Indonesia

Indonesia
Renewable Energy Business Opportunities
March 2021
Indonesia - Renewable energy business opportunities 1
Note to Readers
Disclaimer
The Foreign, Commonwealth & Development The report highlights key findings on the research
Office (FCDO)’s ASEAN Prosperity Fund team has performed, key information available or address
commissioned this series of reports to Ernst & matters. This study relied on a combination of
Young LLP (EYLLP) where EYLLP has undertaken research sources (e.g., reports, presentations and
a market study for six countries in ASEAN. Noted new articles) and local knowledge, we have not
that Indonesia version was initially written by Tetra verified the accuracy, reliability or completeness of
Tech ES Inc in 2019 then updated by EYLLP in 2021. such information or sources. With respect to market
The summary of the findings are included in this estimates referenced throughout the report, there
report (hereafter “report”). This report is only for will usually be differences between estimated and
general information. It doesn’t intend to provide actual results, because events and circumstances
or should not be considered for accounting, tax or frequently do not occur as expected and those
other professional advice. On any specific matter, differences may be material.
reference should be made to the appropriate
The views reflected here are the views of the
advisor.
EYLLP and do not necessarily reflect the views of
the global EY organisation or its member firms.
Moreover, they should be viewed in the context of
the time they were expressed.
2 Indonesia - Renewable energy business opportunities
About DIT
Department for International Trade (DIT)
The Department for International Trade is the specialist
Government department that supports:
• Foreign companies seeking to set up or expand in the UK,
and
• UK-based companies to trade internationally.
The Department for International Trade provides a fully
integrated advisory service, delivering the latest business
intelligence through a global network of commercial teams
worldwide. DIT also works in close partnership with investment
and economic development agencies in England, Scotland,
Wales and Northern Ireland to help overseas companies to
maximise their business objectives in the UK.
For more information, please contact DITJakarta.Enquiries@fcdo.gov.uk
Table of Contents
Note to Readers 1
About DIT 3
Abbreviation & Acronyms 8
Executive Summary 9
1. About the Study 12
1.1 Background 12
1.2 Purpose of Study 12
1.3 Study Approach 12
1.4 Market Size Estimation 12
1.5 Identification of Renewable Energy Project Opportunities 14
1.6 Opportunities for UK Companies 14
1.7 Sources of Information 14
2. Indonesia Energy Industry Background 15
2.1 Key Government Institutions 17
2.2 Other Key Stakeholders in The Power Sector 17
2.3 Indonesian Power Market 18
3. Renewable Energy Market Characteristics 20
3.1 Major Government Policies and Programs 20
3.2 Cost and Technical Considerations 26
3.3 Project Development Cycle 28
3.4 Financing 30
3.5 Ownership 31
4. Market Conditions for Solar Photovoltaics (PV) Development 32
4.1 Utility-Scale, Ground-Mounted Systems 32
4.2 Rooftop Solar PV Projects 36
4.3 Off-Grid Solar PV Projects 39
4.4 Market Size Estimates 41
5. Market Conditions for Wind Power Development 47
5.1 Utility-Scale, On-Shore Wind Power 47
5.2 Offshore Wind 48
6. Market Conditions for Hydropower Development 54
7. Market Conditions for Geothermal Power Development 61
8. Market Conditions for Bioenergy Power Development 68
8.1 Biomass Power 68
8.2 Biogas Power 73
8.3 Waste-to-Energy 78
8.4 Biofuel for Power Plants 84
9. Market Conditions for Marine Energy Development 89
10. Market Conditions for Smart Grids and Battery Storage 93
10.1 Smart Grid Systems 94
10.2 Transmission Grid Control Systems 95
10.3 Advanced Metering Infrastructure 95
10.4 Isolated Grid Control Systems 95
10.5 Battery Energy Storage Systems (BESS) 96
10.6 Advanced Micro Grids 97
11. Top Business Opportunity Areas for UK Companies 101
12. List of References 107
Appendix A. UK Low-Carbon Capabilities 109
Appendix B. UK Renewable Energy Opportunities in Indonesia 152
Appendix C. Major Government Policies and Programs Affecting the Renewable
Energy Market 186
ATTACHMENT Documents Required for PLN’s Prequalification (PQ) list 220
Figures
Figure 1 Current Installed Capacity 18
Figure 2 Indonesia Electrification Ratio (2010-2019) 25
Figure 3 Levelised Cost of Renewables and Fossil Power Plant in Indonesia in 2019 26
Figure 4 Project Development Cycle and Key Milestones 29
Figure 5 Growth in Rooftop Solar PV Installations in Indonesia (2017-2020) 37
Figure 6 Utility-Scale Solar PV Market by Supply Chain Segment (2020-2025) 43
Figure 7 Utility-Scale Solar PV Market by Supply Chain Segment (2020-2025) 52
Figure 8 Breakdown of the Small Hydropower Market by Supply Chain Segment, 2020-2025 59
Figure 9 Breakdown of the Medium and Large Hydropower Market by Supply Chain Segment,
2020-2025 60
Figure 10 Breakdown of the Medium and Large Hydropower Market by Supply Chain Segment,
2020-2025 61
Figure 11 Breakdown of the Biomass Power Marked by Supply Chain Segment, 2020-2025 72
Figure 12 Breakdown of the Biomass Power Marked by Supply Chain Segment, 2020-2025 77
Figure 13 Breakdown of the Waste-to-Energy Market by Supply Chain Segment, 2020-2025 83
Figure 14 Total Biodiesel Production and Distribution (2016-2018) 84
Figure 15 Market for Biofuel Power 2020 - 2025 (USD million) 87
Figure 16 Global Marine Energy Projects from 2010 – 2017 (MW) 89
Figure 17 Smart Grid and BESS Market 2020 - 2025 (USD millions) 96
Figure 18 Summary of Business Opportunities 106
Figure C.1 Procurement Process for Waste-to-energy Projects 198
Figure C.2 Business Model for Waste-to-Energy Projects 198
Figure C.3 Local Content Requirements of Solar PV Projects 202
Table
Table 1 Planned Generating Capacity Additions, in Megawatts (2019 – 2028) 22
Table 2 Status of Renewable Energy Projects (MW) 23
Table 3 Summary of Regulatory Treatment of Renewable Energy IPPs 24
Table 4 Summary of Challenges in Domestic Financing for Renewable Energy Projects 30
Table 5 Solar PV IPP Projects under Development 33
Table 6 Local Content Requirements for Solar PV under Minister of Industry Regulation 5 of 2017 35
Table 7 Operating Geothermal Power Plants in Indonesia 62
Table 8 Waste-to-Energy Projects Under Development (2019-2025) 79
Table 9 Mandatory Biodiesel Blending Targets 85
Table 10 Levelized Cost of Energy for Various Marine Energy Technologies (USD/kWh) 90
Table A.1 Maturity of Selected UK Renewable Energy Sectors 110
Table A.2 Lists The UK Companies Involved in International Consulting on Green Financing
and Renewable Energy 110
Table A.3 UK Companies Providing Renewable Energy and Green Finance Services 115
Table B.1 Sectoral Opportunities for UK Companies in Indonesia’s Renewable Energy Market 153
Table B.2 Prospective Solar PV Projects (PLTS) 154
Table B.3 Prospective Wind Energy Projects (PLTB) 157
Table B.4 Prospective Hydropower Projects (PLTM) in Indonesia 160
Table B.5 Prospective Geothermal Projects (PLTP) 163
Table B.6 Prospective Bioenergy Projects: Biomass (PLTBm), Biogas (PLTBg), and
Waste-to-Energy (PLTSa) 166
Table B.7 Prospective Hydropower Projects 169
Table B.8 Bioenergy Projects 173
Table B.9 Prospective Wind Power Projects 182
Table B.10 Prospective Solar PV Power Projects 184
Table C.1 Indonesia’s Greenhouse Gas Energy Targets, in metric tons of carbon dioxide
equivalent (MTCO2 Eq) 189
Table C.2 Comparison of RUPTL 2018-2027 and RUPTL 2019-2028 189
Table C.3 Procurement of Renewable Energy IPPs under Current Regulation 192
Table C.4 Power Purchase Tariff for Waste-to-Energy Facilities 197
Table C.5 Power Purchase Tariff for Waste-to-Energy Facilities 201
Table C.6 Foreign Investment Limits for Various Renewable Energy Project Types 205
Table C.7 Summary of Indonesian Land Use Rights by Title 210
Table C.8 PLN Procurement of Renewable Energy Projects 215
Table C.9 PLN Pre-Qualification Rubric 217
Table C.10 Financing Challenges for Renewable Energy IPPs and Lenders 218
Abbreviation & Acronyms

Abbr. Description Abbr. Description
ADB Asian Development Bank MOU Memorandum of Understanding
AGC Automatic generation control MW Megawatt
ADS Automatic dispatch system MWp Megawatt peak
AMI Advanced metering infrastructure NDC Nationally Determined Contribution
BAP- National Development Planning Agency/Ministry of Planning NTB West Nusa Tenggara (Nusa Tenggara Barat)
PENAS (Badan Perencanaan Pembangunan Nasional)
NTT East Nusa Tenggara (Nusa Tenggara Timor)
BESS Battery energy storage system
O&M Operations and maintenance
BOO Build, own, operate
OPIC U.S. Overseas Private Investment Corporation
BOOT Build, own, operate and transfer
PLN Indonesian State Electricity Company (Perusahaan Listrik
BPP Average electricity production cost (Biaya Pokok Penyediaan) Negara)
BUMD Regionally-owned company (Badan Usaha Milik Daerah) PLTB Wind powerplant
CDM Clean Development Mechanism PLT biofuel powerplant
BBM
COD Commercial operating date
PLTBm Biomass powerplant
CPO Crude palm oil
PLTBg Biogas powerplant
DPT PLN’s List of Qualified Selected Providers, in the Prequalifica-
tion for Direct Selection Process (Daftar Penyedia Terseleksi) PLTM Small hydropower plant
DG Direktorat Jenderal/Directorate General PLTP Geothermal powerplant
DUKES Digest of UK Energy Statistics PLTS Solar PV powerplant
EBTKE Directorate General of New Renewable Energy and Energy PLTSa Waste-to-energy power plant
Conservation (Direktorat Jenderal Energi Baru Terbarukan
dan Konservasi Energi) POME Palm oil mill effluent
EMS Energy management system PPA Power purchase agreement
EPC Engineering, procurement and construction PQ Pre-qualification
FCDO Foreign, Commonwealth & Development Office PRK Low carbon development (Pembangunan Rendah Karbon)
GHG Greenhouse gas PSO Public Service Obligation
GW Gigawatt PV Photovoltaic
ICED USAID’s Indonesia Clean Energy Development Project RE 100 Renewable Energy 100 (companies committing to renewable
energy use)
IDR Indonesian Rupiah (currency)
REA Renewable Energy Association (of the UK)
IEA International Energy Agency
RPJMN National Medium-Term Development Plan (Rencana Pemban-
IPP Independent power producer/Penyedia Listrik Swasta (PLS) gunan Jangka Menengah Nasional)
JBIC Japan Bank for International Cooperation RUEN National Energy Plan (Rencana Umum Energy Nasional)
KEN National Energy Policy (Kebijakan Energi Nasional) RUKD Regional Electricity Plan (Rencana Umum Kelistrikan Daerah)
KfW German state-owned development bank RUKN National Electricity Plan (Rencana Umum Kelistrikan Nasion-
al)
KPPIP Committee for Acceleration of Priority Infrastructure Delivery
RUPTL PLN’s Electricity Supply Business Plan (Rencana Umum
kV Kilovolt (a unit of voltage) Penyediaan Tenaga Listrik)
kVA Kilovolt-ampere (a unit of apparent power) SCADA Supervisory Control and Data Acquisition
kWh Kilowatt-hour (a unit of energy) SDG Sustainable Development Goals
LCOE Levelized cost of electricity SMI PT Sarana Multi Infrastruktur
LTSHE Low Energy Solar-Power Lamps/Solar Home System (Lampu UK United Kingdom
tenaga surya hemat energy)
UKEF UK Export Finance
NEC National Energy Council (Dewan Energi Nasional)
USAID United States Agency for International Development
MDB Multilateral development bank
USD U.S. Dollar
ME Ministry of Environment and Forestry
VRE Variable generating capacity
MEMR Ministry of Energy and Mineral Resources (Kementerian
Energi dan Sumber Daya Mineral) WKP Geothermal Working Area (Wilayah Kerja Pertambangan)
MOF Ministry of Finance Wp Watt peak
MOI Ministry of Industry WTE Waste to energy
Executive Summary
Indonesia matters: it is the 4th most-populous But things are starting to change. The country’s
country and according to PwC it will be the 4th second-largest coal producer, PT Adaro Energy,
largest economy in the world by 2050. That has recently established a renewable energy
growth will generate increased demand for energy, division as part of the company’s long-term
which will create new opportunities for renewable plan to enter the clean energy business. Foreign
energy companies. governments, international development finance
institutions, private equity investors, foreign
Indonesia is blessed with an abundance and
developers and equipment and service providers
wide variety of renewable energy resources. The
are all keen to help the Indonesian government
government has therefore set ambitious targets
and PLN to accelerate the market for all
for renewable energy as a means of meeting its
renewable energy project types. In this vein, the
greenhouse gas emissions targets in the energy
UK Government’s Renewable Energy Prosperity
sector and increasing national energy security.
Fund programme aims to help improve the policy
The National Energy Policy (KEN) and Plan
environment for investment, provide more access
(RUEN) target renewable energy resources to
to reliable and affordable energy, and embed
provide 23% of all final energy consumption by
good practice and innovation across Indonesia’s
2025. The National Electricity Plan (RUKN) 2019-
renewable energy industry.
2038 targets 23% of electricity generated from
renewables by 2025. Developing Indonesia’s renewable energy sector
will create medium- to long-term opportunities
The rest of the current policy environment,
for international businesses in an area where the
however, does not sufficiently incentivise private-
UK holds considerable expertise – UK businesses
sector investment, so significant amounts of
offer world-leading capability in the renewable
international and domestic funds available to
energy sector and are well-placed to benefit
finance renewable energy infrastructure are
from the downstream opportunities created by
not being accessed at scale. And while large
the programme’s policy, technical and market
hydropower and geothermal powerplants
assistance in Indonesia. To secure future high-
contribute sizeable portions of the current
value contracts, however, companies need to be
electricity supply, the Indonesian government and
on the ground developing their networks in the
the national state-owned electric utility (PLN) have
short term.
been less successful in increasing the contribution
from other renewable sources such as small
hydropower, biomass, biogas, waste-to-energy,
solar PV, wind, and marine energy. Altogether,
renewable energy resources supplied 14.9% of all
electricity generated in the first half of 2020.
Market Values for Grid-Connected Renewable The geothermal market is estimated at USD 21
Energy Projects billion. In 2018, Indonesia became the world’s second-
largest geothermal power producer and is expected
The total market for renewable energy is estimated at
to surpass the United State in 2021, with a number
USD 38.9 billion over the period 2020 to 2025, based
of projects coming online and new concession areas
on PLN’s Electricity Supply Business Plan (RUPTL)
awarded. Geothermal exploration is characterized as
and current market conditions.
highly risky and capital-intensive. New geothermal
concessions have been primarily awarded to national
state-owned companies, but many lack the capital and
expertise to successfully develop the projects.
Estimated Market Value of Renewable Energy and Related Projects (USD millions)
2020-2021 2022-2025 Total Foreign Share

Geothermal 2,293.6 18,535.5 20,829.1 13,721.4
Medium/large hydro 2,702.5 6,825.0 9,527.5 4,316.0
Small hydro 1,795.0 1,565.0 3,360.0 598.1
Biomass 271.5 378.0 649.5 227.3
Biogas 50.0 150.0 200.0 60.0
Waste-to-energy 270.0 1,224.0 1,494.0 806.8
Biodiesel generators 62.5 103.1 165.6 112.5
Wind power 57.0 1,394.0 1,451.0 870.6
Utility-scale solar PV 252.0 423.5 675.5 429.0
Rooftop solar 28.4 65.4 93.8 50.4
Smart grid controls 20.0 132.5 152.5 152.5
Battery energy storage 65.0 215.5 280.5 280.0
Total 7,867.5 31,011.5 38,879.0 21,624.6
Source: Tetra Tech, based on PLN RUPTL 2019-2028
The hydropower market is estimated to be USD The bioenergy market is estimated to be USD 2.5
12.9 billion, with medium and large hydropower billion. It comprises biomass at USD 650 million,
(>10 MW) at USD 9.5 billion and small hydropower biogas at USD 200 million, waste-to-energy at USD
(< 10 MW) at USD 3.4 billion. With some exceptions, 1.5 billion, and biodiesel generators at USD 166
the government allocates most medium and large million. Biomass and biogas projects are largely
hydropower project development for PLN rather linked to operating forest and agro-processing
than independent power producers. These projects facilities where the primary use is for internal,
have the advantage of attracting international captive power. While there are no waste-to-energy
development financing. Small hydropower projects, projects currently operating in the country, the
due to ownership restrictions, are principally market is expected to accelerate with the issuance
developed and financed domestically. Imported of a Presidential regulation covering 12 of the
hydropower turbine-generators are typically largest cities and a clearer procurement process.
used, regardless of size. Foreign engineering and Diesel generators using 100% biofuel (principally
consulting services are used principally for medium from palm oil) are now allowed to sell power to PLN
and large-scale projects. under long-term contracts.
The wind power market is estimated to be USD Renewable Energy Business Opportunities
1.5 billion. Indonesia’s first commercial, utility-
The principal business opportunities are associated
scale wind farm began operating in 2017, and other
with independent power producers (IPPs) that are
projects are currently under development. As with
privately developed and financed and sell power
solar PV, however, PLN is already experiencing
to PLN under a long-term (up to 30 years) power
difficulties in integrating higher percentages of
purchase agreement (PPA) contract. There are
wind power into its grid.
opportunities at each stage in the IPP supply chain
The solar photovoltaics (PV) market is estimated for both foreign and domestic companies. The values
to reach USD 769.3 million, broken into two major of those opportunities, however, differ both by type
segments: utility-scale at USD 675.5 million and and size of project. The difference is a function of
rooftop at USD 93.8 million. Both segments are in the Indonesian energy industry’s capabilities, foreign
the early stages of development as government investment and ownership restrictions, and local
policies and PLN procurement practices are content requirements.
just now taking effect. In addition to larger grid-
For foreign businesses, the greatest (by value)
connected solar PV projects, the government and
opportunities are found in consulting and engineering
PLN are promoting smaller systems (250 kW to 5
studies, major electro-mechanical equipment supply,
MW) on small island isolated grids currently served
and engineering, procurement and construction
exclusively by diesel generators. Foreign companies
management, especially for projects with capacities
are involved as developers of the larger utility-
over 10 megawatts (MW). Because of the frequently
scale projects. Imports of solar PV panels and
changing regulatory treatment and permitting of
inverters account for the majority of the equipment
renewable energy IPPs over the past five years, as
opportunities in the market for both the utility-scale
well as the early implementation stages of current
and rooftop solar PV segments.
regulations, the renewable energy IPP business is
The market for smart grid solutions is expected considered risky, particularly at the stages of project
to open during the 2020 to 2025 period. Currently, preparation up to signing a PPA contract. Today,
battery energy storage systems (BESS) and most foreign companies have established offices in
advanced micro-grids are in the pilot demonstration Indonesia in order to conduct market intelligence,
stage. Given the Ministry of Energy and Mineral establish a relationship with PLN, and assess potential
Resources’ (MEMR) emphasis on improving grid Indonesian business partners.
operability and PLN’s recognition of the value of
With the exception of smart grid and BESS, emerging
smart transmission and distribution system control
technologies or those that are new to Indonesia
and BESS, these markets are estimated to be USD
are not likely to be introduced in the 2020-2025
153 million and USD 280.5 million, respectively. The
timeframe. Offshore wind and marine energy are not
smart grid market will likely be captured largely by
considered viable during the 2020-2025 timeframe,
foreign equipment suppliers and system integrators
though there may be a market for feasibility studies
given the lack of domestic capability and the
for projects to be developed after 2025.
prevalent use of smart grid technologies in more
advanced utility systems worldwide. Conclusions
Marine energy was a focal point of attention in Indonesia’s power sector remains an attractive
2016 and 2017, when MEMR appeared to encourage market if only by its sheer size and expected increase
the international community to help harness in generating capacity to meet electricity demand
the resource, principally tidal currents. Current growth, which is expected to be 5-7% nationally.
government policy, however, is less favorable, The current government emphasis on maintaining
and PLN now views marine energy as not yet low electricity rates by subsidizing coal prices, while
commercially available for Indonesia. also eschewing meaningful incentives for renewable
energy, places national targets for renewable
energy’s contribution to both electricity supply and
total energy supply out of reach. The government’s
targets are expected to be met in 2025; as that
year approaches, current policies and treatments of
renewable energy will need to be revised (it should be
noted that PLN updates its
1. About the study

1.1 Background 1.3 Study Approach
The UK has long been committed to addressing In defining the market for renewable energy, the
climate change and supporting the shift to a “commercial” application of renewable energy
cleaner, low-carbon economy within and beyond technologies in the power sector (the supply of
its borders. Its recent Industrial Strategy made electrical energy to the grid or directly to consumers)
clean growth one of the country’s four “Grand must first be identified. This study analyzes the
Challenges,” giving it economic and political Indonesian electricity market with respect to the
priority. areas of opportunity for seven broad types of
The UK has wide-ranging expertise encompassing renewable energy projects: solar, wind (onshore and
everything from research into innovation, through offshore), marine, hydro, geothermal, bioenergy
to the manufacturing, construction and deployment (including biomass, biogas and biofuels) and electrical
of energy-efficient buildings, renewable energy networks and storage (including smart grids).
technologies and electric vehicles. It also has the The approach taken in assessing business
policy and regulatory expertise required to support opportunities involves: 1) understanding current
these endeavors. market conditions, 2) analyzing market segments
The Foreign, Commonwealth and Development and business prospects in different timeframes, 3)
Office (FCDO) has commissioned several studies breaking down opportunities, 4) determining the UK
that estimate the total investment required to meet renewable energy industry’s competitive advantages,
Indonesia’s renewable energy targets. Renewable and 4) identifying specific business opportunities for
energy companies interested in participating in the UK companies.
Indonesian renewable energy market must make
the distinction between high-level government 1.4 Market Size Estimation
ambition and the realities of pursuing specific The assessment of the market and identification of
business opportunities on the ground. business opportunities was based on current laws,
regulations, programs, procurement plans and
1.2 Purpose of Study industry capabilities. Indonesia held presidential
The UK Department for International Trade elections in April 2019, and the new administration’s
aims to export the UK’s low-carbon capabilities proposed reforms in the energy sector and electricity
to Indonesia. To support this, the FCDO, on subsector, as well as its priorities relative to climate
behalf of the Department, commissioned this change and renewable energy development, will
study to analyze the state of the renewable be presented in the next National Medium-Term
energy market in Indonesia, covering business Development Plan (RPJMN) covering the period
opportunities, regulatory barriers, and export 2020-2024.
business opportunities. Specifically, the study The size of the renewable energy market in Indonesia
intends to: 1) identify quickly where opportunities was broken down by resource or technology type,
exist in Indonesia that match UK capabilities, 2) timeframe, project type or size, supply chain value
identify existing and new UK-based companies with added, economic buyer, and foreign and domestic
expertise in this sector and an interest in doing share or contribution. The size of the market was
business in Indonesia, and 3) provide insight on the calculated based on the planned or expected
potential challenges UK companies are likely to face generating capacity to be added in the near term
in developing and investing in renewable energy (2020-2021) and mid-term (2022-2025), which are
projects in Indonesia. contained in PLN’s (the national utility) Electricity
Supply Business Plan (RUPTL) for 2019-2028. For
each project type, actual project cost data from
Indonesia for the period 2020-2021 and expected
price declines for the 2022-2025 period were used
to calculate the cost per installed MW. The total MW
to be added during the period were multiplied by the
estimated cost per installed MW to determine the
market during each period.
Step 1: Estimating the value of the market

A B Last, the contributions from foreign and domestic
C (Indonesian) businesses for each supply chain
= Installed = Project
X = = Market
capacity cost (US$
value (US$) input were allocated. The percentage for foreign
(MW) per MW) and domestic businesses was based on knowledge
of the market and actual projects in Indonesia. In
US$1.5 some cases, the domestic share was adjusted based
US$300
Example: 200MW X million =
million on government domestic content requirements,
per MW even though they may not yet be enforced.
To determine the market share for each input to Step 3: Estimating the Foreign Share Market Value
the supply chain, data from Indonesian projects of Each Supply
were used to determine the share of the total costs
allocated to each supply chain input. The share was
assigned as a percentage of the total cost. The sum E G
of all supply chain inputs is 100%. = Supply F = Market
chain input X = Foreign = value of
Step 2: Estimating the Market Value for Each market share (%) foreign
Supply Chain Input share (US$) share (US$)
E
D
= Market
C = Market
value of
= Market X share per =
a specific
value (US$) supply chain US$60 US$42
supply chain Example: X 70% =
input (%) million million
input (US$)
20% (for
consulting
US$300 US$60
Example: X and =
million million
engineering
services)
1.5 Identification of 1.6 Opportunities for UK

Renewable Energy Companies
Project Opportunities
The identification of renewable energy project The opportunities for the UK renewable energy
opportunities relies on the projects listed in the industry are defined by the capabilities of UK
PLN RUPTL 2019-2028. The RUPTL is broken down companies and the accessibility for foreign companies
into 5 regions and 34 systems. For each system, to participate in that market segment supply chain.
PLN includes a table with the details of the power It should be noted that renewable energy projects
development plan for that system. Each project vary greatly in terms of the point where purchasing
listed includes information on the project type (e.g., decisions are made and/or finalized. This distinction
solar PV), the project name or location, generating is described in more detail in each of the study’s
capacity, target commercial operating date (COD), market condition sections. Where possible, the major
status (e.g., power purchase agreement, or PPA), and players in each renewable energy markets have
developer. The developer is PLN, an independent been identified. These would constitute the main
power producer (IPP), or “unallocated.” Unallocated competitors for UK companies.
means PLN has not determined whether the project
will be offered to IPPs for development or if PLN will
develop the project itself. Some projects are only
1.7 Sources of Information
defined as “scattered,” which means that PLN does This study relied on a combination of published
not have a specific location or the size of individual sources (e.g., reports, presentations), unpublished
generating units. Scattered projects are the least sources (e.g., internal documents compiled from key
defined and are only used to build up the total MW for stakeholders), Tetra Tech’s internal information such
each renewable energy project type. as its clean energy project pipeline and database, as
well as information from meetings with informants.
Of the renewable energy projects listed in the RUPTL,
only those that are early enough in the project A list of references, including publications,
development process to provide opportunities for a presentations, articles and persons interviewed for
new entrant to capture the business were included this study is provided at the end of this report.
in the study. Projects defined as “scattered” were
excluded, as were projects under construction. For
projects in the “planning” stage, only those with a
COD of 2025 or earlier were included. As RUPTL 2021-
2030 has not been published, the current version of
this study includes any available updates on the listed
projects and other potential projects identified from
other sources.
2. Indonesia Energy Industry

Background
Following the COVID-19 pandemic, IMF estimated Indonesia is the most populous and largest
a -1.9% annual change in real GDP growth in 2020 economy in Southeast Asia, but it also has one
for Indonesia. Despite the economic downturn, of the lowest per capita electricity consumption
IMF projects that Indonesia’s real GDP will expand rates in the region.4 Built on an archipelago, the
by 4.8% in 2021 and 6% in 20221, followed by electricity system is non-uniform in terms of: 1)
approximately 5% growth each year up to 20252. customer demand and expected load growth,
The economy has started to rebound last July, 2) generation, transmission and distribution
supported by the National Economic Recovery infrastructure, and 3) electricity supply quality
Program which included public disbursements for and reliability. Though Indonesia has reportedly
social protection, support for SMEs, health care, achieved 99.2% access to electricity services
and business incentives, among others3. in 2020, outside densely populated areas,
electricity demand is often suppressed by the
limited availability of electricity supply. This leaves
customers in many rural areas both unserved and
underserved.
Source: CartoGIS Services, College of Asia and the Pacific, The Australian National University
1
International Monetary Fund, Indonesia 2020 Article IV Consultation – Press Release; Staff Report; and Statement by the Executive Director for Indonesia, March 2021
2
International Monetary Fund, World Economic Outlook, October 2020
3
International Monetary Fund, Indonesia Has an Opportunity to Boost Growth, March 2021
4
Hannah Ritchie and Max Roser (2020) – “Energy”. Published online at OurWorldInData.org. Retrieved from: ‘https://ourworldindata.org/energy’ [Online Resource]
To provide for balanced and inclusive economic growth and long-term outlook for investors and
growth, Indonesia has a “uniform tariff” whereby all the renewable energy industry. These come in
residential, commercial, institutional and industrial the form of policies related to pricing (e.g., power
customers pay the same electricity retail tariff in purchase prices, energy commodity prices), tax and
each customer class regardless of their location other fiscal incentives, investment and ownership
and the local cost of generation. This forced rate limitations, domestic content requirements, and
uniformity results in geographic cross-subsidies: the business, land use, and environmental permits and
average electricity generation cost varies greatly license requirements. In the case of Indonesia,
across Indonesia, with the lowest production costs frequent changes in government regulations,
found in the Java-Bali system (less than USD 7 coupled with the poor implementation of tax and
cents/kWh) and the highest costs in remote regions other incentives, have made Indonesia a relatively
of East Indonesia and small islands (more than unattractive investment climate, especially in the
USD 21 cents/kWh) where diesel is the main fuel for context of the lack of a real market for energy and
electricity. The government’s policy of maintaining electricity where prices reflect real costs.
affordable electricity prices is accompanied by its
Higher-level policies such as greenhouse gas
policy of controlling the cost of fossil fuel prices,
emission mitigation from the energy sector
specifically coal and natural gas. PLN’s primary
and targets for renewable energy’s share of
objective in adding new generation sources to its
total energy generally reflect a government’s
grid is to lower its overall cost of production.
priorities, but in the case of Indonesia, they have
In most countries, specific policies to incentivize yet to directly influence the market and business
the use of renewable energy resources are critical opportunities for renewable energy. PLN is not
to both the creation of the market, as well as its incentivized to reach these government goals.
2.1 Key Government 2.2 Other Key Stakeholders

Institutions in the Power Sector
Four main institutions shape the renewable energy Private independent power producers are taking
market in Indonesia. At the highest level is the on an increasing role in developing, owning and
National Energy Council (NEC), which reports operating powerplants with long-term power
directly to the President. NEC is responsible for purchase agreements (PPAs) with PLN. Each
developing the National Energy Policy (KEN), which project is set up as a special-purpose vehicle and
set a target for 23% of final energy consumption to can include shareholdings of foreign and domestic
come from new5 and renewable energy resources. investment companies and equipment suppliers.
The Ministry of Energy and Mineral Resources IPPs play a critical role in the renewable energy
(MEMR) prepares the National Energy Plan sector, as they often take risks that PLN is not
(RUEN) and National Electricity Plan (RUKN) to willing to take, for example, in developing and
implement the KEN. MEMR also issues regulations operating unfamiliar technology such as wind and
for electricity planning, pricing, business licenses solar PV plants. IPP projects range from 800 MW
and contract terms, and renewable energy- coal projects to bioenergy, mini-hydro and solar
generated electricity. The Ministry of Development PV projects with capacities of less than 10 MW.
Planning (BAPPENAS) is responsible for preparing All IPP projects were developed under a build-
the Medium-Term Development Plan (RPJMN) own-operate-transfer (BOOT) scheme whereby
including energy/electricity infrastructure to the generation assets are transferred to PLN at
support economic development. PLN is a vertically the end of the term of the PPA contract. However,
integrated monopoly electric utility serving all of this scheme was repealed in 2020 through MEMR
Indonesia. It is directly responsible for generation, Regulation 4/2020 on the Second Amendment of
transmission and distribution; however, PLN MEMR Regulation 50/2017.
subsidiaries as well as private foreign and domestic
Equipment suppliers and service providers are a
companies are increasingly involved in generation
critical part of the supply chain whether for PLN,
as independent power producers (IPPs).
IPPs or captive power users. Indonesia relies on
A domestic supply chain is a key component of foreign suppliers for major powerplant components
lowering prices for renewable energy project and for consulting and engineering services,
development. The development of domestic particularly for larger-capacity powerplants.
inputs, however, should follow the growth in the
The financing institutions active in the Indonesian
market rather than the current government policy
power sector consist of multilateral development
of imposing local-content requirements at the
banks such as the Asian Development Bank and
earlier stages of market development. Successful
The World Bank/International Finance Corporation,
utility-scale projects developed by experienced
bilateral development finance institutions, private
international companies are needed to send strong
international and domestic banks, and specialised
market signals, create manufacturing demand,
foreign and domestic private equity funds.
and improve the quality of local services. As the
Indonesian institutions mandated to support the
market grows, this creates opportunities for joint
financing of infrastructure, including for electricity
ventures with foreign companies, value-added
generation are PT Sarana Multi Infrastruktur
manufacturing, and transfer of technology to the
(Persero) and the Indonesian Infrastructure
local industry. While there are some exceptions,
Guarantee Fund. PT SMI in particular is responsible
the nascent status of the Indonesian renewable
for the SDG Indonesia One platform, which funnels
energy industry coupled with domestic-content
financing for environmentally- and socially-
requirements essentially adds cost for inefficient
impactful projects, and the Geothermal Fund.
project development, higher manufacturing costs,
and lower performance. Meanwhile, caps on foreign
ownership restrict access to international equity
sources and lower-cost capital from international
lenders.
5
“New” energy resources include nuclear, clean coal and coal bed methane, and other non-renewable energy resources.
2.3 Indonesian Power

Market
As of June 2020, PLN had 71 gigawatts (GW) of (5%), and 0.55 GW owned by the Government
power generating capacity on its system. This was (0.1%).6 PLN plans to double its current capacity
composed of 43 GW owned and operated by PLN over the next ten years, and will increase its
(60.7%), 18.816 GW owned and operated by IPPs reliance on IPPs.
(26.5%), 5.645 GW through Operational License
(7.7%), 3.583 GW through Public Private Utility
Figure 1. Current Installed Capacity

12000
10000
8000
Water (MW)
6000
Geothermal (MW)
4000 Bioenergy (MW)
Solar (MW)
2000
Wind (MW)
0 Hybrid (MW)
2016 2017 2018 2019 2020
Source: MEMR, 2021
6
Ministry of Energy and Mineral Resources, Republic of Indonesia. 2020. Hingga Juni 2020, Kapasitas Pembangkit di Indonesia 71 GW. https://www.esdm.go.id/id/media-center/arsip-berita/hing-
ga-juni-2020-kapasitas-pembangkit-di-indonesia-71-gw#:~:text=Menteri%20Energi%20dan%20Sumber%20Daya,lalu%20sebesar%2069%2C7%20GW.
Each year, PLN prepares and MEMR approves a Of the renewable energy resources, medium
10-year Electricity Supply Business Plan (RUPTL). and large hydropower and geothermal are well-
In the 2019-2028 RUPTL, PLN lays out a detailed developed and are core to PLN’s current generation
plan including electricity demand growth, number mix and future expansion plans. Together they
of customers, village electrification, as well as the supply 12% of all electricity generated in 2018 and
planned expansion of the generation, transmission 75% of all planned renewable energy capacity to be
and distribution system over the 10-year period. added between 2019 and 2028.
The RUPTL states that coal-fueled electricity will According to MEMR, per capita electricity
continue to constitute more than 50% of PLN’s consumption has only reached 1,084 kWh per
supply. A governmental domestic market obligation capita in 2019, below both the target of 1,200 kWh
requires that a percentage of coal production per capita and other Southeast Asian countries.
be sold within Indonesia, while ceiling prices for The ministry targeted 1,142 kWh per capita for
different qualities of coal are designed to relieve 2020, but the actual number remains to be
PLN’s financial burden and shield it from price confirmed following the demand downturn as a
fluctuations. It should be noted that under IPP side-effect of the COVID-19 pandemic. Per capita
contracts in Indonesia, PLN assumes the fuel supply electricity consumption is targeted at 1,203 kWh in
responsibility and associated price risk. 2021, 1,208 kWh in 2022, 1,268 kWh in 2022, 1,336
kWh in 2023, and 1,408 kWh in 2024. However, the
Currently, gas-fired power stations account for
Director General for Electricity has also stated their
approximately 22.5% of total generation and are
plan to decrease the annual growth projection for
expected to maintain a similar share over the next
national electricity consumption for the next 10
10 years. Indonesia has extensive gas reserves and
years in RUPTL 2021-2030 from the previous 6.4%
the global glut of liquefied natural gas production
to 4.9%.
should ensure stable prices at least in the near
term. Significant investment is still needed in gas Apart from the major developers mentioned in
infrastructure, including for pipelines and floating each of the renewable energy sections, Indonesia
storage regasification units, in order to expand gas is also seeing large corporates starting their
utilization, particularly in eastern Indonesia. journeys as renewable energy IPPs. This list
includes PT Medco Power Indonesia, a subsidiary of
Oil, including high-speed diesel, marine fuel oil and
oil, gas, and mining corporation PT Medco Energi
industrial diesel oil, has been gradually phased
Internasional Tbk, whose gas power plants have
out of PLN’s fuel mix in favor of coal and natural
been complemented by several geothermal, hydro,
gas. Power generation from refined oil products
and solar power plants. PT Adaro Power from
accounted for 6.9% of Indonesia’s total generation
household mining name PT Adaro Energy Tbk has
in 2018. PLN plans to continue to phase oil down to
also installed its first rooftop-mounted solar PV
0.4% in 2028. The bulk of the oil use is for isolated
panels and is planning solar and biomass power
grids across the country.
plants in Sulawesi. PT Nusantara Infrastructure
Tbk is currently involved in mini-hydro and biomass
t in collaboration with state-owned PT PP Energi
(subsidiary of PT PP (Persero) Tbk). Another state-
owned company, PT Geo Dipa Energi (Persero) has
developed a number of geothermal projects on an
IPP basis.
3. Renewable Energy Market

Characteristics
3.1 Major Government
Policies and Programs
Energy Sector Greenhouse Gas Emissions National Energy Policy and Plan
Indonesia’s nationally determined contribution In March 2017, President Jokowi signed
(NDC) under the UN Framework Convention Presidential Regulation 22/2017 on the National
on Climate Change outlines its transition to a Energy Plan (RUEN). The regulation states that
low-carbon future. The country has committed RUEN is a central government plan for managing
to an unconditional emissions reduction of the national energy sector; it is an elaboration of
29% by 2030 compared to the business-as- and implementation plan for the multi-sectoral
usual scenario, and up to a 41% reduction with National Energy Policy (KEN). The RUEN sets a
international assistance. Indonesia submitted target of 23% of Indonesia’s final energy use to
its intended NDC in September 2015 and its first come from new and renewable energy resources
NDC in November 2016. by 2025, and 50% by 2050.
Originally, the energy sector was expected to Within months of the regulation’s signing,
be the primary source of GHG reduction, but Minister of Energy and Mineral Resources
the Government of Indonesia shifted the burden Ignasius Jonan stated MEMR’s priority of low-cost
to the forestry sector. Forestry is expected to energy over favorable incentives for renewable
contribute 17.2% of the reduction and energy energy sources as well as the impracticality of
11%. The lower target for energy is in line with the making such an energy transition within the span
government’s continued commitment to the use of eight years.
of coal in the power sector as well as lower than
The Omnibus Law on Job Creation that was
expected electricity demand growth.
passed in 2020 was intended as a step forward
The government’s Low Carbon Development to lower barriers to investment and improve the
(PRK) Program is linked to Presidential domestic business environment, which includes,
Regulation No. 59 of 2017 on the Implementation among others, revising the Negative Investment
Actions to Achieve the United Nations List. Pending the issuance of supporting
Sustainable Development Goals. In 2018, implementing regulations, its effect in the
BAPPENAS stated that it is promoting low-carbon renewable energy sector cannot be determined.
development as a new integrated approach in
the national development policy. It intends to
incorporate PRK in various national development
policies and infrastructure programs to balance
economic, social and ecological goals. PRK has
also been promoted in establishing the new
Medium-Term Development Plan (RPJMN 2020-
2024).
The long-awaited Presidential Regulation on On the legislative side, the House of

Renewable Energy Tariff has seen delays since Representatives is also gearing up for the
its targeted publication date in 2020. As the issuance of Renewable Energy Law at the end
draft regulation is still undergoing its approval of 2021. The draft Law has been designed to
process among all the related ministries and be the legal framework for renewable energy
government institutions, the market has been policy issuance, management, provision, and
speculating its exact contents for the past year. usage of new and renewable energy. The
On a virtual event held by MEMR to present the industry is anticipating friendlier clauses from
2020 Achievements and 2021 Targets for New, the law and we understand that the draft law
Renewable Energy and Energy Conservation is being reviewed and updated for few critical
(EBTKE) Subsector, the current Director General issues. The first one is the inclusion of nuclear
for EBTKE announced some points that will power development in the draft, a result of
be regulated by the Presidential Regulation, nuclear power lobbying within the process of the
including: drafting of the law. However, no justifications
have been included in the draft law regarding
a. Feed-in-Tariff staging, 2 steps without
the importance of nuclear power in Indonesia.
escalation;
Analysts have also been discussing how the
b. Harga Patokan Tertinggi (HPT)/Ceiling price draft law is not addressing the actual issues
staging, 2 steps without escalation; that are hindering the renewable energy sector.
c. Mutually agreed tariff; Stakeholders have also been highlighting the
importance of regional governments in renewable
d. Feed-in-Tariff price without location factor energy management, but no clear allocation of
for hydro, solar, geothermal power plants responsibility between the central government
that were wholly financed through central and the regional government have been made
government budget/grant; in the draft law. A lack of data on renewable
e. HPT without location factor for hydro, solar, energy also remains unaddressed by the draft
geothermal, and wind power plants that were law, despite experts highlighting the challenge
partially financed through central government that the absence of a comprehensive, accessible
budget/grant and biomass, biogas and waste- inventory places on the development of various
to-energy power plants that were wholly renewable energy-related activities.7
financed through central government budget/ The draft law is expected to include matters
grant; of feed-in-tariffs, mandate for Renewable
f. HPT requires approval from the Minister of Portfolio Standard (RPS) for fossil-based power
Energy and Mineral Resources; generators, fiscal and non-fiscal incentives, and a
renewable energy fund, among others. 8
g. Provisions for power purchasing price will be
evaluated for up to 3 (three) years; and
h. In the case that the evaluation causes a
change in price, details regarding the change
in price will be regulated through a Ministerial
Regulation.
7
Indonesia Center for Environmental Law and Yayasan Indonesia Cerah, ‘Dua isu krusial dalam rancangan undang-undang energi baru terbarukan’ https://icel.or.id/wp-content/uploads/Poli-
cy-Brief-ICEL-Cerah-Analisis-RUU-Energi-Baru-Terbarukan1_opt.pdf
8
IESR, Indonesia Energy Transition Outlook 2021, https://iesr.or.id/agenda-iesr/indonesia-energy-transition-outlook-2021#:~:text=Melalui%20IETO%2C%20IESR%20bermaksud%20untuk,ener-
gi%20bersih%20di%20tanah%20air.
Electricity Planning and Development. projects accounted for 45.9% of the total renewable
energy generation; IPPs, 52%; and leased diesel
Electricity planning is the purview of MEMR (RUKN),
generators using biofuel, 1.6%. The contributions from
provincial energy offices (RUKD), and PLN (RUPTL).
wind and solar PV projects are expected to increase in
The RUKN 2019-2038 has been officially issued
2019 with the commercial operation of wind in South
through MEMR Regulation 143/2019. The document
Sulawesi and additional solar PV projects in Lombok
highlighted two targets: 1) new and renewable energy
and North Sulawesi.
should constitute 23% of the electricity supply mix
by 2025 and 2) the electrification ratio should reach A critical review of the 2019-2028 RUPTL (Table 1)
100% of all households by 2020. Electricity access for relative to the two previous Plans reveals significant
all households reached 99.2% in 2020, falling slightly differences in planning assumptions, particularly for
short of the MEMR target.9 the later years of the plan. It also reflects changes
in government regulations and the procurement
PLN’s RUPTL reflects its strategy for renewable
mechanisms as used applied to renewable energy
energy to meet electricity demand, reduce GHG
resources.
emissions in the power sector, provide an attractive
investment scheme for the private sector, and The most significant changes can be seen for solar
contribute to lower overall electricity production PV. In 2016, the total capacity to be added from
costs. President Jokowi’s signature 35,000 MW solar PV (2017-2026) was just 87 MW. The total
program directed PLN to build or sign contracts was revised upwards to approximately 1,000 MW in
with independent power producers for 35,000 MW subsequent RUPTLs. It is also worth noting that the
of new generating capacity by 2019. Due to slower- current RUPTL (2019-2028) shows the largest single-
than-expected demand growth, MEMR has initially year capacity additions in 2025, corresponding to
revised the target to 20,000 MW by 2019. MEMR’s the deadline for the government target of 23% of
report published in January 2021 on the Ministry’s generation to come from new and renewable energy
2020 achievements and 2021 targets mentioned that resources. Renewable energy generating capacity
MEMR targets about 12,009 MW renewables installed added in 2025 constitutes 37.4% of the 10-year total
capacity by 2021. of renewable energy capacity. Of this, geothermal
(44.1%) and medium and large hydro (48.7%) make
Electricity production from renewable energy
up 92.9% of all renewables. Given that these types
resources represented 12.1% of total generation with
of projects take five to seven years to develop, the
95% of all renewable energy generation coming
projects should already be under development.
from geothermal (43.5%) and hydropower (51.3%).
PLN-owned and -operated renewable energy power
Table 1. Planned Generating Capacity Additions, in Megawatts (2019 – 2028)
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total
Geothermal 190 151 147 455 245 415 2,759 45 145 55 4,607
Large Hydro 154 326 755 0 182 1,484 3,047 129 466 1,467 8,010
Small Hydro 140 238 479 200 168 232 27 20 20 10 1534
Solar PV 63 78 219 129 160 4 250 0 2 2 907
Wind 0 0 30 360 260 50 150 0 0 5 855
Biomass/Biogas 12 139 60 357 50 103 19 5 15 35 795
Marine 0 0 7 0 0 0 0 0 0 0 7
Total 559 932 1,697 1,501 1,065 2,288 6,252 199 648 1,574 16,715
Source: PLN RUPTL 2019-2028.
9
MEMR’s 2020 Achievements and 2021 Targets report
PLN maintains an internal monitoring system for on available data, renewable energy installations
tracking the progress of renewable energy projects have not achieved the targets set out in RUPTL 2019-
under development. The status of these projects, by 2028. Over 2019 and 2020 respectively, the target
stage of development, is shown in Table 2. achieved for additional capacity is 90% and 0% for
geothermal; 80% and 26% for combined hydro,
Although RUPTL 2020 or 2021 have not been
109% and 22% for solar PV; and 58% and 10% for
released, realisation data from MEMR for installed
bioenergy. Although no target were set, installed
capacity has been released in January 2021. Based
capacity for wind power increased by 10.8 MW in 2019.
Table 2. Status of Renewable Energy Projects (MW)
Type of Generation Planned PPA Financial Close Construction Operating Total
Geothermal 2,227 0 1,720 660 1,915 6,522
Hydro/pumped storage 5,221 0 350 2,439 4,084 12,093
Small hydro 871 108 180 375 427 1,961
Solar PV 323 0 0 45 25 393
Wind 95 0 0 60 70 225
Wind or solar PV 1,289 0 0 0 0 1,289
Waste-to-energy 249 0 0 10 18 276
Biomass/biogas 460 41 10 25 181 716
Marine energy 7 0 0 0 0 7
Total 10,802 149 2,259 3,554 6,718 23,482

Source: PLN, March 2019.
Renewable Energy Independent Power Production. The regulations set ceiling prices for the purchase
In March 2017, MEMR issued new regulations of renewable energy by reference to the average
intended to overcome PLN’s reluctance to purchase cost of generation or electricity production (biaya
power from renewable energy IPPs while providing pokok penyediaan or BPP).10 Renewable energy
more certainty in the contract terms in the PPA. pricing in Indonesia is based on two principles: 1)
The new rules focus on two main issues: 1) the renewable energy IPP rates will not exceed the
setting of the tariff for PLN’s purchase of electricity regional BPP in regions where the BPP is less than
from renewable generators, and 2) the tendering the national BPP, and 2) where the regional BPP is
schemes to be used for awarding renewable greater than the national BPP, renewable energy
projects to IPPs. IPPs Renewable energy will lower PLN’s average
cost of electricity supply by setting the price at
85% to 100% of BPP. In cases where the local or
regional BPP is less than the national BPP, the
national BPP will serve as the reference price for
renewable energy power purchases.
10
BPP consists of the amortized capital costs, fuel and non-fuel operating costs. It excludes associated transmission and distribution costs, including losses.
MEMR made further additions to its national grid- power through the direct appointment scheme
connected renewable energy IPP program with under certain conditions, for hydropower power
the issuance of MEMR Regulation No. 50 of 2017 plants built by using state-owned water resources,
on August 8, 2017. This regulation was amended and for projects partially or wholly developed by
through MEMR Regulation No. 4 of 2020. As of the government, including through a grant11. The
18 February 2021, the most recent and valid BPP regulation has also mandated PLN to prioritize
is the national 2018 BPP issued through MEMR dispatch for all renewable power plants regardless
Decree No. 55 of 2019. The national 2018 BPP is of the generation capacity, and for PLN to operate
USD 7.86 cents/kWh, up from USD 7.66 cents/kWh all renewable power plants on a must-run basis.
in 2017. This reflects the higher costs for fossil fuel,
MEMR Regulation 50/2017 introduced two other
namely coal and natural gas. The regional BPP
conditions into the IPP program: direct selection
for West Sumatra, South Sumatra, Lampung, and
and BOOT (build-own-operate-transfer). Direct
the entire interconnected Java-Bali system are
selection allows PLN to select among prequalified
below the national average. The highest regional
developers for the right to undertake the project.
BPPs are found in the small island systems; they
BOOT provides for PLN to assume ownership and
are capped at USD 21.34 cents/kWh. The regional
control of the generation assets after the term of
BPP for small island systems powered by diesel
the PPA contract. However, the BOOT requirement
engines increased, on average, by 14% from 2017
was revoked through the MEMR Regulation 4 of
to 2018. This reflects the rise in diesel fuel costs.
2020. Table 3 summarizes the regulatory treatment
The second amendment, MEMR Regulation 4 of
of various renewable energy IPPs in Indonesia.
2017, opened up the possibility for PLN to procure
Table 3. Summary of Regulatory Treatment of Renewable Energy IPPs 12
Renewable Areas where Regional Areas where Regional Investment

Appointment Method
Energy Resource BPP < National BPP BPP > National BPP Basis
Solar
Wind
Tariff will be mutually Maximum 85% of regional

Ocean energy
agreed BPP
Biomass Direct selection, or

direct appointment
Biogas under specific
Not specified
circumstances laid out
Waste-to-Energy* in MEMR Regulation 4
of 2020 For Sumatra, Java, and
Bali or other local systems Maximum 100% of
Geothermal
the tariff will be mutually regional BPP
agreed
Hydro
Biodiesel Tariff will be mutually Tariff will be mutually

Powerplants agreed agreed
11
ICLG, Indonesia Renewable Energy Laws and Regulations 2021 https://iclg.com/practice-areas/renewable-energy-laws-and-regulations/indonesia
12
MEMR Regulation No. 4 of 2020
Rural Electrification.
The National Energy Policy, adopted in 2014, target is the shared responsibility of PLN, MEMR
states that Indonesia should “approach” a 100% and local government. According to MEMR, the
electrification ratio by 2020. Meanwhile, the 2015- national electrification ratio reached 99.2% in
2019 National Medium-Term Development Plan aims 2020. Figure 2 shows the progress made in access
for an electrification ratio of 96.6% by the end of to electricity since 2010.
2019. Achieving the national rural electrification
Figure 2. Indonesia Electrification Ratio (2010-2019)

National Electrification Ratio
2019 99.90%
2018 98.05%
2017 93.08%
2016 91.16%
2015 88.30%
2014 84.35%
2013 80.51%
2012 76.56%
2011 72.95%
2010 67.15%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
Source: MEMR, 2019
MEMR Regulation No. 38 of 2016 was issued to status in Indonesia, or cooperatives to operate
accelerate electrification in undeveloped rural micro-utilities in areas where PLN agrees not to
areas, remote regions, border areas, and small provide service; electricity must be provided at
inhabited islands through the implementation of PLN’s retail tariff. MEMR has been reluctant to
small-scale electricity enterprises. The regulation issue licenses that cover more than one year since
allows for the licensing of state-owned business they approve PLN’s RUPTL each year with the
entities, privately owned businesses with legal agreed update to the electrification master plan.
3.2 Cost and Technical

Considerations
Levelised Cost of Energy The relative cost contribution influences the
financing structure of a power project. Capital
The levelised cost of energy (LCOE) represents the
costs are fixed and spread across the life of the
average revenue per unit of electricity generated
PPA. Fuel costs are often indexed to global prices,
that would be required to recover the costs of
while operating costs are indexed to inflation or
building and operating a generating plant during
consumer price indexes. In Indonesia, fossil fuel
an assumed financial life or term of a PPA. LCOE is
costs are excluded from most IPP PPAs as they are
often used to determine the overall competitiveness
PLN’s responsibility. This greatly reduces the risk of
of different generating technologies. Key inputs
fuel price fluctuations for the project developer, but
to calculating the LCOE include capital costs,
increases PLN’s exposure to both price fluctuations
fuel costs, fixed and variable operations and
and exchange rate fluctuations if the fuel is
maintenance (O&M) costs, financing costs, and an
imported. Other operating costs are captured in
assumed utilization rate for each plant type.
the power purchase price and, for projects above
Biomass powerplants costs are similar to those of 10 MW, are escalated over the life of the contract.
fossil fuel powerplants in that they have capital Land costs are incorporated into the capital costs.
costs and fuel costs. Biogas and waste-energy
projects also require fuel (or feedstock), although
these costs are often captured in the financing
structure where revenues are shared with the
feedstock supplier. The levelised costs of energy for
hydropower, solar PV, wind and marine projects are
concentrated in the project’s capital costs.
Figure 3. Levelised Cost of Renewables and Fossil Power Plant in Indonesia in 2019
ct/kWh
20
18 Onshore
Wind
16 16.1
14 OCGT
Utility
12.94 Biomass
12 Coal Scale
Coal Ultra Solar 11.4
Coal
10 Coal Sub Super 10.28
9.2 CCGT Super Geothermal
Critical
8.93 Mine Critical Critical
8 8.41 8.38 7.39 8.7
Mouth 8.05
6.69 7.31 6.11 5.83 5.84
6 5.77
5.01 4.68
4.56
4
Source: IESR (2019). Levelised Cost of Electricity in Indonesia – Understanding The Levelized Cost of Electricity Generation.
Local Currency relationship between the magnitude and duration of

stream flows, with duration referring to the overall
Based on Central Bank of Indonesia regulation,
percentage of time that a particular flow is exceeded).
any transaction executed in Indonesia is to be
The capacity factors for wind and solar PV depend on
denominated in local currency (Indonesia Rupiah,
the availability of the resource and are often referred
IDR). This is important for renewable energy (and
to as variable renewable energy (VRE). The variability
other projects) that secure part of their financing in
affects the electricity output and consequently the
foreign exchange in order to obtain lower interest
revenues to a VRE IPP. Output from hydropower, wind
rates. All PPAs signed by PLN dictate payments in
and solar PV can be curtailed by PLN, meaning that
IDR.
PLN can instruct the project operator to reduce the
Power Plant Capacity and Capacity Factor output of the plant. The terminology of “take or pay”
Each powerplant or generating facility has a and “take and pay” are important in a PPA in that
“nameplate capacity” indicating the maximum they mean PLN is obligated to pay for all available
output that a generator can produce under specific power or just the amount that it needs, respectively.
conditions. “Capacity factor” is the ratio between Grid Connection and Integration
a generation unit’s actual generation output over
All power projects incur a cost associated with
a period of time to what the unit is capable of
connecting the powerplant to the grid. These costs
generating at maximum output. These two numbers
include transformers or substations to adjust the
can be significantly different. The capacity of a
voltage level, transmission lines, and any additional
powerplant may be de-rated over time, meaning that
modifications to the grid to accommodate power. Of
it will be considered to have a decreased maximum
these, transmission line costs can vary considerably
output due to inefficiencies that develop during its
since they are a function of the distance between
operations.
the powerplant and the grid interconnection point.
Generators do not operate at their full capacity all PLN now requires that all renewable energy projects,
the time. Fossil fuel powerplants are considered regardless of their size, conduct an interconnection
“dispatchable,” meaning they can be started and study as part of the feasibility study.
stopped, and “load following” meaning their output
Grid integration is a challenge for solar PV and wind
can be reduced to respond to the load on the utility
power due to the uncertainty of the output level at
system. In Indonesia, coal-fired powerplants and
any given time. The variability and unpredictability
rented diesel generators command a minimum
of the wind or solar PV project require the utility to
capacity factor that is important for the project’s
maintain a level of flexibility in the grid. This flexibility
financing but is a challenge for PLN because it has to
is defined as the ability of other generators to ramp
pay for the available power regardless of whether it is
up or down, or the ramping up or down of the solar
needed. Biomass, biogas and waste-to-energy will also
PV or wind plant. A system impact study is conducted
have relatively high capacity factors since they can
to assess the power system’s ability to accommodate
operate continuously based on the availability of fuel
the VRE project output. A grid integration study is an
(feedstock).
analytical framework for evaluating a power system
The capacity factor for renewable resources such with high levels of VRE resources. Battery or other
as a utility-scale wind or solar PV is significantly less energy storage systems can be used to buffer the
than that of a baseload coal or natural gas plant due impact of VRE resources. Similarly, the utility can
to the variability of the wind and sun. For hydropower operate flexible generation as “spinning reserve” to
plants, the project is often designed to have a specific respond quickly to the variation. Since solar PV and
capacity factor which means that the turbine- wind power projects are relatively new to PLN and do
generator capacity is sized to reflect a specific point not fit easily into the way PLN operates its grids, grid
on the flow duration curve (a graph representing the integration is particularly challenging in Indonesia.
3.3 Project Development

Cycle
There are six sequential stages in the IPP project Stage 3. Design and Engineering
development cycle. For a variety of reasons, not Here, more detailed design, site analysis and
all projects progress to the next stage, and only equipment specifications are done.
a small percentage progress through the entire
project cycle. Stage 4. Procurement
Stage 1. Project Development. In this stage, equipment is supplied and delivery
agreements are signed. It is critical that the
In this stage the feasibility of the project is equipment sourced from different suppliers is
assessed, and the project is defined relative to the properly integrated. Equipment agreements should
requirements of interconnecting the project to include performance guarantees and service
PLN’s grid. This is considered the highest-risk stage warrantees to reduce project risks.
given that the extensive inputs require considerable
allocation of funds by the project developer or Stage 5. Construction
sponsor and the likelihood that that the project In this stage the site undergoes preparation,
reaches the next stage. During this stage, the and the powerplant and associated facility
resource is evaluated. For geothermal this involves components are built according to the design.
exploration drilling; for hydropower, stream flow For small hydropower projects, there is a real risk
measurement; for wind, met mast; and for biomass, of construction cost overruns, especially if the
biogas or waste-to-energy, feedstock quantity feasibility and detailed engineering design do not
and quality; etc. If the project is determined to be accurately reflect the site conditions. It should be
technically and economically feasible, this stage noted that stages 3 through 5 can be combined
ends with the signing of a PPA. into an engineering, procurement and construction
Stage 2. Project Financing (EPC) contract. The construction stage culminates
with powerplant testing and commissioning, and
Here, the project developer raises the necessary the issuance of a commercial operating certification
equity and debt financing. Investors (sources of enabling the project to begin injecting and selling
equity) evaluate the expected rate of return on the power to PLN.
project, while lenders assess the risks associated
with the project meeting its cost and performance Stage 6. Operations.
targets. Financing can be divided into construction This final stage continues for the life of the PPA.
financing (the funds needed to bring the project In addition to routine maintenance and operations,
to COD) and permanent financing, which covers some components that have a lifetime of less than
the operating period of the project. Refinancing the term of the PPA will need replacement.
is possible, typically after a period of 1-2 years of
operation.
Figure 4. Project Development Cycle and Key Milestones

Project Development Timeframe
PPA FC COD
Project Project Design and Operations &

Procurement Construction
Development Financing Engineering Maintenance
• Prefeasibility • Financial • Detailed • Equioment sales • Construction • Equipment and

study structuring engineering agreements management power plant
design testing and
• Feasibility study • Equity raising/ • Equipment • Site preparation commissioning
shareholdings • Electrical performance
• Owners equity engineering warrantees • Site access • Power
• Debt production
• Legal services agreements • Mechanical • Shipping/ • Power plant
construction profiles/
• Business engineering Logistics/ forecasting
• Equipment Scheduling
licenses credits • Geotechnical • Power plant
• Environmental studies • Import licenses operations
• Insurance/
studies and guranratees • Civil
license • Equipment
engineering servicing
• Land acquisition
• Billing/ revenue
• Resourse/ collection
feedstock
agreements • Tax payment
• Interconnection • Debt servicing
studies
• PPA
negotiations
3.4 Financing
Domestic financing supply is available for The lower tariff prompts developers to adjust their
renewable energy projects. Channeling the project costs to maintain the project’s financial
funds and finding commercially feasible projects, feasibility. Cost adjustments can be achieved
however, are challenging in Indonesia. The two through adjustments in project specifications;
most prevailing challenges are legal aspects of the generally, lower-quality equipment or components
PPA and tariffs for renewable power generation. lead to lower costs, which could lower project
The issuance of MEMR Regulation No. 50 of performance in generating power and impact
2017 led to a major setback in renewable energy revenues in the long run. The banking sector finds
development, particularly for small medium scale that coupling a take-or-pay scheme and lower
projects. The new tariff is lower than that stipulated price puts it in a riskier position, as the two factors
in previous regulation, thus lowering the financial greatly affect the debtor’s ability to repay the
feasibility of projects. The banking sector finds that loan and interest. Further, the cost of funds from
these two factors impose higher risks to renewable domestic financial institutions is considered high.
energy financing in terms of off-taker and revenue The current prime lending rate is above 9.95%;
risks. The PPA applies the take-and-pay scheme, debtors for renewable energy are usually charged
which gives flexibility to PLN as the single off-taker interest rates between 12% and 13% in IDR or 5%
to decide on the amount of kWh purchased from to 7% in USD, and a loan tenor of seven years with
the power producer. a two-year grace period. These interest charges
are approximately 1.5% to 2% higher than the
corporate prime lending rate. The low tariff and
high cost of debt could drag down a project’s
financial attractiveness. Table 4 summarizes the
challenges of domestic financing for renewable
energy IPPs.
Table 4. Summary of Challenges in Domestic Financing for Renewable Energy Projects
Financier Regulator Developer
• High cost of funds due to high • Uncertainty and inconsistency in • Limited number of feasible and
perceived risks policy implementation bankable projects
• Shorter tenor (less than 10 years). • Unfavorable policy in setting up • Developers of small-scale projects
Mismatch of funding: Local banks power purchase tariff, unable to meet lack sufficient equity, may not
source funds from deposits (short expected return on investment be able to supply 30% of equity
term), while typical infrastructure requirement and the 130% - 150%
financing is long term. • PPA terms and conditions shift collateral requirement
risk to the IPP, making it difficult
• Limited alternative sources of funds. to secure financing and putting the • Lack of technical ability and
Low utilization of capital market and project’s overall viability at risk experience in developing renewable
debt market (bonds). energy projects
• Lack of transparency and clarity in
the procurement process • Lack of available, robust technical
data on grid capacity and powerplant
dispatching and/or curtailment
3.5 Ownership
Despite the current slow domestic financing flow Based on Indonesia’s Negative List of Investment
to renewable energy projects in Indonesia, the (Presidential Regulation No. 44 of 2016), power
sector is still an attractive market. PLN plans for projects with generating capacities larger than
16.7 GW of renewable energy powerplants to reach 10 MW may have up to 95% foreign ownership or
their commissioning dates in 2019 to 2028, with 100% for PPP projects. Small renewable energy
an estimated total investment of USD 56.4 billion IPPs from 1-10MW are restricted to 49% foreign
(excluding biofuel powerplants). ownership. Micro projects smaller than 1 MW are
closed for foreign investment. Geothermal power
Considering the construction period in the project
plants smaller than 10MW are open for foreign
development timeline, investment decisions and
ownership of up to 67%. There have been news
financing commitment can be made prior to
of the Government’s plan to abolish the list, and
the construction start date. For instance, for a
to instead prepare a Presidential Regulation for
geothermal project targeted to reach COD in 2027,
positive list of investment. As of 18 February 2021,
construction would start in 2020 and financial close
Presidential Regulation No. 44 of 2016 remains
would be secured prior 2020.
valid.
Henceforth, the renewable energy market size for
RUPTL 2019-2028 will be lower than the estimated
amount since the investments were committed
years before. Taking into account the investment
commitment timeline and targeted COD year, the
required investment in 2019 to 2028 is estimated
to be USD 15.5 billion. Similar to previous trends in
2009 to 2018, the energy market in 2019 to 2028
will still be dominated by geothermal, and large and
mini-hydro. It is also important to note that solar
PV, biomass, and wind are expected to reach larger
sizes in the next ten years.
4. Market Conditions for Solar

Photovoltaics (PV) Development
Indonesia’s best solar radiation is found in the
eastern part the country, which receives less cloud
cover and fewer monsoon season effects. In 2018,
Indonesia’s total installed solar PV system capacity
was 16 MW, far less than what would be expected
from global trends. An additional 45 MW of utility-
scale solar PV projects have completed construction
or are in the advanced stages of development (i.e.,
reached financial closure). As of January 2019,
the market for rooftop solar PV was in its early
stages, with 609 projects installed, primarily in the
residential sector.
4.1 Utility-Scale, Ground-

Mounted Systems
Utility interconnected systems are the largest
segment of the relatively small solar PV market in
Indonesia. To date, the largest utility interconnected
solar PV project is 5 MWp (Megawatt peak) located
in Kupang, East Nusa Tenggara (NTT). The project
was one of several procured and contracted in 2013
under MEMR Regulation 13 of 2013 with favorable
power purchase prices (approximately USD 25 cents/
kWh). Early PV projects connected to PLN’s 20 kV
network experienced difficulties in their operations
due largely to the inflexibility of the local network
and its inability to accommodate fluctuations in plant
output. MEMR Regulation 13 of 2013 gave a premium
in the power purchase tariff for meeting local
content requirements.
PLN designed and procured approximately 40
small systems between 2008 and 2010. After
experiencing difficulties in plant operations and
high capital and delivered energy costs, PLN moved
away from owning solar PV systems and turned to
private independent power producers (IPPs) selling
power to the utility under long-term power purchase
agreements. PLN views solar PV as principally a
means of reducing diesel fuel use in its isolated
grids.
PLN continues to receive unsolicited proposals for
solar PV projects, including a 200 MW floating solar
PV project on a reservoir in West Java, a 140 MW
project in Lampung, a 110 MW project on the border
of West and Central Java, and two 50 MW projects
in Bali. In 2019 PLN was in the process of issuing a
tender for two 25 MW projects in Bali with possible
expansion up to 50 MW at each site in 2025, and has
recently issued a new invitation for solar PV project
developers.
Table 5. Solar PV IPP Projects under Development
Project Name Province Size (MW) Status
PLTS Gorontalo Gorontalo 10 Financial close
PLTS Pringgabaya NTB 5 Constructed
PLTS Sengkol NTB 5 Constructed
PLTS Selong NTB 5 Constructed
PLTS Kuta Lombok NTB 5 Construction
PLTS Likupang South Sulawesi 15 Construction
PLTS Cirata (floating) West Java 145 Construction
PLTS West Bali Bali 25 PLN bidding
PLTS East Bali Bali 25 PLN bidding
PLTS East Bekasi West Java 110 Proposed
The market outlook for utility-scale solar PV projects The potential market for smaller solar PV systems
connected to the transmission network (>10 MW (< 10 MW capacity) is large in terms of the number
capacity PV systems) and to the medium-voltage of projects whose systems are connected to grids
network (< 10 MW capacity PV systems) will be powered by diesel generators. Small solar PV IPP
modest until PLN is able to properly analyze the projects can earn up to USD 17cents/kWh and are
impacts on their network of variable renewable welcome by PLN as a means of lowering its average
energy systems such as solar PV and wind. At the electricity production costs for isolated grids.
high-voltage transmission level, PLN operates its However, as it does for higher-voltage transmission
grids in a manual dispatch mode, and has signed systems, PLN dispatches diesel generators manually.
minimum capacity PPAs with coal and other IPPs as This leads to lower penetration rates (i.e., the
an alternative to its own natural gas-fired peaking percent of total generation provided by solar PV)
plants. This lack of flexibility and responsiveness and may also encourage PLN to require BESS as
to load variations (note that the effect of solar part of the solar PV IPP.
PV variations is similar to changes in customer
electricity demand) is prompting PLN to require
battery energy storage systems (BESS) as part of
the IPP projects to provide auxiliary services to the
grid and mitigate grid system faults. With the BPP
(average electricity production cost) reference price
for solar PV being between USD 7.5-10 cents/kWh for
most transmission-level projects, this market will be
highly competitive on price.
Regulatory Treatment Key Decision Makers

Utility-scale solar PV projects are now governed PLN headquarters is the key decision maker for
by MEMR Regulation 4/2020 on the Second the award of the PPA. The project developer is the
Amendment of MEMR Regulation 50/2017 key decision maker for all equipment and services
and MEMR Regulation 10/2018 as the Second procured during the project development period.
Amendment of MEMR Regulation 10/2017.
Land and Permitting
Pricing
During the bidding process, developers are required
The power purchase price is set at a maximum of to demonstrate that they have secured the land for
85% for regions where the BPP (average electricity their project. The developer waits to purchase the
production cost) is higher than the national BPP. land until after the PPA is awarded.
For regions where the BPP is at or below the
Financing
national BPP, the price is negotiated with PLN.
Project sizes of less than 10 MW, unless bundled
PPA Terms
into larger financing arrangements, are financed
In Indonesia, a PPA’s duration is up to 30 years. through Indonesian banks. Typically, financing
Take-or-pay is applied during the financing period, covers 70% of the total project cost; the developer
and take-and-pay applied after. The BOOT scheme is responsible for raising the equity (NIKKO
has been repealed through MEMR Regulation Securities is an Indonesian mutual fund providing
4/2020. Local content requirements are regulated equity financing in solar PV projects) for the
through Ministry of Industry (MoI) through MoI remaining 30%. Larger projects typically involve
Regulation 4/2017 on local content requirements foreign project developers.
in solar PV and MoI Regulation 5/2017 on local
Foreign Ownership Restrictions
content requirements for the development of
electricity infrastructure. Based on Presidential Regulation No. 44 of 2016,
projects with capacities of < 1MW are financed
Procurement Method
through 100% domestic capital. Projects with
PLN applies pre-qualification and competitive capacities between 1-10 MW have a limit of 49%
bidding for all utility-scale solar PV projects. A foreign ownership. Larger projects can have up
request for proposals and procurement for all solar to 95% foreign ownership, or up to 100% for
PV projects are issued from PLN headquarters (EBT PPP. There have been news of the Government’s
Division). PLN is required to determine a “capacity plan to abolish the list, and to instead prepare
quota” for each procurement; however, many still a Presidential Regulation for positive list of
begin with an unsolicited proposal that is then investment. As of 18 February 2021, Presidential
competitively bid. Regulation No. 44 of 2016 remains valid.
The pre-qualified entity can involve a consortium Local Content Requirements
that includes an EPC contractor with experience in
These are 37.47% for goods, 100% for services,
solar PV project development. PLN is authorised
and 43.72% for goods and services combined.
to assign projects to its subsidiaries as a direct
A separate Ministry of Industry regulation for
appointment.
solar PV requires 40% local content for solar
PV modules, 20% for combiner boxes, 40% for
distribution panels, 40% for inverters, 90% for
cables, 20% for protection systems, and 42.4% for
module racking and mounting (Minister of Industry
Regulation 5 of 2017).
Table 6. Local Content Requirements for Solar PV under Minister of Industry Regulation 5 of 2017
Solar Power Plant Component On-Grid Solar Power Plant Off-Grid Solar Power Plant Distributed Solar Power Plant
Services 100% 100% 100%
Goods 39.87% 37.49% 34.09%
Solar Module 40.00% 40.00% 40.00%
DC combiner box 20.00% 20.00% n.a.
Distribution panel 40.00% 40.00% n.a.
Transformer 40.00% 40.00% n.a.
Cables 90.00% n.a. n.a.
Protection system 20.00% n.a. n.a.
Module racking and mounting 42.40% 42.40% 42.40%
Energy limiter n.a. 40.00% 40.00%
Battery n.a. 40.00% 40.00%
Battery control unit n.a. 10.00% 10.00%
Total goods and services 40.68% 44.72% 45.90%
Major Developers/Equipment and Service Foreign Donor/MDB Involvement

Providers
The ADB is providing financing for Vena Energy
The major developers in Indonesia are Vena Energy projects, while KfW has provided financing under
(Singapore/USA), Quantum Energy (Singapore/ the 1000 Islands Program. GIZ has focused on
Indonesia), Akua Energy (France), SKY Energy off-grid solar PV technical assistance, principally
(Indonesia), Indonesia Power (Indonesia), PJB through MEMR’s Directorate General of New
(Indonesia), and Gerbang Multindo Nusantara Renewable Energy and Energy Conservation
(Indonesia). Major panel manufacturers include: (EBTKE). USAID’s Indonesia Clean Energy
JINKO (China), TRINA (China), Canadian Solar Development Project (ICED II) provides technical
(Canada/China), JA Holdings (USA/China), Q Cells assistance to PLN, developers, banks, and MEMR.
(South Korea), GCL Systems (Hong Kong), and
Active UK Companies
Panasonic (Japan). Local assemblers of solar PV
panels include: AZET SURYA LESTARI, Len Indusri, Absolute Energy Capital, Acropora Capital, Aggreko
Siklon Energi Nusantara and SKY Energy. SNV is Plc Group, AquaFloat, Arup, Atkins, Belectric Solar
the largest inverter manufacturer. and Battery GmbH, Deep Sea Electronics, Dulas
Ltd, Eaton Electrical, Engie, Fichtner, Consulting
Engineers Ltd, Kingspan, N-ERGY Limited, Organics
Group plc, Pegasus Group, PROINSO UK Ltd, Pure
Energy Professionals, Ramboll, ROMAG, TNEI,
UKSOL Ltd.
4.2 Rooftop Solar PV

Projects
In 2013, PLN issued Director of PLN Regulation To address some of these challenges, MEMR issued
Number 0733.K/ DIR/2013on the Utilization of Regulation No. 16/2019 to support the development
Electrical Energy from Photovoltaics by PLN of rooftop solar projects. In response to MEMR
Customers. The regulation governed the installation Regulation 16/2019 on the Second Amendment
of rooftop solar PV systems with capacities up to of MEMR Regulation 49/2018 on the Utilization of
30 kW and provided a 1:1 credit for the kWh they Solar Power Generation System by PLN Customers,
produced using a net-metering scheme with an several Regional Governments have implemented
unlimited bank period/no time limit. This PLN solar rooftop project in its government buildings.
regulation also stated that a minimum “take or pay” For example, the Province of Bali published a
payment of electricity is still valid. Governor Regulation (GR) 45/2019 on Bali Clean
In 2018, MEMR issued the overriding Regulation No. Energy15, which requires every central and regional
49 on the electricity produced through rooftop solar government building, as well as commercial,
PV panels of PLN customers. While the regulation lifts industrial, social and household buildings with a
the 30-kW capacity limit, it instead sets the maximum floor area of more than 500 square meters to take
capacity of rooftop solar PV projects at 100% of the advantage of solar rooftop by 2024. Province of
customer’s connected circuit capacity (and bases it DKI Jakarta also published a Governor’s Instruction
on the nameplate capacity of the PV inverter). MEMR 66/2019 which encourages the installation of 15
Regulation 49/2018 provides less-favourable pricing kWp solar rooftop in several public schools as one
for customers and places a 3-month limit on the of the many efforts to reduce air pollution. In the
application of net-metering credit. The Regulation second amendment (MEMR Regulation 16/2019),
provides two billing schemes for three classes of the capacity charge by PLN’s customers was also
customers. The first is for both residential and slashed to 1/8th of the original amount under
business customers, who now receive a reduced Regulation 49 of 2018. MEMR Regulation 16/2019
65% credit for the net electricity produced and explains that solar PV projects installed by industrial
exported to PLN’s grid. Furthermore, all post-paid PLN customers are not subject to emergency energy
customers are subject to a minimum “take-or-pay” charge, which are part of the parallel operating
payment of 40 hours per month at maximum circuit costs.
capacity. Despite these new constraints, MEMR has The market outlook for rooftop solar PV systems is
said it expects rooftop solar PV systems to produce modest until commercial and household consumers
1 gigawatt (GW) of electricity nationwide within three adjust to the new MEMR regulation and PLN
years. However, since the issuance of regulation 49, requirements. The residential market will continue
there was little progress. to grow, particularly in the high-end segment where
Industrial customers installing rooftop solar PV economics plays less of a role. This segment is
systems are also governed by MEMR Regulation considered a luxury market where installing solar
No. 1/2017 for the parallel operation of customer PV is seen as a status symbol. Several large housing
generation.14 Industrial customers installing solar PV developments have plans to offer solar PV as part
will be assessed a capacity charge, billed irrespective of house designs, where the cost of the system can
of whether the customer draws any energy from be included in the mortgage financing (longer term
the grid, and a consumption charge that consists of than consumer loans). There is even some discussion
a normal energy charge and an emergency energy with the Solar Energy Association of promoting
charge based on the quantity of energy actually “disconnecting from PLN” by packaging BESS
used by the customer. Under this regulation, the with the solar PV system, thus avoiding minimum
capacity charge is 40 hours times the solar PV capacity charge payments.
system’s nameplate capacity times the applicable PLN
industrial tariff.
14
This regulation applies to any source of “captive” power generation by an industrial customer.
15
EBTKE Press Release in 29 November 2019
While capacity and emergency charges are imposed As of January 2019, there were 609 rooftop PV
on industrial customers, commercial and institutional installations in Indonesia; over half of them are in the
customers are not required to pay these charges. PLN Jakarta distribution region (88.5% residential,
Therefore, expected growth in this market can be 9.8% business and commercial, 0.3% Industrial, and
higher than officially stated. 1.5% other). There has been tremendous growth and
as of October 2020, there were 2,779 rooftop users
There will be opportunities in approaching
(installations) in Indonesia.17 Other large segments of
multinational companies, especially those that
the market include West Java and East Java. Figure
participate in RE 10016 (a group of companies
3 shows the growth in rooftop solar PV installations
that have committed to being 100% supplied by
from February 2017 to October 2020.
renewable energy) or are part of the supply chain for
RE 100 companies. RE 100 companies known to be Media reports also suggest that the Government,
operating in Indonesia include: IKEA, Apple, British with the support of a think tank, is working on a USD
Telecom (BT), Carlsberg Group, CITICORP, Coca Cola, 1 billion solar rooftop program that aims to install
DBS Bank Ltd., Facebook, GM, Google, H&M, HSBC, solar rooftop panels with a combined capacity of
Johnson & Johnson, Microsoft, Nike, Proctor and 1GWp for millions of households over the next few
Gamble, Royal Bank of Scotland, Philipps, Starbucks, years. It is estimated that scheme will create up to
and Unilever. Packaging solar PV with battery 22,000 jobs and contribute to significant savings in
storage would be particularly attractive to data electricity subsidies.
centres that need very high-quality power supply for
their operations.
Figure 5. Growth in Rooftop Solar PV Installations in Indonesia (2017-2020)
3000
2779
2500
2000
1673
1500
1000
592 609
524 553
472 499
500 426 458
372 399 414
338 351
268 284 308
224 238 246
192 214
155 166 177
0
Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 8 Nov 18 Dec 18 Jan 19 Feb 19 Oct 20
Source: PLN, March 2019 and IESR, January 2021

16
http://there100.org/
17
Regulatory Treatment Financing

The prevailing regulation for rooftop solar PV is There is no specific financing available for rooftop
MEMR’s Regulation 49/2018, as mentioned above, solar PV systems. It is reported that leasing is
which states that the maximum capacity of a available from some Indonesian solar PV companies.
rooftop solar PV project is limited to 100% of the Leasing is a regulated financial service in Indonesia.
customer’s connected circuit capacity. Industrial
customers installing a rooftop solar PV system are
also governed by MEMR Regulation 1/ 2017 for the Based on Presidential Regulation No. 44 of 2016,
parallel operation of customer generation.18 projects with capacities of < 1MW are financed
through 100% domestic capital. Projects with
Pricing
capacities between 1-10 MW have a limit of 49%
MEMR Regulation 49/2018 allows the owner of foreign ownership. Larger projects can have up to
a rooftop solar PV system to receive a credit 95% foreign ownership, or up to 100% for PPP.
of 65% of the net excess amount of electricity There have been news of the Government’s plan to
produced by the system and exported to PLN’s abolish the list, and to instead prepare a Presidential
grid. Furthermore, all post-paid PLN residential Regulation for positive list of investment. As of 18
customers are subject to a minimum “take-or-pay” February 2021, Presidential Regulation No. 44 of
payment of 40 hours every month at maximum 2016 remains valid.
capacity. Industrial customers installing solar
Local Content Requirements
PV will be assessed a capacity charge, payable
irrespective of whether they actually draw any There are no local content requirements that apply
energy from the grid, and a consumption charge to rooftop solar PV systems.
that consists of a normal energy charge and an Major Developers/Equipment and Service
“emergency” energy charge for reserves to cover Providers
the PV system’s capacity should it fail.
At present, the companies serving the rooftop
Procurement Method solar PV market are all Indonesian, with most
Procurement is done strictly on a business-to- being members of Asosiasi Energi Surya Indonesia
consumer or business-to-business basis. (Indonesia Solar Association). Indonesian solar PV
EPC companies such as ATW Sejahtera, Contained
Key Decision Makers
Energy and SMS NUENERGY, Solar Power Indonesia,
The residential, commercial or industrial facility are active and offer lease financing.
owner makes installation decisions. The real estate
Foreign Donor/MDB Involvement
developers of some new housing complexes are
stating that they can include solar PV systems in USAID’s ICED II Project, in conjunction with the
the design and total housing unit costs. National Renewable Energy Laboratory, is currently
conducting an economic impact study on rooftop
Licensing
solar PV. The UK Government-led ASEAN Low
As with any other captive powerplant using any Carbon Energy Programme has supported the West
other fuel source, the owner of a self-generating Java Government in the project preparation process
system must obtain an operating license (MEMR to finance and install rooftop solar on 173 public high
Regulation 13/2019). There are no regulations in schools in West Java.
place at this time for licensing solar PV installers.
Active UK Companies
UK SOL (manufacturer), ROMAG (manufacturer),
Mott McDonald (engineering, EPC), PROINSO
UK (engineering, EPC) for larger commercial or
18
Applies to any source of “captive” power generation by an industrial customer.
industrial projects.
4.3 Off-Grid Solar PV

Projects
An “off-grid” solar PV project is defined as the MEMR Solar Home Systems Program
solar PV system and related components including
battery storage, and in the case of hybrids, diesel MEMR launched the Solar Powered Efficient Lamp
generators. In Indonesia, there are essentially three (LTSHE) initiative, which provides solar home
market segments characterized by the programs systems to un-electrified villages. The program is
under which the systems are deployed. viewed as “pre-electrification” in that it will only
meet minimum indoor household lighting needs.
Solar PV-Diesel Hybrid Programs LTSHE targets the electrification of un-electrified
The 1000 Islands Program of PLN targets small villages located far from PLN’s grid packages in
island grids that are powered by diesel generators. six provinces —NTB, NTT, Maluku, North Maluku,
The program is intended to integrate solar PV and Papua and West Papua. The program package
possibly battery storage to extend service to 24 includes solar panel capacities of 20 Wp, 4 LED
hours per day, reduce the use of diesel fuel, lower lights, lithium ion batteries, controller, hand
the average electricity production cost for the area, phone charging port, installation costs, and after-
and increase access to electricity. In 2015, KfW sales service for 3 years. By the end of 2019, the
provided financing for 94 locations in East Nusa government plans to have installed 400,000
Tenggara (NTT) under the Renewable Energy for systems. MEMR procures the LTSHE systems,
Electrification Program. The World Bank recently awarding batches covering one or more provinces
tendered the Least-Cost Planning and Dispatch to a single supplier.
Diagnosis in Eastern Islands project to support The most significant market for off-grid solar PV
PLN in its least-cost planning exercise and VRE will come when PLN agrees to a business model for
integration in its smaller grids powered by diesel private sector and local government development
generators. of embedded generation in micro-grids to extend
MEMR Off-grid Solar PV Program electricity access to villages not currently served
by PLN. There is a well-established market for off-
MEMR receives a budget allocation each year to grid power systems for meeting mining and other
fund small, off-grid renewable energy systems. remote power needs. Because of the high cost of
Initially focusing on small systems such as water diesel generator operation, opportunities exist to
pumping, the projects now are up to 1 MW in install solar PV to operate in a hybrid mode.
capacity. In 2018, MEMR suspended the program
and shifted its attention to repairing the previously Regulatory Treatment
funded projects that are no longer operating, as MEMR Regulation 38/2016 was issued to accelerate
well as solar home systems. In the two-stage tender electrification in undeveloped rural areas, remote
process, MEMR first issues a competitive tender regions, border areas, and small inhabited islands
for the project’s feasibility study. It then issues through the implementation of small-scale
a second tender for the engineering design and electricity enterprises. The regulation allows for
construction of the project. Owing to the size of the licensing of state-owned business entities,
these systems, the award is limited to Indonesian privately owned businesses with legal status in
companies. MEMR also mandates that local supplier Indonesia, or cooperatives to operate micro-utilities
have a minimum local content of 40% for all (with total generating capacity of up to 50 MW) in
projects funded by the government. However, the areas that PLN agrees not to provide service and
companies source components (e.g., inverters) from at PLN’s retail tariff. If the licensee requests a tariff
foreign suppliers to achieve 40% local content. higher than PLN’s uniform retail tariff, then the
higher tariff must be authorized by the provincial
government and MEMR. MEMR has been reluctant
to issue licenses that cover more than one year
since it approves PLN’s RUPTL each year with the
agreed update to the electrification master plan.
Pricing Foreign Ownership Restrictions

Under MEMR Regulation 38/2016, licensed None.
operators must sell power at PLN’s uniform tariff
levels for different customer classes. If subsidy
funds are utilized, the tariff follows the PLN 34.09% for goods, 100% for services, and 40.68%
average tariff for the 450 VA household customers. for goods and services combined.
However, a business entity that has been assigned Major Developers/Equipment and Service
by the local government may propose subsidy funds Providers
to the government. MEMR’s Directorate General for
Electricity (DGE) can approve a tariff that is higher Companies that are currently offering rental
through an annual application process. diesel or other generators have moved into the
hybrid solar-diesel space. These include Katimex
Procurement Method (Indonesia), Sumberdaya Sewatama (Indonesia),
Procurement for mining and other off-grid and Aggreko Energy Services Indonesia (UK/
applications is done predominately through leasing. Indonesia). EPC companies include Mott McDonald
(UK) and Black and Veatch (USA)
Key Decision Makers
For licensed micro-grid systems under MEMR
Regulation 38/2016, the developer of the project In 2015, KfW provided financing for 94 locations in
makes the purchasing decisions, while the host NTT under the Renewable Energy for Electrification
provincial governor grants approval for a service Program. The World Bank recently tendered two
area, PLN provides its concurrence, and the DGE related technical assistance projects, one for off-
approves the tariff (if other than the uniform tariff). grid and one for solar PV diesel hybrid. GIZ has
several projects that include solar PV, including
Licensing
Exploration of Economic Mitigation Potential
In obtaining a license from MEMR DG Electricity, through Renewables (EXPORE), Electrification
the business entity must fulfil the local content through Renewable Energy (ELREN) and Energising
requirements, prepare a business plan in Development (EnDev), although some are ending
accordance with the applicable laws, make its best in 2019. New Zealand is supporting MEMR EBTKE
efforts to achieve a minimum of 95% electrification by repairing off-grid solar PV system in Maluku
ratio within five years following the assignment in its NZMATES project. USAID’s ICED II Project
from MEMR, develop the power infrastructure provides technical assistance to project developers,
within one year as of the assignment, supply banks and PLN on project evaluation, training, and
power and a distribution network, and report on its financing matchmaking. Hivos has been working
business activities every six months to the DGE. on off-grid solar projects in Sumba, through
the Sumba Iconic Island project. The MENTARI
Financing
Programme from the UK Government is also
Because of the nature of the micro-grid business in working on a demonstration off-grid solar project in
developing countries, international social enterprise Eastern Indonesia.
funds have targeted this market. In 2017, ENGIE
Active UK Companies
committed to provide USD 240 million in financing
for Electric Vine Industries to bring energy to 3,000 UK SOL (manufacturer), ROMAG (manufacturer),
villages in Papua, although the project has yet to Mott McDonald (engineering, EPC), and Aggreko
obtain a license from DGE. Energy Services Indonesia (hybrid supplier).
4.4 Market Size Estimates

Inputs to the utility-scale solar PV projects come of global solar PV project costs for the 2022-2025
from the PLN RUPTL 2019-2028, specifically the timeframe. Project cost composition and foreign
planned capacity additions between 2022-2025. and domestic share of the market come from
Assumptions for project costs come from recent existing projects.
projects in Indonesia as well as an understanding
Total Market Size for Solar PV
Time Frame Total Market Size (MW) Project Cost ($/MW) Total Market Size (USD) Development Period (Years)
2020-2021 315 800,000 252,000,000 1-2 years
2022-2025 543 780,000 423,540,000 1 year
Procurement Analysis for Solar PV
Time Frame PLN Direct Procurement IPP National Government Subnational Government Private (Non-IPP)
2020-2021 0% 100% 0% 0% 0%
2022-2025 0% 100% 0% 0% 0%
Supply Chain and Financing Analysis for Solar PV
Supply chain % Total Domestic (%) Foreign (%)
Project developer/sponsor 10 5 5
Consulting engineering studies 5 3 2.5
Engineering design 5 4 1.3
Major electromechanical equipment 60 15 45
Balance of system equipment 15 15 0
Construction 5 5 0
Total 100 46 54
Equity 40 40 0
Debt 60 45 15
Total 100 85 15
Supply Chain and Financing Market Value Analysis for Solar PV (USD Thousands)
Total Domestic Foreign
Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Project developer/ 25,200.0 42,354.0 12,600.0 21,177.0 12,600.0 21,177.0

sponsor
Consulting 12,600.0 21,177.0 7,560.0 12,706.2 6,300.0 10,588.5

engineering studies
Engineering design 12,600.0 21,177.0 10,080.0 16,941.6 3,276.0 5,506.0
Major 151,200.0 254,124.0 37,800.0 63,531.0 113,400.0 190,593.0

electromechanical
equipment
Balance of system 37,800.0 63,531.0 37,800.0 63,531.0 - -

equipment
Construction 12,600.0 21,177.0 12,600.0 1,177.0 - -
Total 252,000.0 423,540.0 118,440.0 199,063.8 135,576.0 227,864.5
Equity 100,800.0 169,416.0 100,800.0 169,416.0 - -
Debt 151,200.0 254,124.0 113,400.0 190,593.0 37,800.0 63,531.0
Total 252,000.0 423,540.0 214,200.0 360,009.0 37,800.0 63,531.0
We estimate the market for utility-scale solar PV to impediment to achieving the low cost of solar PV
be USD 675.5 million, comprising USD 252 million experienced in other countries. As seen in Figure 4,
during the 2020-2021 period, and USD 423.5 million the main business opportunities in the utility-scale
during the 2022-2025 period. It should be noted solar PV supply market chain are in the sale of
that the government imposes a 40% local-content equipment and the balance of system, including
requirement for solar panels (which are assembled interconnection to the grid.
from imported components), presenting a major
Figure 6. Utility-Scale Solar PV Market by Supply Chain Segment (2020-2025)
275.3
Utility Scale Solar PV Market (in USD Million)
2020 - 2021
2022 - 2025
163.8
67.8
40.3
29.6 21.2 29.6
17.6 12.6 17.6
Developer Consulting Balance Construction Equipment

System
Inputs to the rooftop solar PV projects come from Project cost composition and foreign and domestic
a projection of the current rooftop market and the share of the market come from existing projects.
introduction of MEMR Regulation No. 49 of 2018.
Customer Segment Analysis for Solar PV
2020-2021 2022-2025
Segment Unit Size (kW) Units MW Units MW
Residential 2 1500 3 3000 6
Commercial 500 25 12.5 50 25
Industrial 2500 19 25 25 62.5
Total 40.5 93.5

Total Market Size for Solar PV
Time Frame Market Size (MW) Project Cost ($/MW) Market Value (USD) Development Period (Years)
2020-2021 40.50 700,000 28,350,000 6 months-1 year
2022-2025 93.50 700,000 65,450,000 6 months-1 year
Procurement Analysis for Solar PV
2020-2021 2022-2025
Time Frame PLN Direct Independent National Subnational Private

Procurement Power Producer Government Government (Non-IPP)
2020-2021 0% 0% 0% 0% 100%
2022-2025 0% 0% 0% 0% 100%
Supply Chain and Financing Analysis for Solar PV
Consulting engineering studies 5 3 2.5
Engineering design 5 4 1.3
Major electromechanical equipment 60 15 45
Balance of system equipment 15 15 0
Construction 5 5 0
Total 100 46 54
Equity 40 40 0
Debt 60 45 15
Total 100 85 15
Supply Chain and Financing Market Value Analysis for Solar PV (USD Thousands)
Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Project developer/ 2,835.0 6,545.0 1,417.5 3,272.5 1417.5 3,272.5

sponsor
Consulting 1,417.5 3,272.5 708.8 1,636.3 708.8 1,636.3

engineering studies
Engineering design 1,417.5 3,272.5 1063.1 2,454.4 354.4 818.1
Major 17,010.0 39,270.0 4,252.5 9,817.5 12,757.5 29,452.5

electromechanical
equipment
Balance of system 4,252.5 9,817.5 4,252.5 9,817.5 -- --

equipment
Construction 1,417.5 3,272.5 1,417.5 3,272.5 -- --
Total 28,350.0 65,450.0 13,111.9 30,270.6 15,738.1 35,179.4
Equity 11,340.0 26,180.0 11,340.0 26,180.0 -- --
Debt 17,010.0 39,270.0 12,757.5 29,452.5 4,252.5 9,817.5
Total 28,350.0 65,450.0 24,097.5 55,632.5 4,252.5 9,817.5

Project-Related Business Opportunities Future utility-scale projects will follow PLN’s

determination of “capacity quotas,” which
Assuming no changes in the government policy
are essentially the amount of variable (wind
toward solar PV in terms of the procurement
and solar PV) capacity that can be connected
process, all projects during the 2020-2025 period
to different segments of PLN’s grid. There
will come through PLN’s “direct selection process”
are many “scattered PV” entries in PLN’s
(Daftar Penyedia Terseleksi, DPT), which requires
RUPTL corresponding to unknown locations
companies (or consortiums of companies) to be
or an unknown number of projects and the
pre-qualified as required for other renewable
corresponding capacity of each in a province.
power projects.
Solar PV rooftop project opportunities will fall to
Two utility-scale IPP projects were slated to go out
either business to consumers (i.e., selling directly
for tender in March 2019. They are East Bali (25
to homeowners) or businesses to businesses
MW) and West Bali (25 MW). Over 100 companies
(i.e., selling directly to facility commercial and
or consortiums of companies attended the
industrial facility owners). As noted above, there
bidders’ conference in Jakarta.
are opportunities in approaching multinational
A 110 MW project in Bekasi, West Java was companies, especially those in that participate
proposed on an unsolicited basis, but it too will in RE 100 (a group of companies that have
have to go through the direct selection process. committed to being 100% supplied by renewable
However, the original project proponent will have energy) or are part of the supply chain for RE
a considerable advantage given it has already 100 companies. RE 100 companies known to be
secured the land, and finding a parcel of land large operating in Indonesia. Packaging solar PV with
enough to site a 100 MW project in the Jakarta battery storage would be particularly attractive
region will be difficult. There are two floating solar to data centres, which need very high-quality
PV projects proposed for reservoirs in West Java. power supply for their operations. In the current
regulatory regime companies or industrial
complexes are allowed to produce electricity to
power their own operations or sell directly to end
users within the complex, but specific caveats
and requirements are in place. The requirements
include obtaining licenses and approvals, and
charges that will be borne by the private power
utilities (PPUs).
5. Market Conditions for Wind

Power Development
5.1 Utility-scale, On-shore
Wind Power
In 2017, Indonesia’s first utility-scale wind project in Jeneponto, South Sulawesi completed
powerplant was commissioned. The 75 MW Sidrap construction in December 2018 and is awaiting
wind power project, situated on 100 hectares in commissioning. Both project developers have
Sindereng Rappang regency, South Sulawesi, has proposed second phases of their projects. As
opened the door for other wind power projects in of 2019, PLN continues to receive unsolicited
the province, as well as elsewhere in the country. proposals for wind power projects, including a 250
The Sidrap wind power project is harnessing an MW wind project in West Java (Lebak in Banten and
average wind speed of 8 meters per second to Pandeglang) and a 90 MW project in Tanah Laut,
generate electricity. A second 70 MW wind power East Kalimantan.
Wind IPP Projects under Development
Project Name Province Size (MW) Status
PLTB Sidrap South Sulawesi 75 In operation
PLTS Tolo/Jeneponto South Sulawesi 70 Construction complete, waiting or COD
PLTS Tolo/Jeneponto II South Sulawesi 70 Planning
PLTB Sukabumi West Java 170 Planning
PLTB Lebak in Banten West Java 150 Planning
PLTB Pandeglang West Java 150 Planning
PLTB Tanah Laut East Kalimantan 90 Planned
PLTB Sidrap Phase II South Sulawesi 75 Planned
PLTB Sidrap Phase III South Sulawesi 200 Planning
PLTB Selayar South Sulawesi 5 Planning
PLTB Buton South East Sulawesi 15 Planning
PLTB Kupang East Nusa Tenggara 20 Planning
PLTB Sumba Timur East Nusa Tenggara 3 Planning
PLTB Ambon Maluku 15 Planning
PLTB Kei Kecil Maluku 5 Planning
PLTB Saumlaki Maluku 5 Planning
PLTB Gunung Kidul Central Java 10 Planning
PLTB Belitung Timur Belitung 10 Planning
PLTB Garut West Java 10 Planning
PLTB Timor Tengah Selatan East Nusa Tenggara 20 Planning
PLTB Bantul Central Java 50 Planning
Source: Ministry of Energy and Mineral Resources and PLN

5.2 Offshore Wind

The market outlook for utility-scale wind power At the end of 2019, the total worldwide offshore
projects connected to the transmission network wind power capacity was 29.1 GW20. All of the
(> 10 MW capacity) and to the medium-voltage largest offshore wind farms are currently in
network (< 10 MW capacity) will be limited because northern Europe, primarily in the United Kingdom
of wind resource availability and also until PLN is and Germany, which together account for over
able to properly analyse the impacts of wind plants two-thirds of the total offshore wind power
on its network. At the high-voltage transmission installed worldwide. As of September 2018, the
level, PLN operates its grids in a manual dispatch 659 MW Walney Extension in the United Kingdom
mode and has signed minimum capacity PPAs is the largest offshore wind farm in the world. The
with coal and other IPPs as an alternative to its Hornsea Wind Farm, which is under construction
own natural gas-fired peaking plants. This lack of in the United Kingdom, will become the largest
flexibility and responsiveness to load variations when completed, at 1,200 MW. Other projects are
(note that the effect of wind farm variations is in the planning stage, including Dogger Bank in the
similar to changes in customer electricity demand) United Kingdom at 4.8 GW and Greater Changhua
is prompting PLN to require battery energy storage in Taiwan at 2.4 GW.
systems (BESS) as part of the IPP projects to The cost of offshore wind power has historically
provide auxiliary services to the grid and mitigate been higher than that of onshore wind generation,
grid system faults. The most pressing issue facing but costs have been decreasing rapidly in recent
Indonesia now is that its power system is dominated years. In Europe, wind has been price competitive
by thermal powerplants (70%), 60% of which are with conventional power sources since 2017.
coal-fired. Coal-fired powerplants are inflexible; Offshore wind energy has not been included
they cannot respond (ramp up or down) based on in Indonesia’s renewable energy goals as its
the availability of wind power. Thus, it is important application is not considered feasible at present,
that the thermal generation have greater flexibility given that the potential area is mainly located in
for the optimal utilization of wind power generation. the Indian Ocean, where costs are anticipated to be
Given the few attractive wind powerplant sites and high due to sea depth.
the relatively limited amount of capacity that can Indonesia’s wind power potential is estimated to
be connected to PLN’s grid in any location, the be around 60 GW. The current installed capacity is
near-term prospects for wind are low. That said, around 145.81 MW and an additional capacity of 729
there is considerable interest from international MW is being planned between 2020-2024 under
developers. There is some interest in small-scale the government program21. The only realistic sites
wind powerplants using lower generating-capacity for offshore wind in Indonesia, where good wind
turbines. The challenge of the inflexibility in PLN’s resources align with large demand centres, are off
grid also presents itself on smaller island and the westernmost point in Java (Banten Province),
isolated grids, as well as the economics in terms of off Sukabumi in West Java, and Banyuwangi in East
cost per kilowatt-hour. Java. Indonesia Power has initiated a project in
Banyuwangi, but it is still in the very early stages.
The Banyuwangi offshore wind has a capacity of 50
MW and the construction will begin in 2021.
20
Global Wind Energy Council. 2020. https://gwec.net/global-offshore-wind-report-2020/
21
Ministry of Energy and Mineral Resources. 2019. https://www.esdm.go.id/assets/media/content/content-rencana-strategis-kesdm-2020-2024.pdf

Utility-scale onshore and offshore wind power The developer is responsible for raising the equity
projects are now governed by MEMR Regulation portion of the total project costs. Larger projects that
4/2020 on the Second Amendment of MEMR typically involve foreign project developers are able to
Regulation 50/2017 and MEMR Regulation 10/2018 as secure non-recourse project financing using offshore
the Second Amendment of MEMR Regulation 10/2017. lenders. Governments from the major wind turbine
producing countries may offer export financing. The
Pricing
Asian Development Bank and U.S. Overseas Private
The power purchase price for wind is set at a Investment Corporation (OPIC) have provided long-
maximum of 85% for regions where the BPP (average term debt financing for the projects in Jeneponto and
electricity production cost) is higher than the national Sidrap, respectively.
BPP. For regions where the BPP is at or below the
national BPP, the price is negotiated with PLN.
Projects with capacities of < 10 MW have a limit of
PPA Terms
49% foreign ownership. Larger projects can have up
The duration of a wind PPA is up to 30 years. Take-or- to 95% foreign ownership.
pay is applied during the financing period, and take-
and-pay applied after. The BOOT scheme has been
repealed through MEMR Regulation 4/2020. At this point in time, there are no local content
requirements for wind power projects.
Procurement Method
Major Developers/Equipment and Service
PLN applies pre-qualification and competitive
Providers
bidding to all grid-connected wind power projects.
The request for proposals and procurement for The major developers in Indonesia are Vena Energy
projects are the responsibility of PLN Headquarters (Singapore/USA), UPC Renewables (Hong Kong/
(EBT Division). The pre-qualified entity can involve Indonesia) and PACE Energy (France). Major wind
a consortium that includes an EPC contractor with turbine suppliers include: GAMESA (Spain), Vestas
experience in wind power project development. PLN (Denmark), GE (USA) and Siemens (Germany). Sidrap
is authorized to assign projects to its subsidiaries as and Jeneponto both use GAMESA turbines. Awina
direct appointments. Sinergi Indonesia is pursuing micro-scale wind power
projects as a developer.
Key Decision Makers
PLN Headquarters is the key decision maker for
the award of PPAs. The project developer is the The ADB is providing financing for Vena Energy
key decision maker for all equipment and services projects. OPIC provided financing for Sidrap.
procured during the project development period. DANIDA has support wind resource mapping. The
UNDP WHyPGen has supported wind power project
Land and Permitting
development. USAID’s ICED II Project provides
Prior to securing land, wind power developers technical assistance to project developers, banks and
typically conduct extensive (up to three years) wind PLN on project evaluation, training, and financing
resource measurements at various heights in order matchmaking.
to satisfy foreign lenders. Developers are required to
Active UK Companies
demonstrate that they have secured the land for their
project during the bidding process. The developer Aggrelo Plc Ltd, Arup, Atkins, Border Hydro, CWind,
waits to purchase the land until after the award of the Dulas Ltd, Eaton Electrical, EDS HV Group, Engie, FCC
PPA. Offshore wind projects will also need permits Environment Ltd., Fichtner Consulting Engineers Ltd,
related to marine construction, especially if a project JDR Cables, MHI Vestas Offshore Wind, MLM Group,
is considered to be in a designated shipping lane. Mott MacDonald, N-ERGY Limited, Organics Group
plc, Osbit, Pegasus Group, Pure Energy Professionals
Ltd, Ramboll, Siemens Gamesa UK, TNEI.
Estimated Market Size

Inputs to the total market size come from the PLN projects is expected to be shorter if they are in the
RUPTL 2019-2028, specifically the planned capacity second phases of an existing project. Project cost
additions between 2020-2021 and 2022-2025. composition and the foreign and domestic share of
Assumptions for project costs come from recent the market come from existing projects.
projects in Indonesia as well as an understanding
of global wind power project costs for the 2022-
2025 timeframe. The timeframe for several
Total Market Size for Wind Projects
2020-2021 30 1,900,000 57,000,000 3-4 years
2022-2025 820 1,700,000 1,394,000,000 2-4 years
Procurement Analysis for Wind Projects
2020-2021 2022-2025
Time Frame PLN Direct Independent National Subnational Private

Procurement Power Producer Government Government (Non-IPP)
2020-2021 0% 100% 0% 0% 100%
2022-2025 0% 100% 0% 0% 100%
Supply Chain and Financing Analysis for Wind Projects
Development cost 3 1 2
(feasibility study, consulting/ engineering study)
Balance of plant (transformer, transmission line, etc.) 22 18 4
Major electromechanical equipment (wind turbine + blades) 45 3 42
Towers 10 10 0
Construction 10 5 5
Total 100 40 60
Equity 30 10 20
Debt 70 10 60
Total 100 20 80
Supply Chain and Financing Market Value Analysis for Wind Projects (USD Thousands)
Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Project developer/ 5,700 139,400 1,710 41,820 3,990 97,580

sponsor
Development cost 1,700 41,820 570 13,940 1,140 27,880

(feasibility study,
consulting/ engineering
study)
Balance of plant 12,540 306,680 10,260 250,920 2,280 55,760

(transformer,
transmission line, etc.)
Major 25,650 627,300 1,710 41,820 23,940 585,480

electromechanical
equipment (wind
turbine + blades)
Towers 5,700 139,400 5,700 139,400 -- --
Construction 5,700 139,400 2,850 69,700 2,850 69,700
Total 57,000 1,394,000 22,800 557,600 34,200 836,400
Equity 17,100 418,200 5,700 11,400 11,400 406,800
Debt 39,900 975,800 5,700 34,200 34,200 941,600
Total 57,000 1,394,000 11,400 45,600 45,600 1,348,400

The PLN RUPTL 2019-2028 shows a planned The market value of utility-scale wind power
addition of 855 MW of wind power capacity projects is estimated to be USD 1,451 million,
during the period. Given the economics of wind comprising USD 57 million in 2020-2021 and USD
powerplants, where larger turbines sizes have lower 1,394 million in 2022-2025. The main business
costs per MW, and the considerable logistics and opportunities come in wind turbines, tower
site preparation costs, all viable wind powerplants construction, substations and transmission lines,
will be connected to PLN’s high-voltage and construction.
transmission system. With the exception of Java,
all transmission lines are considered “backbone”
lines connecting smaller grids. These transmission
systems have difficulty integrating variable wind
powerplants as currently operated by PLN.
Figure 7. Breakdown of the Wind Power Market by Supply Chain Segment, 2020-2025
701.1
Wind Power (US$ Million)
2020 - 2021
2022 - 2025
342.8
155.8 155.8 155.8
46.7
25.7
12.5 5.7 5.7
5.7 1.7
Developer Consulting & Transmissions Construction Towers Equipment
Design & Balance System
Project-Related Business Opportunities

Assuming no changes in the government policy New large projects are planned for East Kalimantan
toward wind power in terms of the procurement and West Java for the 2022-2025 timeframe.
process, all projects during the 2020-2025 period Projects located in Java will be easier to integrate
will come through the “direct selection process” into PLN’s grid as the penetration will be small,
(Daftar Penyedia Terseleksi, DPT), which requires by percentage, to the total grid capacity. These
companies (or consortiums of companies) to projects will have to negotiate their power
be pre-qualified for other renewable power purchase price given that West Java is below
projects. However, given the nature of wind the national average BPP. The project in East
power development, where PLN relies on project Kalimantan will experience the same difficulties as
developers to identify viable sites after extensive those in South Sulawesi given that total installed
wind measurement, it remains to be seen how other generating capacity is just over 1,000 MW, and
developers will be able to compete. its planned transmission interconnections to
The two projects that have been completed in North and Central Kalimantan are still under
South Sulawesi both have second (and possibly development. The majority of the current installed
third) stages planned. Total project costs will be and planned generating capacity will be coal
less since they have already secured the land and thermal powerplants that are difficult to integrate
completed much of the pre-construction work, and operations with variable wind.
they intend to use larger wind turbine sizes (up to second phases of an existing project. Project cost
5 MW each). These projects are likely to be delayed composition and the foreign and domestic share of
until the 2022-2025 timeframe due to limitations the market come from existing projects.
in the PLN grid for integrating more variable
renewable energy.
6. Market Conditions for

Hydropower Development
The most mature of all renewable energy markets The government policy on renewable energy
in Indonesia is the hydropower market. Hydropower IPPs is perhaps most pronounced in its impact
plants built during the Dutch colonial period on hydropower development. Small hydropower
are still operating today. Hydropower currently projects have limitations on foreign ownership,
supplies 6.2% of all electricity in Indonesia, and higher requirements for local content, have the
accounts for 54% of all renewable energy sources. same ceiling price for selling power to PLN as larger
PLN’s stated intent is to own and operate larger projects, must bear the cost of interconnecting to
hydropower projects (>10 MW) while encouraging the grid, and have a PPA with greater inherent risk
the private sector to develop small hydropower than larger projects.
plants. However, due to its limited investment
Regulatory Treatment
capital, IPPs are also developing selected larger
hydropower plants. All hydropower projects, regardless of size, are
now governed by MEMR Regulation 4/2020 on the
The Indonesian hydropower sector has gone
Second Amendment of MEMR Regulation 50/2017
through a progression of problems encountered
and MEMR Regulation 10/2018 as the Second
in other countries that have opened their markets
to IPPs. These include: 1) speculators who hold the
development rights for the purpose of resale, 2) Pricing
under-financed developers both in terms of equity The power purchase price is set at the maximum
and access to credit, 3) unclear and frequently equal to the BPP of the local grid system for
changing for regulations for development, and regions where the BPP (average electricity
4) poor project planning due to haste or lack of production cost) is higher than the national BPP.
experience. These problems are more pronounced For regions where the BPP is at or below the
for small hydropower (< 10 MW) since many of the national BPP, the price is negotiated with PLN.
larger projects involve international financing,
design, equipment and construction supervision. PPA Terms
The Japan International Cooperation Agency- The duration of a hydropower PPA is up to 30 years.
funded Master Plan Study of Hydropower Take-or-pay is applied during the financing period,
Development in Indonesia, 22 prepared in 2011, and take-and-pay is applied after. The BOOT scheme
became the principal reference for both PLN has been repealed through MEMR Regulation
as well as private developers seeking to tap 4/2020. It should be noted that PLN provides more
into the estimated 26 GW potential that had preferable PPA terms and conditions for hydropower
been mapped and assessed in the country. PLN projects that are greater than 10 MW.
prioritized projects above 30 MW for its own Procurement Method
development, while smaller projects were open
to IPPs for development. Based on the study, PLN applies pre-qualification and competitive
PLN has classified 79 sites primarily for their own bidding for all IPP hydropower projects. A request
development as either reservoir type, pumped for proposals and procurement for all projects
storage or run-of-river type projects. The projects are issued from PLN regional offices (Wilayah) for
range from 11 MW in NTT and 12 MW in Maluku to projects < 10 MW since these will be connected
400 MW in North Sumatra and 800 MW in South to the 20 kV network. PLN Headquarters (EBT
Sulawesi. IPPs will be encouraged to develop other Division) is responsible for procurements for larger
less attractive or smaller capacity sites under the projects. Procurements for hydropower projects
IPP scheme. There has also been some interest to whose project site is already identified are still
develop low head hydropower projects in irrigation done using a direct selection process; however, the
canals, but none has progressed past the initial site is typically already controlled by one project
study stage. developer. It should be noted that PLN does direct
procurement for larger hydropower projects where
it intends to own and operate the project.
22
Project for the Master Plan Study of Hydropower Development in Indonesia - FINAL REPORT VOL. II MAIN REPORT, Japan International Cooperation Agency, NIPPON KOEI Co., LTD. August 2011.
Key Decision Makers Major Developers/Equipment and Service

Providers
PLN Wilayah are the key decision makers for
projects < 10 MW, while Headquarters is the key The major developers in Indonesia are: Mega
decision maker for the award of the PPA for larger Power Manderi (Indonesia), Kalla Group (Indonesia),
projects. The project developer is the key decision Aka Synergy Group (Indonesia), 3GT (Indonesia),
maker for all equipment and services procured Sewatama (Indonesia), Nusantara Infrastructure
during the project development period. (Indonesia), Andalas Multi Energi (Indonesia),
Energia Prima Nusantara and (Indonesia), Waskita
Land and Permitting
Karya (Indonesia). Major equipment suppliers are:
The typical development process for hydropower Andritz (Austria), Global Hydro (Austria), Gugler
IPP projects involves the developer securing (Austria), Voith (Germany), Toshiba (Japan),
the site (often purchasing the land for major Flovel (India), and Jyoti (India). Major consulting/
project facilities such as intake, waterway and engineering companies are: Nippon Koei (Japan),
power house), including obtaining the permits for AECOM (USA), SMEC (Australia), Royal Haskoning
water use and development rights from the local DHV (Netherlands), Indonesia Hydro Consult
government. For projects proposed in irrigation (Indonesia), Wiratman and Associates (Indonesia),
canals, the Ministry of Public Works must issue a Indra Karya (Indonesia), and Waskita Karya
separate permit. (Indonesia).
Financing Foreign Donor/MDB Involvement
The developer is responsible for raising the equity KfW, AfD and JBIC are all involved in financing
portion, typically 30% of the total project costs. hydropower projects. USAID’s ICED II Project
Debt for hydropower projects, particularly small provides technical assistance to project developers,
hydropower, is raised through Indonesian banks. banks and PLN on project evaluation, training, and
Larger projects that typically involve a foreign financing matchmaking.
project developer are able to secure non-recourse
Active UK Companies
project financing using offshore lenders.
Absolute Energy Capital, Adrian Laycock, Advanced
Pump and Hydro Systems Ltd., Atkins, Border
Projects with capacities of < 10 MW have a limit of Hydro, Dulas Ltd, Ellergreen Hydro, Fichtner
49% foreign ownership. Larger projects can have Consulting Engineers Ltd, Gilbert Gilkes & Gordon
up to 95% foreign ownership. Ltd, Glen Hydro, Green Highland, Hallidays
Local Content Requirements Hydroowr Ltd, Hydroplan, M.A.M. Contracting,
MannPower, Mott Macdonald, Pegasus Group,
Up to 15 MW: 64.20% for goods, 86.06% for Ramboll, TLS Hydro, Trade Link.
services and 70.76% for goods and services
combined. Over 15 to 50 MW: 49.84% for goods,
55.54% for services and 51.60% for goods and
services combined. Over 50 to 150 MW: 48.11% for
goods, 51.10% for services and 49% for goods and
services combined.

Inputs to the small and large hydropower projects Indonesia. Since hydropower is a mature market
come from the PLN RUPTL 2019-2028, specifically in Indonesia, no reductions in the project cost per
the planned capacity additions in 2020-2021 and MW were assumed. Project cost composition and
2022-2025. Assumptions for project costs and foreign and domestic share of the market come
the supply chain are based on actual projects in from existing projects.
Total Market Size for Small Hydropower (<10 MW)
2020-2021 718 2,500,000 1,795,000,000 4-5 years
2022-2025 626 2,500,000 1,565,000,000 4-5 years
Procurement Analysis for Small Hydropower (<10 MW)
Time Frame PLN Direct Independent Unallocated Market Total

Procurement Power Producer (PLN or IPP)
2020-2021 0.60% 51.93% 0.89% 53.42%
2022-2025 4.54% 38.73% 2.31% 46.58%
Segment Total 5.13% 91.67% 3.20% 100.0%
Supply Chain and Financing Analysis for Small Hydropower (<10 MW)
Project developer/sponsor 2.0 2.0 0
Consulting/engineering study and design 4.0 3.0 1.0
Civil works 63.0 63.0 0
Major electromechanical equipment 16.8 0 16.8
Balance of system equipment 11.2 11.2 0
Transmission line 3.0 3.0 0
Total 100 82.2 17.8
Equity 30 18 12
Debt 70 42 28
Total 100 60 40
Supply Chain and Financing Market Value Analysis for Wind Projects (USD Thousands)
Market Size 2020- 2022- 2020- 2022- 2020- 2022-

2021 2025 2021 2025 2012 2025
Preliminary development 1,250 3,750 1,250 3,750 -- --
Consulting/engineering 1,875 5,625 1,875 5,625 -- --
Electro-mechanical equipment 46,875 84,375 28,125 84,375 18,750 56,250
Control systems 9,375 -- -- -- 9,375 28,125
Transmission line 3,125 9,375 3,125 9,375 -- --
Total 62,500 103,125 34,375 103,125 28,125 84,375
Equity 37,500 112,500 18,750 56,250 18,750 56,250
Debt 25,000 112,500 12,500 37,500 12,500 37,500
Total 62,500 225,000 31,250 93,750 31,250 93,750
Total Market Size for Large Hydropower (>10 MW)
Development Period
Time Frame Market Size (MW) Project Cost ($/MW) Market Value (USD)
(Years)
2020-2021 1,081 2,500,000 2,702,500,000 7-8 years
2022-2025 2,730 2,500,000 6,825,000,000 7-8 years
Procurement Analysis for Large Hydropower (>10 MW)
Time Frame PLN Direct Independent Unallocated Market Total

Procurement Power Producer (PLN or IPP)
2020-2021 5.20% 23.17% 0.00% 28.37%
2022-2025 21.81% 44.92% 4.91% 71.63%
Segment Total 27.00% 68.09% 4.91% 100.0%

Supply Chain and Financing Analysis for Large Hydropower (>10 MW)
Project developer/sponsor 2.0 1.0 1.0
Civil works 63.0 44.1 0
Major electromechanical equipment 16.8 0 18.9
Transmission line 3.0 3.0 0
Total 100 54.7 45.3
Equity 30 12 18
Debt 70 28 42
Total 100 40 60
Supply Chain and Financing Market Value Analysis for Large Hydropower (USD Thousands)

Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Project 54,050 136,500 27,025 68,250 27,025 68,250

developer/
sponsor
Consulting/ 108,100 273,000 27,025 68,250 81,075 204,750

engineering
study and design
Civil works 1,702,575 4,299,750 1,191,802.5 3,009,825 510,772.5 1,289,925
Electrical- 756,700 1,911,000 151,340 382,200 605,360 1,528,800

mechanical
equipment
Total 2,702,500 6,825,000 1,478,267.5 3,733,275 1,224,232.4 3,091,725
Equity 810,750 2,047,500 324,300 819,900 486,450 1,228,500
Debt 1,891,750 4,777,500 756,700 1,911,000 1,135,050 2,866,500
Total 2,702,500 6,825,000 1,081,000 2,730,000 1621,500 4,095,000

Project-Related Business Opportunities According to PLN, there are 427 MW of small

hydropower capacity (<10 MW) currently operating,
Small (mini) hydropower projects are typically
375 MW under construction, 180 MW that have
developed by Indonesian sponsors. There
reached financial closure, 108 MW with signed
is considerable work to be done during the
PPAs, and 871 MW in the planning stages. PLN’s
preliminary stages (pre-PPA) that have historically
RUPTL calls for 1,534 MW of small hydropower
been underfunded and therefore are prone to lack
capacity to be added between 2019 and 2028.
of sufficient analysis in the feasibility study and
preliminary design. The recent requirement for
interconnection studies has opened a new area
for services for qualified companies. Detailed
engineering design and equipment selection are
two other areas of opportunity.
Figure 8. Breakdown of the Small Hydropower Market by Supply Chain Segment, 2020-2025
Small Hydropower (<10MW) 1,131
Market (USS Million)
986
2020 - 2021
2022 - 2025
355
302
263
222
73 63
36 31
Developer Consulting Balance Construction Equipment

System
For medium and large-scale hydropower projects, planning stages. The PLN RUPTL calls for a total of
the principal decision maker is PLN. It has the first 8,010 MW of large hydropower to be added during
right of refusal to develop the projects listed in the the period 2019 to 2028.
Master Plan Study of Hydropower Development in
Medium and large hydropower plants (>10 MW)
Indonesia. Since these projects typically take five to
may have up to 95% foreign ownership. As a
seven years to develop, it is important to learn what
result, these projects can attract foreign (offshore)
stage of development the project is currently in,
financing. Small hydropower plants (<10 MW)
what procurement decisions related to equipment
are typically developed by Indonesian sponsors.
and services have already been made, and who is
There is considerable work to be done during the
financing the project.
preliminary stages (pre-PPA) of any hydropower
For medium and large hydropower (>10 MW) project, but those costs are disproportionately
projects, there are currently 4,048 MW operating, higher for smaller projects (i.e., they must perform
2,439 MW under construction, 350 MW that have much of the same analysis in the feasibility study as
reached financial closure, and 5,221 MW in the a larger project).
Figure 9. Breakdown of the Medium and Large Hydropower Market by Supply Chain Segment, 2020-2025
4,300
Medium-Large Hydropower Market (In US$ Million)
2020 - 2021
2022 - 2025
1,911
1,703
757
273
137 205
54 108 81
Developer Consulting & Design Transmisions Civil Works Equipment

7. Market Conditions for

Geothermal Power Development
An estimated 330 or more potential geothermal the planning stage. The PLN RUPTL calls for the
locations are spread across Indonesia. At present, addition of 4,607 MW of geothermal generating
Indonesia’s geothermal potential is 28.5 GW, which capacity during the period 2019 to 2028.
consists of total reserves of 17.5 GW and resources Indonesia now ranks second behind the United
of 11 GW. States in utilizing geothermal power. Based on the
latest data from the Geothermal Directorate, the
According to PLN, at the end of 2018, 2,115 MW of
EBTKE (the Directorate General of New Renewable
geothermal capacity were operating (see Table
and Energy Conservation), the country has 16
8), 460 MW were under construction, 1,720 MW
geothermal powerplants in 14 geothermal working
had reached financial close, and 2,227 MW were in
areas (WKPs).
Figure 10. Breakdown of the Medium and Large Hydropower Market by Supply Chain Segment, 2020-2025
6,765
Geothermal Power (US$ Million) 6,426
2020 - 2021
2022 - 2025
2,030
1,488
677 837
795
541
337 271 251 184
42 33 84 67
Consulting & Exploration Exploration Project Manage- Sart up Steam System & Drilling Construction
Design Studies Drilling ment Commisioning Substations
An additional 95 MW were scheduled to begin operating, but had not been commissioned by the end of
2018. An additional 1,065 MW have been identified in 21 new concession areas (see Table 7).
Table 7. Operating Geothermal Power Plants in Indonesia
PLTP Developer Total capacity WKP Location

(MW)
PLTP Sibayak Pertamina Geothermal Energy 232 Sibayak – Sinabung, North Sumatra
PLTP Surlla Sarulla Operation Ltd. 330 Sibual-bual, North Sumatra
PLTP Ulubelu Pertamina Geothermal Energy 220 Waypanas, Lampung
PLTP Salak Star Energy Geothermal Salak. Ltd 377 Cibeureum Parabakti, West Java
PLTP Wayang Star Energy Geothermal Wayang Windu. Ltd 227 Pangalengan, West Java
Windu
PLTP Patuha Geo Dipa Energy 55 Pangalengan, West Java
PLTP Kamojang Pertamina Geothermal Energy 235 Kamojang-Darajat, West Java
PLTP Darajat Star Energy Geothermal Darajat. Ltd 270 Kamojang-Darajat, West Java
PLTP Karaha Pertamina Geothermal Energy 30 Karaha Bodas, West Java
PLTP Matalako PLN (Persero) 2.5 Matalako, NTT
PLTP Ulumbu PLN (Persero) 10 Ulumbu, NTT
PLTP Llahendong Pertamina Geothermal Energy 125 Lahendong-Tompaso, North Sulawesi
PLTP Sororia Sokoria Geothermal Indonesia 5 Ende- Flores Island, East Nusa
Tenggara Timur
PLTP Sibayak Pertamina Geothermal Energy 12 Sinkut, North Sumatra

Geothermal Concession Areas (WKP) Not Yet Awarded
No. Concession (WKP) Capacity (MW) Estimated Investment (USD Million)
1. Gunung Endut 40 160
2. Gunung Arjuno Welirang 110 440
3. Gunung Pandan 10 40
4. Gunung Gede Pangrangro 55 110
5. Songgoriti 20 80
6. Sipoholon Ria-ria 20 80
7. Simbolon Samosir 110 440
8. Suwawa 20 80
9. Sembalun 20 80
10. Bora Pulu 40 160
11. Gunung Hamiding 10 40
12. Songa Wayaua 5 20
13. Gunung Galunggung 110 440
14. Gunung Ciremai 110 440
Source: MEMR.
The government expects Indonesia to become the PPA Terms

world’s largest geothermal power producer by
The PPA duration is up to 30 years. Take-or-pay is
2023, with a geothermal capacity of 3,729.5 MW.
applied during the financing period and take-and-
These developments are based on capacity being
pay is applied after. The BOOT scheme has been
added at existing project areas including the Sarulla
repealed through MEMR Regulation 4/2020.
Geothermal Power Plant (2 x 110 MW), the Karaha
Geothermal Power Plant (30 MW), the Sorik Marapi Procurement Method
Geothermal Power Plant (2 x 20 MW), the Lumut Unlike other renewable energy project types,
Balai Geothermal Power Plant (55 MW), Sokoria geothermal projects are initiated through MEMR’s
Unit 1 (5 MW) and Lahendong Binary (5 MW). award of a concession or work area license. The
Currently the government is using national budget government conducts an auction process for
for a comprehensive geothermal exploration plan developers who want a geothermal working area
from 2020-2024, to be awarded first in 2023. (WKP) license. For PLN, the PPA is negotiated on
a direct appointment basis, with the developer
Regulatory Treatment
holding the license for WKP.
Geothermal projects, regardless of their size,
Key Decision Makers
are governed by MEMR Regulation 4/2020 on
the Second Amendment of MEMR Regulation The key decision maker is MEMR in the award of
50/2017 and MEMR Regulation 10/2018 as the the working area. The project developer is the
Second Amendment of MEMR Regulation 10/2017. key decision maker for all equipment and services
Geothermal development is also governed by a procured during the project development period.
comprehensive set of regulations including Law Land and Permitting
21/2014 on Geothermal, Government Regulation
79/2014 on National Energy Policy, Government The main license required is the WKP license. Land
Regulation 28/2016 on Production Bonuses, use and environmental permits and licenses are
Government Regulation 7/2017 on Geothermal also required. There are many existing geothermal
Energy Indirect Use, the third amendment to working areas that have stalled. . A number of
Presidential Regulation 3/2016 (Presidential project developers have experienced conflicts with
Regulation 109/2020), and Presidential Regulation communities around the project area because of
14/2017, which are related to the acceleration overlapping land use rights. The issuance of the
of national strategic projects. Law 21/2014 Omnibus Law has amended some parts of the
was amended through the Law 11/2020, or the Geothermal Law, including on gaining business
comprehensive Omnibus Law. license when geothermal activities take place in
forest areas.
Pricing
The power purchase price for geothermal energy
is set at a maximum of the regional BPP (average
electricity production cost) in regions where the
BPP is higher than the national BPP. For regions
where the BPP is at or below the national BPP, the
price is negotiated with PLN. PLN issues a pre-
transaction agreement prior to awarding the WKP,
confirming the ceiling price for purchasing power.
Financing Local Content Requirements

The developer is responsible for raising the equity For projects up to 5 MW, local content requirements
portion of project financing, which is typically 40% are 31.30% for goods, 89.18% for services, and
of the total project cost. The cost of geothermal 42% for goods and services combined. For 5-10
exploration in Indonesia is about 8-9% of the total MW projects, it is 21.00% for goods, 82.30% for
project cost, up to USD 10 million per well. Given services, and 40.45% for goods and services
the risks involved and the high cost of exploration, combined. For 10-60 MW projects, it is 15.70% for
financing the exploration phase is difficult and goods, 74.10% for services, and 33.24% for goods
often becomes a major challenge for the project. In and services combined. For 60-110 MW projects, it is
addition, the high investment cost for a geothermal 16.30% for goods, 60.10% for services, and 29.21%
powerplant can reach USD 4-5 million per MW, for goods and services combined. For projects
making overall project financing unattractive. greater than 110 MW, it is 16.00% for goods,
Further, a royalty payment to the local government 58.40% for services, and 28.95% for goods and
is required during the operation of the project. services combined.
Ministry of Finance (MOF) Regulation No. 62 Major Developers/Equipment and Service
of 2017 created a Geothermal Fund to facilitate Providers
financing in the geothermal sector and to
The major developers in Indonesia are: Pertamina
accumulate data on exploration for license
Geothermal Energy (Indonesia), Star Energy
preparation. The Fund provides loans and equity
(Indonesia), Geo Dipa Energy (Indonesia), Sokoria
injections between IPPs and other related
Geothermal (Indonesia), Supreme Energy
stakeholders through a business-to-business
(Indonesia). Medco Power (Indonesia), PLN
scheme. Additionally, the Geothermal Fund consists
Geothermal (Indonesia), and Indonesia Power
of a Geothermal Data and Information Provision
(Indonesia). The drilling companies are typically
Facility for which the MOF has assigned PT Sarana
the same ones that are active in the oil and gas
Multi Infrastruktur (PT SMI) to provide data for the
industry, including those that rent oil and gas
exploratory phase of geothermal development. PT
drilling machinery. Major equipment suppliers
SMI is a state-owned enterprise that is responsible
include: Ansaldo Energia (Italy), Ormat (USA),
for managing the USD 240 million Geothermal
Marubeni (Japan), Toshiba (Japan), and Fuji Electric
Fund.
(Japan). Consulting engineering companies include:
International lenders in Indonesia’s geothermal AECOM, SMEC, and GeothermEx.
sector include: Bank of Tokyo-Mitsubishi UFJ Ltd,
ING Bank NV, Societe Generale, Sumitomo Mitsui
Banking Corporation, Mizuho Bank Ltd, the National The ADB and JBIC are the main MDBs). USAID’s
Australia Bank, ADB and JBIC. ICED II Project has provided due diligence advisory
services to PLN during price re-negotiations.
Active UK Companies
49% foreign ownership. Larger projects can have Arup, Fichtner Consulting Engineers Ltd,
up to 95% foreign ownership. Increasingly, MEMR Geothermal Engineering, Hotspur Geothermal, Mott
is awarding working area licenses to PLN and MacDonald, Ramboll.
Pertamina (the national oil company) subsidiaries,
or to other state-owned enterprises, decreasing
the opportunities for experienced foreign project
developers.

Inputs on the geothermal market come from the resource, are normally more expensive than
PLN RUPTL 2019-2028, specifically the planned direct dry steam and flash plants. Projects toward
capacity additions between 2020-2021 and 2022- the high end of the range were used here, given
2025. Assumptions for project costs and the supply the limited information available on geothermal
chain are based on a limited sample of actual resources for new concession areas. The variation
projects in Indonesia. However, it should be noted in direct dry steam and flash plants is due to
that geothermal project costs are highly site- resource productivity (size of reservoir, steam
sensitive. Typical costs for geothermal powerplants temperature and production per well). Information
range from USD 1,870 to USD 5,050 per kilowatt on the project supply chain’s composition and the
(USD 1,870,000 – 5,050,00 per MW), noting that foreign and domestic shares of the market come
binary plants, which can use a lower-temperature from a limited number of existing projects.
Total Market Size for Geothermal
2020-2021 448 4,700,000 2,293,000,000 6-7 years
2022-2025 4,119 4,500,000 18,535,500,000 6.5 years
Procurement Analysis for Geothermal
Time Frame PLN Direct Independent Power National Subnational Private Sector
Procurement Producer Government Government (Non-IPP)
2020-2021 30% 70% 0% 0% 0%
2022-2025 8% 92% 0% 0% 0%
Supply Chain and Financing Analysis for Geothermal
Project developer 1.8 1.8 0.0
Consulting/engineering studies 3.6 1.8 1.0
Exploration 12.4 6.9 5.5
Production well drilling 36.5 9.1 27.4
Power plant, cooling, other infrastructure 34.7 3.5 31.2
Steam gathering system, substation, and transmission line 6.0 8.0 9.9
Startup and commissioning 2.9 2.9 0.0
Total 100 34.1 65.9
Equity 30 12 18
Debt 70 28 42
Total 100 40 60
Supply Chain and Financing Market Value Analysis for Geothermal (USD Thousands)
Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Project developer 41,854 338,239 41,854 338,239 -- --
Consulting/ 83,708 676,478 41,854 338,239 31,854 338,239

engineering studies
Exploration 284,607 2,300,026 159,045 1,285,308 125,562 1,014,717
Production well drilling 837,080 6,764,781 209,270 1,691,195 627,810 5,073,586
Power plant, cooling, 795,226 6,426,542 79,523 642,654 715,704 5,783,888

other infrastructure
Steam generating 184,158 1,488,252 184,158 1,488,252 -- --

system, substation &
transmission line
Startup and 66,966 541,182 66,966 541,182

commissioning
Total 2,293,600 18,535,500 782,670 6,325,070 1,510,930 12,210,430
Equity 688,080 5,560,650 275,232 2,224,260 412,848 3,336,390
Debt 1,605,520 12,974,850 642,208 5,189,940 963,312 7,784,910
Total 2,293,600 18,525,500 917,440 7,414,200 1,376,160 11,121,300

Given Indonesia’s extensive geothermal resource power plants. 24 The formation of the holding is
potential and its rank as second in the world in expected to increase competitiveness in the market,
terms of Installed capacity, its geothermal market especially in preparation for the upcoming auction
is relatively mature, with limited opportunities for for WKPs in 2023. The Government of Indonesia
new entrants. The government’s new regulations also aims to accelerate the uptake of geothermal
have addressed much of the risk associated with power plants to pursue its renewable energy
developing new concession areas; however, a targets through increased capital strength of the
number of issues (described above) remain. holding company and access to a wider variety of
On this front, the Government of Indonesia is financial benefits. 25
currently planning an IPO from a combination of Consulting and engineering studies will require
three geothermal SOEs, including PT Pertamina specialized geothermal resource expertise. Also,
Geothermal Energy, PT PLN Gas and Geothermal, exploration, production and well drilling will add to
and PT Geo Dipa Energy. The initial offering could overall project costs relative to other renewable
take place as early as the end of 2021 at the energy project types.
Indonesian Stock Exchange. 23 The new company
will operate 1,022.5 MW of generating capacity, or
approximately 48% of total installed geothermal
23
Bloomberg. 2021. https://www.bloomberg.com/news/articles/2021-03-03/indonesia-said-to-plan-500-million-merged-geothermal-firm-ipo
24
The Purnomo Yusgiantoro Center. 2021. https://www.purnomoyusgiantorocenter.org/enhancing-indonesias-energy-security-through-the-establishment-of-geothermal-holding-company/
25
The Purnomo Yusgiantoro Center. 2021. https://www.purnomoyusgiantorocenter.org/enhancing-indonesias-energy-security-through-the-establishment-of-geothermal-holding-company/
8. Market conditions for bioenergy

development
8.1 Biomass Power
Biomass resources or feedstocks for power Regulatory Treatment
production come from palm oil mill processing,
All biomass projects, regardless of size, are now
sugar processing, rice processing residues, and
governed by MEMR Regulation 4/2020 on the
wood waste from paper mills. The relatively high
cost of transporting biomass results in these
powerplants being located near the feedstock
source. Agro-processing facilities have traditionally
used their biomass waste as a fuel source for steam Pricing
supply, captive power or cogeneration. A palm oil
The power purchase price is set at a maximum of
mill’s main energy need is super-saturated steam,
85% for regions where the BPP (average electricity
which is supplied by burning palm fibre mixed with
production cost) is higher than the national BPP. For
shells. Shells are now a commodity in Asia, so
regions where the BPP is at or below the national
much of the waste is diverted to export markets.
BPP, the price is negotiated with PLN.
Empty fruit bunches are a waste product that is
only now being considered as a biomass source PPA Terms
for excess power production, or in some cases, The PPA duration is up to 30 years. Take-or-pay
pelletized and exported. Due to the seasonal nature applied during the financing period, and take-and-
of sugar harvesting and processing, biomass-fired pay is applied after. The BOOT scheme has been
cogeneration systems do not operate throughout repealed through MEMR Regulation 4/2020.
the year and are treated as “excess power” facilities
by PLN. Procurement Method
The principal commercial biomass technology is PLN applies pre-qualification and competitive
combustion for steam. Due to the size of biomass bidding to all biomass IPP projects. PLN regional
boilers, the most economic size for a biomass steam offices (Wilayah) manage the request for proposals
powerplant is 10 MW or larger. Biomass gasification and procurement for projects < 10 MW since these
is possible at a much smaller scale, even less than 1 will be connected to the 20 kV network. PLN
MW, but the capital costs per MW are much higher, Headquarters (EBT Division) is responsible for
as are the operation and maintenance costs. Other procurement for larger projects. Direct selection
technologies such as pyrolysis are not commercial in (competitive procurement) for biomass projects
Indonesia. only makes sense when the project hasn’t been
identified (e.g., listed as “scattered” in the RUPTL);
Feedstock availability is major a challenge in otherwise, only one company will have negotiated
developing and financing biomass power projects. a feedstock agreement with an associated forest or
Banks look for a feedstock supply agreement equal agro-processing facility. However, MEMR Regulation
to or longer than the tenor of the loan. In terms 4/2020 has stated that direct selection will be used
of powerplant operations, the project’s viability is for all renewable energy sources except for specific
dependent on the availability and negotiated price circumstances.
of the biomass feedstock. For this reason, many
projects are developed with the feedstock supplier
taking a shareholding position in the project. Also,
the feedstock agreement should have a cap on
annual escalation since that costs cannot be passed
through to PLN.
Key Decision Makers Local Content Requirements

PLN Wilayah are the key decision makers for projects There are no local content requirements for biomass
< 10 MW, while Headquarters is the key decision projects.
maker for the award of the PPA for larger projects.
The project developer is the key decision maker
Providers
for all equipment and services procured during the
project development period. The major developers in Indonesia are: Growth
Steel Group (Indonesia), Nusantara Infrastructure
Land and Permitting
(Indonesia), and Agri Kencana Group (Indonesia).
There are no specific land use permits for biomass Equipment suppliers include: Takuma (Japan),
facilities. An environmental permit, as well as local Yoshimine (Japan), Babcock & Wilcox (USA), ERK
government permits, are a pre-condition of signing Eckrohrkessel (Germany), Siemens (Germany),
the PPA. Dresser Rand (Germany), Elliott Turbo (Japan/USA),
Financing ShinKo (Japan), Triveny (India), Jineng Andalas
(Indonesia), Atmindo (Indonesia), and Indomarine
The developer is responsible for raising the (Indonesia).
equity portion, typically 30% of the total project
costs. Debt for biomass projects is raised through Foreign Donor/MDB Involvement
Indonesian banks. USAID’s ICED II Project provides technical assistance
Foreign Ownership Restrictions to project developers, banks and PLN on project
evaluation, training, and financing matchmaking.
49% foreign ownership. Larger projects can have up Active UK Companies
to 95% foreign ownership. Atkins, Bioenergy Infrastructure Group, Doosan
Babcock, Mott Macdonald, Pegasus Group,
Peter Brotherhood, PM PROjEN, Pure Energy
Professionals, Ramboll.

Inputs for the biomass market size come from the According to PLN, there are 181 MW of operating
PLN RUPTL 2019-2028, specifically the planned biomass and biogas generating capacity connected
capacity additions between 2020-2021 and 2022- to PLN’s grid, 25 MW are under construction, 10 MW
2025. Assumptions for project costs and supply have reached financial closure, 41 MW with signed
chains are based on actual projects in Indonesia. PPAs, and 460 MW in the planning stage. The PLN
Project supply chain composition and foreign and RUPTL calls for 795 MW of biomass, biogas and
domestic share of the market also come from waste-to-energy powerplants to be added during
existing projects. the period 2019 to 2028.
Total Market Size for Biomass
2020-2021 139 1,500,000 208,050 1-2 years
2022-2025 15 1,500,000 22,350 1-2 years
Procurement Analysis for Biomass
Time Frame PLN Direct Independent Power Unallocated National and Subnational Private Sector
Procurement Producer (PLN or IPP) Government (Non-IPP)
2020-2021 0.0% 62.5% 37.5% 0% 0%
2022-2025 0.0% 100% 0% 0% 0%
Supply Chain and Financing Analysis for Biomass
Civil works 17.0 17.0 0.0
Electrical-mechanical equipment 70.0 35.0 35.0
Transmission line 3.0 3.0 0.0
Pre-construction by developer (permit, land acquisition, etc.) 5.0 5.0 0.0
Pre-construction by consultant (study, engineering design) 5.0 5.0 0.0
Total 100.0 65.0 35.0
Equity 30 30 0
Debt 70 70 0
Total 100 100 0

Supply Chain and Financing Market Value Analysis for Biomass (USD Thousands)
Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Project developer/sponsor 10,403 1,118 10,403 1,118 -- --
Consulting/engineering studies and 10,403 1,118 10,403 1,118 -- --

design
Civil works 35,369 3,800 35,369 3,800 -- --
Electrical-mechanical equipment 145,635 15,645 72,818 7,823 72,818 7,823
Transmission line 6,242 671 6,242 671 -- --
Total 208,050 22,350 135,233 14,528 72,818 7,823
Equity 62,415 6,705 62,415 6,705 -- --
Debt 145,635 15,645 145,635 15,645 -- --
Total 208,050 22,350 208,050 22,350 -- --

Project-Related Business Opportunities Feedstock availability is a challenge in developing

and financing biomass power projects. Banks
Biomass power IPP projects must sell power under
look for a feedstock supply agreement equal to
the BPP (average electricity production cost)
or longer than the tenor of the loan. In terms of
scheme as dictated by MEMR Regulation 4 of 2020,
powerplant operations, the project’s viability is
i.e., at 85% of the regional BPP wherever the
dependent on the availability and negotiated price
regional BPP exceeds the national BPP. The power
of the biomass feedstock. For this reason, many
purchase price is negotiated wherever the regional
projects are developed in which the feedstock
BPP is equal to or lower than the national BPP.
supplier takes a shareholding position.
Business opportunities in biomass are closely tied
The feedstock agreement should have a cap on the
to the source of feedstock. Since the projects are
annual escalation, since that cost cannot be passed
dependent on the solid organic waste of forest
through to PLN.
or agro-processing facilities, these facilities are
critical to the viability of the project. For most of
the facilities, their principal purpose is to supply
internal or captive energy (steam and electricity).
Successful project development will involve
obtaining exclusive, secure, long-term feedstock
agreements. If the project is designed to sell all
(or only excess if used for captive use) electricity
to PLN, then issues and associated costs of
interconnection come into play.
Figure 11. Breakdown of the Biomass Power Marked by Supply Chain Segment, 2020-2025
145.6
Biomass Power Market (US$ Million)
2020 - 2021
2022 - 2025
35.4
15.7
10.4 10.4
3.4 6.2
1.1 1.1 0.7
Developer Consulting & Engi- Civil Work Transmissions Equipment
neering
8.2 Biogas Power

Biogas in Indonesia principally comes from the Like biomass power projects, biogas projects’
anaerobic digestion of palm oil mill effluent (POME) viability is dependent on the availability of the
and cassava starch mill effluent. Of these, POME is wastewater supply from the palm oil or cassava
seen as the main feedstock for commercial biogas mill. Projects must have an agreement with the mill
production. An estimated 700 palm oil mills are to supply the wastewater at a given flow rate to
located primarily in Sumatra and Kalimantan. The make the biogas powerplant viable. For this reason,
average palm oil mill can supply biogas to generate many projects are developed with the mill owner
between 1 and 3 MW of power. While the electricity taking a shareholding position or revenue sharing
production potential is significant, POME biogas has agreement in the project.
not been developed for a variety of reasons. These
include the location of mills, which are typically far
from the nearest PLN grid, insignificant internal
electricity needs, commercial energy production
not being a core business for palm oil companies,
and low power purchase prices for third-party
biogas IPPs.
Biogas Projects under Development (2019-2025)
No. Location Project Name Capacity (MW) COD Status Developer
1. Riau PLTBg Ujung Batu 3.0 2019 PPA IPP
2. South Kalimantan PLTBg Sukadamai 2.4 2019 Construction IPP
3. Aceh PLTBg Aceh Tamiang 3.0 2020 PPA IPP
4. North Sumatra PLTBg Kwala Sawit 1.0 2020 PPA IPP
5. North Sumatra PLTBg Pagar Merbau 1.0 2020 PPA IPP
6. Jambi PLTBm Karang Anyer 1.0 2020 Construction MEMR
7. Lampung PLTBg Terbangi Ilir 2.5 2020 Construction IPP
8. West Java PLTBg Cianjur 3.0 2023 Plan IPP
Source: PLN RUPTL 2019-2028. COD – Commercial Operating Date, PPA – Power Purchase Agreement, IPP Independent Power Producer

All biogas IPP projects, regardless of size, are now The developer is responsible for raising the
governed by MEMR Regulation 4/2020 on the equity portion, typically 30% of the total project
Second Amendment of MEMR Regulation 50/2017 costs. Debt for biomass projects is raised through
and MEMR Regulation 10/2018 as the Second Indonesian banks.
Pricing
Projects with capacities of < 10 MW have a limit
The power purchase price is set at a maximum of of 49% foreign ownership. There are no biogas
85% for regions where the BPP is higher than the projects larger than 10 MW.
national BPP. For regions where the BPP is at or
below the national BPP, the price is negotiated with
PLN. There are no local content requirements for biogas
projects.
PPA Terms
The PPA duration is up to 30 years. Take-or-pay is
Providers
applied during the financing period, and take-and-
pay is applied after. The BOOT scheme has been The major developers in Indonesia are: Austindo
repealed through MEMR Regulation 4/2020. Aufwind New Energy (Indonesia), Astra Agri
(Indonesia), Sinar Mas (Indonesia), Musi Mas
Procurement Method
(Indonesia), Pasadena (Indonesia), Sewatama
PLN applies pre-qualification and competitive (Indonesia), and Asia Biogas (Singapore). Equipment
bidding to all biogas IPP projects. PLN regional suppliers include: Jenbacher (USA/Germany), MWM
offices (Wilayah) manage the request for proposals (USA/Germany), Guascor (Pakistan), and Caterpillar
and procurement for projects < 10 MW since these (USA). Consulting/Engineering companies: ADI
will be connected to the 20 kV network. PLN Systems (Canada), KIS (Singapore/Indonesia), AES
Headquarters (EBT Division) is responsible for (Singapore), and Biotec (Belgium).
procurement for larger projects. Direct selection
(competitive procurement) for biomass projects only
makes sense when the project hasn’t been identified USAID’s ICED II Project provides technical assistance
(e.g., listed as “scattered” in the RUPTL); otherwise, to project developers, banks and PLN on project
only one company will have negotiated a wastewater evaluation, training, and financing matchmaking.
supply agreement with an associated palm oil mill. Active UK Companies
However, MEMR Regulation 4/2020 has stated that
direct selection will be used for all renewable energy Aggreko Plc Group, Atkins, Mott Macdonald,
sources except for specific circumstances. Organics Group plc, PlanET Biogas UK, PM PROjEN,
Ramboll.
Key Decision Makers
PLN Wilayah are the key decision makers for projects
< 10 MW, while Headquarters is the key decision Inputs to the biogas market come from the PLN
maker for the award of the PPA for larger projects. RUPTL 2019-2028, specifically the planned capacity
The project developer is the key decision maker additions between 2020-2021 and 2022-2025.
for all equipment and services procured during the Assumptions for project and the supply chain are
project development period. based on actual projects in Indonesia. Project supply
chain composition and foreign and domestic share of
Land and Permitting the market come from existing projects.
There are no specific land use permits for biogas
facilities since they are located “within the fence”
of a palm oil mill. An environmental permit, as well
as local government permits, are pre-conditions for
signing the PPA.
Total Market Size for Biogas
2020-2021 8 2,000,000 16,000,000 1-2 years
2022-2025 3 2,000,000 6,000,000 1-2 years
Procurement Analysis for Biogas
Time Frame PLN Independent Power Unallocated National and Subnational Government Private Sector
Producer (PLN or IPP) (Non-IPP)
2020-2021 0% 100% 0% 0% 0%
2022-2025 0% 100% 0% 0% 0%
Supply Chain and Financing Analysis for Biogas
Civil works 30.0 30.0 30.0
Pre-construction by developer (permit, land acquisition, etc.) 10.0 10.0 0.0
Pre-construction by consultant (study, engineering design) 10.0 10.0 0.0
Total 100.0 70.0 30.0
Equity 30 30 0
Debt 70 70 0
Total 100 100 0

Supply Chain and Financing Market Value Analysis for Biomass (USD Thousands)
Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Project developer/sponsor 1,600 600 1,600 600 -- --
Consulting/engineering studies and 1,600 600 1,600 600 -- --

design
Civil works 4,800 1,800 4,800 1,800 -- --
Electrical-mechanical equipment 6,400 2,400 1,600 600 4,800 1,800
Total 16,000 6,000 11,200 4,200 4,800 1,800
Equity 4,800 1,800 4,800 1,800 -- --
Debt 11,200 4,200 11,200 4,200 -- --
Total 16,000 6,000 16,000 6,000 -- --

8.6 Project-Related
Business Opportunities
The market, while not large, has gone through Biogas IPP projects must sell power under the
a transformation over the past decade. Initially, BPP scheme as dictated by MEMR Regulation 4 of
biogas projects were developed as Clean 2020, i.e., at 85% of the regional BPP wherever the
Development Mechanism (CDM) projects until regional BPP exceeds the national average BPP. The
2011 when the value of carbon credits plummeted. power purchase price is negotiated wherever the
In recent years, the market has been driven regional BPP is equal to or lower than the national
by compliance with international standards BPP. As with biomass power projects, biogas
and certifications such as the Roundtable for project viability depends upon the availability of
Sustainable Palm Oil. A number of palm oil the wastewater supply from the palm oil or cassava
companies, such as Sinar Mas and Musi Mas, have mill. Projects must have an agreement with the
established an in-house team to design and develop mill to supply the wastewater at a given flow rate
POME biogas projects at their mills; however, they to make the biogas powerplant viable. For this
may not develop the project as an IPP, but rather to reason, many projects are developed in which the
meet their captive electricity needs. mill owner takes a shareholding position or signs a
revenue sharing agreement.
Figure 12. Breakdown of the Biomass Power Marked by Supply Chain Segment, 2020-2025
6.4
Biogas Power Market (US$ Million)

2020 - 2021
4.8
2022 - 2025
2.4
1.8
1.6 1.6 1.6
0.6 0.6 0.6
Developer Consulting & Civil Work Transmissions Equipment

Design
8.3 Waste-to-Energy
Another potential source of biomass energy is The selected developer will have dual roles as a
municipal solid waste. The quantity of city or waste manager (entering into a waste management
municipal wastes in Indonesia is comparable to agreement with the local government) and as a
those of other large cities of the world. Most of power generator (entering into a PPA with PLN).
these wastes originate in households in the form of For the waste management function, the developer
organic wastes from the kitchen, but an increasing will be entitled to receive a fee from the local
portion comes from plastics and other inorganic government, calculated based on the weight of
wastes. At present, municipal solid wastes are the waste (in tons) managed by the developer.
either burned at each household or collected by Presidential Regulation No. 35 of 2018 also provides
the municipalities to be dumped into a designated that the national budget can be allocated to provide
dumping ground or landfill. As of 2018, there additional funding for the payment of this waste
were no commercially operating waste-to-energy management fee, capped at a maximum amount of
projects in Indonesia and no sanitary landfills. 500,000 IDR (around 38.5 USD) per ton of waste.
Two landfill gas projects were developed under the
Since waste-to-energy (WTE) plant projects have
CDM scheme, one in Bantar Gebang, in Bekasi, West
been designated national strategic projects, funding
Java, which handles all of the waste for Jakarta and
sources are currently being assisted by the Ministry
surrounding areas, and a second in Denpasar, Bali.
of Finance and Coordinating Ministry of Economic
Affairs, in cooperation with the Committee for
Acceleration of Priority Infrastructure Delivery
(KPPIP). Every aspect of each WTE project is being
evaluated to decide on the best way of financing.
Waste-to-Energy Project Development Opportunities
City/Municipality1 Tons per Day (est.)2 Power Purchase Price3
DKI Jakarta11 7,618 10.70 - 13.35
Bandung1 2,797 10.70 - 13.35
Surabaya1 2,624 10.70 - 13.35
Bekasi1 2,274 10.70 - 13.35
Tangerang 1
1,835 10.70 - 13.35
Tangerang Selatan1 1,317 10.70 - 13.35
Semarang1 1,288 10.70 - 13.35
Makassar 1
1,234 10.70 - 13.35
Palembang1 1,233 10.70 - 13.35
Denpassar11 1,110 10.70 - 13.35
Manado1 1,053 10.70 - 13.35
Pekan Baru 1,655 11.61
Samarainda 1,507 10.58
Gorontalo 1,918 13.46
Jayapura 2,162 15.17
Note: 1 – Cities included in MEMR Regulation No. 35 of 2018; 2 - Based on Indonesia’s Municipal Solid Waste 3R and Waste-to-energy Programs, Makara J. Tech-
nol. 21/3 (2017); 3 - Power Purchase Price based on MEMR Regulation No. 35 of 2018 and MEMR Regulation No. 50 of 2017 (reference to PLN BPP 2018).
Table 8. Waste-to-Energy Projects under Development (2019-2025)
Location Project Name Capacity (MW) COD Status Developer
West Java PLTSa Samur Batu 1.5 2019 Construction IPP
West Java PLTSa Samur Batu 7.5 2020 Construction IPP
East Java PLTSa Samur Batu 11.0 2020 Construction IPP
Central Java PLTSa Surakarta 10.0 2020 Construction IPP
Source: PLN RUPTL 2019-2028. COD – Commercial Operating Date, PPA – Power Purchase Agreement, IPP Independent Power Producer
Regulatory Treatment Pricing

In the case of waste-to-energy, Presidential Presidential Regulation No. 35 of 2018 sets out a
Regulation No. 35 of 2018 was issued to accelerate definitive single feed-in tariff for all waste-to-energy
the construction of waste-based powerplants in 12 projects, depending on their capacity, regardless of
major cities/areas: DKI Jakarta, Tangerang, South where the project is located and when the project
Tangerang, Bandung, Bekasi, Semarang, Surakarta, achieves commercial operation. For projects of
Surabaya, Makassar, Manado, Palembang and up to 20 MW, the tariff is USD 13.35 cents/kWh;
Bali. PLN is developing the project in Bali while for projects of more than 20 MW, the tariff is
the others are being developed by the local determined based on the following formula: USD
governments through tender or direct appointment 14.54 cents/kWh minus 0.076 times the generating
to private sector businesses. For all 12 locations, capacity. For example, a 50 MW waste-to-energy
the local government must prepare a pre-feasibility plant would receive a power purchase price of 14.54
study that determines the waste characteristics, – (0.076 x 50) or USD 10.74 cents/kWh. For cities
the appropriate energy conversion technology, the and municipalities not mentioned in Presidential
project location and other factors that are used in Regulation No. 35 of 2018, the tendering process
the bidding and procurement process. Interested and prices set for sales of electricity to PLN are
project developers would submit a full feasibility governed by MEMR Regulation 4 of 2020.
study to determine the capacity of their proposed
plant and calculate the “tipping fee” needed to
make the project economically feasible. Presidential
Regulation No. 35 of 2018 sets out a definitive
single feed-in tariff for all waste-to-energy
projects depending on their capacity, regardless
of where the project is located or when the project
achieves commercial operation. WTE projects
outside these 12 locations, regardless of size, are
governed by MEMR Regulation 4/2020 on the
PPA Terms Foreign Ownership Restrictions

The PPA duration is up to 30 years. Take-or-pay is Projects with capacities of < 10 MW have a limit
applied during the financing period, and take-and- of 49% foreign ownership. There are no biogas
pay is applied after. PLN does not apply the BOOT projects larger than 10 MW to date.
scheme for waste-to-energy projects.
Local content requirements
Procurement Method
There are no local content requirements for biogas
MEMR Regulation No. 35 of 2018 provides that projects.
the governor or mayor can assign a region-owned
enterprise (BUMD) to carry out a project or public
Providers
tender to choose the developers. The tender is
done under government procurement rules or Since there are only a few landfill gas projects
public private partnership (PPP) rules. For all 12 and no successfully developed and/or operating
locations, the local government must prepare a waste-to-energy projects in Indonesia, equipment
pre-feasibility study that determines the waste suppliers and consultant/engineering companies
characteristics, the appropriate energy conversion will initially come from outside Indonesia.
technology, project location and other factors that Foreign Donor/MDB Involvement
are used in the bidding and procurement process.
Interested project developers would submit a The Ministry of Economic Affairs, in cooperation
full feasibility study to determine the capacity of with the KPPIP, solicited support from several
their proposed plant and calculate the “tipping foreign governments to fund the pre-feasibility
fee” needed to make the project economically studies for the priority locations. USAID’S ICED II
feasible. For PLN, since the location is responsible Project provides technical assistance to project
for selecting the developer, the award of a PPA developers, banks and PLN on project evaluation,
is on a direct appointment basis. This assumes training, and financing matchmaking.
that a competition was held by the location when Active UK Companies
awarding the project.
Advanced Pump and Hydro Systems Ltd., Arup,
Key Decision Makers Biffa Group, Bioenergy, Infrastructure Group,
The city/area is the key decision maker for all Doosan Babcock, Engie, FCC Environment Ltd, MLM
waste-to-energy projects. The project developer Group, Mott Macdonald,
is the key decision maker for all equipment and Organics Group plc, Pegasus Group, Peter
services procured during the project development Brotherhood, Plan B Management Solutions, PM
period. PROjEN, Suez Environment, Veolia UK, Viridor.
Land and Permitting Estimated Market Size
The city/area is responsible for identifying the Inputs to the WTE market come from the PLN
site and securing the land for waste-to-energy RUPTL 2019-2028, specifically the planned capacity
projects. An environmental permit, as well as local additions between 2020-2021 and 2022-2025.
government permits, are pre-conditions of signing Given that there are no fully developed waste-
the PPA. to-energy projects in Indonesia, assumptions for
Financing project costs and the supply chain are based on
expected development cost structures and the
The government facilitates financing for waste- domestic and foreign supply chain shares.
to-energy projects through PT SMI. The project
developer is responsible for raising the equity
portion, typically 30% of the total project costs.
Total Market Size for Waste-to-Energy
Time Frame Market Size (kW) Project Cost ($/MW) Market Value (USD) Development Period (Years)
2020-2021 45 6,000,000 270,000,000 2 years
2022-2025 204 6,000,000 1,224,000,000 2 years
Procurement Analysis for Waste-to-Energy
Time Frame PLN Independent Power Unallocated National and Subnational Private Sector
Producer (PLN or IPP) Government (Non-IPP)
2020-2021 0.00% 77.77% 22.23% 0% 0%
2022-2025 0.00% 92.65% 7.35% 0% 0%
Supply Chain and Financing Analysis for Waste-to-Energy
Project developer/sponsor 5.0 5.0 0.0
Civil works 17.0 17.0 0.0
Total 100.0 46.0 54.0
Equity 30 30 0
Debt 70 35 35
Total 100 65 35
Supply Chain and Financing Market Value Analysis for Waste-to-Energy (USD Thousands)
Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Project developer/sponsor 13,500 61,200 13,500 61,200 -- --
Consulting/engineering 13,500 61,200 2,700 12,240 10,800 48,960

studies and design
Civil works 45,900 208,080 45,900 208,080 -- --
Electrical-mechanical 189,000 856,800 54,000 244,800 135,000 612,000

equipment
Total 270,000 1,224,000 124,200 536,040 145,800 660,960
Equity 81,000 367,200 81,000 367,200 -- --
Debt 189,000 856,800 94,500 428,400 94,500 428,400
Total 270,000 1,224,000 175,500 795,600 94,500 428,400


Waste-to-energy projects are highly political to note that waste-to-energy projects have caused
in that they involve agreements with cities or controversies in multiple cases, and the Corruption
municipalities, most of which are not willing to Eradication Committee (KPK) has issued a notice
pay the necessary tipping fees that will make the and discussed with related government entities
project economical. The Indonesian government that instead of operating healthily as businesses,
has made waste-to-energy priority infrastructure waste-to-energy projects may be placing even more
and has put in place various incentives to burden on regional budgets with the potential of
encourage investment. Given that there are no causing losses.
operating commercial waste-to-energy facilities in The selected developer will have dual roles as a
Indonesia, local governments will look favourably waste manager (entering into a waste management
on the experience of foreign consultants and agreement with the local government) and a power
equipment suppliers. The challenge, however, is generator (entering into a PPA with PLN). For the
many of the project proposals are generated by waste management function, the developer will be
the technology provider, making it difficult for local entitled to receive a fee from the local government,
governments to tender projects competitively. calculated based on the weight of the waste (in
Of immediate need are pre-feasibility studies tons) managed by the developer. Presidential
that adequately assess the waste characteristics, Regulation No. 35 of 2018 also provides that
proposed site, appropriate energy conversion the national budget can be allocated to provide
technology and costs, interconnection with PLN, additional funding for the payment of this waste
and environmental and social impacts. These management fee, capped at a maximum amount of
could be done with external funding such as 500,000 IDR (around USD 38.5) per ton of waste.
bilateral technical assistance. It is also important
Figure 13. Breakdown of the Waste-to-Energy Market by Supply Chain Segment, 2020-2025
856.8
Waste-to-Energy Market (US$ Million)

2020 - 2021
2022 - 2025
208.1 189.0
61.2 61.2 45.9 36.7

13.5 13.5 8.1
Developer Consulting & Civil Work Transmissions Equipment
Design
8.4 Biofuel for Power Plants

As an agricultural country, Indonesia is blessed Biofuel production and use in Indonesia is a
with abundant biofuels materials. Feedstocks that response to climate change, energy demand,
can be used to produce biofuels include cassava, and trade policy. The substitution of traditional
maize crops, sugarcane, sago, palm oil, Jatropha, petroleum fuels with biofuels is intended to
waste cooking oil, etc. But since Indonesia is the reduce GHG emissions in the transportation and
world’s largest crude palm oil (CPO) producer energy sectors, provide energy security, buffer
– 43 million tons in 2018 – the national biofuel the domestic economy against global oil price
program is heavily focused on CPO and other palm fluctuations, reduce foreign exchange expenditures
oil derivatives. Although there is research into a on imported fuel, and stimulate domestic demand
variety of “green fuels,” only biodiesel from palm in the face of trade barriers in Europe and the U.S.
oil and bioethanol from sugar cane (molasses) are to Indonesian biodiesel-based on palm oil. In 2018,
commercially produced. Indonesia is among the 10 Indonesia had its largest harvest, with CPO output
largest sugarcane producers in the world. There increasing by 12.5% to 43 million tons. Despite the
is, however, no fuel-grade ethanol production increase in CPO yield, Indonesia’s CPO industry is
in Indonesia, although there are ethanol plants under pressure due to sluggish prices, weakening
producing non-fuel ethanol for the medical industry, demand, and abundant stocks. Indonesian
cosmetics, other industrial uses and export. Despite production was up 57% over the average of the
ethanol-blending mandates of E5 and E10 by 2020 previous two years, with much of the increase in
and E20 by 2025, there is no implementation due response to the government’s policy of mandatory
to an absence of financial incentives covering both biodiesel blending.
price disparity and feedstock constraints. 26
Figure 14. Total Biodiesel Production and Distribution (2016-2018)

Biodiesel (kiloliters)
7,000,000
6,167,837
6,000,000
5,000,000
4,000,000 3,656,361 3,750,066

3,414,416
3,008,475
3,000,000 2,572,568
2,000,000 1,785,489
1,000,000
428,868
187,385
-
2016 2017 2018
Production Domestic use Export
Source: Indonesia Biofuels Producers Association, 2019
26
U.S. Department of Agriculture, Indonesia Biofuels Annual 2018, August 12, 2018.
MEMR Regulation 12/2015 as the third amendment 2020, but implementation in the industry at large
of MEMR Regulation 32/2008 established biofuel- may be delayed as companies are adapting to the
blending targets for the transportation, industry program.
and power generation sectors. The regulation set
Pertamina operates 86 biodiesel processing
out the B20 Policy, the mandatory government
facilities across the country. Pertamina is the only
program to require the mixed use of diesel fuel
authorized processor of biodiesel-blend fuel for
containing 20% biodiesel and 80% petroleum
power generation. Table 13 shows the mandatory
diesel. The expansion of the B20 Policy was sped
biodiesel blending targets for four sectors. It should
up to respond to the increase in foreign exchange
be noted that under Article 4 of MEMR Regulation
spent on Indonesia’s import of petroleum products
32/2008, biofuels used as alternative fuels must
due to higher world oil prices, the decline of the
use biofuels from domestic production. This means
Rupiah exchange rate in 2018, and the decline in
that when mixing the diesel fuel with biodiesel, the
exports of CPO and biodiesel to European markets.
business entities must use domestically produced
MEMR’s report in January 2021 stated that their
biofuel.
B30 program has been implemented since January
Table 9. Mandatory Biodiesel Blending Targets
Sector 2016 2020 2025
Public service obligation (PSO) 20% 30% 30%
Non-PSO transportation 20% 30% 30%
Industry and commercial 20% 30% 30%
Powerplants 30% 30% 30%
MEMR Regulation 66/2018 made the replacement of biofuel for the sustained operation of the PLT
of B20 for high-speed diesel mandatory for all kinds BBN over the period of the power sale/purchase
of powerplants. For this purpose, the government agreement. The powerplant must use 100% biofuel,
will ask PLN to convert its diesel-fuelled not a blend of biodiesel and diesel fuel. Qualifying
powerplants into biodiesel-fuelled powerplants. fuels include B100, CPO and pure palm oil. This
MEMR Regulation 53/2018 added private biodiesel- regulation became effective from December 2018.
fuelled power producers to the list of renewable
As of 2018, there were 5,190 MW of available
energy IPPs that can sell power to PLN using the
generating capacity from diesel generators
BPP scheme. The IPP developer must demonstrate
connected to PLN’s systems. Of these, 2,807 MW
that the powerplant has a sufficient supply of
(54%) are owned by PLN, 1,879 MW (36%) are
biofuel for the sustained operation of the PPA. The
leased, and 504 MW (10%) are privately owned
purchase shall be made through the mechanism
selling power to PLN under long-term PPAs or
of direct selection at a price that is set based on
short-term excess power agreements. PLN has a
agreement between the parties.
long-term policy to minimize diesel in its generation
MEMR Regulation 53/2018 added biofuel mix. In addition, it has been phasing (not renewing)
powerplants (PLT BBNs), electric power generation rental agreements for leased diesel powerplants.
plants that use the energy of liquid biofuel, to the It should be noted that the remaining rental diesel
authorized renewable energy IPPs that can sell generating capacity is largely in remote locations
power to PLN under a long term PPA. Provisions where fuel supply logistics increase transportation
were inserted in this regulation stating that PLN costs.
may only purchase electricity from a PLT BBN if the
developer of the powerplant has a sufficient supply

MEMR Regulation 4/2020 on the Second Since these are existing assets, it was assumed
Amendment of MEMR Regulation 50/2017 governs here that only minor upgrades would be needed
biofuel powerplant IPPs. There is no regulation to ensure they could run on B30 or higher.
regarding the off-grid private generator business. For this reason, it is most likely that the rental
operator could fund this with their own equity (i.e.,
Pricing
self-financing). For the private off-grid market,
MEMR Regulation 4/2020 , amending MEMR generators could be financed by the vendor, leased,
Regulation 50/2017 for the second time, allows PLN or financed through a business loan.
and the biofuel powerplant IPP to negotiate a price.
PPA Terms
Not applicable.
The PPA duration is negotiated between the IPP
and PLN. The BOOT scheme has been repealed
through MEMR Regulation 4/2020. There are no local content requirements for PLT
BBN.
Procurement Method
MEMR Regulation 4/2020 provides for direct
Providers
selection by PLN. For the private off-grid generator
business, equipment is either sold or leased. The major players in this market will be the existing
diesel generator leasing companies: Aggreko
Key Decision Makers
Energy Services Indonesia, Sumberdaya Sewatama,
It is not clear yet, but presumably the PLN Wilayah MAXpower Group and Kaltimex Energy. Equipment
would have the authority to negotiate and sign a suppliers are: Mitsubishi (Japan), Caterpillar (USA),
PPA with PLT BBN IPPs. For the private market, the Cummins (USA), Siemens (Germany), Doosan
host business owner is the key decision maker. (Korea), Kohler (UK), Aggreko (UK), and FG Wilson
Land and Permitting (UK). Control system vendors include: ComAp
(Czech), Deep Sea Controllers Electronics (UK),
The rental generators are already on PLN property, DEIF (Denmark), Schneider Electronics (Germany),
so no additional land use or permitting is required and Siemens (Germany).
unless they are relocated to a different site.
No donors or MDBs are involved in this segment of
the market.
Active UK Companies: Aggreko, Organics Group
plc, PROjEN.
Estimated Market Size Figure 15. Market for Biofuel Power 2020 - 2025
(USD Million)
Inputs to the biofuel market come Tetra Tech’s
analysis of the current market and expected
growth for the period 2020 to 2025. Assumptions
for project costs come from estimates for
diesel generator refurbishment upgrades and
installation of automatic generation control 187.50
(AGC) systems. Project supply chain composition
and foreign and domestic share of the market
come from the existing market for rental diesel 562.50
generators.
Utility Connected
Off Grid
Total Market Size for Biofuels
Time Frame Market Size (kW) Project Cost ($/MW) Market Value (USD) Development Period (Years)
2020-2021 250 250,000 62,500,000 6 months
2022-2025 750 250,000 187,500,000 6 months
Procurement Analysis for Biofuels
Time Frame PLN Independent Power Unallocated National and Subnational Private Sector
Producer (PLN or IPP) Government (Non-IPP)
2020-2021 0.00% 75.00% 0.00% 0.00% 25.00%
2022-2025 0.00% 75.00% 7.35% 0% 25.00%
Supply Chain and Financing Analysis for Biofuels
Preliminary development 2.0 2.0 0.0
Consulting/engineering 3.0 3.0 0.0
Control systems 15.0 0.0 15.0
Total 100.0 55.0 45.0
Equity 60 30 30
Debt 40 20 20
Total 100 50 50
Supply Chain and Financing Market Value Analysis for Biofuels (USD Thousands)
Market Size 2020-2021 2022-2025 2020-2021 2022-2025 2020-2012 2022-2025
Preliminary development 1,250 3,750 1,250 3,750 -- --
Consulting/engineering 1,875 5,625 1,875 5,625 -- --
Electrical-mechanical 46,875 84,375 28,125 84,375 18,750 56,250

equipment
Control systems 9,375 -- -- -- 9,375 28,125
Total 62,500 103,125 34,375 103,125 28,125 84,375
Equity 37,500 112,500 18,750 56,250 18,750 56,250
Debt 25,000 112,500 12,500 37,500 12,500 37,500
Total 62,500 225,000 31,250 93,750 31,250 93,750

MEMR Regulation 53/2018 creates a new business There is also a large off-grid diesel generator
opportunity for companies that are currently market principally for the mining industry and other
leasing diesel generators to PLN for their use in industrial applications, telecommunications and
powering isolated grids. As noted earlier, PLN is tourism not connected to PLN’s grid. They have
phasing these contracts out as they replace them been included here as the increased availability
with PLN-owned gensets. However, given the new of biodiesel fuel will result in existing and new
regulation, it is possible for existing diesel rental generators being converted to run on biodiesel.
contractors to renegotiate a longer-term PPA if Business opportunities related to biofuel use in
they are able to secure B30 biodiesel for the length off-grid diesel generators is a segment of the larger
of the PPA. Given PLN’s interest to increase the private off-grid market.
renewable energy contribution in their generation
mix and the fact that the remaining rental
generator fleet is essentially running many of PLN’s
remote isolated grids, there is an opportunity to
redeploy existing assets as renewable energy IPPs.
For the purposes of this analysis, it was assumed
that 1,000 MW of the remaining rental diesel
generator capacity will be IPPs.
9. Market Conditions for Marine

Energy Development
Marine Energy Potential
Marine energy potential in Indonesia involves Programs and development plans for marine energy
capturing the kinetic motion of the ocean through are needed for companies to conduct offshore
waves, tidal flows or temperature differentials and surveys, perform environmental impact studies,
converting it to electricity. Marine energy, and in install electro-mechanical components, and provide
particular tidal energy, has the greatest potential system integration testing. In their absence, tidal
due to the fact that Indonesia’s geography includes and sea current potential has yet to be commercially
narrow channels and straights between island harnessed in Indonesia, although some preliminary
archipelagos, amplifying currents and providing studies have been performed in some areas.
multiple locations of possibility to exploit the tides.
Tidal current deployments have increased to over
Studies have been made to determine the energy
17 MW in 2017. The major projects behind this
potentials of these straights and channels in
development are MeyGen/Inner Sound Phase 1A in
Indonesia.
the UK, Paimpol-Bréhat in France and the LHD Tidal
The Ministry of Energy and Mineral Resources Current Energy Demonstration Project in China.
prepared a Roadmap on Marine Energy Development Wave energy deployments have also doubled to 8
in Indonesia for period 2018-2025, aimed at MW in 2017. The main drivers of this development
realizing the potential and promoting commercial are the Sotenäs project in Sweden and Wello’s
development of the resource. MEMR has calculated Penguin prototype at the European Marine Energy
the developable potential capacity from marine Centre in Orkney. However, some of these wave
energy as 61 GW (61,000 MW) and had set a and tidal current projects suffered removals and
target for the development of 1 GW (1,000 MW) of redeployments. OTEC and Salinity Gradient have
powerplants based on ocean currents by 2019, but a minor share of the global installed ocean energy
no commercial projects are operating. capacity to date. These deployments have mainly
occurred in Europe, followed by Asia.
Figure 16. Global Marine Energy Projects from 2010 – 2017 (MW)
30
25
20
15
10
0
2010 2011 2012 2013 2014 2015 2016 2017
Tidal current energgy Wave energy OTEC Salinity gradient
Source: Ocean Energy Systems, International Energy Agency Annual (2018)

According to the International Energy Agency’s rotor diameter and rated capacity of early prototype
Technology Collaboration Programme for Ocean designs. Many of the early companies developing
Energy Systems, current levelized cost of energy technology for the tidal stream industry focused on
(LCOE) values are very high for wave and tidal MW-scale devices and multi-MW arrays. However, a
technologies in comparison to the incumbent power number of companies are now present whose focus
generation technologies, leading to significant lies firmly on the smaller-capacity devices.
cost-reduction requirements in order to become
Wave energy technology has not yet reached
competitive. High costs are intrinsic to the early-
convergence. Developers are developing very
stage development of technology, but clear evidence
different concepts and at different technology
of progression down the cost curve is needed to
readiness levels, showing a wide range of cost and
restore confidence in the ability of each sector to
performance data. Table 14 provides an indication
deliver the targets that have been set.
of the projected LCOE for tidal stream and wave
Tidal stream energy converters have converged energy technologies at the early demonstration (1st
upon the horizontal axis turbine, while there remains Array), commercial demonstration (2nd Array), and
design diversity in terms of the number of rotors, commercial scale stages.
Table 10. Levelized Cost of Energy for Various Marine Energy Technologies (USD/kWh)
1st Array 2nd Array Commercial Scale
Marine Technology Low High Low High Low High
Tidal Stream 0.4 0.72 0.24 0.44 0.12 0.28
Wave 0.28 1.76 0.20 0.70 0.10 0.30
Source: IEA Technology Collaboration Programme for Ocean Energy Systems (OES)
The UK currently stands as the global leader in are stimulating activity and investment in various
marine energy. Its industry is delivering advances in regions across the country. As of 2019, the UK has
tidal and wave technologies – with concepts proven, 10 MW of operational tidal stream capacity. The
devices breaking records, and projects progressing UK is currently home to 22 tidal device developers
towards commercialization. The UK hosts the world’s and 23 wave developers. Leading companies and
leading test centres for marine energy: the European organizations include: MeyGen, Orbital Marine’s,
Marine Energy Centre in Orkney and WaveHub in Minesto UK, Bombora, ITP Energised, Aquatera, and
Cornwall. In addition, development sites such as the the European Marine Energy Centre.
Perpetuus Tidal Energy Centre on the Isle of Wight
and the Morlais tidal demonstration zone in Wales
Marine Project Development Initiatives

Marine energy development in Indonesia is DCNS Energies and PT AIR signed a Letter of Intent
emblematic of the uncertainties in the market, to prepare a roadmap for the engineering, industrial
particularly as it relates to foreign investment and development, and commercial ramp-up of a tidal
deployment of innovative technology, including energy industry in Indonesia. Atlantis Resources Ltd.
commitments to manufacture components and (Atlantis) and DCNS Energies, two U.K.-based energy
help create a local marine energy industry. Under development companies, had plans to develop a 150
previous MEMR Minister Sudirman Said, there were MW tidal-stream array located in Lombok.
a number of marine energy deals that looked very
French tidal energy developer Sabella signed a
promising in the period 2015 – 2017, but all seem to
memorandum of understanding (MOU) to develop
be stalled or cancelled.
ocean current energy in Indonesia for remote
Tidal Bridge BV, a joint venture between three areas of the country. The turbines to be deployed
Netherlands-based companies (Strukton in Indonesia will be 100 kW to 2.5 MW in capacity.
International, part of Oranjewoud N.V.; Dutch Sabella is working in collaboration with PLP and
Expansion Capital; and Antea Group) had plans MEINDO on the engineering of the first project.
to develop a tidal project in Larantuka Strait in
Australian developer Bombora Wave Power signed a
eastern Flores. Tidal Bridge BV signed a heads of
Technology Evaluation Agreement with Anoa Power
agreement (a non-binding document outlining the
Indonesia. Under the agreement, Anoa Power was to
main issues relevant to the tentative project) with
evaluate suitable deployment sites, while Bombora
Indonesia’s Ministry of Public Works. Following the
was to confirm electricity generation capability
completion of a feasibility study and environmental
across several locations. The agreement also laid
impact assessment, Tidal Bridge was ready to
the groundwork for manufacturing and distribution
raise USD 200 million for an installed capacity of
of Bombora Wave energy converters into Indonesia.
18 to 23 MW, which would later be expanded to 90
Bombora’s wave energy system utilizes a large
to 115 MW backed by another USD 350 million in
membrane energy harvester to collect, concentrate
investments. The project was part of the maritime
and modulate the wave energy through the use of a
cooperation agreements between Indonesia and The
1.5 MW air turbine that spins as waves pass over the
Netherlands.
system.
SBS Energi Kelautan (SBSEK), an Indonesia-
The Centre for Understanding Sustainable Practice
based independent power producer, reached the
at Robert Gordon University in Scotland was
final investment decision for the first phase of
awarded £183.000 from two UK government funds
the Nautilus Project, which will use tidal turbines
to be used to help build up Indonesian’s science
supplied by Atlantis Resources, beginning with a
and innovation capacity and £118.000 from by the
first 12 MW phase of the project, powered by eight
Indonesian government to support capacity building
1.5 MW tidal energy turbines supplied by Edinburgh-
in marine energy in central Indonesia.
based tidal energy developer Atlantis Resources.
SBSEK had awarded an engineering, procurement, The governments of Indonesia and South Korea
construction, installation and management contract signed an agreement to establish a research centre
to Scottish marine, subsea, and renewable energy for marine energy technologies in West Java. The
project developer SBS. Phase II of the project was to MOU called for the collaboration at the university
be 70 MW and Phase III, 150 MW. The project sites level between Indonesia’s Bandung Institute of
were to be located in the straits around islands of Technology and the Korea Institute of Marine
Bali and Lombok. Science and Technology. Joint research projects
were to be carried out in the areas of general
oceanography, marine science and technology, and
marine energy (including tidal, wave, and ocean
current).
Estimated Market Size Project Related Business Opportunities

Given the current condition of the marine energy
From PLN’s perspective, marine energy systems
market, in which all efforts to develop pilots or
remain in the investigation stage. None of the
demonstration projects have stalled, it is difficult
technologies converting marine energy into
to calculate the market size for the period of 2020-
electricity is proven commercially in Indonesia. In the
2025. As noted below, PLN has identified three 10
RUPTL 2019-2028, PLN has identified several marine
MW marine projects in Flores and NTB. It has also
energy sites and associated generating capacities.
planned 7 MW of marine power in 2021 in the most
Marine energy projects, if developed as IPPs,
recent RUPTL, though the location of that project
must conform to the BPP pricing scheme in MEMR
is not mentioned. PLN considers marine current
Regulation No. 50 of 2017.
energy as most-promising, but it too is viewed as
pre-commercial. In the NTT region, PLN has identified the potential
for a 10 MW project in Selat Larantuka off the coast
of eastern Flores. In NTB, PLN has identified the
potential for developing two projects, each with a
capacity of 10 MW, in Selat Lombok and Selat Alas.
The most likely technology given the resources in
these locations is tidal current (tidal stream) energy
conversion. If tidal and wave energy are successful
in achieving the projected commercial stage LCOE
of USD 10-30 cents/kWh, they could be competitive
with the BPP in the regions PLN has identified for
project sites. Using the 2018 BPP, the purchase price
for projects in these locations would be USD 12 – 18
cents/kWh.
Business opportunities will likely continue for
international marine energy industry and research
institutions. Companies and organizations are likely
to get foreign government funding to continue to
study marine energy in Indonesia until such time
as the projects can prove to be economical under
current policies.
10. Market Conditions for Smart

Grids and Battery Storage
Electrical networks are essential for transferring and Modern utility operations in Europe and North
transforming the electricity produced by generators America use an energy management system (EMS),
to meet the needs of various customers in terms of a system of computer-aided tools used by operators
availability and quality. The traditional electricity of electric utility grids to monitor, control, and
grid consists of central station powerplants that optimize the performance of the generation and/or
generated electricity, transmission systems that transmission system. These systems also incorporate
transported the electricity at high voltages, and SCADA for communications. PLN currently operates
distribution systems that transported lower-voltage transmission-level networks in Java-Bali, Sumatra,
electricity to consumers. Transformers, substations Kalimantan and Sulawesi. The transmission networks
and other grid components are used to manage can benefit from more sophisticated control and
the flow of electricity, change and or maintain its dispatch centres. Only the Java-Bali control centre is
voltage, and protect the system and consumers equipped with fully functioning EMS and SCADA.
against electricity-related faults.
PLN operates transmission systems in Java-Bali,
PLN also operates thousands of isolated grids
Sumatra, Sulawesi, Kalimantan, and small systems
across the archipelago. The development of these
connecting isolated grids in NTB and NTT. During
grids follows a similar pattern. Initially, PLN installs
the period 2019 to 2028, PLN plans to add 57,293
diesel generators to serve load centres. As demand
kilometres of high-voltage transmission, 124,341
grows, PLN adds generation, extends its distribution
substations, 472,792 of medium- and low-voltage
lines, and adds consumer transformers to serve
lines, and 506,522 transformers.
new customers. On the small island systems, PLN
The Ministry of Industry’s vision of the next operates multiple isolated grids serving the main
industrial revolution (Industry 4.0) implies a higher load centres. Over time, these are eventually
level of connectivity and interaction between connected using 70 kV transmission lines. Over
humans, machines and other resources to maximize the past few years, PLN has begun to add larger
efficiency and optimization. This also affects the generators using coal and multi-fuel land-based
electricity sector which, according to MEMR’s and barge-mounted generators which necessitate
Directorate General for Electricity, must undergo transmission-level infrastructure.
a transformation towards Electricity 4.0. With the
development of automation and analysis technology,
electricity consumers will be increasingly motivated
to use electricity as efficiently as possible with the
use of intelligent equipment, such as smart meters,
digital infrastructure, and smart devices. Electricity
4.0 is also expected to facilitate the market for
distributed renewable energy generation and energy
storage.
10.1 Smart Grid Systems

Smart grid exploits new technologies and PLN currently uses SCADA for communications
communications to enhance overall power system and an EMS in the Java-Bali control centre.
operations and customer-side efficiency. Some PLN has also included AGC/ADS systems in its
applications improve the reliability of service transmission grid codes, but until now has not
for customers, some lower the utility’s cost of implemented the systems. PLN is installing
providing service, while others provide customers AGC/ADS in the Java-Bali control centre to
with new information and choices. The U.S. accommodate large-scale wind and solar PV
Department of Energy lists five fundamental projects, and possibly in the South Sulawesi
technologies that will drive the smart grid control centre where new wind power projects
transformation: have created challenges for PLN in dispatching its
other generators.
• Integrated two-way communications connecting
components, using open architecture to enable PLN has received a number of unsolicited
real-time monitoring and control proposals, principally from technology vendors,
promising to increase revenues and reduce
• Sensing and measurement technologies such as
service costs by more accurately recording
remote monitoring to support faster and more
customer usage and communicating it to its data
accurate response to system conditions
analytics and processing centre. An advanced
• Advanced components, applying the latest metering infrastructure (AMI) pilot program has
research in superconductivity, storage, power been initiated in the Surya Cipta Sarana Industrial
electronics and diagnostics Estate in Karawang, West Java, in a cooperative
• Advanced control methods and intelligent effort between MEMR and the Japanese New
devices that can accept data and implement Energy and Industrial Technology Development
optimization and improved control of the Organization. PLN is also piloting AMI in Batam
system and Bali. Plans for AMI include the Jakarta
region.
• Improved interfaces and decision support for
utility operating personnel.
To improve power quality and facilitate the
integration of variable solar PV and wind power
projects, PLN will need to invest in grid control
systems that replace its current manual dispatch
operations with Automatic Generation Control/
Automatic Dispatch System (AGC/ADS) in both
their transmission and distribution systems. The
control systems are a basic element of smart
grids; they use information and communication
technology coupled with automation to enable
efficient electricity regulation, offer more reliable
electricity supply, facilitate a higher penetration
of renewable energy, reduce non-technical losses,
and enable customers to become electricity
producers as well as consumers. PLN has
developed a “Smart Grid Roadmap” to guides its
implementation of these new technologies.
10.2 Transmission Grid 10.4 Isolated Grid Control

Control Systems Systems
PLN currently uses SCADA for communications PLN’s principal means of powering isolated grids
and EMS in the Java Bali control centre. PLN has is to use relatively high-cost diesel generators.
included AGC/ADS systems in its transmission While PLN sees the economic benefit of using
grid codes but has not implemented the systems. solar PV to reduce diesel use and lower average
PLN is installing AGC/ADS in the Java Bali electricity production costs, its isolated systems
Control Centre to accommodate large-scale wind are not operated in such a way as to respond to
and solar PV projects, and possibly in the South the fluctuations of solar PV during cloud events.
Sulawesi Control Centre where new wind power Early installations of solar PV on isolated grids
projects have created challenges for PLN in have resulted in PLN curtailing the output of the
dispatching its other generators. solar PV system to accommodate the limited
flexibility in its manually dispatched generators.
10.3 Advanced Metering With the assistance of USAID’S ICED II Project,
PLN is currently piloting the use of a grid control
Infrastructure system in East Sumba to automatically control
PLN has received a number of unsolicited and dispatch its diesel generators to facilitate full
proposals, principally from technology vendors, output of a solar PV system. Based on the results
promising to increase revenues and reduce of the pilot, PLN is considering installing control
service costs by more accurately recording systems in other isolated grids.
customer usage and communicating it to its data
analytics and processing centre. An AMI pilot
program has been initiated in the Surya Cipta
Sarana Industrial Estate in Karawang, West Java
as a cooperative effort between MEMR and the
Japanese New Energy and Industrial Technology
Development Organization. PLN is also piloting
AMI in Batam and Bali. Future plans for AMI
include the Jakarta region.
10.5 Battery Energy

Storage Systems
(BESS)
Batteries are just one of the energy storage Utility-Scale BESS
options. There are solid state batteries, flow The most important driver for utility-scale
batteries, flywheels, compressed air storage and storage is the introduction and growth of variable
pumped hydro storage. Pumped hydro is being renewable energy systems, specifically solar PV
pursued by PLN for grid support and peaking and wind power. BESS is particularly well suited
purposes. There are no known applications of for smoothing the variable output of renewables
flywheels or compressed air energy storage for and controlling the ramping up and down of solar
utility applications in Indonesia. wind generation. Increasingly, utilities are requiring
BESS are mainly used for shifting the availability BESS to accompany new solar PV and wind power
of electricity to when its needed or highly systems where the utility does not have sufficient
valued, and for providing ancillary grid services “flexible” generation and controls to respond to the
to help regulate power quality, maintain system fluctuations from variable renewable power energy
reliability, and prevent system faults. The first, systems. BESS offers a solution for providing real
and most common, is to store the electrical and synthetic inertia to maintain system stability.
energy produced and make it available at a BESS can also be easily located in dense load
different time when electricity is needed, or centres and can provide a buffer to system outages
when the value of that electricity is higher, e.g., and recovery.
during peak demand periods. In this application, In December 2018, PLN issued an invitation for
the BESS can be paired with an intermittent prequalifying to supply utility-scale, lithium-ion
renewable energy generator such as solar PV, BESS. The compensation structure in Indonesia’s
and connected to isolated grids, thus allowing rooftop solar PV policy (MEMR Regulation 492018)
the electrical energy to be available to meet the discourages exporting power to PLN, but may
evening demand for electricity. result in storage investment so that the electricity
As the cost of solar and other small-scale produced during the day can be used in the
renewable energy powerplants and BESS for evening when the solar PV system is not producing.
utility applications become more economical, Furthermore, PLN imposes a demand charge that
PLN will need to reorient its distribution system requires a minimum payment based on 40 hours at
planning and investment to incorporate these the customer’s building circuit capacity. As storage
options. costs decline, customers will evaluate the costs and
benefits of disconnecting from PLN and become fully
self-generating.
Behind the Meter Storage

Battery storage can also be incorporated into In Indonesia,
$15the current compensation structure
“behind the meter” installations of solar PV by of the rooftop solar PV policy (MEMR Regulation
residential, commercial and industrial customers. 49/2018), which discourages exporting power to
These installations can act like back-up power PLN, may result in storage so that the electricity
systems by reducing the facility’s peak demand and $53
produced during the day can be used when the solar
providing power to critical loads during an outage. PV system is not producing in the evening.
$138
Figure 17. Smart Grid and BESS Market 2020 - 2025 (USD millions)
$75
$15
$53
Distribution Grid Controls
$138
Distribution BESS
$75 Transmission BESS
Transmission Grid Controls
Distribution Grid Controls
Distribution BESS
Transmission BESS
Transmission Grid Controls

10.6 Advanced Metering

Infrastructure
PLN’s principal means of providing electricity The future prospects for commercial mini-grids
access is to extend the medium-voltage distribution with embedded renewable energy generation will
network. The cost of line extension, when weighed depend on finding an acceptable business model
against the low load coming from new connected whereby MEMR and PLN allow private developers
villages, serves as a disincentive to PLN to provide and operators of such systems and share the risk of
universal electricity access. Battery storage is part uncertain demand and customer collections.
of MEMR’s off-grid electrification program for both
solar home system as well as village electrification. Finally, the advanced micro grid market has
Other off-grid systems include micro-hydropower, enormous potential to address the distribution
biomass and biogas. This market has largely been challenges facing PLN, particularly in small
served by international donors such as GIZ and island systems and other isolated grids where
USAID. The U.S. Millennium Challenge Corporation’s grid extension is less economical than having
Green Prosperity Program provided grants for 13 embedded distributed generation powering micro
village electrification systems totalling 2.6 MW grids. While the potential market is significant, the
using micro hydro and solar PV. The village-owned realization of that market will require reorienting
projects also included micro grids to connect 6,115 PLN’s distribution planning. Finding an acceptable
households. business model for PLN to allow private companies
to develop, construct, own and operate these
MEMR Regulation No. 38 of 2016 was issued to micro-grids remains a challenge, and international
accelerate electrification in undeveloped rural experience in this area could be tapped.
areas, remote regions, border areas, and small
inhabited islands through the implementation of
small-scale electricity enterprises. The regulation
allows for the licensing of state-owned business
entities, privately owned businesses with legal
status in Indonesia, or cooperatives to operate
micro-utilities in areas where PLN agrees not
to provide service and at PLN’s retail tariff. If
the licensee requests a tariff higher than PLN’s
uniform retail tariff, then the higher tariff must
be authorized by the provincial government and
MEMR. MEMR has been reluctant to issue licenses
that cover more than one year since they approve
PLN’s RUPTL each year with the agreed update to
the electrification master plan.

The market for smart grid solutions and substation, and AGC and automatic recloser circuit
components is difficult to estimate at this time breakers at each generation unit. While these
given that all projects implemented by PLN have unit costs will vary depending on the number of
served as demonstrations. Once the results of these substations and generating units, USD 2,500,000
demonstrations are known and PLN includes smart per transmission system was the figure used here.
grid systems in its transmission and distribution
system procurement program, then the market size For the purposes of estimating the market size
will become easier to estimate. for smart distribution-level control systems, each
project would consist of a central control unit at
For the purposes of estimating the market size the subsystem level, as well as communication and
for transmission-level smart grid systems, only AGC at each generating unit. The distribution-level
generation control, was investigated, not AMI. A control systems will vary depending on the number
typical smart transmission control system includes of generating units on the subsystem; however, USD
EMS/SCADA at the control centre, protection 250,000 per subsystem was used in this study.
and control intelligent electronic devices at each
2020-2021 2022-2025
Unit Costs per
Grid Systems Total
System
Units Costs Units Costs
Transmission $2,500,000 3 $7,500,000 3 $7,500,000 $15,000,000
Distribution $250,000 50 $12,500,000 500 $125,000,000 $137,500,000
As noted earlier, there are no commercial the size of the BESS market, a cost of USD 300/
applications of utility-scale BESS in Indonesia. PLN kWh of storage was assumed. At the transmission
issued an invitation to pre-qualify BESS systems system level, the average size of 50 MWh (50,000
using lithium Ion technology. Early applications kWh) was estimated. At the distribution system
could be in Bali and South Sulawesi, where grid level, the average BESS capacity of 5 MWh (5,000
faults have left customers without power for kWh) was used.
extended periods. For the purposes of estimating
2020-2021 2022-2025
Unit Costs Capacity
Grid Systems Total
(/kWh) (kWh)
Units Costs Units Costs ($)
Transmission $300 50,000 2 $30,000,000 3 $45,000,000 $75,000,000
Distribution $300 5,000 10 $15,000,000 25 $37,500,000 $52,500,000

Smart Grid and Battery Storage Business UK Companies in Smart Grid and BESS
Opportunities
As noted above, smart grid applications in Indonesia Cumulus Energy Storage Ltd. (BESS), Open Energi
at the stage of pilot programs with PLN. AGC/ADS (Distributed Energy Resource & BESS Optimization),
systems coupled with SCADA communications and
Xero Energy (Micro Grids, BESS), National Grid
energy management systems, are being deployed
(electric utility), Flexitricity (Demand Response)
in the Java-Bali Transmission Control Centre. PLN
, Belectric (solar PV & BESS), Centrica (Demand
and MEMR are in the final stages of updating the
Response), EPS UK (Distributed Energy Resources
transmission grid codes for Java-Bali, Sumatra,
& Automation), NOJA Power (Power System
Sulawesi and Kalimantan, which call for the use of
Electronics), Battery Energy Storage Solutions Ltd.
similar control systems across all PLN high-voltage
(BESS), AES UK (BESS), Moixa (BESS), and Denchi
grids. Based on the results of the AMI pilot in Java, this
Power (BESS).
technology could be expanded to other areas in Java.
Isolated grid control systems will be procured by PLN
based on the outcome of the pilot in East Sumba, NTT.
The ADB, World Bank, KfW and AfD are providing
sector loans to PLN for both transmission and
distribution improvements with specific allocations
for pilot smart grid control systems. The development
banks will procure the consulting studies directly,
while PLN will procure software, hardware and
integration consultants. The commercial market will
emerge only when PLN adopts these as standards
based on pressure from MEMR to increase the
penetration of variable renewable energy (solar PV
and wind) and enforce the transmission grid code
and distribution code power quality standards and
requirements.
For BESS, PLN has already initiated a pre-qualification
for lithium Ion technology. PLN’s procurement of
BESS will be on a case-by-case basis, depending on
its determination that this is the most economical
way of improving transmission and distribution
system performance. PLN has issued an invitation for
lithium Ion battery energy storage system suppliers
in preparation for tendering for ancillary services.
It is also expected that PLN will include BESS in the
specifications for future large-scale solar PV and wind
system IPP procurements.
The business opportunities for advanced micro-grids
will depend on the establishment of an acceptable
business model that allows private investment to
help PLN serve remote villages. PLN and MEMR
have closed the door on licensing private utilities,
solidifying PLN’s role as the sole electric utility
in Indonesia. In the meantime, it is expected that
international donors, foundations and Indonesian
businesses’ corporate social responsibility funding
will continue to provide grants to village micro-grids
utilizing renewable energy generating technologies.
11. Top Business Opportunity

Areas for UK Companies
Given the state of the Indonesia’s renewable segments are highly regulated with local content
energy market and the capabilities of UK requirements and competitive procurements.
companies, five top business opportunity Thus, this section focuses on small market
areas were identified for UK companies. Some segments, including emerging markets, where UK
companies, like Mott McDonald, are already active companies can make inroads.
in Indonesia providing consulting and engineering
The most attractive sectors for value addition
services across a wide spectrum of technologies.
in the short term appear to be in geothermal,
This section identifies areas where UK capabilities
hydropower and bioenergy.
match the needs of the Indonesian government
and companies, particularly those using higher- In UK DIT’s assessment, the strongest
end technologies, and where there are low capability for UK companies is in services (such
barriers of entry for foreign companies. as consulting, design, engineering) for the
development of renewable energy projects. In
The largest market segments for foreign
terms of sectors, offshore wind, small hydro,
companies are also the most competitive,
solar and waste are the sectors with extensive UK
where European, Japanese and US companies
expertise.
are well-positioned. In addition, the Indonesian
Sectors UK expertise5 Estimated opportunities (US$ million)

Detailed Construction, Operations and
Pre- Estimated Foreign potential
design and installation and maintenance UK potential
development1 market potential share
development2 commissioning3 (O&M)4
Solar 769 479 154
Wind 1,451 871 87
Small hydro 3,360 598 598
Bioenergy6 2,344 1,094 293 - 437
Geothermal 20,829 13,721 7,290
Electrical networks
433 433 140
including storage
Competitive or Capable but not world-leading Little to no

world-leading or the most competitive capability
Source: EY analysis, UK DIT capability statement – Renewable Energy (2020)
1
Pre-development includes all pre-development activities of the project such as strategy, policy development, resource assessments, site surveys, site selection, licensing and consents, grid
connection assessments, preliminary environmental impact assessment, other professional services, etc.
2
Detailed design and development include activities related to specific project such as FEED studies, procurement plan, site specific studies like seabed studies and wind speed studies. It also
includes ancillary project development activities such as financing.
3
Construction, installation and commissioning include activities related to the actual engineering and build of the project until full commercial operations is achieved
4
O&M includes routine or periodic maintenance, project inspections and reviews. Professional services during O&M period can include activities such as insurance, audit, tax, independent
engineer on projects and so on.
5
Note: Colours indicate the strength of UK expertise: Green = competitive/world-leading; Amber = capable but not world-leading or the most competitive; Red = little to no capability. Further,
UK expertise in green financing spans both sector and stages and are hence not separately identified
6
Includes biomass, biogas and WTE
** The roadmap for development of certain sectors has not been developed or the potential remains unexplored. Consequently, a project pipeline is unavailable to estimate market potential in
the period until 2025.
7
Sectors such as large hydro and biodiesel generators are not typically considered renewable and hence not included in the above analysis
Geothermal Waste-to-Energy Project Development and

Consulting & Engineering Services
Geothermal contributes to the largest share of
renewables in Indonesia. Around 4.5GW of capacity This is a high priority area for the government
additions are estimated in the period up to 2025. of Indonesia, with 12 locations in an acceleration
program and another 4 with waste collection of
Though the UK has five companies capable of
over 1,000 tons per day and attractive power
developing geothermal internationally – Hotspur
purchase tariffs. City governments are responsible
Geothermal, GT Energy, EGS Energy, Geothermal
for selecting the developer and signing a contract
Engineering and Green Energy Geothermal (GEG)1,
for a combination of waste management services
the UK supply chain is limited. UK companies’
as well as developing, financing and operating the
expertise lies in providing professional services
waste-to-energy project. UK companies interested
such as securing site permits, surface testing to
in serving as developers must finance the pre-
maximise the chance of drilling success, test drilling
feasibility study which will be used to tender the
to prove the existence of a geothermal resource
project. PLN signs a PPA with the developer on a
and securing power purchase agreements. UK
direct appointment basis.
companies also have capabilities in engineering,
construction and O&M of all types of geothermal UK expertise in this sector lies in designing and
facilities. implementing the policy and incentive structure
required to make WTE facilities economically viable,
UK developers generally tend to focus on the
including design, build and operation for anaerobic
pre-development stages of the project such
digestion and WTE facilities and the supply of
as early-stage exploration and the provision
waste collection vehicles. Companies such as
of professional services. Subsequent stages
Virindor, Bioenergy Infrastructure Group, FCC, and
are generally done through partnership and a
Aggreko Plc Group have successfully constructed
competitive value proposition can be achieved
and operated waste-to-energy systems in the UK.
with UKEF participation. If favourably positioned,
FCC Environment provides a range of services,
UK companies are estimated to be able to export
from collecting business and municipal waste to
up to 35% of the project value of a typical 150MW
recycling and processing, and to generating green
geothermal plant with estimated opportunities in
energy from waste. It minimizes the amount of
excess of US$7.3 billion. However, realization of
waste that ends up in landfills by transforming
opportunities would be subject to compliance with
it into valuable resources where possible. FCC
foreign ownership restrictions and local content
Environment has entered into a partnership with
requirements.
Buckinghamshire County Council to reduce reliance
on landfills, increase recycling, and generate 22 MW
of electricity.
For the time being, major cities in Indonesia have
problems in managing and processing municipal
wastes. Bandung, Makassar, Manado and Semarang
are some of the major cities in Indonesia that are
open for reliable and affordable waste management
systems. Considering the overall estimated market
potential for the sector in Indonesia and the
potential opportunities for foreign companies (and
areas where UK companies have strong expertise),
the estimated opportunity for UK companies is
between US$293 million to US$437 million.
Biodiesel-Solar PV Hybrid IPPs Utility scale solar and Rooftop Solar PV

Following the issuance of MEMR Regulation 53 for Commercial, Industrial and Housing
of 2018, a new market was created for biodiesel Developments
IPPs selling electricity to PLN under a long-term UK capabilities in solar are primarily through
PPA contract. This is a specific opportunity for overseas direct investments (ODI) where UK
Aggreko, one of the leading diesel rental companies developers develop, own and operate medium
operating under one-year contracts with PLN. to large-scale projects (>50MW) and integrated
Aggreko would have the opportunity to redeploy hybrid solutions with energy storage and mini-grid
its generator fleet as IPPs, provided it can secure options. For small and medium scale projects which
a long-term contract with Pertamina to supply are primarily off-grid, ability to participate will be
biodiesel (B30) fuel. Aggreko could negotiate driven by the competitiveness of UK companies
directly with PLN for multiple sites and offer when compared to local or other oversees
distribution grid controls and even solar PV hybrid participants. UK companies are also adept at
solutions. The focus should be on small island grids providing a range of professional services, including
where rental diesel generators generate all or most the design of policy, incentive structures for solar
electricity. projects, general technical design, engineering and
Aggreko has experience in providing hybrid PMC services. The UK has limited capabilities on
solutions by combining diesel power generation, supplying Balance of Plant (BOP) equipment such
solar power and energy storage. Through product as inverters, cables, panel frames and bespoke
innovation, it is believed that Aggreko can install Building-integrated Photovoltaics (BIPV) panels.
hybrid systems using biofuel, solar PV and The UK does not have expertise in manufacturing
energy storage to provide reliable and affordable solar panels.
electricity in Indonesia. In the eastern part of Since late 2019, the Central Java Province has been
Indonesia, Ambon, Halmahera, Kaimana, Flores, working with the Institute for Essential Services
and Wamena have power generation costs of about Reform to accelerate the uptake of rooftop solar,
USD 20 cents/kWh and the demand of electricity is in pursuit of its aim to become the first ‘Solar
varies during the day and night. Hybrid systems are Province’ in Indonesia28. The Governor of Bali has
capable of storing electricity when demand is low also issued a specific regulation on clean energy,
and releasing it when demand is high, especially in which includes a staged timeline for the application
the evening. Implementing hybrid systems would be of rooftop solar in different types of buildings up to
more effective through cooperation with PLN and 202429. It is expected that more regions will follow
its subsidiaries such as Indonesia Power and PJB, along with similar initiatives and could provide
which would ease the need for competition and opportunities for UK companies to participate.
pave the way for larger business deals.
A number of UK companies such as Lightsource, Small hydro

Solarcentury and Proinso have the capabilities
The UK has strong expertise across the value
to develop large utility-scale power plants.
chain for small-scale hydro. Generally, the UK’s
Developers such as Solar Securities and British
involvement overseas is limited to various
Solar Group which largely have domestic and
consulting and engineering activities and has
regional experience may consider venturing into
not been typically involved in the end-to-end
new markets. Given the overall maturity of solar
development of large-scale projects. In small
PV, particularly the manufacturing capabilities
hydro, the UK excels at large-scale design and
of other countries, opportunities for UK export
technical engineering, efficient and reliable
are limited in large-scale PV projects (>50MW)
technology for small-scale hydropower through
unless mandated by export finance requirements
companies such as Gilkes, intake screens,
(20% in UKEF). Considering the overall estimated
electrical systems, and financing support through
market potential for the sector in Indonesia and
UKEF.
the potential opportunities for foreign companies
(and areas where UK companies have strong Partnerships with local agents and/or companies
expertise), the estimated opportunity for UK could be an efficient route to market as a means
companies is US$154 million. The potential can to address these challenges. Indonesia has strong
go up to 34% for smaller projects (in the range capabilities in the hydropower sector. Though
of 2.25MW). UK companies can actively track solutions proposed by the UK may appear
future tender announcements from PLN on solar slightly more expensive when compared to other
projects to find projects for participation. markets, coupled with direct lending support, the
UK offering for small-medium scale hydropower
Wind
is strong. It has a capability to deliver up to
Onshore is a mature technology and able to 35% of project costs comprising of consultancy,
compete on price in many markets internationally. civil engineering and systems. Considering the
UK expertise lies in consultancy covering overall estimated market potential for the sector
feasibility studies, design and engineering, as well in Indonesia and the potential opportunities
as development, construction and operations and for foreign companies (and areas where UK
maintenance. The UK has leading manufacturers companies have strong expertise), the estimated
(Gaia Wind and BritWind) exporting small-scale opportunity for UK companies is US$598 million.
turbines and are also active in component supply
to larger turbine manufacturers. The segment in
Indonesia’s wind sector for UK companies will be
in the project development and financing stage
during the pre-construction and construction
phases. Moderate UK export potential in areas
such as grid integration, component supply,
turbine towers is estimated. While ODI potential
is limited, UK companies can export professional
services and help local developers secure finance
for new projects.
While the current market potential is limited for
the sector, the sector could open up in future.
However, the estimated opportunities are
limited by the market’s overall size and areas
where UK companies have strong expertise. The
opportunity for UK companies is estimated to be
around US$87 million for onshore wind.
Green Financing Battery Energy Storage System Solutions

Although not explicitly covered in this study, the A number of UK companies operate in the BESS
UK is recognized for its leadership in the banking market, primarily in the UK and Europe. This is
sector and financial services. According to the UK an emerging market opportunity in Indonesia,
Green Finance Task Force report on Accelerating as PLN has come to the realization that BESS is
Green Finance, London is already a world leading a viable means of improving grid stability and
hub for green finance – backed by deep and power quality at the transmission and distribution
liquid capital markets and a strong reputation for levels. UK BESS companies can team with
innovation. The UK government and its banking BESS manufacturers in the design and possible
and financial services sector could partner operation of BESS projects in Indonesia. To
with the government of Indonesia through the capture this market, UK companies will need to
Financial Service Authority (OJK) which has follow developments in PLN, and market to both
authorized Green Bonds, and the Ministry of PLN and MEMR DG for Electricity.
Finance’s SDG Indonesia One (managed by PT
SMI), which intends to use blended financing for
clean and affordable electricity.
In green financing, HSBC, Green Investment
Group, IP Capital are some of the leading
companies supporting renewable energy in the
international market. HSBC has been at the
forefront of sustainable financing over the last
few years and is consistently ranked as one of
the top-three leading global underwriters of
green, social and sustainability bonds. Green
Investment Group has supported such renewable
energy businesses as large-scale waste-to-
energy plants in the UK through its involvement
in a number of biomass, waste-to-energy, and
offshore wind projects. IP Capital is a specialist
fund management and corporate advisory
business that has supported Azuri in bringing
power at scale to off-grid customers in rural
emerging markets in Kenya, providing basic
needs such as lighting and phone charging. Green
financing is required to implement economically
viable renewable projects in Indonesia. Some
top renewable energy projects provided on
the project lists table cover solar PV (PLTS),
hydropower (PLTM), geothermal (PLTP), wind
energy (PLTB), bioenergy (PLT Bio) and waste-to-
energy (PLTSa).
Summary of market opportunity in Indonesia

The renewable energy opportunity in Indonesia Through its network of officers deployed in
is estimated to be in excess of US$29.3 billion Indonesia and UK-based trade advisors, the DIT
(excluding large hydropower) across solar, small can support UK companies wishing to expand
hydropower, wind, bioenergy and geothermal into Indonesia. The DIT helps businesses export
sectors. Geothermal sector is the most prominent and grow into overseas markets by providing
sector in the country. The wind and solar pragmatic advice, contacts and insight into the
sector also hold promise and could emerge as a overseas market. UK companies can leverage the
prominent sector in coming years. Other potential UK’s existing knowledge of doing business and
opportunities exist in the enabling sectors such providing strategic assistance to Indonesia while
as green financing, micro-grids and electrical developing their market entry strategy. Interested
networks. parties are encouraged to reach out to the DIT at
DITJakarta.Enquiries@fcdo.gov.uk
In summary, although there is considerable
potential for UK companies in the renewable
energy sector in Indonesia, UK companies will
need to compete and collaborate with domestic
players and state owned enterprises, and
demonstrate competitiveness to be able to realise
the export opportunity.
Figure 18. Summary of Business Opportunities

21,000
18,000
7,108
15,000
12,000
6,431
9,000
6,000
3,000 1,249 7,290

290 580 2,762 1
784 801
- 326 154 87 598 293 140 292
Solar Wind Small hydro Bioenergy6 Geothermal Electrical network
and storage
UK Potential Other foreign potential Local potential
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Appendix A.
UK Low-Carbon Capabilities
Key UK Renewable Energy Sectoral Strengths The UK has a commercial geothermal plant
operated by energy firm ENGIE in Southampton
The UK has strong capabilities in many low-carbon
which has been delivering heat to a district
and resource-efficient services, technologies,
heating network since 1986. Geothermal energy is
and processes that have the potential for export.
also being developed by Geothermal Engineering
Based on data provided by the Digest of UK
Ltd in Cornwall. Geothermal projects are planned
Energy Statistics (DUKES), the UK received
in the UK for the generation of heat, electricity, or
nearly 30% of its electricity from renewables
both [http://www.geothermalengineering.co.uk].
in 2017, harnessing nearly 100 TWh of biomass,
hydropower, wind, solar, and other renewable Batteries and pumped storage play an important
energy sources. role in managing voltage and frequency on the
UK grid, as well as balancing fluctuations between
Based on studies prepared by Carbon Trust
electricity supply and demand. Energy storage
(2013 and 2018), the UK’s strongest low-carbon
also helps manage non-dispatchable electricity
services are in the areas of financial, legal, policy,
coming from intermittent power sources, such as
architectural design, engineering design, and
wind and solar generation, when periods of high
environmental consulting. In energy technologies,
output coincide with periods of low electricity
processes, and operations and maintenance, UK
demand. In 2016, energy storage capacity in the
energy industries encompass solar PV, wind,
UK reached 3.23 GW, of which around 60 MW
hydro, geothermal, bioenergy, marine, and energy
was battery storage. In the future, the UK has
storage and smart grid.
the potential to export batteries and storage
In the bioenergy sector, anaerobic digestion has consulting services from its experience in the
been used in the UK to convert organic waste into early-stage commercial deployment of energy
biogas, which fuels, for example, 53 double decker storage and smart grids (REA, 2017).
buses in Nottingham City Transport’s fleet, as well
as trucks and tractors. Both water scrubber and
bio-membrane biogas purification technologies
have been widely used in the UK. Based on
data from IEA Bioenergy, the UK had 96 biogas
purification plants in 2016. And in 2017, according
to UK Energy in Brief 2018, the UK obtained 18%
of its primary energy from low-carbon sources.
Marine energy also is being developed in the UK.
For example, Tidal Lagoon Plc is using private
funding to develop tidal powerplants, including
one in the Swansea Bay with a projected installed
capacity of 320 MW. These projects have not
yet been constructed. Further studies, currently
underway, are looking at interconnecting tidal
lagoon power generation with the UK electricity
system, and the economics of the power
generation.
UK Capabilities
In line with the low-carbon energy study
prepared by ICF in 2017, the UK can support the UK government in designing and implementing
the development of an enabling environment policies that support a balanced approach to
for a clean energy market via market reform, meeting low-carbon objectives can benefit
policy enhancement, and provision of standards, emerging countries such as Indonesia.
regulations, and incentives. 27 The experience of
Table A.1. Maturity of Selected UK Renewable Energy Sectors
Sector Relative Sector Maturity
Green finance and renewable energy consulting Developed
Solar PV Developed
Wind Developed
Hydro Developed
Geothermal Developing
Bioenergy and waste management Developed
Marine Developing
Energy storage and smart grid Developed
Table A.2 lists the UK companies involved in international consulting on green financing and renewable energy.
Table A.2. UK Companies Involved in International Renewable Energy Consulting and Finance
Sector UK Companies
Green finance Acropora Capital

Barclays
Deep Sea Electronics
EcoMachines Ventures
Geothermal Engineering
Green Investment Group (Macquarie)
Hotspur Geothermal
HSBC Bank
27
Low-carbon energy study, ICF, March 2017. https://www.icf.com/-/media/files/icf/reports/2017/fco-low-carbon-energy-scoping-study.pdf.
Sector UK Companies
Solar PV Absolute Energy Capital

Acropora Capital
Aggreko Plc Group
AquaFloat
Arup
Atkins
Belectric Solar and Battery GmbH
Dulas Ltd
Eaton Electrical
Engie
Fichtner Consulting Engineers Ltd
Kingspan
N-ERGY Limited
Organics Group plc
Pegasus Group
PROINSO UK Ltd
Pure Energy Professionals
Ramboll
ROMAG
TNEI
UKSOL Ltd
Wind Aggrelo Plc Ltd

Arup
Atkins
Border Hydro
CWind
Dulas Ltd
Eaton Electrical
EDS HV Group
Engie
FCC Environment Ltd.
JDR Cables
MHI Vestas Offshore Wind
MLM Group
Mott MacDonald
N-ERGY Limited
Organics Group plc
Osbit
Pegasus Group
Pure Energy Professionals Ltd
Ramboll
Siemens Gamesa UK
TNEI
Table A.2. UK Companies Involved in International Renewable Energy Consulting and Finance (continued)
Sector UK Companies
Hydro Absolute Energy Capital

Adrian Laycock
Advanced Pump and Hydro Systems Ltd.
Atkins
Border Hydro
Dulas Ltd
Ellergreen Hydro
Gilbert Gilkes & Gordon Ltd
Glen Hydro
Green Highland
Hallidays Hydroowr Ltd
Hydroplan
M.A.M. Contracting
MannPower
Mott Macdonald
Pegasus Group
Ramboll
TLS Hydro
Trade Link Solutions
Geothermal Arup
Hotspur Geothermal
Mott MacDonald
Ramboll
Sector UK Companies
Bioenergy Biomass:
Atkins
Bioenergy Infrastructure Group
Doosan Babcock
Mott Macdonald
Pegasus Group
Peter Brotherhood
PM PROjEN
Ramboll
Biogas:
Aggreko Plc Group
Atkins
Mott Macdonald
Organics Group plc
PlanET Biogas UK
PM PROjEN
Ramboll
Waste-to-energy:
Advanced Pump and Hydro Systems Ltd.
Arup
Biffa Group
Doosan Babcock
Engie
FCC Environment Ltd
MLM Group
Mott Macdonald
Organics Group plc
Pegasus Group
Peter Brotherhood
Plan B Management Solutions
PM PROjEN
Suez Environment
Veolia UK
Viridor
Biodiesel:
Aggreko
Organics Group plc
PROjEN
Table A.2. UK Companies Involved in International Renewable Energy Consulting and Finance (continued)
Sector UK Companies
Marine Atkins
Deep Sea Controllers
Fichtner Consulting Engineers
JDR Cables
MLM Group
Mott MacDonald
Orbital Marine Power
Pegasus Group
Ramboll
SIMEC Atlantis Energy
Tidal Lagoon Power plc
Energy storage and smart AES UK

grid Aggrekko plc Group
Arup
Battery Energy Storage Solutions Ltd
Cumulus Energy Storage Ltd
Dulas Ltd
EcoMacines Ventures
Engie
Flextricity
Moixa
Mott MacDonald
M-ERGY Ltd
NOJA Power
Open Energi
OXTO Energy
Siemens Gamesa UK
Xero Energy Limited
Zenobe Energy
Additional detail on these companies follows.

Table A.3 UK Companies Providing Renewable Energy and Green Finance Services
Company Service Area(s)
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Absolute Energy Capital

http://www.ae-capital.com/
100 Pall Mall London SW1Y 5NQ
Tel: +44 (0)20 7036 9600
Fax: +44 (0)20 7036 9633
E-mail: info@ae-capital.com
Independent investment platform focused on renewable energy. Offers investment/co-investment opportunities as well as
business development potential to industrial and financial clients. Evaluates primary and secondary investment opportunities,
and invests its own resources along with those of its partners. Develops and deploys market-based solutions for rural
electrification and energy efficiency.
Acropora Capital
http://www.acroporacapital.com/
7 New Quebec Street, London W1H 7RH
Tel: (+44) 0207-859-4076
Email: info@acroporacapital.com
Investment and development company that develops renewable energy projects, primarily in the Middle East and Africa.
Specializes in fundraising for the development, construction, operation and maintenance of developed assets and provides
access to very attractive markets which are otherwise difficult to enter.
Its EPC team offers the full range of EPC services for utility-scale, micro-scale and off-grid photovoltaic solutions.
Table A.3 UK Companies Providing Renewable Energy and Green Finance Services (continued)
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Adrian Laycock
https://www.adrianlaycock.com/
Oban PA37 1SZ
Tel: +44 1631 705088
Plans, designs, and constructs small and micro-hydro schemes, with sizes ranging from 50 kW to1 MW or more. Specializes
in micro-hydro in environmentally sensitive areas. Services include initial appraisals, environmental and hydrological studies,
economic analysis and engineering design of dams, pipelines and associated structures.
Advanced Pump and Hydro Systems

Ltd.
http://www.advancedpumpandhydro.com
Unit 7, Hammec Industrial Estate, Brandon
Way, West Bromwich B70 9PQ
Email: info@advancedpumpandhydro.com
Provides advice and solutions for hydro projects, from the initial idea through to commissioning and generation. Uses new,
innovative, cost-effective technologies such as plastic generator screws and low-head Kaplan turbines. Exclusive UK and
Ireland agents for Bombas iDeal, which offers a wide range of pump products, and Wangen Pumps, which manufacture
progressive cavity pumps.
Offers design services and innovative products for waste water and industrial applications (e.g., complete systems for the
aeration and mixing of wastewater). Within the anaerobic digestion process, offers the Landia Gas Mix system that not only
improves the digester mixing but also significantly increases the amount of gas produced.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
AES UK
http://aesukireland.com/home/default.
aspx
Larne Rd, Eden, Carrickfergus BT38 7LX
Tel: +44 28 9335 6200
Offers a world-class battery-based energy storage system, Advancion®. Introduced the first grid-scale advanced battery in
commercial power market service in 2008. Operates the largest fleet of battery-based storage assets in service today, with
166 MW of interconnected energy storage, equivalent to 332 MW and 3 million MWh of delivered service. Has worked with
customers to integrate energy storage into eight power markets globally.
Aggreko Plc Group

www.plc.aggreko.com/
120 Bothwell St, Glasgow G2 7JS
Tel: +44 141 225 5900
Engineering and construction firm specializing in wind (planning and infrastructure, construction, pre-commissioning, testing
and commissioning, and O&M for both on- and off-shore facilities), battery storage for solar PV (design and build), and biogas
(employing new technology, Next Generation Gas, which can be engineered to adjust to different varieties of gas fuel types.
Also adapts generators to run on biofuels.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
AquaFloat
https://www.linkedin.com/pulse/floating-
solar-simon-piggott/
7 Ghyll Bank, Lowca, Whitehaven,
Cumbria CA28 6QJ
Tel: 07460 688123
Email: afornal@aqvafloat.com
A 2018 startup that has opened a 12 MW manufacturing facility for floating solar systems in Brampton, Cumbria. The
production facility has been awarded ISO 9001:2015 and ISO 14001:2015 certification.
Arup
https://www.arup.com
13 Fitzroy Street, London W1T 4BQ
Tel: +44 (0) 20 7636 1531
Email: london@arup.com
An independent firm of designers, planners, engineers, architects, consultants and technical specialists working across every
aspect of the built environment. Its energy sector focus is on off-shore wind, solar, waste-to-energy, utility-scale battery
storage, geothermal (with a specialization in district heating), networks and smart grids, and demand reduction/efficiency, as
well as hydrogen and electric cars.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Atkins
https://www.atkinsglobal.com/en-GB
Euston Tower, 286 Euston Road, London
NW1 3AT
Tel: +44 20 7121 2000
Fax: +44 20 7121 2111
Email: info@atkinsglobal.com
Provides design, engineering and project management consultancies. Produced the outline designs for breakwaters, turbine
houses and ancillary works, and supported the tender process by helping develop documents and reviewing responses and
detailed designs for Tidal Lagoon Swansea Bay Plc, the power-generating tidal lagoon in Wales. Also provides EPC services in
offshore wind, hydroelectricity, biomass, biogas, and waste-to-energy, solar, and decentralized energy.
Barclays
https://www.barclayscorporate.com/
solutions/corporate-banking-solutions/
financing/corporate-lending/term-loan/
1 Churchill Place, London, ENG E14 5HP
Tel: +44 (0) 1606 563191
Offers green loans to fund a range of environmental and sustainability projects in energy efficiency, renewable energy, green
transport, sustainable food, agriculture and forestry, waste management and greenhouse gas emission reduction. Standard
lending and credit procedures are used to assess applications alongside the company’s Green Product Framework developed in
partnership with Sustainalytics.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Battery Energy Storage Solutions Ltd

https://www.linkedin.com/company/
battery-energy-storage-solutions-limited
3rd Floor, Lansdowne House, Berkeley
Square, London W1J 6ER
An energy storage company that owns and operates a portfolio of battery sites. Provides a range of services from frequency
balancing to reserve power.

https://belectric.com/
Churchill House, 1 London Rd, Slough SL3
7FJ, UK
Tel: +44 20 3953 0000
Develops and constructs utility-scale solar power plants and energy storage systems. Has constructed 300 solar PV power
plants with around 2GWp PV capacity. Offers battery energy storage systems and hybrid power solutions, which combines
technologies to autarkic systems. One of the largest O&M providers globally.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Biffa Group
https://www.biffa.co.uk/
Ludlow Business Park, Ludlow Council
Dept, Coder Rd, Ludlow SY8 1XE
Tel: +44 800 601601
One of the largest municipal, industrial and commercial waste management fleets in the UK. Offers construction waste
management, logistics waste solutions, recycling, and hazardous waste management.

http://bioenergyinfrastructure.co.uk/
Arlington Business Park, Abbey House,
1650, Theale, Reading RG7 4SA
Tel: +44 118 929 8350
In establishing one of the UK’s largest portfolios of biomass and waste to energy facilities. Has over 100 MW of operational and
late-stage construction assets that will divert over 1 million tonnes per annum of waste from landfills and generate enough
electricity for around 250,000 homes in the UK.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Border Hydro
http://www.borderhydro.co.uk/
Cockermouth CA13 9TL
Tel: +44 1900 85616
Designs, installs and maintains grid-connected and stand-alone wind turbines, a range of hydro turbines and controllers, and
control panels.
Cumulus Energy Storage Ltd

http://www.cumulusenergystorage.com/
Advanced Manufacturing Park, Brunel
Way, Rotherham, South Yorkshire 560
5WG
Tel: + 44 (0) 1433 41033
Manufacturer and developer of grid-level energy storage batteries with the lowest levelized cost of storage globally. Its copper/
zinc battery offers scalability, low cost, low energy density, long life, 90% availability, and round-trip efficiency of over 80%.
Battery s 98% recyclable at the end of its life.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
CWind
https://www.cwind.global.com/
Ocean House, 1 Winsford Way, Chelmsford
CM2 5PD
Tel: +44 (0)1245 702000
Email: info@cwind.global
Constructs, commissions, operates and maintains large-scale offshore wind projects. Offers technician and engineering
support, vessel charter, pre-project planning and cable installation, blade repair, subsea surveys, power cable storage, training,
and inspection and maintenance.

https://www.deepseaelectronics.com/
Hunmanby Industrial Estate, Hunmanby,
North Yorkshire YO14 0PH
Tel: +44 1723 890099
Electronics manufacturer of control solutions. Provides gensets for solar and marine applications, and mains decoupling relays
suitable for hydropower applications.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Doosan Babcock
www.doosanbabcock.com
Doosan House, Crawley Business Quarter
Manor Royal, Crawley West Sussex RH10
9AD
Tel: +44 (0) 1293 612888;
Email: db.info@doosan.com
Equipment manufacturer specializing in biomass co-firing and conversion. Services include fuel handling and milling, dedicated
burners and combustion systems, direct and indirect flexible fuel systems, boiler performance and condition assessments, air
quality control systems assessments, and integrated steam turbine retrofitting. Has converted coal-fired power stations to
100% biomass or co-firing systems.
Dulas Ltd
https://www.dulassolar.org
Unit 1 Dyfi Eco Park, Machynlleth, Powys
SY20 8AX
Tel: +44 (0)1654 705055
Renewable energy consultancy and installation on energy storage for industrial solar, hydro and wind applications. Services
include planning and application support, site design, through to project management, installation, O&M and long-term service
optimization.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Eaton Electrical
http://www.eaton.eu/Europe/index.htm
252 Bath Road, Slough, Berkshire SL1 4DX
Tel: +44 (0) 1753 608 700
Power management company with 2016 sales of $19.7 billion. Provides research, development and implementation of energy-
efficient solutions. Is a leading supplier of products and services for renewable energy distribution and automation, and offers
programmable logic controllers to regulate photovoltaic power plants worldwide. For wind energy plants provides switchgear
to protect electrical power generation systems, as well as grid connections. Recently implemented a 3 MW power storage
system.
EcoMachines Ventures
http://ecomachinesventures.com/
10 Jesus Lane, Cambridge CB5 8BA
Email: info@ecomachinesventures.com
Invests in technology companies that are working to meet energy demand, and make the supply of energy secure and stable.
Focus on innovative proprietary technologies, energy efficiency and smart tech.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
EDS HV Group
https://www.edshv.com/
18, Three point Business Park, Charles Ln,
Haslingden, Rossendale BB4 5EH
Tel: + 44 (0) 1796 231067
Email: enquiries@edshv.com
Designs, connects, tests, commissions and operates onshore and offshore wind projects. Services include installation, fault
management, advisories, HV safety, asset management and commissioning.
Ellergreen Hydro Ltd

https://www.ellergreen.com/hydro/
Ellergreen Estate, Burneside, Kendal LA9
5SD
Tel: + 44 1539 726013
Provides feasibility studies, design & consenting, construction, and project management. Constructs and operate its own
schemes, and community-owned schemes.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Engie
https://www.engie.co.uk/
Canary Wharf Shopping Centre, Level 20,
25 Canada Square, Canary Wharf, London
E14 5LQ
Tel: +44 20 7320 8600
Energy services firm that sources and supplies green gas (sourced from generation plants that produce biogas from anaerobic
digestion or landfill waste gas). Designs and installs battery storage solutions for small and large businesses. Electricity
generator with a merchant generation fleet of 12 operational assets with a total capacity of 2,189 MW. Operates eight wind
farms and one solar park in the UK and holds a stake in the Moray East offshore wind farm, due to become operational in
2022.
EPS UK
https://www.eps-uk.co.uk/
Units N & O, Freeth Street, Colwick,
Nottingham, NG2 3GT
Tel: +44 115 896 0486
Email: sales@eps-uk.co.uk
Offers a broad range of services including switchgear and circuit breaker design, rapid prototyping, 3D printing, finite element
analysis-based design improvement and contract CAD design services. Services include design of low-voltage automation
products, design of medium-voltage equipment (up to 72.5kV), finite element analysis for existing products, failure analysis of
existing switchgear, and transformer condition monitoring.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
FCC Environment Ltd

https://www.fccenvironment.co.uk/green-
energy/
Bennett Bank Landfill Site, Barrow-in-
Furness LA14 4QH
Tel: +44 1229 467637
Operates waste to energy facilities and makes use of existing sites around the UK, such as reclaimed areas of landfills, to build
small wind turbines.

https://fichtner.co.uk/sectors/renewable/
Kingsgate (Floor 3), Wellington Road
North, Stockport
Cheshire SK4 1LW
Tel: +44 (0) 161 476 0032
Email: sales@fichtner.co.uk
Specializes in the due diligence, procurement and engineering of renewable energy technologies throughout all project
phases, from feasibility studies through to full operation. Evaluates the impacts and optimizes the design of renewable energy
projects, using its proprietary Solpro software in the solar sector, and WindPRO/WASP software packages in the wind sector.
Works in 1) on- and offshore wind energy, including the OFTO regime, 2) solar PV, both ground and roof mounted, and
solar thermal, 3) tidal, wave and hydro power, 4) geothermal, 5) energy storage including co-location with other renewable
technologies, 6) EV Infrastructure, 7) transmission and distribution, and 8) emerging technologies such as hydrogen
generation and utilization.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Flexitricity
https://www.flexitricity.com/
Mainpoint, 102 West Port, Edinburgh EH3
9DN
Tel: 44 131 221 8100
Created the first demand response portfolio in Great Britain. Pioneered open-market aggregated demand-side services for
electricity system balancing. Provides aggregated STOR and FCDM, Footroom and demand turn-up. post-fault dispatch for
distribution networks, demand-side smart frequency control, and balancing mechanism access for demand-side assets.
http://www.geothermalengineering.co.uk/
Unit 3 United Rd, Industrial Estate,
Redruth TR16 5HY, UK
Tel: +44 1326 218955
Geothermal engineering and construction company that is developing the UK’s first large-scale geothermal energy plan in
Cornwall.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Gilbert Gilkes & Gordon Ltd

http://www.gilkes.com/
Canal Head North, Kendal, Cumbria, LA9
7BZ
Tel: +44 (0) 1539 720028
Fax: +44 (0) 1539 732110
Email: enquiries@gilkes.com
Manufactures hydro turbines with capacities up to 20 MW. Exports to over 85 countries. Has supplied over 6,700 hydroelectric
turbines worldwide.
Glen Hydro
http://www.glenhydro.co.uk/
9 Reform St, Blairgowrie PH10 6BD
Tel: +44 1250 710656
enquiries@glenhydro.co.uk
Developers and consultants who design, install, operate and own hydroelectric schemes. Advice on the economic viability and
technical feasibility of watercourse as a hydro investment. Focus on developments over 100 kW and up to 2 MW in capacity.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Green Highland
http://www.greenhighland.co.uk/
Inveralmond Road, Inveralmod Industrial
Estate
Perth PH1 3TW
Tel: 01738 493110
Email: info@greenhighland.co.uk
Independent hydropower project developer, operator and owner. Services include: potential identification, design and licensing,
O&M, financing, and construction/commissioning.
Green Investment Group

https://greeninvestmentgroup.com/
Ropemaker Place, 28 Ropemaker Street,
London EC2Y 9HD
Tel: +44 (0) 203 037 2000
Email: media@greeninvestmentgroup.com
Part of the Macquire Group. Offers a full suite of financial services including development funding, financial close, construction
phase equity, and debt and asset financing across both established (offshore wind, onshore wind, solar, hydro, inter-
connectors, waste and biomass) and emerging technologies (tidal, biofuels, energy efficiency, storage, low carbon transport,
smart grid, district heating) through all stages of the project lifecycle: development, construction and operations.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Hallidays Hydropower Ltd.

http://www.hallidayshydropower.com/
5B Queen St, Dorchester, Wallingford
OX10 7HR
Tel: +44 1865 349020
Global hydropower consultants specializing in the delivery and maintenance of low-head, fish-friendly, run of river hydropower
schemes. Services are provided from concept through feasibility, design, licensing, installation and commissioning. Also offers
a maintenance program for installed facilities.
Hotspur Geothermal
http://www.hotspurgeothermal.com/
Syon House, London Road, Brentford,
TW8 9JF
Develops and constructs geothermal projects, focusing on large-scale projects, typically over 10 MW, as well as smaller-scale
direct use heat and power projects. Services include resource potential identification, exploration and drilling, and advancing
projects to development. Is targeting geothermal development in Indonesia.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
HSBC Bank
https://www.hsbc.com/our-approach/
building-a-sustainable-future/sustainable-
finance
8 Canada Square, London E14 5HQ
Tel: 0871 472 1680
Email: customer.care.team@hsbc.com
On 3 July 2019 launched a range of new green finance products for UK businesses – from small and medium enterprises to
large corporations – including a green loan, green revolving credit facility, and a green hire, purchase, lease and asset account
as part of HBSC’s commitment to provide £76 billion in sustainable financing and investment by 2025.
Hydroplan
https://www.hydroplan.co.uk/
Unit 12 Riverside Park, Station Road,
Wimborne
Dorset BH21 1QU
Tel: +44 (0) 1202 886622
Offers hydropower consulting, in-house design, due diligence, hydro scheme operations and maintenance, survey services,
feasibility studies, hydro/dam engineering, tunneling, and HV electrical.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
JDR Cables
http://www.jdrcables.com/
62 Queens Road, Aberdeen AB15 4YE
Tel: +44 (0) 1224 766651
Develops inter-array submarine electric cables for offshore wind, wave, and tidal energy projects. Offers front-end engineering
and design, project implementation, product engineering and installation, and asset management.
Kingspan
Unit 2 Greenfield Business Pk, 2 Bagillt
Rd, Holywell CH8 7GJ
https://www.kingspan.com/gb/en-gb
Tel: +44 (0) 28 336 4440
Email: contact@kingspan.com
Provides evacuated tube collectors and flat plate solar panel technologies, consulting and engineering studies, and solar
thermal system servicing.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
M.A.M. Contracting
http://www.mamcontracting.co.uk/
Templemill Farm Cottage, Crieff PH7 4HL
Tel: +44 1764 654703
Provides engineering and construction on hydroelectric schemes.
MannPower
http://www.mannpower-hydro.co.uk/
York Road, Malton, North Yorkshire Y017
6AU
Tel: 01653 619968
Email: sales@manpower-hydro.co.uk
UK’s first supplier of Archimedean screw hydropower turbines. Provides feasibility and design studies, detailed project plans,
construction and installation, commissioning, and remote management.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
MHI Vestas Offshore Wind

http://www.mhivestasoffshore.com/
303 Bridgewater Pl, Birchwood, Risley,
Warrington WA3 6XF
Tel: +44 845 528 0401
Manufactures offshore wind turbine blades, and offers operations and maintenance and project management services. Offers
the world’s largest commercially proven rotor, 174 meters.
MLM Group
https://www.mlmgroup.com
3rd Floor Eldon House, 2 Eldon Street,
London EC2M 7LS
Tel: +44 20 7422 7800
Email: london@mlmgroup.com
Privately-owned engineering, environmental and building control consultancy. Provides full design services for waste-to-
energy plants. Also provides design services in biomass, windfarms, and wave generation.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Moixa
https://www.moixa.com/
29-31, Saffron Hill, Farringdon, London
EC1N 8SW, UK
Tel: +44 0 7734 1511
Provides smart grid batteries and smart battery hardware and GridShare software to facilitate smart energy storage and
sharing. GridShare facilitates and interprets complex interactions between energy-storage devices and the grid, enabling data-
based decision making and ensuring value is created throughout the supply chain. Specializes in batteries for solar storage.
Mott MacDonald
https://www.mottmac.com/energy/
5th floor, 4/5 Union Terrace, Aberdeen
AB10 1NJ
Email: aberdeen@mottmac.com
10 Fleet Place, London EC4M 7RB
Tel: +44 (0)20 7651 0300
Email: london@mottmac.com
Experienced in all types of renewable energy generation and power transmission and distribution technologies. Services
include: project development, tendering, construction management, engineering support, environmental and social, due
diligence, and carbon finance. Sectors include solar (the firm has adviced on over 10 GW of solar installations worldwide), wind
(providing electrical connections, turbine technology, and lender’s advisory), hydro (including resource assessments and risk
assessment), geothermal (including technology assessments, well testing, and resource assessments), bioenergy (biomass,
biogas, biofuels and waste to energy), marine (wave, current, and tidal), and storage (particularly for solar and wind). Was
technical and environmental advisor and construction monitor om the 75 MW Sidrap wind farm in South Sulawesi, which will
be the country’s first commercial-scale wind farm. Was technical, environmental and social advisor to the Asian Development
Bank for the 72 MW Tolo 1 wind farm in South Sulawesi, the largest renewable energy independent power producer in Asia-
Pacific.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
N-ERGY Limited
http://n-ergy.solutions/
Unit 15-B, Street 3, Thorpe Arch Industrial
Estate
Wetherby West Yorkshire LS23 7FY
Tel: +44 (0) 3440 1010
Email: info@n-ergy.solutions
Experienced in the design, development, operation and maintenance of solar plants and wind farms. In the area of energy
storage, provides battery maintenance.
NOJA Power
https://www.nojapower.co.uk/?gc
li d=EAIaIQobChMIscH7veWm4wIVQr
bACh30wwdkEAAYASAAEgJiJ_D_BwE
Hyde Park House, Cartwright St
reet, Hyde, Cheshire SK14 4EH
Tel: +44 (0) 7805 352 502
Email:sales@nojapower.co.uk
Provides medium-voltage reclosers and related products to the international market. Has installed more than 50,000 NOJA
Power OSM series Automatic Circuit Reclosers in 87 countries. Provides single, double, and triple phase autoreclosers,
electronic controls, software, and low-voltage switchgear.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Open Energi
https://www.openenergi.com/
239 Old Marylebone Rd, Marylebone,
London NW1 5QT
Offers specialist consultancy services in decentralized, digitalized energy management to help businesses assess and value
project opportunities. The company’s Dynamic Demand 2.0 software dispatches assets for capacity reserve schemes in
line with market obligations, by minimizing costs and maximizing income opportunities during peak periods by reducing
consumption or dispatching generation assets in response to price signals.
Orbital Marine Power

https://orbitalmarine.com/
Innovation Centre – Orkney, Hatston Pier
Road, Kirkwall
Orkney, Scotland KW15 1ZL
Pioneered floating tidal stream turbines in Orkney, Scotland. The Orbital O2 turbine represents a move towards commercial
operation. Is developing tidal arrays at Lashy Sound, Orkney.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Organics Group plc

https://www.organics.co.uk/en/
Sovereign Court II, University of Warwick
Science Park
Coventry, CV4 7EZ
Tel: +44 24 7669 2141
Email: comms@organics.co.uk
Provides services in landfill gas extraction and utilization, anaerobic digestion, refuse-derived fuel, and advanced thermal
processing (pyrolysis and gasification). Constructed three biogas plants in Indonesia. Environmental protection services
cover enclosed low-emission flare systems, thermal ammonia removal systems, odor control, waste water treatment and soil
decontamination. Also develops and operates solar PV, wind, biogas, and biodiesel projects.
Osbit
https://www.osbit.com/
Broomhaugh House, Riding Mill,
Northumberland, NE44 6AW
Tel: +44 (0) 1434 682 404
Email: team@osbit.com
Provides design, manufacturing, integration and support services for floating off-shore wind plants. Is supplying its MaXccess
T-18 access system for Japan’s first off-shore wind farm to allow engineers safe access to the 2MW downwind floating turbine
and the 66kV floating sub-station, which are situated in deep and rough waters, 20km off the coast of Japan.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
OXTO Energy
http://www.oxtoenergy.com
25 Bruton Street, Mayfair, London, W1J
6QH
Has developed an innovative flywheel energy storage system to enable a sustainable, low-carbon future. The flywheel is
designed to work alongside renewable technologies such as wind and solar, allowing intermittent renewable generation
to continue generating, even when the energy is not necessarily required. The excess energy gets stored in OXTO’s steel
flywheels and then released when demand increases.
Pegasus Group
https://www.pegasusgroup.co.uk/pegasus-
groups-renewable-energy-projects/
First Floor, South Wing, Equinox North,
Great Park Road, Almondsbury, Bristol,
BS32 4QL
Experienced in solar power, on- and offshore wind (turbine schemes, from single turbines to wind farms), bio-energy (biomass,
from small to commercial scale), tidal power, energy from waste, anaerobic digestion and hydro power. The firm’s solar
projects contribute to more than 10% of the UK’s entire solar capacity. Services include: site assessment and feasibility
studies, environmental impact assessments, and mitigation design.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Peter Brotherhood
http://www.peterbrotherhood.com
85 Papyrus Road, Peterborough, PE4 5HG
Tel: +44 (0) 1733 292200
Email: info@peterbrotherhood.com
Designs, manufactures and services steam turbines and turbine generator sets up to 40 MW applicable for biomass
powerplants and waste-to-energy plants. Has installed thousands of steam turbines in more than 140 countries. It is the only
producer in the UK for steam turbines with outputs up to 40 MW.
Plan B Management Solutions

http://www.pbmsolutions.co.uk
The Old Threshing Barn, Marsden
Estate, Cheltenham Road, Rendcomb, Nr
Cirencester, Glos GL7 7EX
Tel: +44 (0) 1242 806330
Email: mail@pbmsolutions.co.uk
Environmental management consultancy providing management and technical support services to the waste management
industry. Services include procurement, interim project and data management, procurement, and work programming.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
PlanET Biogas UK
http://www.planet-biogas.co.uk/
26 Sugarswell Ln, Shenington, Banbury
OX15 6HW
Tel: +44 1295 688427
Provides biogas services in planning, new construction, re-powering, technical (remote maintenance, support for CHP units,
on-site replacement, and advisories on new technologies), biological (operations stability and substrate treatment), and
biomethane.
PM PROjEN
https://www.projen.co.uk/
Projen House, Wellfield, Preston Brook,
Runcorn, `Cheshire WA7 3AZ
Tel: +44 1928 752500
Engineering design and project management firm focusing on the design and building of anerobic digestion, biogas, biomass,
and liquid biofuels plants. Installed the UK’s first large-scale biodiesel plant.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
PROINSO UK Ltd
https://www.proinso.net/
943 Yeovil Rd, Slough SL1 4NH, UK
Tel: +44 1753 538448
Integrates and distribute solar PV products, supplying such components as inverters, modules, structures and complete
balance of system. Also develops a wide range of rooftop and ground-mount structures (PROINSO PV Rack). Project
development services range from identifying project sites to contracting, construction and O&M. Also offers full support for
engineering, procurement and management. Installed a 300 kWp off-grid project in Kepulauan Riau, Indonesia in partnership
with PT Suria Energi Indotama.
Pure Energy Professionals Ltd.

http://peprenewables.com
Monument House, 58 Coinagehall Street
Helston, Cornwall TR13 8EL
Tel: +44 (0)1326 572720
Fax: +44 (0)1326 564144
Email: info@peprenewables.com
Helps create, finance and build new renewable energy businesses (technology commercialization, corporate financial
advice and financing, company and product due diligence, advice on renewable energy sources). Project services include
co-development, financing, procurement and construction management, operations and asset management, acquisitions/
disposal, power purchase agreements, and green credit marketing. Specializes in joint ventures in wind, solar, biomass and
marine energy.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Ramboll
https://ramboll.com/
240 Blackfriars Road, Londong SE1 8NW
Tel: +44 20 7631 5291
Email: london@ramboll.co.uk
Engineering and consulting firm. Solar: has been involved in more than 20 solar heating projects in 10 countries, with a
total of more than 200,000m2. Wind: has completed projects in 21 countries in offshore wind and 60 countries onshore.
Hydro: optimizes power stations, designs, monitors and assures the quality of investments, both retrofits and new plants.
Geothermal: specializes in seismic, geological and geophysical studies and investigations including modeling and reservoir
hydraulic calculations and evaluation. Bioenergy: establishes major modern anaerobic digestion (biomass) and biogas facilities
using a variety of feedstocks and has delivered over 60 biomass power, heat and CHP facilities using a full spectrum of fuel
types. Marine: is working on a 10 MW tidal test array from concept study to detailed design for both foundation design and
installation methodology.
ROMAG
https://www.romag.co.uk/products/solar/
solar-panels/solar-panel-kits/
Leadgate Industrial Estate
Consett DH8 7RS
+44 1207 500000
Manufactures solar panel kits that can be fitted to almost any roof. Offers a new lightweight and most efficient PV panel, the
RSM 6 (60), for roof mounting.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Siemens Gamesa UK
https://www.siemensgamesa.com/en-int
The Crystal, 1 Siemens Brothers Way,
London
E16 1GB
Tel: 0207 055 6412
A leading supplier of wind power solutions (on- and off-shore wind turbines), has installed products and technology in more
than 90 countries, with a total capacity base of over 89 GW. Offers hybrid power solutions to allow for the integration of one
or more renewable power generation assets with tailored energy storage systems – heat or battery storage.
SIMEC Atlantis Energy

https://simecatlantis.com/
4th floor, Edinburgh Quay 2, 139
Fountainbridge, Edinburgh EH3 9QG
Tel: +44 131 659 9690
Designs, supplies, and maintains tidal turbines and subsea connection equipment. Has more than 1,000 MW of tidal stream
marine projects in various stages of development. As lead developer, also works with consortiums to secure development
rights for marine power projects. Is the majority owner of MeyGen, the world’s largest tidal stream energy project. Has
a formal agreement with GE to hare resources for the ongoing development of utility scale tidal energy generation and
associated energy storage solutions. Is working with GE on the development and performance validation of Atlantis’ AR2000
tidal generation system, which is expected to be the world’s largest and most powerful single axis turbine available.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Suez Environment UK
https://www.suez.co.uk/en-gb/who-we-
are/suez-in-the-uk
Canalside Depot, Stoke-on-Trent ST6 3NF
Tel: +44 1782 524740
Part of the Suez Group. Handles over 10 million tonnes of waste in the UK. We make a significant and growing contribution
to the circular economy and sustainability by recovering value from these waste materials. Provides waste auditing and site
assessments, and recycling and recovery services.
Tidal Lagoon Power plc

http://www.tidallagoonpower.com/
Pillar & Lucy House, Merchants Road, The
Docks, Gloucester GL2 5RG
Tel: +44 (0) 1452 303892
Email: Info@tidallagoonpower.com
Develops, constructs and operates tidal lagoon power plants in the UK and internationally. Is currently developing a national
fleet of six tidal lagoons to meet up to 8% of UK electricity demand, or power for around 30% of UK homes, as well as moving
on a number of potential projects overseas.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
TLS Hydro
https://www.tlshydro.co.uk/
135 High St, Rickmansworth WD3 1AR
Tel: +44 1923 713840
Develops, constructs and operates hydro power sites. Also renovates older sites which are no longer operational.
TNEI
https://www.tneigroup.com
2nd Floor Bainbridge House, 86 - 90
London Road
Manchester M1 2PW
Tel: 0161 233 4800
Email: info@tneigroup.com
Specialist energy consultancy, combining power systems analysis, renewables integration, environmental services, and noise
assessment. Works in distributed renewable generation and the integration of low-carbon technology. Provides a range of
technical services, from GIS to civil engineering and energy market analysis. Has provided power system dynamic studies for
the Rentel Offshore Wind Farm off the coast of Belgium.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Trade Link Solutions

https://www.tradelinksolutions.com/
Batchworth Lock House, 99 Church St,
Rickmansworth WD3 1JJ
Tel: +44 1923 713840
Offers financial and commercial advice in accrediting renewable generation plants, trading electricity, hydro generation and
feasibility studies.
UKSOL Ltd
https://www.uksol.uk
1 Chalfont Park, Gerrards Cross,
Buckinghamshire, SL9 0BG
Tel: +44 (0) 1753 910327 (UK office hours)
Email: info@uksol.uk
Produces high-quality solar PV modules that come with a 30-year British warranty. Also provides procurement and global
support. UKSOL exports into over 39 countries. Has installed 2 MW solar panels on a factory rooftop in Manila, Philippines and
300 kW modules on a new office block in Ho Chi Minh City.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Veolia UK
https://www.veolia.co.uk/
8 Marsh Rd, Wembley HA0 1ES
Tel: +44 20 8991 9237
Provides a comprehensive range of waste, water and energy management services, including commercial waste collection,
hazardous waste collection and treatment, and low-carbon heating for districts and communities.
Viridor (Pennon Group)

https://www.viridor.co.uk/
Has 300+ advanced recycling, energy recovery and landfill diversion facilities, and 10 energy recovery facilities that maximize
resource efficiency for non-recyclable waste. One of the UK’s largest independent power generators from waste, with 274
megawatts (MW) of operating capacity from ERFs, anaerobic digestion, solar and landfill gas (including joint ventures),
exporting 1.5 terawatt hours of power during the 2018/19.
Storage/Smart Grid
Green Finance
Hydroelectric
Geothermal
Bioenergy
Solar PV
Marine
Wind
Xero Energy Limited

http://www.xeroenergy.co.uk/
60 Elliot Street, Glasgow G3 8DZ
Tel: +44 (0)141 221 8556
Email: info@xeroenergy.co.uk
Independent transmission and distribution industry expert with expertise in micro-grids, private wire systems and smart grids,
from small domestic systems through to higher-voltage distribution networks and transmission. Offers a broad range of expert
services, including engineering, technical, commercial and regulatory expertise on grid & electrical systems.
Zenobe Energy
https://zenobe.co.uk/
3rd floor, 57 Berkeley Square, Mayfair,
London W1J 6EJ
Tel: +44 (0) 203 912 7853
Email: contact@zenobe.co.uk
Works with network infrastructure companies such as power grids. Identifies innovative ways to reduce or eliminate
reinforcement expenditure, increase reliability and improve the environment for customers through energy storage. Delivers
large-scale projects which transform returns for investors and benefits for consumers.
Appendix B. UK Renewable
Energy Opportunities in Indonesia
Based on January 2019 Office of National Economic Indicators and Low-Carbon
Statistics data, the UK has a global trade surplus in Development Status for the UK and Indonesia
services and a trade deficit in goods. The greatest
Based on data for year 2019, the UK’s economy
potential for increasing the export of UK goods
(measured by gross domestic product) is about
and services is believed to be in emerging markets
2.42 times larger than Indonesia’s. 27 In that
that are both industrializing and experiencing
same year, the UK generated about a third more
relatively rapid economic growth (e.g., Indonesia).
electricity than Indonesia (323.7 TWh28 vs. 295.4
Trade expansion into these economies also offers
TWh29), with renewable energy’s contribution to
economic growth and job creation in the UK and
the electricity mix is 37.1%30 in the UK and 14.9%
abroad.
in Indonesia.
The 2019 Climate Change Performance Index
ranks the United Kingdom eighth in the world
in terms of its overall performance on climate
change, and Indonesia 38th. 31 By category, the two
countries are rated as:
Category UK Indonesia
Overall Rank 8 (High performing) 38 (Low performing)
GHG Emissions High: mainly due to the phasing out of Medium: emission reductions are well
coal, per capita emissions have been below comparable benchmarks
reduced considerably
Renewable Energy Medium: energy use per capita remains Low: there is no effective support
relatively high mechanism for renewables, and the share
of renewables in the energy mix has been
increasing very slowly
Energy Use Medium: renewable energy still accounts Medium: energy use per capita is still
for only a small share of the energy mix very low, but has increased rapidly in
recent years
Climate Policy High: could upgrade its 2050 emissions Very low: No support mechanism is
target to net zero in place for renewable energy, more
stringent national policy is needed on
deforestation, etc.
27
The World Bank, 2019.
28
Department for Business, Energy & Industrial Strategy, UK Energy Statistic 2019 & Q4 2019, March 26, 2020. Press_Notice_March_2020.pdf (publishing.service.gov.uk)
29
IEA Electricity Information 2020, Indonesia - Countries & Regions - IEA
30
Department for Business, Energy & Industrial Strategy, Digest of UK Energy Statistic 2020, July 30, 2020. DUKES_2020_Press_Notice_.pdf (publishing.service.gov.uk)
31
https://www.climate-change-performance-index.org/. Overall performance combines the scores of GHG Emissions, Renewable Energy, Energy Use, and Climate Policy.
Renewable Energy Project Opportunities in Indonesia can guarantee a buyer credit loan to an overseas
Finance borrower in local currency, financing the purchase
Based on a 2017 report prepared by TheCityUK, the of capital goods and/or services from a UK exporter.
UK is a leading international financial service centre This local currency financing is particularly suited
and the leading global net exporter of financial to projects that do not usually generate foreign
services. In 2017, the UK’s net export of financial currency revenue, such as water/gas/electricity
services was worth USD 77 billion. The UK plays a utilities, local transport, and local municipalities.
key role in green bonds, with 45 green bonds listed Indonesia is eligible for UKEF financing.
on the London Stock Exchange. It is also a leading Renewable Energy Sector Opportunities
legal service company; its legal services sector is the
UK companies will have to compete on the foreign
largest in Europe and second-largest globally.
(or imported) share of Indonesia’s renewable
UK exporters are supported by UK Export Finance energy market. The foreign portion of renewable
(UKEF), the UK’s export credit agency and a energy projects includes engineering and
government department, which works with the financial consulting, project feasibility studies, and
Department for International Trade. The latter’s mechanical and electrical equipment supply. Civil
mission is to help UK exporters win, fulfill, and engineering, construction work, and connection (e.g.,
ensure they are paid for export contracts. UKEF transmission lines, substations) are mostly supplied
can support exports for any size company and by local companies.
across all sectors, from capital goods to services
and intangibles such as intellectual property. UKEF
Table B.1. Sectoral Opportunities for UK Companies in Indonesia’s Renewable Energy Market
Sector UK Opportunities Foreign Portion
Green finance and All renewable energy types 1 to 7.5% of all renewable energy projects
renewable energy
consulting
Solar PV Consulting, engineering design, electro-mechanical 61% for consulting and an engineering
equipment, balance of system equipment including portion of about 1%
energy storage, inverter
Wind Major electrical-mechanical equipment and balance of 36.25 %

plant (auxiliary), including platform for offshore wind
power
Hydro Consulting and major electrical-mechanical equipment 1% on consulting

such as turbines and generators
17% on electrical- mechanical equipment
Geothermal Consulting, exploration, feasibility study, drilling, 65.9%, with consulting portion at about
construction, supply of special mechanical and 7.5%
electrical equipment
Bioenergy: biomass, Electrical-mechanical equipment 30% for biogas

biogas, waste-to-
energy 35% for biomass
50% for waste-to-energy
Marine Consulting, construction, operation and maintenance Platform, mechanical and electrical
equipment
Smart grid and Transmission and distribution control systems, No restrictions

battery energy automated electronic equipment: BESS design,
storage systems integration and operation
Tables B.2 –B.6 list the top renewable energy planned and under-development commercial grid-scale
project opportunities for each of the target areas. The tables also include information on size (generating
capacity), location, owner, stage of development, timeline and contacts.
Table B.2. Prospective Solar PV Projects (PLTS)
No. Project Name Status COD Date Contact Foreign Services
1 PLTS Buton & Planning TBD PT. PLN (Persero) Solar panels,
pumped storage inverters, control
Renewable Energy and New Energy
systems, pumps
Capacity: Division
30 MW
Jalan Trunojoyo Blok M-I No. 135, 6th
Province: Floor, Jakarta 12160
Southeast Sulawesi
Mr. Budi Moelyono (Senior Manager
(Buton)
Renewable Energy Division)
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
2 PLTS or wind, Planning 2025 PT. PLN (Persero) Consulting,

scattered engineering, solar
Renewable Energy and New Energy
panels, electro-
Capacity: Division
mechanical
100 MW
Jalan Trunojoyo Blok M-I No. 135, 6th equipment, control
Province: Banten Floor, Jakarta 12160 systems
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
3 PLTS, scattered Planning 2021 PT. PLN (Persero) Consulting,

engineering, solar
Capacity: Renewable Energy and New Energy
panels, electro-
145 MW Division
mechanical
Province: West Jalan Trunojoyo Blok M-I No. 135, 6th equipment, control
Java Floor, Jakarta 12160 systems
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
4 PLTS Floating Planning TBD PT. Indonesia Power (PLN Subsidiary) Consulting,
Saguling engineering, solar
Jl. Gatot Subroto No. Kav. 18, RT.5/RW.4,
panels, electro-
Capacity: Jakarta 12950
mechanical
60 MW
Tel: (021) 5267666 equipment, control
Province: systems
West Java
5 PLTS Cirata PPA 2022 PT. Pembangkitan Jawa Bali Investasi Consulting,
(PT-PJBI; PT PJB subsidiary) engineering, solar
Capacity:
panels, electro-
145 MW Menara Bidakara 2, Lt. 8
mechanical
Province: Jl. Gatot Subroto Kav. 71-73, Jakarta equipment, control
West Java Selatan 12870 systems
Tel: (021) 83708760
MASDAR
Abu Dhabi, United Arab Emirates
6 PLTS Jatiluhur Planning TBD PT. Pembangkitan Jawa Bali (PT-PJB; Consulting,
PLN subsidiary) engineering, solar
Capacity:
panels, electro-
100 MW PT PLN Building 2nd Floor, Jl. Jenderal
mechanical
Gatot Subroto Kavling 18, Jakarta 12950
Province: equipment, control
West Java Tel: (021) 5251490 systems
7 PLTS Kedung Planning TBD PT. Indonesia Power (PLN Subsidiary) Consulting,
Ombo engineering, solar
Jl. Gatot Subroto No.Kav. 18, RT.5/RW.4,
panels, electro-
Capacity: Jakarta 12950
mechanical
268 MW
Tel: (021) 5267666 equipment, control
Province: Central systems
Java
Table B.2. Prospective Solar PV Projects (PLTS) (continued)
8 PLTS Bali Barat Procurement 2023-2025 PT. PLN (Persero) Consulting,

engineering, solar
panels, electro-
50 MW Division
mechanical
Province: Bali Jalan Trunojoyo Blok M-I No. 135, 6th equipment, control
Floor, Jakarta 12160 systems
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
9 PLTS Bali Timur Planning 2023-2025 PT. PLN (Persero) Consulting,

engineering, solar
panels, electro-
50 MW Division
mechanical
Province: Bali Jalan Trunojoyo Blok M-I No. 135, 6th equipment, control
Floor, Jakarta 12160 systems
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
10 PLTS Sumbawa- Planning 2021 PLN (Unallocated) Consulting,

Bima engineering, solar
PT. PLN (Persero)
panels, electro-
Capacity:
Renewable Energy and New Energy mechanical
5 MW
Division equipment, control
Province: West systems
Jalan Trunojoyo Blok M-I, No. 135, 6th
Nusa Tenggara
Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
Table B.3. Prospective Wind Energy Projects (PLTB)
1 PLTB Scattered Planning 2023 PT. PLN (Persero) Financing, consulting,

engineering,
Capacity: Renewable Energy and New Energy electro-mechanical
60 MW Division equipment
Province: Jalan Trunojoyo Blok M-I No. 135, 6th
South Sulawesi Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
2 PLTB Majene Planning TBD PT. PLN (Persero) Financing,

consulting,
Capacity: Renewable Energy and New Energy engineering,
65 MW Division electro-mechanical
Province: Jalan Trunojoyo Blok M-I No. 135, 6th equipment
West Sulawesi Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
3 PLTB Garut Planning TBD PT. PLN (Persero) Financing,

consulting,
West Java Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
4 PLTB Tegal Planning 2022 PT. PLN (Persero) Financing,

consulting,
67.2 MW Division electro-mechanical
Province: Central Jalan Trunojoyo Blok M-I No. 135, 6th equipment
Java Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
Table B.3. Prospective Wind Energy Projects (PLTB) (continued)
5 PLTB Samas Planning TBD PT. PLN (Persero) Financing,

consulting,
Yogyakarta Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
6 PLTB Belitung Planning TBD PT. PLN (Persero) Financing,

Timur consulting,
Renewable Energy and New Energy engineering,
Capacity: Division electro-mechanical
10 MW equipment
Province: Bangka Floor, Jakarta 12160
Belitung
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
7 PLTB Kabupaten Planning TBD PT. PLN (Persero) Financing,

Lebak consulting,
253 MW equipment
Province: Banten Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
8 PLTB Kabupaten Planning TBD PT. PLN (Persero) Financing,

Pandeglang consulting,
200 MW equipment
Province: Banten Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
9 PLTB Sukabumi Planning TBD PT. PLN (Persero) Financing,

consulting,
Province: West Jalan Trunojoyo Blok M-I No. 135, 6th equipment
Java Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
10 PLTB Bekasi Planning TBD PT. PLN (Persero) Financing,

consulting,
West Java Floor, Jakarta 12160
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
11. PLTB Banyuwangi Planning TBD PT Indonesia Power (PLN Subsidiary) Financing,
consulting,
Capacity: Jl. Gatot Subroto No.Kav. 18, RT.5/RW.4, engineering,
50 MW Jakarta 12950 electro-mechanical
Province: Tel: (021) 5267666 equipment
East Java
12. PLTB Ciemas Planning TBD PT UPC Renewables Indonesia Financing,

consulting,
Capacity: Pusat Niaga Duta Mas Fatmawati engineering,
150 MW electro-mechanical
Blok C1 No. 2-3 Jakarta Selatan 12150
equipment
Tel: (021) 72796016
Province:
West Java
Table B.4. Prospective Hydropower Projects (PLTM) in Indonesia
1 PLTM Financing 2020 PT.Bina Godang Energi Financing,

Parmonangan 2 consulting,
Jl Setia Budi Tengah No. 22 engineering,
Capacity: Setiabudi-Kuningan electro-mechanical
10 MW equipment
Jakarta 12910
Province:
North Sumatra Mr. Robin Sunyoto
Tel: +62 21 5227531;
+62 817853697
robin_njo@yahoo.com
2 PLTM Simbelin 1 Financing 2021 PT. Energi Mekar Lestari Financing,

consulting,
Capacity: Duta Mas Fatmawati Blok B1/20, Jakarta engineering,
Ms. Margaretta Sihotang
Province: equipment
North Sumatra Tel: +62 21 72801657
(Office of Developer)
+62 8121411606 (Mobile)
sitohang_martha@yahoo.com
3 PLTM Iya PPA 2020 Sumber Energi Lestari Financing,

consulting,
Capacity: Gedung Taman A9 Unit A5, Jl. Mega engineering,
2 MW Kuningan Raya, Lot 8/9 No. 9, Jakarta electro-mechanical
12950, Indonesia equipment
Province:
Gorontalo Ms. Sri Rahayu
Tel: +62 21 57942746;
+62 81381248811
4 PLTM Ordi Hulu PPA 2021 PT. Sumatra Energi Lestari Financing,
consulting,
Capacity: Developer: Jl. Setia Budi No. 232, engineering,
10 MW Komplek Setia Budi Center C.20, Medan electro-mechanical
20122, North Sumatra, Indonesia; equipment
Province: Sponsor: 1 Raffles Place #13-01, One
North Sumatra Raffles Place, Singapore 048616
Mr. Paul Butarbutar
Tel: +62 61 8200704
(Office of Developer);
+62 8118822895
(Paul Butarbutar)
pbutar@3gt.co.id
5 PLTM Batang PPA 2022 PT Berkah Alam Lestasi Energi Financing, turbines,
Toru 3 generators, control
PT. Terregra Asia Energy Tbk. systems
Capacity:
10 MW Lippo Puri Tower #0905 St. Moritz
Jl. Puri Indah Raya, Blok U1
Province: CBD West Jakarta - Indonesia 11610
North Sumatra
Tel: +62 21 3049 7777
Fax: +62 21 3049 7778
info@terregra.com
Mr. Djani Sutedja; President Director
Contractor PT. Barata Energi
6 PLTM Aek PPA 2021 PT Aek Sibundong Energy Financing, turbines,

Sibundong generators, control
PT. Terregra Asia Energy Tbk. systems
Capacity:
10 MW Lippo Puri Tower #0905 St. Moritz
Jl. Puri Indah Raya, Blok U1
Province: CBD West Jakarta - Indonesia 11610
North Sumatra
Tel: +62 21 3049 7777
Fax: +62 21 3049 7778
Email: info@terregra.com
Mr. Djani Sutedja; President Director
7 PLTM Ma’dong PPA 2021 Nagata Dinamika Hidro Madong Financing, turbines,
generators, control
Capacity: TMT 1 Building, 2nd Floor, Jl. Cilandak systems
10 MW KKO No. 1, Jakarta 12560, Indonesia
Province: Ms. Shinta Idriyanti
South Sulawesi
shinta.idriyanti@sewatama.com
Tel: +62 21 29976737;
+62 811198018
Table B.4. Prospective Hydropower Projects (PLTM) in Indonesia (continued)
8 PLTM Aek PPA 2021 PT. Aek Sibundong Energy Financing, turbines,
Sibundong generators, control
Nusantara Infrastructure: Equity Tower, systems
Capacity: 38th Floor, Sudirman Central Business
8 MW District (SCBD), Jl. Jend. Sudirman Kav.
52-53, Lot 9, Jakarta12190, Indonesia
Province:
North Sumatra Mr. Hartawan Indriadi (Nusantara
Infrastructure)
Tel: +62 21 5150100;
+62 811926970
hartawan.indriadi@
nusantarainfrastructure.com
9 PLTM Tongar Preliminary 2020 PT. Optima Tirta Energi Financing, turbines,
work generators, control
Capacity: Sponsor: Inti Duta Energi systems
5.6 MW
Jl. Wijaya I No. 65, Kebayoran Baru,
Province: Jakarta 12170, Indonesia
West Sumatra
Mr. Riarno Haryowibowo (Business
Development of Sponsor)
Tel: +62 21 7229273;
+62 81381248811
optimatirtaenergy@gmail.com; intiduta@
hotmail.com; riarno@rivergen.net
10 PLTM Tunggang Construction 2021 PT. Mega Hidro Energi Financing, turbines,
generators, control
Capacity: Jl. Amil No. 7 Buncit Raya, Jakarta systems
10 MW 12740, Indonesia
Province: Mr. Djoko Susanto
Bengkulu
Tel: +62 21 7990218; +62 811891317
djokosusanto007@yahoo.com;
megahydroenergi@gmail.com
Table B.5. Prospective Geothermal Projects (PLTP)
1 PLTP Patuha Financing 2023 PT Geo Dipa Energi (Persero) Financing,

consulting,
Capacity: Aldevco Octagon 2nd Floor engineering,
60 MW Jl. Warung Jati Barat No. 75 electro-mechanical
Jakarta Selatan 12740 - Indonesia equipment
Province:
West Java info@geodipa.co.id
Tel: +62 21 7982925
Fax: +62 21 7982930
Mr. Riki Firmandha Ibrahim, President
Director
2 PLTP Dieng 2 Financing 2023 PT Geo Dipa Energi (Persero) Financing, turbines,
generators, control
Capacity: Aldevco Octagon 2nd Floor systems
60 MW Jl. Warung Jati Barat No. 75
Jakarta Selatan 12740 - Indonesia
Province: Central
Java info@geodipa.co.id
Tel: +62 21 7982925
Fax: +62 21 7982930
Director
3 PLTP Baturaden/ Construction 2023 PT. Sejahtera Alam Energy Financing, turbines,
Slamet 1 generators, control
Gedung Tambang Jl. Kapten Tendean No. systems
Capacity: 15 Mampang Jakarta 12790
220 MW
Tel: +62 217942715;
Province: Central Fax : +62 217942714
Java
info@saegeothermal.co.id
4 PLTP Dieng 3 Financing 2024 PT Geo Dipa Energi (Persero) Financing,

consulting,
Capacity: Aldevco Octagon 2nd Floor engineering,
t55 MW Jl. Warung Jati Barat No. 75 electro-mechanical
Jakarta Selatan 12740 - Indonesia equipment
Province: Central
Java info@geodipa.co.id
Tel: +62 21 7982925
Fax: +62 21 7982930
Director
Table B.5. Prospective Geothermal Projects (PLTP) (continued)
5 PLTP Baturaden/ Financing 2025 PT. Sejahtera Alam Energy Financing,

Slamet 2 consulting,
Gedung Tambang Jl. Kapten Tendean No. engineering,
Capacity: 15 Mampang Jakarta 12790 electro-mechanical
85 MW equipment
Tel : +62 217942715
Province: Central
Java Fax: +62 217942714
Email : info@saegeothermal.co.id
6 PLTP Baturaden/ Financing 2025 PT. Sejahtera Alam Energy Financing,

Slamet 3 consulting,
Gedung Tambang Jl. Kapten Tendean No. engineering,
Capacity: 15 Mampang Jakarta 12790 electro-mechanical
85 MW equipment
Tel +62 217942715;
Province: Central Fax : +62 217942714
Java
info@saegeothermal.co.id
7 PLTP Wilis/Ngebel Financing 2022 Bakrie Power Financing,

consulting,
Capacity: Menara Duta A / Lt.2, Jl. H. R. Rasuna engineering,
55 MW Said No.B 9, Kuningan, Setia Budi, electro-mechanical
Jakarta 12910 equipment
Province: East
Java Tel: (021) 5200861
8 PLTP Ijen 1 Exploration 2023 PT. Medco Power Indonesia Financing,

consulting,
Capacity: Indonesia engineering,
The Energy 50th Floor SCBD Lot 11A,
Province: East Jl. Jend. Sudirman Kav. 52-53, Jakarta equipment
Java 12190
Mr. Eka Satria, President Director
9 PLTP Ijen 2 Financing 2024 PT. Medco Power Indonesia Financing,

consulting,
Capacity: Indonesia engineering,
The Energy 50th Floor SCBD Lot 11A,
Province: East Jl. Jend. Sudirman Kav. 52-53, Jakarta equipment
Java 12190
Mr. Eka Satria, President Director
10 PLTP Muara Operational 2019 PT Supreme Energy Muara Laboh (PT Financing,
Laboh SEML) consulting,
engineering,
Capacity: Head Office: electro-mechanical
85 MW equipment
Menara Sentraya, 23rd Floor, Jl.
Province: West Iskandarsyah Raya No. 1A, Kebayoran
Sumatra Baru, Melawai, Jakarta 12190
Tel: (021) 27882222
Mr. Supramu Santosa; President Director
11 PLTP Muara Planning TBD PT Supreme Energy Muara Laboh (PT Financing,
Laboh II SEML) consulting,
engineering,
Capacity: Head Office: electro-mechanical
65 MW equipment
Menara Sentraya, 23rd Floor, Jl.
Province: West Iskandarsyah Raya No. 1A, Kebayoran
Sumatra Baru, Melawai, Jakarta 12190
Tel: (021) 27882222
Mr. Supramu Santosa; President Director
Table B.6. Prospective Bioenergy Projects: Biomass (PLTBm), Biogas (PLTBg), and Waste-to-Energy
(PLTSa)
1 PLTSa Manado Planning Mayor of Manado Financing,

consulting,
Capacity: Jl. Balaikota No. 01, Tikala Ares engineering,
Manado - Sulawesi Utara
Province: North equipment
Sulawesi Tel: (0431) 851103;
Fax: (0431) 851103
pemerintah@manadokota.go.id
2 PLTSa Makassar Planning KPPIP Financing,

consulting,
Capacity: Gedung Pos Ibukota, Blok A, 6th Fl engineering,
20 MW Jl. Lapangan Banteng Utara No. 1 electro-mechanical
Pasar Baru, Jakarta Pusat 10710 equipment
Province: South
Sulawesi Tel : +62 21 345 3171;
+62 21 345 3164
Fax : +62 21 345 3155
sekretariat@kppip.go.id
Mayor of Makassar Office
Jalan Ahmad Yani No. 2
Kel. Bulogading, Kec. Ujung Pandang
Kota Makassar, Provinsi Sulawesi Selatan
Tel: (0411) 317007
3 PLTBio Seram, Planning 2022 PT. PLN (Persero) Steam turbines,

scattered electro-mechanical,
Renewable Energy and New Energy control systems
Capacity: Division
6 MW
Province: Maluku Floor, Jakarta 12160
(Seram)
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
4 PLTBio Planning 2022 PT. PLN (Persero) Steam turbines,

Halmahera, electro-mechanical,
scattered Renewable Energy and New Energy control systems
Division
Capacity:
10 MW Jalan Trunojoyo Blok M-I No. 135, 6th
Province: North
Maluku Mr. Budi Moelyono (Senior Manager
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
5 PLTBio Sekadau, Planning 2021 PT. PLN (Persero) Steam turbines,

Scattered electro-mechanical,
Capacity: Division
10 MW
Province: West Floor, Jakarta 12160
Kalimantan
Tel: (021) 7261122
6 PLTBio Nangah Planning 2021 PT. PLN (Persero) Steam turbines,

pinoh, Scattered electro-mechanical,
Capacity: Division
10 MW
Kalimantan
Tel: (021) 7261122;
7 PLTBio Planning 2021 PT. PLN (Persero) Steam turbines,

Putussibau, electro-mechanical,
scattered Renewable Energy and New Energy control systems
Division
Capacity:
10 MW Jalan Trunojoyo Blok M-I No. 135, 6th
Province: West
Kalimantan Mr. Budi Moelyono (Senior Manager
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
Table B.6. Prospective Bioenergy Projects: Biomass (PLTBm), Biogas (PLTBg), and Waste-to-Energy
(PLTSa)
8 PLTBio Ketapang, Planning 2020 PT. PLN (Persero) Steam turbines,

Scattered electro-mechanical,
Capacity: Division
10 MW
Kalimantan
Tel: (021) 7261122;
Mobile: + 62 813 8290 9600
9 PLTSa Semarang Planning TBD Pemerintah Kota Semarang Financing,

consulting,
Capacity: Jl. Pemuda No. 148 engineering,
Semarang 50132
Province: Central equipment
Java Tel: +62 24 3513366 – 3515871
Fax: +62 24 3542522
pemkotsmg@semarangkota.go.id
10 PLTSa Bandung Planning TBD Mayor of Bandung Office Financing,

consulting,
Capacity: to be Jl. Merdeka, Babakan Ciamis, Sumur engineering,
determined Bandung, Bandung City, West Java 40117 electro-mechanical
Province: West Tel: +62 22 4224754 equipment
Java
Details on selected hydroelectric (Table B.7), bioenergy (Table B.8), wind (Table B.9), and solar PV (Table B.10)
projects follow.
Table B.7. Prospective Hydropower Projects
Iya Hydropower Plant
Project type Mini-hydropower plant
Installed capacity 2x1 MW (2 MW)
Project location Ilohuua Village, Bone District, Bone Bolango Regency, Gorontalo Province
PPA status PPA signed
Other agreements None
Tariff 787 IDR/kWh (currently being amended to increase the tariff to IDR 1020/kWh)
Financing Financing is in process
Financing sources Private company: Sumber Energi Lestari
Financing issues The project needs financing from the investor and lender
Business permits Permitting completed
Environmental permits Completed
Land acquisition issues Completed
Power purchase decisions Decisions will be made by PLN, Suluttenggo (North and Central Sulawesi and Gorontalo) Region
Power purchase contact General Manager of PLN’s Suluttenggo Region
Power purchase issues None
Feasibility study Completed
Interconnection study Completed
Feasibility issues The design flow amount is likely reasonable, but the run off and yields from other nearby projects (e.g.,
Taludaa 1 and 2) should be evaluated before final capacity decisions are made and equipment purchased.
The channel appears to go through very difficult terrain, with attendant problems of foundation
instability, slope instability, difficult operating hydraulics, and the intrusion of elements that could block
the canal.
Project developer Sri Rahayu
Sumber Energi Lestari
Gedung Kantor Taman A9, Unit A5
Jl. Mega Kuningan Ray, Lot 8/9, No.9
Jakarta 12950
Tel: + (62 21) 57904 2746
Email: ay_sudpark@yahoo.com
Developer track record Sumber Energi Lestari has experience in building, owning, and operating two mini-hydropower projects,
Taludaa 2 (2.3 MW) and Taludaa 1 (3 MW), which are near the Iya project site.
Other key stakeholders -
Notes To make the project feasible and minimize risk, a different design should be considered:
• Simplify the intake design based on information on the foundation
• Utilize low-pressure penstock until the approximate head pond location is finalized to provide
flexibility in alignment, improved security, and lowered construction risk. The high-pressure
penstock could be minimized depending on the location for surge relief. Surge relief could be
eliminated if the project uses a Pelton turbine.
• Consider a smaller and simpler power house
Information sources The developer and the USAID ICED project pipeline
Table B.7. Prospective Hydropower Projects (continued)

Kerpap Hydropower Plant
Installed capacity 2x1.1 MW (2.2 MW)
Project location Kuterayang Village, Linge District, Central Aceh Regency, Nanggroe Aceh Darussalam (NAD)
Province
PPA status PPA signed on June 6, 2012
Tariff 787 IDR/kWh
Financing sources Private company: Daun Biru Engineering (www.daunbiru.co.id)
Business permits The location permit and business license for electricity generation (IUPTL/IZIN Usaha Penyediaan
Tenaga Listrik) have been completed
Environmental permits The environmental permit and impact study (UKL/UPL/Usaha Pengelolaan Lingkungan – Usaha
Pemantauan Lingkungan) has been completed
Land acquisition issues None,completed
Power purchase decisions Decisions will be made by PLN, Aceh Region
Power purchase contact General Manager of PLN’s Aceh Region
Feasibility issues The final design should 1) incorporate the weir as a permanent structure for flushing rocks
from the reservoir, 2) allow for more space between the two outlets (flushing and intake gates),
3) increase the weir’s height and width for a lower depth flow over the weir during floods.
The channel should be widened to accommodate the flow at reasonable velocity.
The powerhouse should be relocated 100 m downstream from the original plan to minimize
flood risk and the tailrace should be shortened to capture additional head, although increasing
penstock length by 100 m.
Project developer Kamigayo Kerpap Enegi, owned by Daun Biru Engineering
Rudy Andiyana and Agus H. Nugroho
Jl. Raya Pekapuran No. 41
Sukamaju Baru, Tapos, Cimanggis
Depok City, West Java
Tel: +(62 21) 877 43652 (office)
Tel: +(62 81) 315 87161 (Mr. Andiyana)
Tel: +(62 81) 660 6276 (Mr. Nugroho)
rudy@daunbiru.com
agushanugroo@gmail.com
Developer track record Daun Biru’s main business is providing maintenance products and services for diesel-fired power
plants. It is developing mini-hydropower projects as a consultant and developer.
Notes Kerpap is a run-if-river type mini-hydropower project with a 500 m long water conveyance.
The design flow is 4.7 m3/second, with a net head of 57 meters. A power output of 2x1.1 MW
can be generated, for an annual energy production of 13 GWh.
The project site is strong and compact, with a 50 m drop over a relatively short distance.
It includes a diversion structure, intake, head pond that doubles as a sediment chamber,
penstock, power house, and tailrace.
The project has limited construction risks, as the facilities are compact and are not subject
to any known risk conditions. The site’s intake is very accessible from the main road. The
project appears to have a reasonable implementation period and minimal construction risk
compared to many small hydro projects.
Pareang Hydropower Plant

Project location Central Jampang Village, Cenral Jampang District, Sukabumi Regency, West Java Province
Tariff 866 IDR/kWh
Financing sources Private company: Aka Sinergi Group (www.akasinergi.co.id)
Power purchase decisions Decisions will be made by PLN, West Java Region
Power purchase contact General Manager of PLN’s West Java Region
Feasibility issues The design flow of 3.4m3/second should be rechecked using a longer period of direct flow
measurement at the site because the average flow is about 1.8m3/s for small catchment areas
of 27 km2.
The developer should consider a Pelton turbine option; it and the Francis turbine have the
same energy production (16 GWh/year), but the Pelton turbine’s pressurized pipe waterway
option could eliminate the surge tank and have a more flexible penstock route.
The use of water-level control should be considered to optimize the use of water flow that
usually changes fast when there is rain in a small catchment area.
Project developer Helin Mayangsari, Project Manager
Aka Sinergi Group
Jl. Latuharhary No.16-17
Menteng, Jakarta 10301
Tel: + (62 21) 316 6666
Email: helin@aksinergi.com
Developer track record Aka Sinergi’s main businesses are property, gold mining, industry, and power plants. It has several
other mini-hydro plants under development, including Taman Asri, Koro Kabalo, Cisomang, and
Cimandiri
Notes The strengths of the project are its high head (100 m), flow (about 3 m3/s), and short water
conveyance (1.2 km). Nevertheless, the head pond will be located near an occupied house
due to land limitations.
The project should be built as simply as possible and its pressurized pipe scheme should be
appropriate for Pareang.
The head pond should be eliminated and replaced with a simple surge tank (for the Francis
turbine type). The area needed for the surge tank is much smaller than the head pond, and
so could be located near the existing village street. If the project used a Pelton turbine, the
surge tank would not be necessary.
Table B.7. Prospective Hydropower Projects (continued)

Simbelin 1 Hydropower Plant
Project location Pardomuan Village, Siempat Nempu Hilir District, Dairi Regency, North Sumatra Province
Tariff 787 IDR/kWh
Financing sources Private company: Energi Mekar Lestari
Power purchase decisions Decisions will be made by PLN, North Sumatra Region
Power purchase contact General Manager of PLN’s North Sumatra Region
Interconnection study Not required
Feasibility issues Due to the massive amounts of rock excavation required and the relatively short distance from
the intake to the power house area (1 km), the developer should:
• Investigate cost savings by using a low-pressure pipe instead of a channel from the intake to
the power house
• Consider moving the power house upstream by about 50 m on the Bas Bas tributary. This
area has a somewhat gentler slope and may be more accessible, limiting excavation for the
power house
• Bring the power flow from the head pond across to a higher elevation, and bring the
penstocks out to the surface and install them down the slope.
Project developer Martha Magartta Sitohang
Energi Mekar Lestari
Duta Mas Fatmawati
Blok B 1/20, Jl. R.S. Fatmawati No. 39
Jakarta 12150
Tel: + (62 21) 726 4487
Email: sitohang_martha@yahoo.com
Developer track record Energi Mekar Lestari gained experience in hydro through its development, construction, and
operation of the 18 MW Pakkat Project in North Sumatra
Notes The site has the advantage of having up to 70 m of head in an under 1 km diversion,
although developing a feasible plant that takes advantage of the site will be a challenge.
Table B.8. Bioenergy Projects

Bandung Waste to Energy (PLTSa) Plant
Project type Waste to energy
Installed capacity To be determined
Project location City of Bandung, West Java Province
PPA status The City of Bandung has not begun the bidding process
Other agreements Tipping fee will be negotiated with the City of Bandung
Tariff USD 0.1335/kWh plus tipping fee (to be negotiated)
Financing Public private partnership
Financing sources Private investor
Financing issues Endorsement needed from local house of representatives on payment of tipping fee to the private
investor
Business permits Issued upon the local government’s selection of the project developer
Environmental permits Issued upon the local government’s selection of the project developer (before the PPA)
Land acquisition issues Land will be provided by the local government. An area at Gedebage was allocated to PT Bandung
Raya Indah Lestari
Power purchase decisions Direct appointment by PLN Pusat (federal level)
Power purchase contact Mr. Zulfikar Manggau, Head of EBT Division
PT PLN (Persero)
Jl. Trunojoyo Blok M-1, No. 135, 6th Floor
Jakarta 12160
Tel: +(62) 021 7261122
Power purchase issues Endorsement from local house of representatives for paying the tipping fee to the selected project
developer
Feasibility study Private investor normally prepares this study
Interconnection study No information. Private investor normally prepares this study
Feasibility issues Location, interconnection to the grid, technology selection, tipping fee
Project developer To be determined through the City of Bandung’s selection process
Project developer contact Mr. Oded Muhammad Danial, Mayor
Jl. Merdeka, Babakan Ciamis
Sumur Bandung, Bandung City, West Java 40117
Tel: (+62) 22 4224754
Developer track record PT Bandung Raya Indah Lestari was awarded a contract to build a waste-to-energy facility at
Gedebage; to date, construction has not begun
Other key stakeholders City of Bandung Environmental Office
PLN Wilayah (provincial level) Bandung
Indonesian Ministry of Environment and Forestry
Notes The project developer will be selected by the local government through a bidding process. PLN
Pusat will issue the PPA through a direct selection process.
Information source RUPTL
Table B.8. Bioenergy Projects (continued)

Bandung Waste to Energy (PLTSa) Plant
Project type IPP biomass power plant
Installed capacity 14 MVA gross capacity, 9.9 MW net capacity
Project location Tanjung Selamat Village, Percu Sei Tuan District, Deli Serdang Regency, North Sumatra Province
PPA status PPA signed on September 26, 2018
Tariff 1,049.75 IDR/kWh
Financing As of June 2019, developer is looking for financing
Financing sources Private equity and lender
Financing issues None
Business permits Permits issued
Environmental permits Permits issued
Land acquisition issues None
Power purchase decisions B2B and direct appointment by PLN
Power purchase contact Mr. Feby Joko Prihato, General Manager
PT PLN Wilayah North Sumatra
Jl. Jos Sudarso No. 284
Medan 20115, North Sumatra
Tel: +(62 61) 613 789
Feasibility study Available and accepted by PLN
Interconnection study Available and accepted by PLN
Feasibility issues None
Project developer contact Mr. Frans Tanuwijaya, Director
PT Cipta Multi Listrik Nasional
J. Cemara Boulevard, Blok A1, No. 36
Desa Sempali, Percut Sei Tuan
Deli Serdang, North Sumatra
Tel: + (62 21) 61 663 3601
Developer track record PT Bandung Raya Indah Lestari was awarded a contract to build a waste-to-energy facility at
Gedebage; to date, construction has not begun
Other key stakeholders City of Bandung Environmental Office
PLN Wilayah (provincial level) Bandung
Deli Serdang Biomass Power Plant

Installed capacity 14 MVA gross capacity, 9.9 MW net capacity
Project location Tanjung Selamat Village, Percu Sei Tuan District, Deli Serdang Regency, North Sumatra Province
PPA status PPA signed on September 26, 2018
Tariff 1,049.75 IDR/kWh
Land acquisition issues None
Power purchase contact Mr. Feby Joko Prihato, General Manager
PT PLN Wilayah North Sumatra
Jl. Jos Sudarso No. 284
Medan 20115, North Sumatra
Tel: +(62 61) 613 789
Project developer contact Mr. Frans Tanuwijaya, Director
PT Cipta Multi Listrik Nasional
J. Cemara Boulevard, Blok A1, No. 36
Desa Sempali, Percut Sei Tuan
Deli Serdang, North Sumatra
Tel: + (62 21) 61 663 3601
Developer track record -
Other key stakeholders Feedstock supplier: 50% of feedstock will come from a third party
Electricity off-taker: PT PLN Wilayah (provincial level) North Sumatra
Notes The proposed project, including 50% of the feedstock source (a furniture factory), is owned by
a large group of companies working in the palm oil industry, including managing plantations
and palm oil mills. Thus, the project will have an opportunity to secure feedstocks from its own
resources.
Half of the feedstock will be supplied by a third party or supplier, and it must be secured on a
long-term basis through a fuel supply agreement or from the bank/lender’s perspective, secured
for at least 7-10 years of the plant’s operation. In the former case, it will be necessary to map
the feedstock potential within the project area, including distance, accessibility, delivery cost,
competition, and price escalation. The developer should consider alternative options under a
worst-case scenario for feedstock supply (e.g., wood waste, rice husks, fibers, corncobs) within easy
distance of the plant.
Information source USAID ICED project pipeline

Makassar Waste to Energy (PLTSa) Plant
Installed capacity 20 MW
Project location City of Makassar, South Sulawesi Province
PPA status The City of Makassar is now preparing the PPA
Other agreements Tipping fee will be negotiated with the City of Makassar
Tariff USD 0.1335/kWh plus tipping fee (to be determined)
Financing issues Endorsement needed from local house of representatives on payment of tipping fees to the private
developer
Business permits Issued upon local government’s selection of the project developer
Environmental permits Issued upon local government’s selection of the project developer (before the PPA)
Land acquisition issues Land will be provided by the local government
PT PLN (Persero)
Jakarta 12160
Tel: +(62) 021 7261122
Power purchase issues Interconnection
Feasibility study One project developer has prepared a pre-feasibility study. Private investor normally prepares
the full feasibility study. South Korea is interested in supporting the preparation of pre-feasibility
studies.
Interconnection study Private investor normally prepares this study
Feasibility issues Project site location, interconnection to the grid, technology selection, tipping fee
Project developer To be determined through the City of Makassar’s selection process
Project developer contact Mr. Triharyo Soesilo
Project Director for Energy and Electricity, KPPIP
Gedung Pos Ibukota, Blok A, 6th Floor
Jl. Lapangan Banteng Utara No. 1
Pasar Baru, Jakarta Pusat 10710
Tel (62 21) 345 3171, Email: sekretariat@kppip.go.id
Mr. M. Iqbal Suhaeb, Acting Mayor
Jalan Ahmad Yani No. 2
Kel. Bulogading, Kec. Ujung, Pandang
Kota Makassar, Sulawesi Selatan
Tel: (0441) 317007
Developer track record To be determined through the City of Makassar’s selection process
Other key stakeholders City of Makassar Environmental Office
PLN Makassar
Information source RUPTL and market interviews, KPPIP
Manado Waste to Energy (PLTSa) Plant

Project location City of Manado, North Sulawesi, Province
PPA status The City of Manado is now preparing the PPA
Other agreements Tipping fee will be negotiated with the City of Manado
Financing issues Endorsement needed from local house of representatives on payment of tipping fees to the project
developer
PT PLN (Persero)
Jakarta 12160
Tel: +(62) 021 7261122
Feasibility study Private investor normally prepares the full feasibility study
Project developer To be determined through the City of Manado’s selection process
Project developer contact Mr. Viky Lumentut, Mayor
Jalan Balaikota No. 01, Tikala Ares
Manado, Sulawesi Utara
Tel: (0431) 851103
Developer track record To be determined through the City of Manado’s selection process
Other key stakeholders City of Manado Environmental Office
PLN Wilayah Manado

PLTBio Ketapang
Project type Biomass or biogas
Installed capacity 10 MW, combined
Project location Ketapang, West Kalimantan Province
PPA status Not yet signed
Other agreements Business-to-business feedstock agreement
Tariff Maximum 0.091 USD/kWh
Financing Subject to signing of PPA
Financing sources Private investor and local bank
Financing issues To be determined subject to PPA award
Business permits Subject to project location
Environmental permits To be issued by the selected project developer
Land acquisition issues Will be identified during the site evaluation process
Power purchase decisions PLN regional office
Power purchase contact Mr. Agung Murdifi
Regional Manager of PLN West Kalimantan
Jl. Adi Sucipto KM 7,3 Sungai Raya
Kabupaten Kubu Raya
Kota Pontianak, West Kalimantan
Tel: +62 (0561) 722037
Power purchase issues BOOT
Feasibility study To be completed when a project site is selected
Interconnection study To be completed when a project site is selected
Feasibility issues To be identified during the project evaluation process
Project developer To be selected by PLN from the list of prequalified developers
Project developer contact PLN West Kalimantan (see above)
Mr. Zulfikar Manggau, Head of EBT Division
PT PLN (Persero)
Jakarta 12160
Tel: +(62) 021 7261122
Developer track record To be determined during the developer evaluation process
Other key stakeholders PLN West Kalimantan
West Kalimantan Environmental Office
Notes The project developer must be on PLN’s list of selected project developers. The project will be a
build-own-operate-transfer (BOOT) scheme. PLN is required to determine a quota capacity based
on regional plans.
PLN Pusat
Semarang Waste to Energy (PLTSa) Plant

Project location City of Semarang, Central Java Province
PPA status The City of Semarang is now preparing bidding for the site
Other agreements Tipping fee will be negotiated with the local government
Financing issues Endorsement needed from local house of representatives on payment of tipping fees to the private
developer
PT PLN (Persero)
Jakarta 12160
Tel: +(62) 021 7261122
Feasibility study Private investor normally prepares the feasibility study
Project developer To be determined through the City of Semarang’s selection process
Project developer contact Mr. Triharyo Soesilo
Project Director for Energy and Electricity, KPPIP
Gedung Pos Ibukota, Blok A, 6th Floor
Jl. Lapangan Banteng Utara No. 1
Pasar Baru, Jakarta Pusat 10710
Tel (62 21) 345 3171
Mr. Hendrar Prihadi, Mayor
Pemerintah Kota Semarang
Jl. Pemuda No. 148
Semarang, 50132, Central Java
Tel: + (62 24) 351 3366
Developer track record To be determined through the City of Semarang’s selection process
Other key stakeholders City of Semarang Environmental Office
PLN Pusat, EBT Division
Information source RUPTL and USAID ICED project pipeline

Tanjung Seumantoh Biomass Power Plant
Installed capacity 9.8 MW
Project location Tanjung Seumantoh Palm Oil Mill, Aceh Tamiang, Aceh
PPA status PPA first signed on September 4, 2013
Latest (8th) amendment signed on April 2, 2019
Other agreements Fuel supply agreement and BOOT scheme with palm oil mill owner (feedstock supplier)
Tariff 975 IDR/kWh (under the 2012 feed-in tariff regulation)
Land acquisition issues Land provided by palm oil mill owner under a BOOT scheme
Power purchase contact Mr. Jefri Rosiadi, General Manaer
PT PLN Wilayah Aceh
Jl. Tgk. H.M. Daud Beureu-eh No. 72
Banda Aceh, Ache 23243
Tel: + (62) 651 22188
Project developer contact Ms. Juliati WIdjaya, Director
PT Primanusa Energi Lestari
Gedung Graha Irama Lt 11, B-
Jl. Rasuna Said Blok X-1, Kav 1&2
Jakarta Selatan 12950
Tel: + (62 21) 526 6888
Email: juliati@gistec-prima.com
Developer track record The developer is an IPP mini-hydro project developer that operates several hydro plants. It is now
developing other hydro, biomass, and biogas plants.
Other key stakeholders Feedstock supplier: PT Perkebunan Nusantara (the palm oil mill owner)
Electricity off-taker, PT PLN Wilayah (provincial level) Aceh
Notes Using fresh fruit bunches (EFB) as the feedstock carries risks, since EFB is difficult to handle. It
needs a pre-treatment system and a specific grade boiler in order to avoid prolonged periods of
downtime and/or technology failure. To mitigate the risk of technology and/or system failure, an
EPC contractor or vendor that is already familiar with the handling of EFB as the main fuel should
be selected. The contractor/vendor should have several years of experience and a good track
record of building specific EFB biomass-fired power plants.
There is some concern about the availability of sufficient feedstock supply.
The latest PPA amendment for this plant uses a delivery-or-pay scheme on the condition of a high
capacity factor (85%). The tariff is not in line with the latest regulatory base (Permen 50/2017),
which provides an opportunity to receive a better tariff and thus increased revenues. To mitigate
the risk on this delivery-or-pay scheme, the IPP should have the minimum power delivered set at a
lower capacity factor (say 65%) and if possible, negotiate with PLN using the tariff base in Permen
50/2017.
Ujung Batu Biogas Power Plant

Project type IPP biogas power plant
Project location RSI Palm Oil Mill, Sukadami Village, Ujung Batu District, Rokan Hulu Regency, Riau Province
PPA status PPA signed on January 17, 2019
Other agreements Fuel supply agreement and BOOT scheme with palm oil mill owner (feedstock supplier)
Tariff 1,147 IDR/kWh (0.1014 USD/kWh)
Financing As of May 2019, developer is looking for financing
Financing sources Private equity and lender (project developer to engage with IIF and SMI)
Land acquisition issues Land provided by palm oil mill owner under a BOOT scheme
Power purchase contact Mr. Irwansyah, General Manager
PT PLN Wilayah Riau dan Kepulauan
Jl. Musyawarah, Labuh Baru Barat, Payung Sekaki
Pekanbaru, Riau, Indonesia
Tel: +62 (761) 853 737/855 309/855 840
Project developer To be determined through the City of Semarang’s selection process
Project developer contact Mr. Anggit Saputra Dwiprama, Director
PT Pasadena Biofuls Mandiri
Jl. Jend. Sudirman Kav 75
Setiabudi, Jakarta Selatan 12910
Tel: +62 (21) 570 1637
Developer track record Earlier, developer was a biogas EPC contractor that built several biogas plants in Indonesia. Now
entering the IPP business
Other key stakeholders Palm oil mill effluent (POME, feedstock) supplier: PT Bumitama Energi Lestari (palm oil mill
owner) Electricity off-taker, PT PLN Wilayah (provincial level) Riau dan Kepulauan
Notes Most of the fresh fruit bunches (EFB), of which POME is the byproduct, are supplied by third-party
vendors under short-term supply contracts. The fuel supply agreement contains no long-term
supply security conditions; it merely states the mill owner’s commitment. However, it does contain
a penalty if the mill cannot deliver the minimum amount of POME. The mill owner shows strong
financial capacity.
Ideally, the mill owner would have its own plantation with growing EFB production, but this is not
the case here. One of the approaches to mitigate this risk is a feedstock study whose results show
there is an adequate FBB supply within the range of the mill, and that it can secure feedstock over
the long term.
Table B.9. Prospective Wind Power Projects

Wind Power Project of West Java (1st batch procurement)
Project type IPP wind power plant
Installed capacity Up to 200MW (exact capacity to be defined after grid study)
Project location Sukabumi and Garut, Southern Coast of West Java Province
PPA status PLN is preparing procurement, likely for early 2020
Tariff Tariff will be based on Ministry regulation No. 50/2017.
BPP 2018 in West Java is 6.91 cUSD/kWh.
Financing sources Private Investor, local bank and development bank
Financing issues To be determined. Subject to PPA award
Business permits Subject to project location.
Environmental permits To be issued to the selected project developer.
Land acquisition issues Will be identified during site evaluation process
Power purchase decisions PLN Renewable Energy Division
Power purchase contact Mr. Zulfikar Manggau, Head of PLN Renewable Energy Division
PLN Head Office
Renewable Energy Division
Jalan Trunojoyo Blok M-I, No.135, 6th floor,
Jakarta 12160
Phone: (+62 21) 7251234, 7261122
Fax: (+62 21) 7221330
Feasibility study To be done on specific project site.
Interconnection study To be done on specific project site.
Feasibility issues Will be identified during evaluation process.
Project developer To be selected from PLN prequalification .
Developer track record Will be identified during evaluation process of the developer.
Other key stakeholders PLN Regional West Java.
Notes Based on MEMR regulation 50/2017 and New PLN Business Plan (RUPTL) 2019-2028, all new PPAs
on renewable energy sources must use the direct selection process through a bidding tender
mechanism.
The new PLN RUPTL plans by 2025 to allocate 650 MW in West Java for VRE (Solar PV and Wind).
IPPs are proposing several wind power projects: Wind Power Sukabumi 10 MW, Pelabuhan Ratu 200
MW, and Garut 150 MW. Based on regulation of MEMR Regulation 50/2017, PLN must conduct a
procurement process to give the same opportunity to other IPPs who are interested.
Every IPP who wants to bid has to be listed on PLN’s List of Selected Providers (DPT) and has to
show or be willing to take wind data measurements for at least a one-year period at the selected
site.
The final decision on the project capacity will be based on the final result of the interconnection
study.
Information sources USAID-ICED project pipeline
Wind Power Project of Tanah Laut

Project type IPP wind power plant
Installed capacity 70MW
Project location Tanah Laut Regency, South Kalimantan Province
PPA status PLN is preparing procurement, likely for early 2020
Tariff Tariff will be based on MEMR Regulation 50/2017.
BPP 2018 in South Kalimantan is 11.8 cUSD/kWh.
The tariff cap would be 85% of the BPP = 10.03 cUSD/kWh.
PLN Head Office
Jakarta 12160
Phone: (+62 21) 7251234, 7261122
Fax: (+62 21) 7221330
Project developer To be selected from PLN prequalification.
Project developer contact Will be identified during evaluation process of the developer.
Developer track record PLN Regional South Kalimantan.
Other key stakeholders Palm oil mill effluent (POME, feedstock) supplier: PT Bumitama Energi Lestari (palm oil mill
owner) Electricity off-taker, PT PLN Wilayah (provincial level) Riau dan Kepulauan
Notes Based on MEMR Regulation 50/2017 and New PLN Business Plan (RUPTL) 2019-2028, all new
PPAs on renewable energy sources must use the direct selection process through a bidding tender
mechanism.
Tanah Laut Wind Power previously being proposed by PACE Energy (French based company).
However, in line with the regulation, PLN has to conduct procurement process to give the same
opportunity to other IPPs who are interested to bid at the same location.
Every IPP who wants to bid has to be listed on PLN’s List of Selected Providers (DPT) and has to
show or be willing to take wind data measurements for at least a one-year period at the selected
site.
Information source USAID-ICED project pipeline
Table B.10. Prospective Solar PV Power Projects

Solar PV Bali Power Project 2x25MWp
Project type IPP solar PV power plant
Installed capacity 25MWp in eastern Bali; 25MWp in western Bali
Project location Eastern Bali and western Bali Province
PPA status PLN is preparing procurement
BPP 2018 in Bali is 6.91 cUSD/kWh.
PLN Head Office
Jakarta 12160
Phone: (+62 21) 7251234, 7261122
Fax: (+62 21) 7221330
Project developer To be selected from PLN prequalification .
Other key stakeholders PLN Regional Bali.
Notes Based on MEMR Regulation 50/2017 and New PLN Business Plan (RUPTL) 2019-2028, all new
PPAs on renewable energy sources must use the direct selection process through a bidding tender
mechanism.
The new PLN RUPTL by 2020 allocates a total of 50 MWp for Solar PV development, and by 2025
another 50 MW for VRE. Solar PV Bali was previously proposed by IPPs Vena Energy and Aquo,
each for a capacity of 50 MWp.
Based on MEMR Regulation 50/2017, PLN must conduct a procurement to give the same
opportunity to other interested IPPs. Every IPP who wants to bid has to be list on PLN’s List of
Selected Providers (DPT) and has to show or be willing to take wind data measurements for at least
a one-year period at the selected site.
Information sources USAID-ICED project pipeline
Solar PV Floating Cirata 200MW

Project type IPP solar PV power plant
Installed capacity The RUPTL mentions 145 MWac or ~200 MWdc. Construction could be divided into stages, the first
of which being 50 MWp.
Project location Cirata Hydro Dam, Purwakarta, West Java Province
PPA status PJB – a subsidiary of PLN – is preparing the procurement
BPP 2018 in West Java is 6.91 cUSD/kWh.
PLN Head Office
Jakarta 12160
Phone: (+62 21) 7251234, 7261122;
Fax: (+62 21) 7221330
Project developer PT PJBI and MASDAR
Other key stakeholders PLN Regional West Java.
Notes Based on MEMR Regulation 50/2017 and New PLN Business Plan (RUPTL) 2019-2028, all new PPAs
on renewable energy sources must use the direct selection process through a bidding tender.
The new PLN RUPTL by 2025 allocates a total of 650 MW in West Java for VRE (Solar PV and
Wind), including Solar PV Floating Cirata 200 MWp that is targeted for COD in 2021.
IPPs are proposing many Solar PV projects in West Java, in total up to 1.270 MWp. These proposals
include Solar PV Bekasi 600 MW, Floating Cirata 145 MW, Bogor 1 MW, Cianjur 4 MW, Jatiluhur 100
MW, Saguliing 100 MW, Jatigede 100 MW, Indramayu 10 MW, Subang 150 MW, and Floating Saguling
60 MW.
Based on MEMR Regulation 50/2017, PLN must conduct a procurement to give the same
opportunity to other interested IPPs. Since the proposal is an MOU between PJB (PLN subsidiary)
and MASDAR (Middle East IPP/project investor), procurement will use the Right-to-Match process.
This means that MASDAR will have the right to accept or refuse the proposed tariff of the
procurement winner.
Information source USAID-ICED project pipeline
Appendix C. Major Government Policies and

Programs Affecting the Renewable Energy Market
Table of Contents
1. Electricity Law of 2009 187
2. National Energy Policy (KEN) 187
3. National Energy Plan (RUEN) 187
4. National Electricity Master Plan (RUKN) 187
5. Electricity Business Plan (RUPTL) and Renewable Energy IPPs 188
6. Indonesian Renewable Energy Targets and Policy 188
7. Recently Introduced Regulatory Concepts Affecting Renewable Energy Projects 190
8. Acceleration of Rural Electrification 194
9. Accelerated Construction of Waste-processing Electrical-energy Installations 196
10. Rooftop Solar PV 199
11. Biofuels for Gasoline/Diesel Substitution 200
12. Local Content. 201
13. Foreign direct investment/ownership 204
14. Land Use and Ownership 210
15. Environmental regulatory requirements 214
16. National/Subnational Government Procurement and Pre-Qualification 215
17. Financing challenges 217
18. Incentives for Power Sector Investment 219
ATTACHMENT Documents Required for PLN’s Prequalification (PQ) list 220
Major sets of laws, policies and plans that target

the electricity sector also have implications for the
renewable energy sector:
1. Electricity Law of 2009 3. National Energy Plan

The current regulatory framework on electricity (RUEN)
in Indonesia is provided under Law No. 30 of In March 2017, President Joko Widodo issued
2009 on Electricity Business and its implementing implementing regulation PR No. 22/2017 on the
regulations: RUEN. This central government policy contains a
• GR 14/2012: Government Regulation No. 14 of cross-sectoral strategy and implementation plan to
2012 (as amended by Government Regulation achieve the KEN14. The RUEN sets out the results
No. 23 of 2014) on Electricity Business Provision of energy demand-supply modelling until 2050, and
the policies and strategies that will be undertaken
• GR 42/2012: Government Regulation No. 42 of to achieve those targets. Under the RUEN, the
2012 on Cross-Border Sales and Purchases government seeks to re-emphasize the purpose of
• GR 62/2012: Government Regulation No. energy use as a driver of the national economy.
62/2012 on Electricity Support Business.
Related implementing regulations have been issued
4. National Electricity
by the Ministry of Energy and Mineral Resources Master Plan (RUKN)
(MEMR), the Ministry of Industry (MOI), the Ministry
Article 7 of the 2009 Electricity Law provides
of Finance (MOF), and Ministry of Environment and
that the RUKN be drawn up based on the KEN, be
Forestry (MEF), among others with responsibilities
stipulated by the government upon consultation
relating to the electricity sector.
with the House of Representatives, and involve
The supply and utilization of electricity in Indonesia regional governments. From the government’s
are based on electricity master plans. The 2009 perspective, the RUKN is the only legal document
Electricity Law stipulates that there will be a that can serve as a policy outline for the
national Master Plan and multiple regional Master development of the electricity sector.32 It contains,
Plans. The MEMR is responsible for developing the among others, national-level policies on the primary
National Electricity Master Plan (RUKN), which is energy mix, electrification, and carbon emission
based on the National Energy Plan. control. To substantiate such policies, RUKN also
contains 20-year projections of energy demand
2. National Energy Policy including the powerplant capacity needed to meet
demand and portion of additional capacity that
(KEN) can be undertaken by IPPs.33 The 2009 Electricity
In February 2014, Indonesia’s House of Law also provides that regional governments
Representatives adopted a revised KEN (KEN14), should prepare Regional Electricity Plans (RUKDs)
which was signed on 17 October 2014 as based on the RUKN. The RUKN 2019-2038 has
Government Regulation No. 79/2014 (GR 79/2014). been officially issued through MEMR Regulation
KEN14 introduces some important changes to 143/2019. The document highlighted two targets:
energy policy planning: it focuses on re-establishing 1) new and renewable energy should constitute
Indonesia’s energy independence by re-directing 23% of the electricity supply mix by 2025 and
energy resources from exports to the domestic 2) the electrification ratio should reach 100% of
market and aims to rebalance the energy mix all households by 2020. Electricity access for all
towards native sources of energy (i.e., geothermal, households reached 99.2% in 2020, falling short of
hydro, biomass, solar and wind). the 2020 target.34
31
Masyarakat Ketenagalistrikan Indonesia, Sumbangan Pemkiran Masyarakat Ketenagalistrikan Indonesia kepada Pemerintah Republik Indonesia (Buku Putih MKI 2018): Keberlanjutan Sektor
Ketenagalistrikan dalam Menunjang Pembangunan Nasional, (Jakarta: Masyarakat Ketenagalistrikan Indonesia, 2018), p. 72.
33
Ibid.
34
MEMR 2020 Achievements and 2021 Targets report
5. Electricity Business 6. Indonesian Renewable

Plan (RUPTL) and Energy Targets and
Renewable Energy Policy
IPPs
The RUPTL, in essence, stipulates a ten-year In 1990, Indonesia’s renewable energy supply
electricity development plan covering, among accounted for 3.4% of total energy supply. In 2017,
others, future expansion plans, demand forecasts, that number stood at 12.5%.36 The Indonesian
and PLN electricity projects. Based on Article 14 of government has set targets for renewable energy
GR 14/2012, electricity supply business activities for to account for 23% of the energy mix by 2025
the public interest must be implemented based on and 50% by 2050.27 These targets are fueled by
RUKD, RUKN and RUPTL.35 three factors. First, the country’s current energy
mix is heavily reliant on fossil fuels, which in
The procurement route for IPPs to build 2019 accounted for 66% of total energy supply.38
powerplants is also based on the RUPTL. As such, Second, Indonesia’s energy sector has the highest
the RUPTL is a very important document for all emissions intensity among all the country’s sectors,
investors in the Indonesian power sector. It is generating 755.13 g CO2/kWh.39 Third, promoting
reviewed annually. In early 2019, the MEMR issued the development of renewable energy is important
the 2019-2028 RUPTL by virtue of MEMR Decree to meet Indonesia’s energy needs and also to fulfill
No. 39K/20/MEM/2019 dated 20 February 2019. No the government’s commitments as a ratifying party
update to the RUPTL has been published up until 18 to the Paris Agreement through Law No. 16 of 2016
February 2021. on Ratification of Paris Agreement to the United
Nations Framework Convention on Climate Change
(Law 16/2016). This law commits Indonesia to
reducing its greenhouse gas emissions in 2030 by
29% under a business-as-usual scenario or by up to
41% with international assistance.40
The greenhouse gas (GHG) emission reductions
targets in the RUEN (Table C.1) are in line with
Indonesia’s Nationally Determined Contribution
under the Paris Agreement of a 29% reduction in
carbon emissions by 2030. These reductions can be
achieved through several measures: 1) diversifying
the country’s energy supply by increasing the
portion of renewable energy, 2) substituting gas for
oil, and 3) implementing an energy conservation
program that involves energy management, fuel
efficiency, equipment efficiency, and programs
to increase the adoption of efficient equipment
in the household, manufacturing, transportation,
commercial, and other sectors.41
35
Article 14(1) of GR 14/2012.
36
IESR 2018
37
Government Regulation No. 79 of 2014 on National Energy Policy (GR 79/2014) set the 2025 goal, and Presidential Regulation No. 22 of 2017 on General Plans of National Energy (PR
22/2017) sets the 2050 target.
38
Climate Transparency, Comparing G20 Climate Action and Responses to the COVID-19 Crisis Report (Indonesia Country Profile) , 2020, p. 6.
39
Ibid., p. 24.
40
Article 1 of Law 16/2016.
41
Appendix I of GR 22/2017.
Table C.1. Indonesia’s Greenhouse Gas Energy Targets, in metric tons of carbon dioxide equivalent
(MTCO2 Eq)
GHG Emissions 2015 2025 2030
Business as usual scenario 585.3 1,370.0 1,806.8
RUEN scenario 554.0 893.4 1,061.4
Emission reduction 31.3 476.6 745.4
Emission reduction (%) 5.3% 34.8% 41.3%
RUPTL 2019-2028 encourages reducing the nation’s wellhead, and 2) to accelerate meeting renewable
heavy reliance on fossil energy (coal). It mandates energy targets, allowing for additional electricity
PLN 1) to prioritize the construction of powerplants generation from renewable energy in line with the
sourced from renewable energy, mine-mouth steam needs of the local power system.42
powerplants, and gas engine powerplants at the
Table C.2. Comparison of RUPTL 2018-2027 and RUPTL 2019-2028
RUPTL 2018-2027 RUPTL 2019-2028
Energy Source Percentage Capacity (GWh) Percentage Capacity (GWh)
Coal 58.6 293,902 54.6 272,354
Renewable energy 20.4 102,532 23.2 116,158
Natural gas 20.6 103,476 22 110,150
Fuel 0.4 2,007 0.4 2,019
While coal’s share of the energy mix decreases from half the targeted increase in coal generation.44 In a
64.6% in 2024 to 54.4% in 2025, in absolute terms, way, renewable energy receives a certain degree of
it is slated to supply 225,418 GWh in 2025 and privilege, since RUPTL 2019-2028 allows additional
272,354 GWh in 2028.43 Neither RUPTL provides electricity generation outside the details of RUPTL
for a significant increase in the percentage of 2019-2028,45 but renewable energy generation is
renewable energy within the 2025-2028 interval; not optimized as no clear benchmark is provided.
for the same period, RUPTL 2019-2028 increases
renewable energy use by 21,548 GWh – less than
42
MEMR Decree No. 39/K/ 20/MEM/2019 on Ratification of the Electricity Supply Business Plan of PT Perusahaan Listrik Negara (Persero) 2019 to 2028 (RUPTL 2019-2028).
43
Ibid.
44
Ibid.
45
Fifth Dictum of RUPTL 2019-2028.
7. Recently Introduced
Regulatory Concepts
Affecting Renewable
Energy Projects
Some of the new regulations issued in 2018 have Regulation No. 43 of 2017, which was then revoked
signaled challenges to the renewable energy by MEMR Regulation 50/2017. MEMR Regulation
enabling environment. 50/2017 allows a tariff negotiation mechanism for
Tariffs. In January 2017, MEMR issued MEMR renewable projects located in areas where the local
Regulation No. 12 of 2017 (MEMR Reg 12) on the BPP is less than or equal to the national average
Utilization of Renewable Energy Sources for Electric BPP.
Supply. This regulation was amended in August MEMR later issued Decree No. 1772 K/20/MEM/2018
2017 through MEMR Regulation 50 of 2017, which dated 29 March 2018 (2017 BPP Decree), which
recognizes various types of renewable energy set the national and local BPP of PLN for 2017.
sources, including46 solar PV, wind, biomass, biogas, Based on the 2017 BPP Decree, the 2017 national
waste-to-energy, hydro, marine energy, geothermal, BPP of PLN is set at IDR. 1,025/kWh or USD .0766/
and liquid biofuel. kWh, which is an increase of IDR 42/kWh (about
In early 2017, after around three years of using 4.3%) from the previous year’s BPP of IDR 983/
the feed-in-tariff mechanism for renewable energy kWh or USD 0.0739/kWh. The 2017 BPP Decree
projects (which included an Indonesia-wide tariff will be used as the reference point for determining
cap, a geographical-based tariff system, or fixed the electricity tariff for several types of power
tariffs which varied depending on the location of projects awarded between 1 April 2018 and 31 March
the plant and the voltage or capacity of the project), 2019. The most updated BPP determination was
the Indonesian government, through MEMR Reg 12, formalized through MEMR Decree No. 55/K/20/
decided to set PLN’s electricity generation cost – MEM/2018 dated 29 March 2019 (2018 BPP Decree).
Biaya Pokok Penyediaan Pembangkitan, or BPP – as The 2018 BPP Decree was stated to be valid from 1
the basis for the renewable electricity tariff. April 2019 to 31 March 2020.As of 18 February 2021,
no new MEMR Decree on BPP has been issued, and
The government had previously applied the BPP hence the 2018 BPP Decree still prevails.
concept to determine the tariff for independent
power producers (IPPs) numerous times. For In February 2020, the second revision to MEMR
example, the small-scale renewable (1-10 MW) and Reg. 50, MEMR Regulation 4 of 2020 was issued.
excess power tariffs issued in 2006 were based on a The five main points of the revision include
percentage of BPP. And in 2008, MEMR introduced purchasing process, partnership scheme, regulation
a geothermal pricing regime that set the ceiling for reservoir- or irrigation-based hydropower plants
tariffs for geothermal projects depending on the constructed by the Ministry of Public Works, the
applicable BPP in the location of the project. assignment for waste energy power plants, and
the assignment for electricity purchase to PLN for
One of the problems with a BPP-based tariff is renewable energy power plants financed by grants.
finding the right price to attract investors. A price
that is too low will not attract investors and one
that is too high will hinder PLN’s plan to reduce
its overall electricity generation cost. Industry had
considered the renewable tariffs based on MEMR
Reg 12 too low to invest in renewables (particularly
in areas where the local BPP is heavily affected
by the low price of coal-fired powerplants, such
as in Java and South Sumatra). Thus, within the
same year, MEMR Reg 12 was amended by MEMR
46
Article 3(2) of MEMR 50/2017.
Continuing MEMR Reg. 50, MEMR Regulation 4 Electricity Purchases: Direct Selection. Under
of 2020 still stipulates that the tariff for solar PV, MEMR Regulation 4 of 2020, electricity purchases
wind, biomass, biogas, and ocean energy projects from renewable sources may be conducted
developed in regions where the local BPP is lower through direct selection. Direct appointment may
than the national BPP will be determined through be conducted under specific circumstances, as
business-to-business negotiation. But if the local described below.47
BPP is higher than the national BPP, the maximum
a. Direct selection, is the method of competitively
renewable energy tariff will be set at 85% of the
selecting an electricity provider by comparing
local BPP. The 2017 BPP Decree further provides
at least 2 offers/bids.48 Under MEMR Regulation
that for locations where no electrification has been
4 of 2020, the revised appointment processes
provided by PLN and no BPP stipulation has been
for new and renewable energy power projects
determined in the Decree, the applicable BPP for
are (i) direct selection; or (ii) direct selection
such locations will be set at the highest BPP, which
with a capacity quota. Direct selection with a
is IDR 2,677/kWh or USD 0.20/kWh.
capacity quota may only be applied to power
The slight increases in the national and local BPPs projects with high-level technology, high
in most regions of Indonesia under the 2018 BPP variability in efficiency, and high dependency on
Decree should provide some opportunities to IPP radiation level or local weather (intermittent).
developers to negotiate higher tariffs for projects The direct selection process includes processes
in certain regions. Still, it is doubtful whether BPP for qualification, proposal submission and
will be an effective policy to reduce PLN’s overall evaluation, and signing of PPA to be completed
electricity production costs and promote renewable within, at most, 180 (one hundred and eighty)
developments in Indonesia. calendar days.
Further, a power purchase agreement (PPA) price is b. Direct appointment is the method of selecting
fixed for a long-term period while the BPP price is an electricity power provider by directly
adjusted annually. The fact that the BPP increased appointing 1 provider.49 Direct appointment may
in 2018 does not necessarily mean that it will be applied to instances where:
continue to increase next year. Investors must ask
themselves whether it would be proper to make a i. the local electricity system is in crisis or
long-term decision (e.g., 20 years PPA term) based emergency mode for electricity provision;
on short-term data (i.e. 12-month data for BPP ii. purchase of excess electricity, including
calculation) purchase of electricity through
cooperation with service territory license
holders for electricity provision;
iii. increasing the capacity of a power
generation center that is being operated
at the same location; or
iv. purchase of electricity from a power
generator that uses renewable energy
when there is 1 (one) potential electricity
provider.
47
Article 4(1) of MEMR Regulation 4 of 2012.
48
Elucidation of Article 25(3) of GR 14/2012.
49
Elucidation of Article 25(4) of GR 14/2012.
This direct selection process is implemented audited financial statements for the last three years
through a pre-qualification (PQ) process in which (not audited financial report of the parent company
interested companies must first be qualified by or its affiliates) and a financial credit rating report
PLN and pass certain criteria specified on the PQ from D&B, S&P, Moody’s or Fitch (no other than
Document. Developers that are not on PLN’s List the mentioned credit rating issuers and not the
of Selected Providers (DPT) may not participate in parent company’s rating), and 3) have experience in
the direct selection. The most recent PQ invitations implementing at least one IPP contract, and/or EPC
issued by PLN in December 2020 were for solar PV contract, and/or O&M contract for a power project
and bioenergy projects. completed within the past 10 years and for which
the plant has at least one year of operation with a
Based on the latest PQ announcement50, PLN satisfactory record. The applicants are to submit all
requires applicants to: 1) be Indonesian companies PQ Questionnaire documents through PLN’s e-Proc
or companies from countries with a diplomatic website.
relation with the Republic of Indonesia, 2) submit
Table C.3. Procurement of Renewable Energy IPPs under Current Regulation
Renewable Energy Type Tariff Stipulation Tariff Stipulation

Procurement Method
Local BPP > National BPP Local BPP < National BPP
Solar Direct selection, or direct 85% of regional BPP The tariff will be mutually agreed
appointment under
Wind specific circumstances
laid out in MEMR
Biomass Regulation 4 of 2020
Biogas
Marine Energy
Hydro Regional BPP for Sumatra, Java, and Bali or

other local systems the tariff will
Waste-to-Energy be mutually agreed
Geothermal
Biofuel Mutually agreed tariff Mutually agreed tariff
50
PT PLN (Persero) Invitation for pre-approved list (“DPT”) of independent power producers (“IPP”) solar PV power plants and bioenergy power plants, 2020.
The first DPT for Various Renewable Energy IPPs Upcoming Presidential Regulation on Renewable
was issued in November 2018. It listed 166 qualified Energy Tariff.
companies. In March 2019, the DPT for Hydro IPPs
The long-awaited Presidential Regulation on
was issued.
Renewable Energy Tariff has seen delays since its
The next step in direct selection is the actual tender targeted publication date in 2020. As the draft
process, but how it will be implemented is unsure. For regulation is still undergoing its approval process
example, hydropower projects are very site-specific. among all the related ministries and government
Even if developers are on the Hydro DPT list, only institutions, the market has been speculating its
the developer owns the relevant permits for the land exact contents for the past year. On a virtual event
rights or water use rights at a location could actually held by MEMR to present the 2020 Achievements
implement the project. and 2021 Targets for New, Renewable Energy
and Energy Conservation (EBTKE) Subsector, the
BOOT. While PLN has traditionally awarded coal IPP
current Director General for EBTKE announced
projects on a build-own-operate-transfer (BOOT)
some points that will be regulated by the
basis, other projects such as geothermal and hydro
Presidential Regulation, including:
have been awarded on a build-own-operate (BOO)
basis. After the issuance of MEMR Regulation a. Feed-in-Tariff staging, 2 steps without
50/2017, all renewable energy projects must be escalation;
based on a BOOT scheme (except for municipal
b. Harga Patokan Tertinggi (HPT)/Ceiling price
waste, which is not stipulated in regulation). The
staging, 2 steps without escalation;
BOOT scheme was then revoked for all renewable
energy power plants trough MEMR Regulation 4 of c. Mutually agreed tariff;
2020. d. Feed-in-Tariff price without location factor for
MEMR Regulation 48 of 2017 on the Supervision hydro, solar, geothermal power plants that were
of Business Activities in the Energy and Mineral wholly financed through central government
Resources Sector (MEMR 48/2017) introduced budget/grant;
restrictions on changes in shareholding and board e. HPT without location factor for hydro, solar,
members of Indonesian IPPs. Under Article 11 of geothermal, and wind power plants that were
MEMR 48/2017, a holder of an electricity supply partially financed through central government
business license (IUPTL) who sells electricity to PLN budget/grant and biomass, biogas and waste-to-
may not transfer its shares until the powerplant energy power plants that were wholly financed
reaches its commercial operation date (COD). through central government budget/grant;
This shares-transfer restriction is an important f. HPT requires approval from the Minister of
consideration for investors in structuring their Energy and Mineral Resources;
investment. Due to this restriction, shares that the
project company pledged to the lender(s) against its g. Provisions for power purchasing price will be
senior debt may not be enforceable collateral during evaluated for up to 3 (three) years; and
the construction period. Under such circumstances, h. In the case that the evaluation causes a
investors should consider layering their ownership change in price, details regarding the change
structure (i.e., having another SPV to hold investor’s in price will be regulated through a Ministerial
ownership in the project company). This way, lenders Regulation.
can have more flexibility to enforce the shared
pledge of the SPV (instead of the direct shares in the There have also been talks of anticipation for
project company). auctions to be addressed through the regulation.
8. Acceleration of Rural
Electrification
Upcoming Renewable Energy Law. Based on MEMR Regulation No. 38 of 2016 on the
Acceleration of Rural Electrification in Remote,
On the legislative side, the House of
Border and Inhabited Small Islands through
Representatives is also gearing for the issuance
Small Scale Electricity Supply Businesses (MEMR
of Renewable Energy Law at the end of 2021.
38/2016), the Indonesian government provides
The draft Law has been designed to be the legal
opportunities for investors in electricity generation
framework for renewable energy policy issuance,
and small-scale electricity infrastructure (up to 50
management, provision, and usage of new and
MW) in these areas.
renewable energy. The industry is anticipating
friendlier clauses from the law and we understand Remote island electrification is open for nuclear,
that the draft law is being reviewed and updated coal methane gas, liquefied coal, geothermal, wind,
for few critical issues. The first one is the inclusion bioenergy, solar, hydro, and marine energy. Rural
of nuclear power development in the draft, a result electrification can take place under two schemes
of nuclear power lobbying within the process of based on how the tariff is determined:53
the drafting of the law. However, no justifications • With subsidy. If subsidy funds are utilized, the
have been included in the draft law regarding the tariff follows the PLN average tariff for 450 VA
importance of nuclear power in Indonesia. Analysts household customers. A business entity54 that
have also been discussing how the draft law is not has been assigned by the local government
addressing the actual issues that are hindering to develop renewable energy power plant in a
the renewable energy sector. Stakeholders have remote or rural area may request subsidy funds
also been highlighting the importance of regional from the government. To do so, the business
governments in renewable energy management, entity must annually propose its electricity
but no clear allocation of responsibility between the generation cost to the MEMR Directorate
central government and the regional government General of Electricity (DGE) by the 3rd month of
have been made in the draft law. A lack of data on the year, attaching documentation for: (a) fuel
renewable energy also remains unaddressed by the used and fuel plans, (b) operating expenditures,
draft law, despite experts highlighting the challenge (c) losses, (d) electricity generation costs, and
that the absence of a comprehensive, accessible (e) expansion plans. After receiving the request,
inventory places on the development of various the DGE calculates the amount of subsidy to
renewable energy-related activities.51 propose to the House of Representatives for
The draft law is expected to include matters of validation.
feed-in-tariffs, mandate for Renewable Portfolio
Standard (RPS) for fossil-based power generators,
fiscal and non-fiscal incentives, and a renewable
energy fund, among others.52
51
Indonesia Center for Environmental Law and Yayasan Indonesia Cerah, ‘Dua isu krusial dalam rancangan undang-undang energi baru terbarukan’ https://icel.or.id/wp-content/uploads/Poli-
cy-Brief-ICEL-Cerah-Analisis-RUU-Energi-Baru-Terbarukan1_opt.pdf
52
53
Articles 19-21 of MEMR 38/2016.
54
According to Article 1(2) of MEMR 38/2016, a Business Entity is defined as a state-owned enterprise, private entity or cooperation in form of an Indonesian legal entity that is established to
operate in the electricity generation sector.
Calculation of the subsidy for a rural electricity The procedures to be selected as the business
tariff: entity for this rural electrification acceleration
program are:
𝑺=−(𝑻𝑻𝑳−𝑩𝑷𝑷(𝟏+𝑴)) 𝒙 𝑽
1. the local governor suggests a service territory
after coordinating with PLN through DGE;
Where:
S = Electricity subsidy 2. the DGE evaluates the applicant’s required
TTL = Tariff on household 450 VA electric documents, which are:
power issued by PLN (Rp./ KWh) a. Service territory boundaries, area and
BPP = Cost of generation for low-voltage location map equipped with coordinates for a
electricity (Rp./kWh) minimum of 1 (one) sub-district or equivalent;
M = Margin (%) determined by the Director b. analysis of the potential for new energy
General of EBTKE based on the condition of the sources and local renewable energy sources;
service territory c. analysis of the needs and plans of the
V = Volume of electricity used per connection electricity supply business, as well as the
per month. types of powerplants in the proposed service
• Without Subsidy. Electricity tariffs in non- territory;
subsidized schemes are determined by 1) MEMR d. analysis of the number of households to be
or the relevant governor based on its authority, electrified, the professional background of the
or 2) using PLN’s electricity tariff rates if the local community, and the average monthly
local government is unable to determine the income;
tariff.
e. analysis of the ability and willingness of the
Although the issuance of this regulation is expected local community to pay; and
to increase investment in rural electricity, this
regulation is difficult to implement considering that f. estimated average price of materials, services
(i) for those who use subsidies, a tender process is and transportation.
needed for the determination of services territories, 3. The DGE on behalf of MEMR then determines
which is not required in the first place under MEMR the service territory;
Regulation No. 28 of 2012 on the Procedures to
Apply for Service Territory for Electricity Provision 4. governor offers the service territory to legal
for Public Interest as amended by MEMR Regulation entities by way of tender;
No. 7 of 2016 (MEMR 28/2012); (ii) MOF regulations 5. DGE selects the business entity for electricity
are needed to regulate subsidies and until now generation based on the governor’s
they have not yet been issued; and (iii) by using the recommendation, technical and financial
transaction structure in this MEMR regulation, there capability, BPP and electrification target;
is no long-term off-taker since the electricity will
not be sold to PLN. Thus, it is difficult to develop 6. the local governor issues an IUPTL; and
projects using this project financing scheme. 7. DGE assigns the legal entity for the supply of
electricity.
9. Accelerated Construction
of Waste- processing
Electrical-energy
Installations
Obligations of the business entity: Presidential Regulation No. 35/2018 on Accelerated
• to prioritize and fulfill the local content Construction of Waste-processing Electrical-
requirements; energy Installations Based on Environmentally
Friendly Technologies (PR 35/2018) serves
• to prepare a business plan in accordance with as a comprehensive legal framework for the
the applicable laws; development of WtE projects in Indonesia, replacing
• to strive to achieve a minimum 95% Presidential Regulation No. 18/2016 (PR 18/2016).
electrification ratio within 5 years following the In 2018, the Supreme Court ruled that PR 18/2016
assignment from MEMR; contradicted Environmental Law as it allowed
• to develop the power infrastructure within 1 developers to start the construction of WtE facilities
year as of the assignment; and before the environmental license & building
construction permit (IMB) had been obtained. PR
• to supply power and its distribution network and 35/2018 rectifies this contradiction and provides
• to report its business activities every 6 months other key features as follows:
to the DGE. Project locations: PR 35/2018 expanded a wider
Key barriers to private sector participation in location coverage for the development of WtE
Indonesia’s rural electrification:55 projects in Indonesia from previously 7 to 12
cities, which include: 1) Special Region of Jakarta
• investment in rural electrification is Province; 2) Tangerang City; 3) South Tangerang
economically unattractive because the remote City; 4) Bekasi City; 5) Bandung City; 6) Semarang
islands are perceived to have low economic City; 7) Surakarta City; 8) Surabaya City; 9)
potential, given that the Indonesian economy is Makassar City; 10) Denpasar City; 11) Palembang
highly concentrated in Java island; City; and 12) Manado City.
• the amount of time and financial investment Single feed-in tariff: The second revision to MEMR
required for compliance may be considered 50/2017, MEMR 4/2020 set tariff standards for
too high for small- to medium-scale private renewable projects (including WtE); the tariff for
energy investors, given that renewable energy WtE projects are based on PLN’s generation cost
development is mostly implemented regionally; (BPP) which varies depending on the location of the
• there is limited data compiled by the relevant powerplant. The national BPP is set at USD 0.0786/
authorities that clearly tracks the rural kWh, with local BPPs as follows:
population that is electrified, so it is hard for • USD 0.1939/kWh for Denpasar
investors to identify market potential for rural
electrification, to establish where to invest, and • USD 0.0691/kWh for Special Region of Jakarta
to determine requisite returns and how much Province and other cities in West Java included
financial resources will be required. in PR 35/2018
• USD 0.0694/kWh for Surabaya
• USD 0.0745/kWh for Palembang
• USD 0.0825 /kWh for Makassar
• USD 0.1346/kWh for Manado
• USD 0.0817/kWh for Thousand Islands
55
John Kimani Kirari, et al, UNDP, Supporting Indonesia’s Renewable Energy Development in Remote and Rural Areas through Innovative Funding, July 2018, p. 4-5.
The tariff under MEMR 4/2020, as with MEMR to MEMR 4/2020, PR 35/2018 sets out a definitive
50/2017, excludes transmission cost, which should single feed-in tariff for all WtE projects, regardless
be determined by business-to-business negotiation of the location of the project, as follows:
between PLN & the relevant developer. In contrast
Table C.4 Power Purchase Tariff for Waste-to-Energy Facilities
Size of WTE Plant Tariff
For projects with capacity of ≤20 MW USD 0.1335/kWh
For projects with capacity of >20 MW Tariff = 0.1454 – (0.00076 x capacity) USD/kWh
The PR 35/2018 tariff includes transmission cost Under PR 35/2018, procurement may be conducted
to PLN’s transmission lines, without negotiation, by way of:
without escalation. It should be noted that this
• assignment of Regional State-Owned Companies
tariff is not applicable for WtE plants developed
(Badan Usaha Milik Daerah, BUMD) by the local
by a state-owned enterprise (BUMN). Bearing in
governor/mayor; or
mind that PR 35/2018 is a higher-ranked regulation
under Law No. 12/2011 on Formulation of Laws and • conducting a tender among business entities.
Regulation, the tariff under PR 35/2018 shall be If no BUMD is interested in/able to implement the
the one applicable for WtE projects in the 12 cities project, MEMR may assign it to a BUMN, but only
cited therein. Tariff on projects located outside the after the local governor/mayor has fulfilled the
12 cities should remain in accordance with MEMR following actions:
50/2017.
• conducted a pre-feasibility study,
Procurement Process: What truly differs for WtE
projects under PR 35/2018 from other renewable • submitted a commitment on the allocation
energy projects lies in how PLN is permitted to of budget for waste transportation and
directly procure power generated from the projects, management fee in the Regional Budget Plan
without a limited selection process (Daftar Penyedia (APBD), and
Terseleksi, DPT) as required for other renewable • acquired land for the project.
power projects.
Figure C.1. – Procurement Process for Waste-to-energy Projects
Assignment to BUMD PPA to be signed within

35 days after PLN
Success receives the assignment
Governor/ PPP Rules
Based on letter from MEMR.
Mayor
PR 38/2015
Tender
Government
Procurement Rules Assignment to BUMN
Fail
Based om
PR 16/2018
Under PR 35/2018, BUMD may cooperate with other a cooperation agreement with a BUMD that has
business entities and/or regional government in de- the potential to receive WtE projects from the local
veloping the WtE projects. Given the above, to avoid government. The scheme may be demonstrated as
tender or competition with other business entities follows:
for a WtE project, a business entity may first secure
Figure C.2. – Business Model for Waste-to-Energy Projects
Other Regional
Govt.
Waste
Management Regional
Cooperation Government/
Agreement MEMR***
Assignment/Tender
BUMD/ Business Business Entity* Investor

Entity BUMN***
Selection/JV
Agrements
PPA
Special Purpose Company PLN
(“SPC”)**
Cooperation Agreement:
- Business Entity
will manage the waste Cooperation Agreement
- Regional Govt. will
supply waste
Other Regional Govt.
10. Rooftop Solar PV

In November 2018, the Indonesian Government MEMR 1/2017 does not distinguish capacity charge
issued a long-awaited regulation governing a imposed for an operation of a captive solar PV
rooftop solar photovoltaic (PV) system installation powerplant system from other conventional
and operation, MEMR Regulation 49/2018, which powerplants. Based on MEMR 1/2017, the capacity
aims to incentivize investment in rooftop solar charge is determined based on the formula below:
energy but falls short. The regulation was then
revised twice within one year, resulting in MEMR capacity charge=total Net Power Capacity of
Regulation 16/2019. plant (MW)×40 hours ×electricity rate
MEMR Regulation 49/2018 introduced several new The imposition of a capacity charge was deemed a
concepts for installation and operation of a rooftop disincentive for installation and operation of solar
solar PV system, among other things: (i) exemption PV systems compared to conventional powerplants
from capacity and emergency energy charges for a (e.g., gas or coal). After all, a PV system’s operation
household rooftop solar PV system, (ii) 65% credit depends upon the sun’s radiation, which is normally
of exported energy (the previous regime offered only available for several hours a day (compared to
1:1 net metering), and (iii) clarification on the need conventional powerplants that can operate longer
for PLN’s verification and approval to install of a in a day).
rooftop PV system. Under MEMR Regulation 49/2018, residential PLN
Under the previous regime (MEMR regulation PV customers are now exempted from payment of
1/2017), the electricity received from PLN’s capacity and emergency energy charges and are
customers will offset the electricity that PLN only obliged to pay for a connection charge and a
transmits to said customers; this net metering normal energy charge for the parallel operation.
adopts a 1:1 offset. MEMR Regulation 49/2018, The exemption from capacity and emergency
however, only credits 65% of electricity received energy charges does not apply to on-grid industrial
against all electricity transmitted.56 Before the customers. However, as MEMR Regulation 49/2018
issuance of MEMR Regulation 49/2018, the cancels MEMR Regulation 1/2017 for PLN PV
operation and sale of rooftop solar energy was customers, it is unclear how to now calculate this
regulated under the 2013 PLN Regulation on capacity charge for industrial customers. MEMR
Photovoltaic Power System Utilization by PLN’s is of the view that regardless of the provisions
Customers (2013 PLN Regulation) and the 2015 of MEMR Regulation 49/2018, the capacity
PLN Regulation on Technical Requirements of charge imposed on industrial customers will still
Photovoltaic Power Systems for Low Voltage be calculated by the formula set out in MEMR
Networks (2015 PLN Regulation). Regulation 1/2017.
In practice, the implementation of these PLN
Regulations was affected by MEMR Regulation No.
1 of 2017 on Parallel Operation of Power Plants
with Power Grids of PLN (MEMR Regulation 1/2017)
which states that PLN’s customers who operate
their own powerplants to satisfy their electricity
needs shall be subject to a 1) connection charge,
2) capacity charge, and 3) energy charge, which
includes normal and emergency back-up (no PV)
energy charges.
56
Article 6 paragraph (1) of MEMR Reg 49/2018.
11. Biofuels for Gasoline/

Diesel Substitution
IThe B20 Policy is a mandatory government • file periodic reports with the MEMR,
program to require the mixed use of diesel fuel
containing 20% of biodiesel and 80% petroleum • meet biodiesel quality/specification standards
diesel. The B20 Policy was sped up after Indonesia’s in accordance with the prevailing laws and
petroleum imports increased and the Rupiah regulations, and
weakened. Global crude palm oil (CPO) demand • be verified by the MEMR, who may be assisted
declined due to environmental and social concerns, by a surveyor appointed by the fund manager.
and in early 2019 the EU banned Indonesian
MEMR Reg 41/2018 as amended by MEMR Reg
biodiesel, causing CPO prices to plummet. The
45/2018 requires any oil-fuels business entity
global increase in crude oil prices also pushed
(Badan Usaha BBM) to mix biodiesel with diesel
the government to replace imported diesel with
fuel.58 The obligation applies to business entities
biodiesel to reduce the trade deficit. To implement
that have refineries and produce diesel fuel and
the B20 Policy, the Government has issued MEMR
business entities which import diesel fuel.59
Regulation Number 41 of 2018 regarding Provision
and Use of Biodiesel in relation to Financing by The distribution of biodiesel will be carried out by
the Palm Oil Plantation Fund Management Agency biodiesel business entities that hold a license for
(MEMR Reg 41/2018), as amended by MEMR the trading of biodiesel.60 Biodiesel business entities
Regulation Number 45 of 2018, and Presidential shall submit an application to Director General of
Regulation Number 61 of 2015 regarding Collection EBTKE in order to be appointed by the Director
and Use of Palm Oil Plantation Funds, as amended General of EBTKE to participate in the procurement
by Presidential Regulation Number 66 of 2018 of biodiesel.
(Presidential Regulation 66/2018).
Upon appointment by the Director General of
Presidential Regulation 66/2018 amends some EBTKE, the biodiesel business entity shall cooperate
provisions in Presidential Regulation 61/2015 with with a Badan Usaha BBM to propose to MEMR to
material changes related to the use of the Palm Oil participate in the procurement of biodiesel. The
Plantation Fund (the Fund)57. Under PR 66/2018: Badan Usaha BBM will submit the proposal from the
entity to MEMR for evaluation. Afterwards, MEMR
• The use of the Fund for the procurement
will determine the appointment of the biodiesel
and utilization of biodiesel is intended to
business entity as a distributor through the Badan
compensate for the difference between the
Usaha BBM.61 A biodiesel business entity that
diesel fuel market index price the and biodiesel
has been appointed by MEMR shall distribute the
market index price.
biodiesel to Badan Usaha BBM in accordance with62:
• The MEMR shall determine the diesel fuel
market index price and biodiesel market index
• the volume of biodiesel that has been stipulated
under the MEMR approval; and
price.
• The difference of market index price as • the timeframe and specification of biodiesel as
agreed upon the contract.
mentioned above shall apply to any diesel fuel
Please also note that under Article 4 of MEMR Reg
Business entities that are entitled to the difference
32/2008, any biofuels used as alternative fuels
payment must at least:
must be produced domestically. This means that
• have valid biodiesel trading business permit, when mixing the diesel fuel with biodiesel, the
• have a biodiesel procurement contract with business entities must use domestically produced
fuel distributors that have been selected by the biofuel.
Government,
57
Under Presidential Regulation 61 of 2018, the Fund or Palm Oil Plantation Fund is defined as 59
Article 3 paragraph 2 MEMR Reg 41/2018
an amount of money collected by the Fund Manager Board, a board established by the Govern- 60
ment to collect, administer, manage, deposit and distribute the Fund 61
58
Article 3 paragraph 1 MEMR Reg 41/2018 62
12. Local Content

The Electricity Law of 2009 requires holders of an amended by MOI Number 05/M-IND/PER/2/2017
electricity support services business license (IUJPTL) (MOI 54/2012) which stipulates the minimum
to prioritize the use of domestic products and percentage of local content. MOI 54/2012 also
services. The relevant local content requirements for requires that the obligation to use local content
power projects are regulated under MOI Regulation must be stipulated in a tender document and the
Number 54/M-IND/PER/03/2012 regarding implementing contract of the Project (i.e. PPA, EPC,
Guidelines as to the Utilization of Local Products etc).63 Table C.5 summarizes the minimum local
for Development of Electricity Infrastructure, as content requirements for renewable powerplants.
Table C.5 Power Purchase Tariff for Waste-to-Energy Facilities
Power Plant Capacity Minimum of Local Content (TKDN)
Hydro Up to 15 MW 64.20% for goods; 86.06% for services and 70.76% for goods
and services combined
> 15 - 50 MW 49.84% for goods; 55.54% for services and 51.60% for goods
> 50-150 MW 48.11% for goods; 51.10% for services and 49% for goods and
services combined
Above 150 MW 47.82% for goods; 46.98% for services and 47.60% for goods
Geothermal Up to 5 MW 31.30% for goods; 89.18% for services and 42% for goods and
services combined
5 - 10 MW 21.00% for goods; 82.30% for services and 40.45% for goods
10- 60 MW 15.70% for goods; 74.10% for services and 33.24% for goods and
services combined
60 MW – 110 MW 16.30% for goods; 60.10% for services and 29.21% for goods and
services combined
>110 MW 16.00% for goods; 58.40% for services and 28.95% for goods
Solar Home System Per unit 39.87% for goods; 100% for services and 45.90% for goods and
(off-grid, stand-alone) services combined
Community Solar System Per unit 34.09% for goods; 100% for services and 40.68% for goods and
(mini-grid) services combined
On-grid Solar Power System Per unit 37.47% for goods; 100% for services and 43.72% for goods and
services combined
63
Article 3(1) MOI 54/2012
For Solar powerplants in particular, MOI Regulation Number 04/M-IND/PER/2/2017 has set out more detailed
Local Content
requirements Requirements
for local content, as summarizedof SolarC.3.PV
in Figure However,
Figure C.3. – Local Content Requirements of Solar PV Projects
Article 11 of Regulation Off Grid Solar PV Power

2 plant
54/2021
Local content level Solar PV units which are
(”TKDN”) for solar power centralized in a certain
plants are divided into location with energy
three categories distributed to user
without connection PLN
grid (off-grid)
Behind the Meter Solar 1

PV Power Plant On Grid Solar PV Power
Solar PV units which are 3 plant
spread out and directly Solar PV units which are
connected to units or centralized in a certain
users without access to location with energy
distribution networks. distributed through PLN
grid (on-grid)
Behind the Meter Solar PV Power Plant Off Grid Solar PV Power plant
Detail Minimum (TKDN) Detail Minimum (TKDN)

Solar Module 40% Solar Module 40%
Battery 40% DC Combine Box 20%
Battery Control Unit 10% Distribution Panel 40%
Module Buffer 42.4% Battery 40%
Cable 90% Cable 90%
Proctection System 20%
On Grid Solar PV Power plant Module Buffer 42.4%
Energy Limiter 40%
Detail Minimum (TKDN)
Solar Module 60%
DC Combine Box 20%
Distribution Panel 40%
Battery 40%
Cable 90%
Proctection System 20%
Module Buffer 42.4%
Procedures for calculating the local content in The above procedures and sanction shall be
goods, services and the combination of goods stipulated in the relevant tender document and
and services for powerplants, main relay stations project development document (e.g. PPA, EPC).64
and transmission networks are regulated by MOI In practice, PLN stipulates the procedures and
Regulation No. 15/M-IND/PER/2/2011 regarding sanctions by merely referring to the provisions
Guidance for the Use of Domestic Goods in the under MOI 54/2012. This practice has become
Procurement of Government Goods/Services, and problematic, since without any further elaboration
MOI Regulation No. 16/M-IND/PER/2/2011 regarding from PLN in its tender documents and PPAs, the
Provisions and Procedures for the Calculation of implementation of the blacklist sanction remains
Local Content. vague.
Goods/services provider companies in the field of Challenges to the local content requirements:
electricity may be subject to sanctions if: Currently, for renewable energy power projects,
there are only specific local content requirements
i. the verified local content level (TKDN) at the
details for solar, geothermal and hydro. The local
end of the project/upon COD does not meet
content provisions for other remaining sources of
the TKDN rate stipulated in MOI 54/2012, MOI
renewable energy are not regulated yet.
Regulation Number 04/M-IND/PER/2/2017 on
Terms and Procedures of Assessment of Local Based on research from the DGE, it will be a
Content Level for Solar PV Power (MOI 4/2017), challenge for the current Indonesian industry to
and any related regulations as may be amended supply locally. Investors are therefore concerned
from time to time; about whether the local content requirements will
delay the development of powerplants.65
ii. they fail to provide the supporting data for their
self-assessment of TKDN and/or are not willing Project companies may be subject to financial
to be verified; sanctions and blacklisted if they fail to fulfill certain
local content requirements. Thus, it is important
iii. they deliberately falsify data on domestic
that investors also calculate this risk when
components to affect the TKDN rate; and/or
developing project costs.
iv. they completely fail to use domestic products.
Sanctions for failure to fulfill the above
requirements may be in the following forms:
• administrative sanctions:
• written warning, if the provider of goods/
services fails to comply with the provisions
in (i) through (iii) above;
• inclusion in the blacklist for 2 years, if
provider fails to use any domestic products.
• financial penalties that vary based on how much
lower the TKDN rate on COD is than the TKDN
rate as required under the applicable Indonesian
Law.
64
Article 3(1) of MOI 54/2012.
65
Deloitte, 35,000MW: A Light for the Nation, 2016, p. 15.
13. Foreign direct

investment/ownership
Negative List: A foreign legal entity seeking to A PMA company may benefit from investment
invest in the power market in Indonesia must incentives in the form of exemptions from import
comply with the provisions of Law No. 25 of 2007 duty for machines and export duty for certain goods
on Investment (Investment Law) along with its and materials, as well as reduced corporate tax.
implementing regulations. Under the Investment
In establishing a PMA company, investors must
Law, all foreign investors must establish a limited
comply with Presidential Regulation No. 44 of
liability company – a perseroan terbatas (PT) – in
2016 concerning the List of Business Fields that
Indonesia. When a PT is comprised of foreign
are Closed to and Business Fields that are Open
capital from foreign investors, it will be considered
with Conditions to Investment (Negative List). The
as a foreign investment company (PMA company).
Negative List contains certain fields of business in
which foreign ownerships are (i) open, (ii) closed
and (iii) open with certain conditions for foreign
investments.66 Table C.6 shows foreign shareholding
limits under the Negative List for each line of
business in the power sector.
66
Art. 1 para (1), GR 44/2016.\
Table C.6 Foreign Investment Limits for Various Renewable Energy Project Types
No. Line of Business KBLI Code67 Foreign Investment Limit
1 Power plant < 1 MW 35101 0%; Must be 100% domestic capital
2 Small-scale powerplant (1-10 MW) 35101 Foreign capital ownership: Max. 49%
3 Geothermal powerplant with a capacity of ≤ 10 MW 35101 Foreign capital ownership: Max 67%
4 Power plant > 10 MW 35101 Foreign capital ownership:

Max 95% (Maximum 100% for a Public Private
Partnership/PPP during the concession period)
5 Power plant transmission 35102 Foreign capital ownership:

Max 95% (Maximum 100% for a Public Private
Partnership/PPP during the concession period)
6 Power plant distribution 35103 Foreign capital ownership: Max 95% (Maximum
100% for a Public Private Partnership/PPP
during the concession period)
7 Power installation consultation 71102 Foreign capital ownership: Max. 95%
8 Construction and installation of electric power: 42213 Foreign capital ownership: Max. 95%
Installation of electric power supply
9 Construction and installation of electric power: 43211 Foreign capital ownership: Max. 49%
Installation of high/extra-high voltage electric power
10 Construction and installation of electric power: 43211 0%; must be 100% domestic capital
Installation of low/medium voltage electric power
utilization
11 Electric power installation: operation and 43211 Foreign capital ownership: Max. 95%
maintenance
12 Electric power installation: examination and testing 71204 Foreign capital ownership: Max. 49%
on installation of high/extra high voltage electric
power supply or utilization
13 Electric power installation: examination and testing 71204 0%; must be 100% domestic capital
on low/medium voltage electric power utilization
67
This refers to Indonesia’s Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia, KBLI). The KBLI, issued by the Central Bureau of Statistic (Badan Pusat Statistika/BPS), is
used to classify Indonesia’s business activity or business fields based on their goods and services. When investing in Indonesia, one of the most important steps is to find the correct KBLI that fits
the investor’s business activities, and check whether such KBLI is open for foreign ownership or not under the Negative List.
Please note that the Negative List will be updated Additionally, a PMA company must fulfill the
from time to time, and generally shall not apply to provisions of investment value, namely:72
companies listed on the Indonesian Stock Exchange.
• The total investment value is greater than
Since business activities are limited to a certain
Rp10.000.000.000, excluding land and
percentage of foreign ownership, investors will have
buildings;
to carefully identify and structure their investment
at the beginning of their project. • The value of issued capital is the same as paid-
up capital, at least Rp2.500.000.000;
Establishment of a Limited Liability Company
(PT) in Indonesia • The percentage of share ownership is calculated
based on the nominal value of the shares; and
Based on Law Number 40 of 2007 concerning
Limited Liability Company (Company Law), a limited • The nominal value of the shares for each
liability company is established by two or more shareholder is at least Rp10.000.000.
people with a notary deed made in Indonesian.68 This obligation must be fulfilled for a maximum
In the deed of establishment and articles of period of one year from the date the PMA company
association, the purpose and objectives and obtains a business license.73
field of business of the Company must be clearly Licensing: Electronic Integrated Business Licensing
regulated in accordance with the provisions of or Online Single Submission (OSS) is essentially
the legislation.69 The deed of establishment of the an online platform which integrates all business-
Company needs to be approved by the Ministry licensing activities and allows simultaneous
of Law and Human Rights. To obtain a Ministerial issuance of permits from both central and regional
Decree concerning the ratification of the Company’s government levels. Arrangements related to OSS
legal entity, the founders must jointly submit an are regulated in the Government Regulation No. 24
application no later than 60 days from the date the of 2018 on Online Single Submission Services (GR
deed of establishment is signed.70 24/2018). Several licenses previously handled by
Regulatory requirements: The Head of the BKPM are excluded from GR 24/2018 and therefore
Investment Coordinating Board (BKPM) issued must still be processed via BKPM’s system as set
Regulation No. 6 of 2018 on Guidelines and out under Article 4(2) of BKPM Reg 6/2018.74
Procedures for the Implementation of Capital
Investment Licensing and Facilities (BKPM Reg
6/2018), which regulates the terms and procedures
for investment and capital from a PMA company.
A PMA company is generally considered as a
large business. Thus, it is subject to the following
requirement for investment and capital values to
obtain investment licensing for large businesses71:
• Having a net worth of more than
Rp10.000.000.000 excluding land and buildings
where the business is based, on the latest
financial statements; or
• Having annual sales of more than
Rp50.000.000.000, based the on the latest
financial statements.
68
Art 7 para (1), Company Law. 72
Art. 6 para (3), BKPM Reg 6/2018
69
Art 18, Company Law 73
70
Art 10 para (1), Company Law 74
Art. 26, GR 24/2018
71
Accompanying the OSS Regulation, the Head of Procedures for Registration of a Newly Established
BKPM has also issued: Foreign Investment Company
• BKPM Regulation No. 6 of 2018 on Guidelines Under the new OSS system, the steps for
and Procedures for the Implementation of establishing a foreign investment company (PMA
Capital Investment Licensing and Facilities company) are as follows:
(BKPM Reg 6/2018); and
i. process the establishment of company with a
• BKPM Regulation No. 7 of 2018 on Guidelines notary;
and Procedures for Capital Investment
ii. submit the deed of establishment to the Ministry
Implementation Monitoring (BKPM Reg 7/2018).
of Labor and Human Resources (MOLHR);
These two BKPM Regulations revoke the previous
iii. ionce approved by MOLHR, apply for a NIB under
regulations on investment, which are Head of
the OSS system;
BKPM Regulation No. 13 of 2017 on Guidelines
and Procedures for the Implementation of Capital iv. a NIB can also be used by a newly established
Investment Licensing and Facilities (BKPM Reg company to get other licenses, such as:
13/2017) and Head of BKPM Regulation No. 14 of 2017 • taxpayer registration number (NPWP);
on Guidelines and Procedures for Capital Investment
Implementation Monitoring (BKPM Reg 14/2017). • business license;
Investors wishing to initiate business will be required • employment social security (BPJS) and health
to register their businesses by filling in the required social security (BPJSK) membership certificates;
data to obtain a Business Identification Number • approval letter for a foreign employee utilization
(Nomor Induk Berusaha, NIB).75 The NIB program plan (RPTKA); and/or
replaces the concept of investment registration
(Pendaftaran Penanaman Modal) – previously also • an operations/commercial license.
known as In-Principle License (Izin Prinsip) – and
will be valid as long as the business entity runs
its business and/or activity.76 A NIB also serves as
a company registration certificate (Tanda Daftar
Perusahaan), an importer identification number
(Angka Pengenal Impor), and a customs access right
(Hak Akses Kepabeanan).77
75
Art. 25 para (1), GR 24/2018
76
Art. 25 para (2), GR 24/2018
77
Art. 26, GR 24/2018
Under the previous BKPM regime, companies had While GR 24/2018 explains that there will be a
to obtain prior approval from BKPM to establish Commitment completion deadline, each type of
their company, change company data (e.g., change license will be further regulated under its relevant
of shareholders or capital structure) and other ministerial regulations. For electricity business,
corporate actions. With the new OSS system, Commitment deadlines for electricity-related
business entities are not required to obtain any activities are set out under MEMR Regulation No.
prior approval from the OSS agency, creating a 39 of 2018 on Electronically Integrated Business
post-audit nature to the system. BKPM/the relevant Licensing Services in The Electricity Sector (MEMR
ministries will evaluate/audit for compliance the 39/2018).
establishment of company, change of company
Only after the Commitment has been fully
data, fulfilment of commitment and other
completed will the OSS Agent update the license
monitoring/controlling only after the company
status to be active.
conducts said application/process/activity.
By virtue of Article 81 of GR 24/2018, even though
It should be noted that the OSS system requires
most licensing has been delegated to the OSS
self-declaration for investors applying for a license.
system, the monitoring/supervision are still
This means that the investor shall provide valid
conducted by the relevant sectoral ministries,
information that will be subject to supervision
agencies and/or regional government in accordance
and post-audit by the OSS agency and relevant
with the applicable relevant laws and regulations,
ministries. Upon application for a license, the
with respect to:
OSS will issue a business license upfront, before
the investor fulfills such requirements, bearing in • completion of the Commitment;
mind that the investor will be required to submit • completion of standard, certification, license
what is called a Commitment which comprises the and/or registration; and/or
necessary requirements.
• company business and/or activities.
GR 24/2018 introduces the concept of Commitment:
a statement in the form of a checklist made by In case of non-compliance, the relevant authorities
a business entity to fulfill certain requirements will take action, which may be in the form of:
for a business license and/or commercial license • written warning;
for which it applied. A business entity must
ensure that it is able to meet its Commitment • suspension of business activity;
on time and shall not apply for just any license • administrative sanctions; and/or
without considering its capability and readiness to
complete such Commitment. Since Business and/or • revocation of business licenses.
Operational Licenses can be issued automatically Based on the applicable laws and regulations,
after a Commitment statement is filed, a company the relevant ministry, agency and/or regional
must complete such Commitments – for example, government will notify a company of such action
payment completion and/or obtainment of certain through the OSS system.
required documents – for the licenses to be active.
Beneficial Ownership: Under Presidential In determining its beneficial owner, a company may
Regulation No. 13 of 2018 on application of obtain the information it needs from:80
the Know-Your-Beneficial-Owner Principle by
• its articles of association and all of its
Corporations for the Prevention and Eradication
amendments and/or deed of establishment of
of the Criminal Acts of Money Laundering and
such company;
Terrorist Financing (PR 13/2018), any Corporation
that fails to determine the identity of its beneficial • documents related to the general meeting/
owner(s) and submit that information can be meeting of its organs;
subject to certain sanctions under the prevailing • information from authorized agencies;
laws and regulations.78
• private institutions which provide benefits to
PR 13/2018 broadly defines the beneficial owner of the company;
a limited liability company as an individual:79
• statement from the company’s organ, the truth
• owning more than 25% of the shares of such of which can be accounted;
limited liability company as reflected in its
articles of association; • documents evidencing that an individual is the
real owner of the company’s funds; and
• owning more than 25% of the voting rights of
such limited liablity company as reflected in its • other information supplied by credible sources.
articles of association; Under PR 13/2018, authorized agencies can
• obtaining more than 25% of the annual profit or determine beneficial owners other than those
income of such limited liability company; determined by companies themselves, based on:
• authorized to appoint, replace or dismiss • the results of an audit conducted by an
members of the Corporation’s organs, e.g. its authorized agency;
Boards of Directors, Boards of Commissioners • information supplied by other governments/
for limited-liability companies; private institutions/certain professions that
• having the power or authority to influence manage the beneficial owner’s funds and/or
or control the Corporation without further information; or
authorization from another party; • other information supplied by credible sources.
• receiving a direct or indirect benefit from the
Corporation; and/or
• being the real owner of the Corporation’s funds
or shares.
78
Art. 24 PR 13/2018
79
Art. 4 PR 13/2018
80
Art. 11 PR 13/2018
14. Land Use and Ownership

Land Ownership by Foreigner. As a general rule no Land title in Indonesia is not simple and there
foreigner is allowed to own land in Indonesia. Under are various titles of land that contain restrictions
certain circumstances, foreigners who are residents on the manner in which and by whom they can
of Indonesia can own a leasehold title to a building, be owned. Under the Indonesian laws on land
but not to the land. Generally, PMA companies are and their implementing regulations, a foreign
entitled to obtain long-term leaseholds over land investment company may hold Right to Build (Hak
for their operations. Guna Bangunan, HGB), Right to Use (Hak Pakai,
HP), and Right to Cultivate (Hak Guna Usaha,
HGU), depending on its business activity. The most
common title to be held by any foreign capital
investment company is Right to Build. In summary,
the issues surrounding land titles are as follows:
Table C.7 Summary of Indonesian Land Use Rights by Title
No. Title Duration Land Conversion Land Function Remarks
1 HGB Maximum 30 i. If the selected site is not HGB Any type of business. This is the most
“Right to years, which may then the land needs to be appropriate land
Effectively this would
Build” be extended for relinquished before a grant ownership title if
be a purchase of the
another 20 years of HGB will be given. This is a any semblance of
land for the permitted
registered land title at the land “freehold title” is
term
office. preferred (note
that in Indonesia,
ii. HGB title can be created from companies cannot
land with ownership right, HPL
own freehold title).
or state land
2 HGU 35 years and may i. If the selected site is not HGU Generally, for the
“Right to be extended for then the land needs to be plantation business.
Cultivate another 25 years relinquished before a grant of
at most. HGU will be given.
ii. This is a registered land title at land for the permitted
the land office. term.
3 HP Maximum 25 i. If the selected site is not HP Generally, for In practice in

“Right to years and can be then the land needs to be representatives of Jakarta, usually the
Use” extended for up relinquished before a grant foreign countries and Land Office only
to 20 years, with of HP will be given. This is a government bodies. grants an HP title for
the exception registered land title at the land 10 years.
that HP on land office.
with ownership
right cannot be
i. HP title can be created on Hak land for the permitted
Milik land, HPL or state land term.
extended.
Land acquisition procedures in Indonesia. Law No. The documents above should be prepared based
2 of 2012 on Land Procurement for Public Interest on feasibility studies carried out in accordance with
Developments was amended through Law No. 11 of the provisions of the legislation, as determined by
2020 (Omnibus Law), which was amended through the agency86 that requires the land, and submitted
Law No. 11 of 2020 provides mandatory time limits to the provincial government.87
for land procurement. A state-owned company that
Preparation: Upon completing the planning phase,
receives a special assignment can procure land for
the procuring government agency shall cooperate
development of public interest projects by
with the provincial government to perform the
Law 11/2020 aims to accelerate the land acquisition obligatory activities described below:88
process for certain infrastructure projects including
The agency requiring the land shall notify the local
powerplants. The goal is to help the government
community of its development plans, as conveyed
overcome the difficulties encountered when
via:
performing compulsory acquisitions of land for public
purposes (eminent domain). Before Law 2/2012, the • socialization (may be conducted directly or
prevailing laws in Indonesia regarding land acquisition indirectly),
for development for the public interest had not • face-to-face meeting, and
been able to guarantee the acquisition of land for
infrastructure projects. • letter of notification from the agency’s
preparation team.89
Land procurement is an activity of providing land by
giving proper and fair compensation to the rightful The development plan notification shall convey any
party.81 Land procurement for public interest aims necessary information, such as:90
to provide land for construction in order to enhance • purposes and objectives of the development
the welfare and prosperity of the nation, state, and plan,
society while ensuring the legal interest of entitled
parties.82 Land procurement for public interest occurs • land location and land area required,
over four stages:83 (i) planning, (ii) preparation, (iii) • stages of the land procurement plan,
implementation, and (iv) transfer of acquired land.
• estimated timeline for land procurement,
Planning: At this stage, the agency84 that requires
the land must prepare planning documents for land • estimated timeline for land development,
procurement, which shall contain at least:85 • other information deemed necessary,
• purpose and objective of the development plan; • initial data collection of the development site,
• compability to the regional spatial layout plan and and
national and regional development plan;
• public socialization of the development plan.
• location of land;
• total land area required;
• general description of land status;
• estimated time of execution of land procurement;
• estimated period of development implementation;
• estimated land value; and
• budgeting plan
81
Art. 1 Law 2/2012 86
For example, under the Acceleration program for Waste-to-Energy (WTE) project under PR
82
Art. 3 Law 2/2012 35/2018 (see page 8), the Regional Government (mayor/governor) – whom the President has
83
Art. 13 Law 2/2012 been specifically assigned to accelerate the development – will be the party responsible for
84
According to Article 1(1) of Law 2/2012, Agency means state agencies, ministry and non-min- the land acquisition. Thus, in this case, the Regional Government would be the agency which
istry government agencies, provincial government, regencies/municipalities government, and requires the land under Law 2/2012.
State-owned Enterprises which received special assignment from the Government 87
Art. 15 Law 2/2012
85
Art 15 paragraph (1) of Law 2/201 88
Art 16 of Law 2/2012
89
Art 12 paragraph (1) and (2) of PR 71/2012
90
Art 11 paragraph (3) of PR 148/2015
Public consultation on the development plan shall Implementation: The agency requiring the land shall
be implemented within 60 (sixty) business days of submit a land procurement implementation plan to
signing a temporary list of proposed development the National Land Agency (BPN).97 In this stage, a
locations, which was initially drafted in the planning special land procurement committee established by
stage. If there is any objection during the 60-day the head of BPN will collect data on the land and the
period for public consultation, a second public entitled parties. If the entitled parties do not object
consultation shall be held with the objecting party to the results of this data collection, this process
within 30 (thirty) business days following the first will finish within 30 working days.98 An independent
sixty-day consultation period.91 If there is still appraiser appointed by BPN will then value the land.
any objection at the second public consultation,
Following these processes, negotiation will be
the agency requiring the land shall report such
held among BPN and the entitled parties (i.e. the
objection in writing to the local governor for
individual/entities who own and/or possess the land)
evaluation. From there, the governor shall assemble
to reach an agreement on the form and amount of
a team to study the objection to the development
compensation within 30 working days from when the
plan.912 The assembled team will be in charge of:93
head of the land procurement committee receives a
• listing the problems which lead to the objection; land appraisal. Compensation for land may be in form
of99 money, land replacement, resettlement, share
• conducting meetings and clarifications with the
ownership or other forms as agreed by the parties.100
objecting party; and
If an entitled party has an objection and submits the
• providing a recommendation of acceptance or
objection to the district (first-level) court, a court
refusal of the development plan.94
decision must be issued within 30 working days, and
The team’s recommendation must be completed any appeal must be decided by the Supreme Court
within 14 (fourteen) working days from when the within 30 working days. A final and binding court
governor receives the request to evaluate the decision shall be the basis for compensation.
objection. Based on the recommendation, the
Transfer of project: BPN shall deliver the land title
governor shall issue a letter of acceptance or refusal
to the agency requiring the land after the transfer of
regarding the objection to the development plan.
compensation; after this land title delivery, the agency
The governor shall determine the location for the can commence development activities.101
development of a project with the public interest3,
which may be extended by a maximum 1 (one) year.95
If the location determination is not granted within
such period, the location determination process
shall be repeated for any remaining part land whose
procurement process has not been completed yet.96
91
Art. 20 Law 2/2012
92
Art. 21 (1) Law 2/2012 97
Art. 27 (1) Law 2/2012
93
Art. 21 (4) Law 2/2012 98
Art. 28 of Law 2/2012.
94
Art. 21 (5) & (6) Law 2/2012 99
Art. 36 Law 2/2012
95
Art. 24 Law 2/2012 100
Art. 40 Law 2/2012
96
Art. 25 Law 2/2012 101
Art. 48 Law 2/2012
Required licenses The exemption: According to MoA 17/2019, a location

permit is not required if the land:
Location permit. A location permit is issued to a
business actor (either an individual or a business • is located in accordance with the detailed spatial
entity) to acquire land needed for its business planning and/or general plan for urban spatial
purposes and/or activities; it also serves as the license planning of the relevant city/regency;
to transfer rights and to utilize such land for its
• is within a special economic zone, industrial
business purposes and/or activities.102
estate, free-trade zone or port;
Previously, a location permit was only required for
• already has a Location Permit owned by other
corporations who wish to acquire a plot of land that
individuals or entities that will be used for other
exceeded a certain area. In 2018, under the Minister of
business activities;
Agrarian Affairs and Spatial Layout/Chairman of the
National Land Agency Regulation No. 14 of 2018 on • is derived from the authority or organizing body
Location Permit (MoA 14/2018), any business actor – for the development of an area in accordance with
ether individuals or non-individuals (e.g., legal entities) the regional spatial plan;
– is required to have a location permit to acquire land • is required for expansion of a business that has
regardless of the size of the land area. An application already been operating at or near the location;
for a location permit is made through the OSS
system, and it will only be issued after the business • does not exceed
actor has registered in the OSS system. The permit- • 25 hectares for agricultural business,
granting decision comes in the form of an electronic
document with the attached (i) electronic signature • 1 hectare for non-agricultural business,
in accordance with the applicable laws regarding the • 5 hectares for low-income housing
electronic transaction; and (ii) the location permit development;
map. However, MoA Regulation 14/2018 was revoked
through MoA Regulation No. 17 of 2019. • will be used for national strategic projects.
102
Article 1(1) of MOA 14/2018.
15. Environmental
regulatory
requirements
Deadline to fulfill commitments: The business Pursuant to Ministry of Environment (now Ministry
actor is given 10 working days to fulfill all of the of Environment and Forestry) Regulation 38/2019
commitments103, which will be listed in the OSS on the Types of Businesses and/or Activities
system. If the commitments are not fulfilled within Required to Have an Analysis of Environmental
that time, the OSS agency (i.e. the Capital Investment Impact, IPP investors must comply with specific
Coordinating board, or BKPM) will void the location environmental practices and secure environmental
permit. permits before they begin operations.104 With
regards to this, MOEF Regulation No. 38/2019
The regional land office will issue technical advice to governs the types of activities that require an
the regional government within 10 working days after environmental impact analysis (AMDAL) or
the applicant submits the commitment-fulfillment environmental monitoring and management plans
documents. In referring to the technical advice, the (UKL-UPL). In particular, the following activities
regional government will within two working days require an AMDAL:
issue a confirmation on whether the location permit
application is approved or rejected. The OSS system • construction of transmission network: high-
will notify the business actor of this confirmation. voltage air lines, high-voltage channel cables,
high-voltage submarine cables > 230 kV;
Even though MoA 17/2019, stipulates a timeline for the
review of commitments-fulfillment for the purpose • construction of diesel, gas-fired, coal-fired,
of certainty, MoA 17/2019, also provides a possibility and/or combined cycle powerplants ≥ 100 MW
for the regional land office (or regional government) in one location;
to issue a delayed confirmation due to force majeure • construction of geothermal powerplants ≥ 55
conditions. MW;
Deadline to register land: After the land acquisition • construction of hydropower plants with a weir
process is completed, MoA 17/2019, requires that land height ≥ 15 m or water pooling area ≥ 200 ha
that has been acquired but not yet registered must or capacity ≥ 50 MW and reservoir capacity ≥
be registered with the applicable regional land office, 500,000m3;
at the latest one year after the end of the location
permit validity period. • construction of waste powerplants ≥ 30 MW
with methane harvesting process; and
• construction of other types of powerplants
(solar, wind, biomass) ≥ 50MW in one location.
• construction of biofuel powerplants ≥ 100MW
and construction of biofuel refinery ≥ 100,000
ton;
• construction of waste-to-energy (WtE) ≥ 50
ton/day.
103
It should be noted that the OSS system requires ‘self-declaration’ for investors applying for a license. This means that the investor shall provide valid information that will be subject to supervi-
sion and post-audit by the OSS agency and relevant ministries. Upon application for a license, the OSS will issue a business license upfront, before the investor fulfills such requirements, bearing in
mind that the investor will be required to submit what is called as a Commitment which comprises the necessary requirements.
104
Law No. 32 of 2009 on Environment (Environment Law); Ministry of Environment Regulation No. 5 of 2012 on the Types of Businesses and/or Activities Required to Have an Analysis of Environ-
mental Impact (MOE 5/2012).
16. National/Subnational
Government
Procurement and
Pre-Qualification
Private investors, in this case acting as a developer conduct direct selection from its List of Selected
or IPP, may invest in the renewable energy sector Providers (DPT) based on MEMR 50/2017 for
through regulations that have been set by the procuring electricity from renewable sources from
government. The business entities themselves IPPs. Thus, before participating in a direct selection,
may use the electricity produced by the power an IPP must first be qualified and placed on the
generation process or sell it to another party, such DPT. Depending on the type of powerplants, PLN
as the state-owned electricity company (PLN). As procures projects as follows:
previously explained above, PLN is required to
Table C.8 PLN Procurement of Renewable Energy Projects
Local DPT by Regional PLN Central DPT by Central PLN
< 10MW hydro powerplant > 10MW hydro powerplant
<10MW biogas powerplant > 10MW biogas powerplant
<10MW biomass powerplant > 10MW biomass powerplant
<10MW tidal powerplant > 10MW tidal powerplant
<10MW hybrid powerplant > 10MW hybrid powerplant
Any-capacity solar powerplant
Any-capacity wind powerplant
To be listed on the DPT, an IPP must pass PLN’s Attachment 2 of this Report for the list of required
pre-qualification process (PQ) by applying and documents for PQ based on the 2019 Various
meeting the criteria specified in the PQ. Please see Renewable Energy IPP PQ.105
105
Please note that PLN has issued different PQ documents for hydro which could have different requirements as discussed below.
Conflict of Interest After submitting ALL PQ documents, the applicant

must wait for evaluation and further notification.
• Local and international major equipment
The full PQ process is described in Figure C.4.
vendors must not have any conflicts of interest
that may impact or potentially compromise the
PQ process; Public Announcement to Pre-Qualification
through Publication/Media
Technical Criteria
• Company must have completed at least 1
(one) IPP Contract, EPC Contract and/or O&M Period for application to respond with intent
Contract which: to register for the DPT Renewable Energy
• has been completed within the last 10 (ten) Power Plant PQ
years; and
• is a Per Unit Power Plant that has achieved
satisfactory performance for one (1) year of DPT Clarification Meeting (Aanwijizing)
operation.
• Applicant is a company from Indonesia, or
Closing date for applicants to
a country that has diplomatic relations with
submit their PQ Documents
Indonesia and provides:
• a statement letter from the Indonesian
Embassy in that country, and Evaluation Process, including Clarification
• evidence that the experience mentioned in (if necessary
the letter has been in successful, continuous
commercial operation for at least 1 (one)
year, in the form of a letter of satisfaction Notification to all seccessful and unsuccessful
from PLN or another client. applicants
Financial Criteria: PLN will evaluate the financial
performance of the applicant on:
• The applicant’s calculated net worth. Namely, Objection period
the difference between total assets and total
liabilities shall be positive based on the Audited
Financial Statement of at last 3 years; and Pre-Approval for DPT certificate signed by PLN’s
• A current Dunn & Bradstreet rating of at least Directors
3A3 or an investment grade credit rating by
S&P, Moody’s, Fitch, or equivalent.
Public Announcement
17. Financing challenges

Scoring criteria in the PQ process: PLN will In order to implement a leasing structure that is
evaluate the applicant following a weighted rubric, common for supplying rooftop solar-generated
as described in Table C.9. power directly to customers, developers are
required to obtain a stipulation of service territory
Table C.9 PLN Pre-Qualification Rubric from MEMR.
Obtaining the stipulation of electric service
Contribution to territory could be challenging considering that
Evaluation criteria that are scored
total score the whole territory of the Republic of Indonesia
– except for areas which the government has
Administration 10% stipulated as the service territory of other business
entities – is the service territory of PLN.
Business and Corporate Organization 15%
Any investment must be structured carefully.
Technical Experience and Service 30% Since the sale of power is not allowed without
Support a stipulation of service territory, an IPP should
be licensed as an equipment rental company, an
Financial Capability 45% industry that is reserved for domestic companies.
Alternatively, the investor could be licensed
as a finance company, with up to 85% foreign
ownership. But if the IPP is licensed as a finance
To pass the PQ process, an applicant must score at company, the generation equipment will need to be
least 70%.106 transferred to the customer (in a financial lease)
There is at least one major problem with the direct and is subject to the monitoring and regulation of
selection procurement process for renewable the Financial Services Authority (OJK). Note that
energy power projects under MEMR 50/2017: for a minimum equity of IDR 100 billion is required for
hydropower projects, investors might need to invest a finance company license under OJK (as opposed
something before even passing the PQ process, to IDR 2.5 billion for PMA companies under BKPM
since a pre-feasibility study is required to pass the supervision).
technical criteria of the DPT. It is still unclear how
PLN will conduct tenders for hydropower projects,
because location permits can only be acquired by
one entity.
The PQ process creates uncertainty for investors
because their ability to enter the market will
depend upon the PQ requirements. And since there
is no fixed schedule on when PLN will hold the PQ
process, it will be difficult for new investors to time
entering the market.
106
PLN Pre-Qualification Document for IPP Renewable Energy Power Plant, 2019, p. 24.
Based on a survey of IPPs conducted by IESR,107 scheme requirements, unattractive tariffs, and
finance is actually not the primary challenge for changing risk allocations are just a few of the new
renewable projects in Indonesia. Rather, “it is policies that have directly affected the business
the unclear and inconsistent business processes process of renewable projects and discouraged
that are seen as the core problem that prevents lenders from investing in renewable projects. Table
the projects from getting financed.” Frequent C.10 summarizes challenges to financing renewable
regulatory changes over the past two years also energy projects, as differently perceived by IPPs
send negative signals to the market.108 BOOT and lenders in Indonesia.
Table C.10 Financing Challenges for Renewable Energy IPPs and Lenders
IPPs Lenders
Difficult to get financing, Financing is always available, bankable projects are not
particularly for small scale
(<10MW) projects
Interest rates are too high Disreputable and inexperienced sponsors and poor feasibility studies increase
perceived risks, resulting higher interest rates
No project finance; collateral is Local banks have no experience in and capacity for renewable energy projects, so they
too high cannot provide project finance
Tariffs are too low Tariffs are important but not the primary factor defining bankability. The quality of the
project and the project sponsor are the most important factors.
Source: IESR, Indonesia Clean Energy Outlook: Reviewing 2018, Outlook 2019
107
IESR, Indonesia Clean Energy Outlook: Reviewing 2018, Outlooking 2019
108
Ibid.
18. Incentives for Power

Sector Investment
In order to boost investment in the renewable The wording of GR 18/2015 indicates that it applies
energy industry, the Indonesian Government has to IPPs involved in renewable energy.
provided numerous fiscal incentives for power • MOF Regulation No. 218 of 2019 on Customs
projects. Among those are: Duty Exemption and/or Untaxed for Imported
• Government Regulation No. 78 of 2019 on Goods for Geothermal Business Activities, which
Income Tax Facilities on Capital Investment of provides an exemption from import duty on
Particular Business Fields and/or in Particular goods used in “geothermal business activities”.
Regions (GR 78/2019), which provides income The business entities granted exemption from
tax incentives including: import duties include geothermal permits
holders, geothermal resource concessions
• A deduction in taxable income of up to 30% holders, geothermal exploitation permits
of the qualifying expenditure on fixed assets holders, or performers of Preliminary and
(including land). The deduction distributed Exploration Survey Assignments (PSPE).
at 5% for 6 years from commercial
production;109 • MOF Regulation No. 198 of 2019, the 7th
Amendment to the Decision of the Minister of
• An extended tax-loss carry-forward period Finance No. 231/KMK.03/2001 on Treatment of
of up to 10 years; Value Added Tax and Sales Tax on Luxury Goods
• Accelerated depreciation and amortization on the Import of Taxable Goods Exempted
rates; and from Import Duty. Goods that are used for
geothermal activities for indirect use that
• A maximum dividend withholding tax rate of includes Preliminary and Exploration Survey
10%. Assignments (PSPE), exploration, exploitation,
and use, etc., are exempted from import duty.
• MOF Regulation No. 21/2010 on Income Tax
Deduction for Energy Development Projects,
which provides an Article 22 exemption110 for
imports by IPPs involved in renewable energy.
109
Article 2(2) letter a of GR 18/2015.
Article 22 of Law No. 36/2008 on Income Tax regulates the income tax payable on the sale of imported goods for certain business lines, including electricity equipment. Here, MOF Regulation No.
110
21/2010 governs the exemption from such income tax for imports by IPPs involved in renewable energy sector.
Attachment Documents Required

for PLN’s Prequalification (PQ) list 111
To qualify and register under PLN’s List of 2. Business and Corporate Organization
Qualified Selected Providers (DPT) for renewable
With regards to business and corporate
energy, companies must submit the following
organization, the applicant must provide the
documents to fulfill the 4 main criteria required
following information, among other things:113
in the PQ Document.
• Information of key management personnel;
1. Administrative Information
• Company organizational structure;
Applicant shall provide complete information on
their business operation, address and licenses by • Information on head office management
providing copies of the following administrative profile/structure;
documents, among other things:112 • List of head office key personnel (manager
• company registration certificate / TDP; level);
• deed of company establishment; • Information on regional office management
profile/structure;
• latest amendment of company deed;
• List of regional office key personnel (manager
• business licenses and permits from relevant
level);
authorities in the country of origin;
• Parent company details including legal name,
• list of persons who are authorized signatories; postal address, and other contact information;
• company contact details for future • Parent company willingness to support the
correspondences;
applicant company;
• name, address and contact details of company • Membership in any relevant industry
representatives for future correspondences;
associations.
• affidavit of not being in bankruptcy, under
supervision of court, or suspended
• affidavit of not being blacklisted (confirming
that neither the company nor any board
member of the company are included in any
list of sanctions by any institution worldwide,
or in dispute and/or litigation with PLN,
either as a sole company or as a member of
consortium);
• affidavit of data validity;
• commitment to comply with Indonesian local
content requirements.
111
Note that PLN has issued different PQ documents for hydropower which could have different requirements from the ones discussed here.
112
113
3. Technical Experience and Service Support 4. Financial Capability

With regards to technical experience and service With regards to financial capability, the applicant
support, the applicant must provide the following must provide the following information:115
information, among other things:114
• copies of the last three years of financial
• relevant project experience with copies of statements/reports as audited by certified
prior contract agreements; public accountants, including all related notes
and income statements;
• current relevant contract/supply
commitments/works in progress; • statement of financial support/reference from
banks;
• company acceptance of penalty terms in the
contract for failure to perform; • assessment of company’s financial net worth
and assessment of company’s financial
• availability of after-sales services;
turnover;
• company information on logistics capability;
• company’s bank or financial institution
• list of standards utilized for the supplied information;
equipment.
• company’s contingent liabilities/pending
litigation information.
114
Ibid.
115
great.gov.uk
DIT
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promoting UK trade across the world and attracting foreign investment to our
economy. We are a specialised government body with responsibility for negotiating
international trade policy, supporting business, as well as delivering an outward-
looking trade diplomacy strategy.
Disclaimer
Whereas every effort has been made to ensure that the information in this
document is accurate the Department for International Trade does not accept
liability for any errors, omissions or misleading statements, and no warranty is
given or responsibility accepted as to the standing of any individual, firm, company
or other organisation mentioned.
© Crown copyright 2020
You may re-use this publication (not including logos) free of charge in any format
or medium, under the terms of the Open Government Licence.
To view this licence visit:
www.nationalarchives.gov.uk/doc/open-government-licence
or e-mail: psi@nationalarchives.gsi.gov.uk
Where we have identified any third party copyright information in the material
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Published February 2021 by Department for International Trade.

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Renewable Energy Business Opportunities

Abbreviation & Acronyms

EMS Energy management system PPA Power purchase agreement

EPC Engineering, procurement and construction PQ Pre-qualification

GHG Greenhouse gas PSO Public Service Obligation

2020-2021 2022-2025 Total Foreign Share

1. About the study

Step 1: Estimating the value of the market

1.5 Identification of 1.6 Opportunities for UK

2. Indonesia Energy Industry

2.1 Key Government 2.2 Other Key Stakeholders

2.3 Indonesian Power

Figure 1. Current Installed Capacity

4000 Bioenergy (MW)

Source: MEMR, 2021

3. Renewable Energy Market

The long-awaited Presidential Regulation on On the legislative side, the House of

Table 1. Planned Generating Capacity Additions, in Megawatts (2019 – 2028)

Type of Generation Planned PPA Financial Close Construction Operating Total

Geothermal 2,227 0 1,720 660 1,915 6,522

Hydro/pumped storage 5,221 0 350 2,439 4,084 12,093

Small hydro 871 108 180 375 427 1,961

Solar PV 323 0 0 45 25 393

Wind or solar PV 1,289 0 0 0 0 1,289

Waste-to-energy 249 0 0 10 18 276

Biomass/biogas 460 41 10 25 181 716

Total 10,802 149 2,259 3,554 6,718 23,482

Table 3. Summary of Regulatory Treatment of Renewable Energy IPPs 12

Renewable Areas where Regional Areas where Regional Investment

Tariff will be mutually Maximum 85% of regional

Biomass Direct selection, or

Biodiesel Tariff will be mutually Tariff will be mutually

Figure 2. Indonesia Electrification Ratio (2010-2019)

Source: MEMR, 2019

3.2 Cost and Technical

Local Currency relationship between the magnitude and duration of

3.3 Project Development

Figure 4. Project Development Cycle and Key Milestones

Project Project Design and Operations &

• Prefeasibility • Financial • Detailed • Equioment sales • Construction • Equipment and

Table 4. Summary of Challenges in Domestic Financing for Renewable Energy Projects

Financier Regulator Developer

4. Market Conditions for Solar

4.1 Utility-Scale, Ground-

Table 5. Solar PV IPP Projects under Development

Project Name Province Size (MW) Status

PLTS Gorontalo Gorontalo 10 Financial close

PLTS Pringgabaya NTB 5 Constructed

PLTS Sengkol NTB 5 Constructed

PLTS Selong NTB 5 Constructed

PLTS Kuta Lombok NTB 5 Construction

PLTS Likupang South Sulawesi 15 Construction

PLTS Cirata (floating) West Java 145 Construction

PLTS West Bali Bali 25 PLN bidding

PLTS East Bali Bali 25 PLN bidding

PLTS East Bekasi West Java 110 Proposed

Regulatory Treatment Key Decision Makers

Services 100% 100% 100%