce the dependence on oil in power generation, beside developing the renewable energy power generation. Indonesia needs huge investment to develop power generation, so that public and private sector participation, either domestic and international investment are required and welcomed due to limitation of PLN and Government’s fund. It is vast opportunity for investment. Yet Indonesia is committed to adopt cleaner coal technology. PLN plans only USC CFPP in Java, and adopting IGCC as soon as it is commercially matured.
Energy & Mineral Resources for People Prosperity
Thank You for your attention