InvestmentOpportunities_RenewableEnergy_Oct2014ed

INVESTMENT
OPPORTUNITIES
Renewable Energy

INDONESIA
Investment Promotion Centre
London - United Kingdom
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Email: iipc.london@bkpm.go.id
Website: www.bkpm.go.id
1
Preface
Indonesia is the largest economy in Southeast Asia and one of the emerging market
economies of the world. Indonesia’s direct investment has grown significantly by 27.9%
increase from 2012 to 2013 with the value of $42.2B and also the figure tripled in comparison
to the amount in 2009 that was $15B. Foreign direct investment has also increased from USD
24.6B in 2012 to USD 28.6B in 2013, reflecting growing confidence in the economy amongst
the investors.
Indonesia’s demographic is the fourth largest in the world with over 240 million people,
supported by a youthful working population and also fortunate in being part of ASEAN
countries with its population over 600 million people, which is growing rapidly. It is predicted
that number of middle class will reach 135 million by 2030, as such it increases the domestic
demand for various sectors and will ultimately boost Indonesian economy. Considering the
decrease of fossil energy and having abundant sources of alternative energy on the other
hand such as renewable ones, therefore Indonesia needs to find alternative ways and develop
its potencies.
As deliberate commitment to create a low-carbon economy, the government has introduced
a National Energy Policy to grow the contribution of new and renewable energy resources in
the national energy mix by 23% in 2025, an increase from 7.95 MTOE in 2010 to 87.4 MTOE.
Indonesia’s renewable energy is going to be diversely developed on geothermal, hydropower,
biofuel, biomass, wind and solar PV.
In general, in order to attract more investment, the government has provided various
incentives such as corporate income tax exemption or reduction, import duty exemption,
greater share of ownership, fund facilities, competitive electricity Feed-in Tariffs (FITs) and
biofuel usage mandatory. As an addition, the government also provides tax reduction for the
sale of low carbon transports powered by renewable sources, including biofuel.
Moreover,thenewPresidentJokoWidodoandhis“WorkingCabinet”arecommittedtodevelop
massive and fast infrastructural amenities across the country so as to transform Indonesia into
the major economic player in the world. Therefore, it will open more opportunities to invest in
infrastructure projects, including renewable energy.
Indonesia Investment Promotion Centre (IIPC) London’s office, as a representative office of
Indonesia Investment Coordinating Board (BKPM), is always eager to provide excellent
service in promoting various investment opportunities, along with responding any investment
enquiries and facilitating prospective investors to land their investment in Indonesia.
IIPC London understands the increase of public and private interest in renewable energy
development in Indonesia. Thus, we gathered the most important information on the
renewable energy sector and compile them in-house to produce the 2nd edition of
comprehensive guideline for those who would like to invest the renewable energy
sectors in Indonesia.
Finally, we are always delighted to encourage people to invest in Remarkable Indonesia.
IIPC London
Iipc.london@bkpm.go.id
29th
October 2014

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Table of Content
Preface...............................................................................................................................................................................................1
Table of Content ...........................................................................................................................................................................2
Introduction....................................................................................................................................................................................3
INDONESIA.......................................................................................................................................................................4
Remarkable INDONESIA ...........................................................................................................................................................4
Key Statistical Figure of Indonesian Electricity..................................................................................................................5
Energy Policy Development Mechanism............................................................................................................................6
Low Carbon Economy and Renewable Energy Development .....................................................................................7
Invest in Remarkable Indonesia Renewable Energy........................................................................................................9
Investment Guidelines in Renewable Energy.............................................................................................................11
Hydropower and Micro Hydro...............................................................................................................................................18
Current Statistics and Future Trends ...................................................................................................................................19
Potential Locations ....................................................................................................................................................................22
Government Incentives...................................................................................................................................................23
Biomass .............................................................................................................................................................................................25
Current Statistics and Future Trends....................................................................................................................................26
Potential Sources........................................................................................................................................................................27
Government Incentives............................................................................................................................................................30
Potential Projects........................................................................................................................................................................31
Existing Players..................................................................................................................................................................35
Solar PV .............................................................................................................................................................................................37
Onshore Wind ................................................................................................................................................................................43
Current Statistics.........................................................................................................................................................................44
Existing Players and Projects..........................................................................................................................................48
Geothermal .....................................................................................................................................................................................51
Potential Projects..............................................................................................................................................................59
Biofuel................................................................................................................................................................................................61
Current Statistics.........................................................................................................................................................................62
Potential Sources........................................................................................................................................................................65
Low Carbon Transport...............................................................................................................................................................69
Domestic Market Opportunities............................................................................................................................................70
Regional and Global Market Opportunities .......................................................................................................................71
Government Incentives...................................................................................................................................................73
Useful Links.....................................................................................................................................................................................76

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INTRODUCTION

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INDONESIA – an archipelago spanning over 14,300 islands on more than one tenth of
the equator between Southeast Asia and Australia. While the islands alone cover an area of
1.9 million square kilometres, the territorial water covers an area of nearly four times the size
of the mainland. The main islands of Sumatera, Kalimantan/Borneo, Sulawesi, Java (where
the capital city of Jakarta is located), and Papua are home to the majority of the population.
As the 4th most populous country in the World with more than 243 million citizens (40% of
the ASEAN population), Indonesia is defined as a very diverse nation. Located between two
distinguish bio-geographic groups (Asia and Australia) have made the flora and fauna living
in Indonesia quite distinctive.
Remarkable INDONESIA
Passing six decades of its independence,
Indonesia has made tremendous progress-
es in its economic development through
expansion from traditionally agricultural-
based economy towards manufacturing
and service-oriented industry. The evolu-
tion has successfully made Indonesia as
the largest economy in South-East Asia
and the 15th largest economy in the world.
Holding a significant role in the global economy, Indonesia will continue its significant
involvement in not only regional and global forum, but also other bilateral activities. Had
successfully overcome the 2008’s global economic crisis, Indonesia is an emerging global
powerhouse that economically strong, politically stable, and reform minded. Economic
progress has also brought improvement in prosperity, which can be reflected not only in
increasing income per capita, but also in the improvement of various social and other
economic indicators, including the Human Development Index (HDI) that was doubled from
1980 to 2010.

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Key Statistical Figures of Indonesian Electricity
As quoted from National Electricity Generation Plan (Rancangan Umum Penyediaan Tenaga
Listrik or RUPTL) 2013-2022, the current capacity of power generation in Indonesia is 40.5 GW,
which is produced and supplied by State Electricity Company (Perusahaan Listrik Negara or
PLN) and Independent Power Producers (IPPs).
Source: RUPTL 2013-2022, PLN, 2013.
With rapid economy and population growth, the electricity demand will continuously increase
as estimated around 386.6 TWh by 2022. It means that additional power generation capacity
needs to be increased totally by 59,515 MW from 2013 to 2022.This is expected to be supplied
by PLN and IPP (incl. unallocated yet), with the major role of IPP until 2022.
Source Year Total
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PLN 2,518 2,908 2,013 2,919 1,869 1,234 55 90 2,003 1,244 16,852
IPP 314 878 729 2,003 1,506 6,838 6,410 3,948 1,391 1,535 25,552
Unallocated 96 1,026 2,084 2,555 2,689 3,435 1,954 3,274 17,112
Total 2,831 3,786 2,838 5,948 5,459 10,627 9,154 7,473 5,348 6,053 59,515
Although the government has successfully increased the nationwide electrification ratio from
62.3% in 2008 to 75.9% in 2012, yet more power plants need to be built in order to meet the
national electricity demand.
Region 2008 2009 2010 2011 2012
Indonesia 62.3% 65.0% 67.5% 71.2% 75.9%
Java - Bali 68.0% 69.8% 71.4% 72.3% 77.9%
Sumatra 60.2% 60.9% 67.1% 69.4% 77.4%
Kalimantan 53.9% 55.1% 62.3% 64.3% 76.7%
Sulawesi 54.1% 54.4% 62.7% 66.6% 67.5%
Eastern Indonesia 30.6% 31.8% 35.7% 44.2% 54.0%
Region PLN IPP Total
Java - Bali 26,815 MW 5,000 MW 31,815 MW
Non Java – Bali
• Sumatra
• Eastern Indonesia
7,222 MW 1,496 MW 8,718 MW
4,533 MW 666 MW 5,199 MW
2,689 MW 830 MW 3,519 MW
Total 34,037 MW 6,496 MW 40,533 MW

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Energy Policy Development Mechanism
National Energy Council (Dewan Energi Nasional or DEN)
DEN is chaired by the President and daily chaired by Minister of Energy and Mineral
Resources (EMR) with main task to compose the National Energy Policy (Kebijakan Energi
Nasional or KEN). Members of DEN consist of related ministers (Minister of Finance, State
Minister of National Development Planning, Minister of Transportation, Minister of Industry,
Minister of Agriculture, Minister of Research and Technology and Minister of Environment)
and also other stakeholders, such as academicians, leaders of state owned businesses that
are related to energy provision, consumer and technology experts. DEN is the body that
holds authority of approving the General Design of National Energy (Rancangan Umum Energi
Nasional or RUEN). The formation of DEN and its objectives are based on Government
Regulation No. 30 of 2007.
National Energy Policy (Kebijakan Energi Nasional or KEN)
KEN is the main policy of energy development in Indonesia which is composed and
supervised by DEN. It provides targets of energy development across sectors and regions in
Indonesia. Renewable energy is also covered in KEN, stating that New and Renewable Energy
should contribute 23% by 2025 and 31% by 2050 of the target energy mix.

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General Design of National Energy (Rancangan Umum Energi Nasional or RUEN)
RUEN is a more specific guideline in developing the nation’s energy security. The design is
based on KEN and composed by a dedicated drafting team led by Director Generals from
various related ministries.The drafting team should also take input from general public, which
are Energy Associations, Higher Education institutions and energy experts. The final draft of
RUEN needs to be approved by DEN before being put into practice. RUEN formulation, as well
as RUED-P & RUED-K (or Provincial and Municipal levels of RUEN), are regulated by President
Regulation No. 1 of 2014.
*)Note that, the Directorate General of New, Renewable and Energy Conservation (DG NREC),
which sits under the Ministry of Energy and Mineral Resources (EMR), is the chief regulator in
the renewable energy sector.
Low Carbon Economy and Renewable Energy Development
Indonesia is striving to create a low carbon economy and has taken a lead on committing
to cut carbon emissions by 26% from business as usual case by 2020, without international
support, and up to 41% with the help of international donors. Rising coal and oil prices and
the commitment to green technology are driving the government’s national energy policy to
increase the use of natural gas and renewable energy resources.
Current estimates—below, compiled by Indonesia Ministry of Energy and Mineral Resources
in 2013 and 2014—placed total renewable energy installed capacity at 8.1 GW. In contrast, it is
calculated that the total renewable energy potential within the country is 154.9 GW, and thus
the percentage of undeveloped renewable energy is approximately 95%.
The National Energy Council, led by the President, has created a master plan to lower the na-
tion’s dependence on oil and to expand coal, along with new and renewable energy. Indone-
sia has worked out the Target Energy Mix, which calls for increasing the contribution of new
and renewable energy resources to 23% by 2025 of the overall energy mix. It is projected that
the contribution of these sources would significantly increase from only 7.95 MTOE in 2010 to
87.4 MTOE in 2025.
Figures below represent the details of the Target Energy Mix in Indonesia.
Renewable Energy Sources in Indonesia
Source: 1
Ministry of EMR, 2014.
2
DG NREC, Ministry of EMR, 2013.
Source Capacity
1 7.82%
1
4.63%
2 17.22%
1 1.41%
2 2/day
2
0.94M W

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Target Energy Mix (2010 – 2025)
New and
Renewable
Breakdown of New and Renewable Energy Contribution (2015-2025)
Source: National Energy Council, 2014.

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Installed Capacity of Renewable Energy (2008 - 2012)
Source: DG of Electricity, Ministry of EMR, 2013.
Invest in Remarkable INDONESIA Renewable Energy
With GDP reached almost US$ 1T and Foreign Direct Investment (FDI) rose by 16.5% to US$
28.6B in 2013, Indonesian economy has grown steadily above the world average in the last 10
years.
Indonesia welcomes and encourages FDI from various business sectors such as infrastructure,
renewable energy, value-added manufacturing industries, as well as tourism and creative
industries. The main regulatory framework surrounding investment is Law No. 25 of 2007 on
Investment.
As can be seen from graphs provided in previous page generated from data collected by
Ministry of EMR, installed capacity of electricity generation from renewable resources is
increasing steadily since 2010. Nevertheless, as demand for energy steadily increasing, for
more than a decade, Indonesian economy is still highly dependence on carbon-based energy
like oil, coal and natural gas, for its energy generation.
Therefore, many incentives have been introduced to attract investment in the renewable
energy.

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Minimum Investment Project
Based on Chairman of Indonesia Investment
Coordinating Board (BKPM) Regulation No.
12 of 2013, minimum investment value for
FDI is Rp 10 Billion (approx. US$ 1 Million)
with minimum paid-up capital of Rp 2.5
Billion (approx. US$ 250,000.00).
Import Duty Exemption
Based on Minister of Finance (MoF) Regula-
tion No. 76/PMK.011/2012, all green-field or
expansion investment projects are grant-
ed import duty exemption on imported
machineries, equipment and raw materials
(for 2 years) for the company usage during
initial production period as long as they are
not or inadequately produced in Indonesia.Share Ownership
As stipulated on Law No. 30 of 2009 on
Electricity, both public and private
sector are allowed to participate on power
generation, transmission, distribution, sales
of electricity. Based on the recent Presi-
dent Regulation No. 39 of 2014 (popularly
known as Negative Investment List), foreign
investors are allowed to invest in small
scale power generator (1-10 MW) projects
with maximum share ownership of 49%.
Meanwhile, for greater scale (>10 MW), 95%
foreign share ownership (yet 100%, if under
Public Private Partnership scheme during
concession period) are allowed.
Biofuel industry is open 100% for foreign
investors. Meanwhile, maximum share
ownership of 95% is allowed if it is built
integrated with its own plantation.
Tax Allowance
Based on Government Regulation No.
52 of 2011 and MoF Regulation No. 144/
PMK.011/2012, investment in new and
renewable energy is eligible for income tax
facilities of:
Tax Holiday
Based on MoF Regulation No. 130/
PMK.011/2011, corporate income tax
exemption for the period of 5 to 10 years
from the start of commercial production
is granted for company with minimum
investment project value of Rp 1 Trillion
(approx. US$ 100 Million) in 5 priority
“pioneer industries” including renewable
energy.
• A reduction in net income of up to 30%
of the amount invested, pro-rated at 5%
for six years of the commercial produc-
tion, provided that the assets invested
are not transferred out within six years.
• Acceleration of depreciation & amorti-
sation for building and non-building.
• A reduction of income tax on dividends
paid to non-residents to 10% or lower
rate according to double taxation
avoidance agreement.
• Extension of tax losses carry forwards
for 5 years and up to 10 years (if meet
certain criteria).Biofuel Usage Mandatory
Based on Ministry of Energy and Mineral
Resources Regulation No. 20 of 2014, every
trading company and user of gasoline and
diesel are required to use locally-sourced
biofuel for certain percentage gradually.
Geothermal Fund Facility (GFF)
MoF Regulation No. 3 of 2012 stated that
the Government provides GFF which is
managed by the Centre of Government
Investment (Pusat Investasi Pemerintah or
PIP) to provide loans or financial support for
data collection of new potential geothermal
sites during preliminary survey, feasibility
study or exploration activities.

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Feed-in Tariff (FIT)
FIT is a policy mechanism which obligates State Electricity Company (PLN) as the off-taker
under a Power Purchase Agreement (PPA) to purchase the electricity—above the average
consumer rates—generated from renewable sources (hydropower, biomass, geothermal,
solar PV or wind power) owned by Independent Power Producers (IPPs). FIT under PPA can
also be negotiated with PLN (subject to approval from Ministry of EMR) if IPP requires higher
rates.
Investment Guidelines in Renewable Energy
The diagrams in the next page are typical step by step investment guidelines designed for
investors who would like to invest in renewable energy in Indonesia. Three guidelines under
sections of Various Renewable Energy (applied to hydro, biomass, wind, solar PV), Geothermal
and Biofuel are provided in the following page.

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Geothermal
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Biofuel
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HYDROPOWER
& MICRO HYDRO

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Current Statistics And Future Trends
Currently, one of Indonesia’s main electricity sources is generated from hydropower plants
with total capacity of 4 GW. Independent Power Producer (IPP) and Private Power Utility
(PPU) are contributing around 1/8 of Indonesia’s power generation from hydro power. More
detailed figures can be seen on the following chart. Based on National Electricity Generation
Plan (RUPTL) 2013-2022 published by PLN, Indonesia is planning to develop further 3.7 GW
capacity of hydro power plant from 2013 to 2022, managed by PLN itself, IPP and PPU.
Hydro Power Plant Installed Capacity (2008-2012)
Source: Electricity Statistics 2008-2012, DG Electricity, Ministry of EMR, 2009-2013.
Apart from hydro power in medium and large scale, the government also encourages the
development of smaller scales of hydro power, such as mini and micro hydro. The total
capacity of mini and micro hydro soared tenfold from 2008 to 2012, from only 6.61 MW to
68.17 MW respectively, as illustrated on the following page. IPP and PPU contributed around
half of the whole capacity in this sub-sector. Despite this rapid development, it is yet below
the target of Ministry of EMR in which they are planning to expand micro hydro into 1.4 GW
by 2025.

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Mini & Micro Hydro Power Plants Installed Capacity (2008-2012)
Development Plan of Mini & Micro Hydro Power Plant (2010-2025)
Source: Ministry of EMR, 2012.
Year Units 2010 2011 2012 2013 2014 2015 2020 2025
Capacity MW 245 279 314 348 383 417 760 1,425
Production GWh 1,717 1,958 2,199 2,440 2,681 2,922 5,326 9,986
Investment Million $ 735 699 785 696 765 834 1,140 1,781
Production cost Million $ 258 294 330 366 402 438 533 749
Emmision reduction Ton of CO2 192,815 219,888 246,961 274,033 301,106 328,179 598,120 1,121,475
Eletrifed houses Units 1,470,000 1,674,000 1,884,000 2,088,000 2,298,000 2,502,000 4,560,000 8,550,000

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Potential Locations
Indonesia has approximately 75.6 GW electricity generation potential from hydro power.
Yet, with only 4 GW installed capacity in 2012, Indonesia offers opportunities for hydro pow-
er plant development in various locations in Indonesia. The table below shows electricity
generation potential from large and small scale hydro power based on island/region, followed
by mapping of hydro power potentials from various areas in Indonesia.
Electricity Generation Potential from Hydropower
Mapping of Hydro Power Potentials
Potential Implementation Potential Implementation Potential Implementation
1 Sumatra 16,100.00 1,154.00 281.76 83.44 16,381.76 1,237.44
2 Java 12,050.00 2,012.50 222.02 212.32 12,272.02 2,224.82
3 Kalimantan 5,999.50 30.00 277.75 31.27 6,277.25 61.27
4 Sulawesi 14,550.00 352.00 167.56 118.05 14,717.56 470.05
5 Bali & Nusa Tenggara 4,900.00 0.00 31.64 12.25 4,931.64 12.25
6 Moluccas & Papua 21,057.00 23.00 32.78 4.67 21,089.78 27.67
74,656.50 3,571.50 1,013.51 462.00 75,670.01 4,033.50
Large Scale (> 10 MW) Small Scale (< 10 MW) Total (MW)
IslandNo
Total

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Government Incentives
Feed-in Tariff (FIT)
State Electricity Company (PLN) is obliged to purchase electricity generated from hydro power
plants under the Power Purchase Agreement (PPA), as regulated in Ministry of EMR Regulation
No. 22 of 2014, with the following Feed-in Tariff (FIT):
Notes: 1. FIT for the purchase of electricity from power plants with capacity of more than 10 MW
is negotiated with PLN and subject to approval from Minister of EMR.
2. Utilising existing lake, dam and/or irrigation channel.
3. MV = Medium Voltage (1000 Volts – 36 Kilovolts).
4. LV = Low Voltage (50 Volts – 1000 Volts).
FTP-2 is PLN’s effort to rapidly build large scale geothermal, hydropower and coal power plants
to address the increasing demand for electricity in Indonesia, as stated in President Regulation
No. 4 of 2010 jo. No. 48 of 2011 and Ministry of ERM Regulation No. 15 of 2010 jo. No. 1 of 2012
jo. No. 21 of 2013. Under FTP-2 scheme, electricity generated by IPPs will be purchased by PLN
as agreed on PPA. Moreover, the government will issue Business Viability Guarantee Letter
(BVGL) stating that IPPs will be protected from payment default regardless the risk event.
Through FTP-2, Indonesia is expected to further elevate its electricity generation capacity by
17,918 MW by 2020, including 1,803 MW from hydro power plants. List of hydro power plant
development projects are listed on the following table.
Fast Track Programme Phase 2 (FTP-2)
Hydro Power Plant Development Projects based on FTP - 2
Province Owner Project
Name
Capacity

(MW)
Operation
Nanggroe
Aceh

Darussalam
IPP Peusangan-‐4 83 2020
Upper
Cisokan
PS 4
x
260 2017
Jatigede 2
x
55 2017
Lampung IPP Semangka 56 2017
Bonto
Batu 110 2019
Malea 90 2020
West
Sumatra PLN Masang-‐2 55 2020
PLN Asahan
III 174 2018
Hasang 40 2018
Wampu 45 2015
West
Java PLN
South
Sulawesi IPP
North
Sumatra
IPP
Y1-Y8 Y9-Y20 Y1-Y8 Y9-Y20 Y1-Y8 Y9-Y20 Y1-Y8 Y9-Y20
1
Java, Bali &
Madura
967.5 675 1,143.00 693 1,075.00 750 1,270.00 770
2 Sumatra 1,064.25 742.5 1,257.30 762.3 1,182.50 825 1,397.00 847
3
Kalimantan &
Sulawesi
1,161.00 810 1,371.60 831.6 1,290.00 900 1,524.00 954
4
West & East
Nusa Tenggara
1,209.34 843.75 1,428.75 866.25 1,343.75 937.5 1,587.50 962.5
5
Moluccas &
North Moluccas
1,257.75 877.5 1,485.90 900.9 1,397.50 975 1,651.00 1,001.00
6
Papua & West
Papua
1,548.00 1,080.00 1,828.80 1,108.80 1,720.00 1,200.00 2,032.00 1,232.00
No Region
Feed-in Tariff (IDR /KWh) for Hydro Power Plant up to 10 MW1
Utilising Existing Structure2
Not Utilising Existing Structure
MV3
LV4
MV LV

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BIOMASS

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Current Statistics and Future Trends
Installed capacity of electricity generation from biomass in Indonesia steadily rose from 935.51
MWe in 2005 to 1,709 MWe in 2010 as depicted in the following chart. Having thoroughly
known the abundant potential of agricultural and forestry residues as well as municipal waste,
electricity generation sourced from biomass is predicted to play a major part in energy mix.
For this reason, the government, through its National Energy Policy, aims to increase the
biomass contribution to the national energy mix by 5.1% or 19 MTOE in 2025. In other words,
biomass will contribute more than 20% of electricity emanated from all new and renewable
sources as shown on the following table.
Electricity Generation from Biomass (2005-2010)
Biomass Contribution towards National Energy Mix (2015-2025)
MTOE % MTOE % MTOE %
Biomass 4 2.00% 7 2.30% 19 5.10%
Overall New and
Renewable Energy
22 10.00% 49 17.00% 87 23.00%
National Energy Mix 215 100.00% 290 100.00% 380 100.00%
2015 2020 2025

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Potential Sources
As a country with large forestry and agriculture industry, Indonesia has a huge potential
for harnessing biomass to produce electricity. According to the research by Agency for the
Assessment and Application of Technology (Badan Pengkajian dan Penerapan Teknologi or
BPPT) in 2012 on 5 sources: plymills, sawmills, sugar mills, palm oil mills and rice mills; biomass
potential is estimated to reach 1,160 MWe. Another research by a German company, ZREU
(presented on the following page) further showed that Indonesia can generate more than 460
GJ per year derived from 146.7 Million Tons of feedstock from various residues. Furthermore,
in the light of a huge population (more than 240 million people), Indonesia could positively
benefit from enormous municipal waste to generate immense amounts of electricity.
Below is the mapping of the potential source of agro-based biomass in Indonesia.
Potential Source of Agro-based Biomass in Indonesia
Source: Indonesia Agency for the Assessment and Application of Technology (BPPT), 2012.
Note: the Directorate General of New, Renewable and Energy Conservation has created an
interactive map of biomass sources from various locations in Indonesia which can be accessed
from this link:
http://aplikasi.ebtke.esdm.go.id/biomass

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Sustainable forestry residues in Indonesia come from variable-sized wood from forests (i.e.
natural forests, plantations and community forests that commonly produce small-diameter
logs used as firewood by local people), rubber wood and wood residues from logging or wood
industry wastes.
Forestry Residues
The major agriculture residues to be considered for power generation in Indonesia are from
palm oil, sugar cane and rice. Currently, 67 sugar mills are in operation in Indonesia and eight
more are under construction or planned. The mills range in size of milling capacity from less
than 1,000 Tons to 12,000 Tons of sugar cane per day. Current sugar processing industry in
Indonesia produces around 8 MT bagasse and 11.5 MT canes top and leaves daily.
Meanwhile, there are 39 palm oil plantations and mills currently operating in Indonesia, and
at least eight new plantations are under construction. Most palm oil mills generate combined
heat and power from fibres and shells, making the operations energy self–efficient. However,
the use of palm oil residues can still be optimised in more energy efficient systems.
Agriculture Residues
Statistics of Biomass Sources from Forestry and Agriculture Industry
Biomass
Sources
Main Region /
Island
Production
[million
t/year]
Technical
Energy
Potential
[million
GJ/year]
Remarks
Rubber
wood
Sumatra,
Kalimantan, Java
41
(replanting)
120 Small logs ∅ <10 cm,
big and medium logs are
used as fire wood in brick
and roof tile industry: price
20,000 – 30,000 IDR/m³.
Logging
residues
Sumatra,
Kalimantan
4.5 19
Sawn
timber
residues
Sumatra,
Kalimantan
1.3 13 Residues of the factories are
often used as fire wood by
local communities, residues
available for free.
Plywood
and veneer
production
residues
Kalimantan,
Sumatra, Java,
Papua, Moluccas
1.5 16
Sugar
residues
Java, Sumatera,
South Kalimantan
Bagasse: 10
cane tops: 4
cane leaves:
9.6
78 Bagasse is generally used in
sugar factories (90 %).
The use of cane tops and
leaves needs to be
investigated.
Rice
residues
Java, Sumatra,
Sulawesi,
Kalimantan,
Bali/Nusa
Tenggara
Husk: 12
bran 2.5
stalk: 2
straw: 49
150 Stalk and straw are
generated at the field and
generally burnt, in some
areas used for feeding or
raw material for paper
industry.
Husks often burnt
uncontrolled.

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Source: ZREU, 2000.
Other potential source of biomass energy can also come from municipal wastes. The quantity
of city or municipal wastes in Indonesia is comparable with other big cities in the world. Most
of these wastes are originated from household. At present, the wastes are either burned by
each household or collected by the municipalities and later transported to a waste disposal
site.
Although the government is providing facilities to collect and clean all the wastes, due to the
increasing number of populations, most of big cities in Indonesia had been suffering from the
increasing problem of waste disposals. Inadequate number of waste treatment facilities and
inadequate waste management technology open new opportunities for investment.
Estimated biomass sources potential from ten largest Municipal (City/Regency) wastes in
Indonesia is as follows.
Municipal Wastes
Biomass Sources from Municipal Wastes
No City or Regency
Biomass Potential from Municipal Waste
(MW)
General Potential Technical Potential
1 Bandung 221.98 58.51
2 Bogor 166.3 41.77
3 Bekasi 161.07 122.49
4 Tangerang 139.79 14.25
5 Jakarta 128.08 -
6 Semarang 71.22 19.22
7 Surabaya 42.96 30.85
8 Medan 32.63 22.09
9 Palembang 15 12.33
10 Pekanbaru 13.9 6.9
Biomass
Sources
Main Region /
Island
Production
[million
t/year]
Technical
Energy
Potential
[million
GJ/year]
Remarks
Rubber
wood
Sumatra,
Kalimantan, Java
41
(replanting)
120 Small logs ∅ <10 cm,
big and medium logs are
used as fire wood in brick
and roof tile industry: price
20,000 – 30,000 IDR/m³.
Logging
residues
Sumatra,
Kalimantan
4.5 19
Sawn
timber
residues
Sumatra,
Kalimantan
1.3 13 Residues of the factories are
often used as fire wood by
local communities, residues
available for free.
Plywood
and veneer
production
residues
Kalimantan,
Sumatra, Java,
Papua, Moluccas
1.5 16
Sugar
residues
Java, Sumatera,
South Kalimantan
Bagasse: 10
cane tops: 4
cane leaves:
9.6
78 Bagasse is generally used in
sugar factories (90 %).
The use of cane tops and
leaves needs to be
investigated.
Rice
residues
Java, Sumatra,
Sulawesi,
Kalimantan,
Bali/Nusa
Tenggara
Husk: 12
bran 2.5
stalk: 2
straw: 49
150 Stalk and straw are
generated at the field and
generally burnt, in some
areas used for feeding or
raw material for paper
industry.
Husks often burnt
uncontrolled.
Coconut
residues
Sumatra, Java,
Sulawesi
Shell: 0.4
husk: 0.7
7 Residues are generated
decentralised and usually
left on the plantation field
Largely used as fire wood
and for the production of
charcoal.
Palm oil
residues
Sumatra,
Kalimantan,
Sulawesi, Maluku,
Nusa Tenggara,
Papua
Empty fruit
bunches: 3.4
Fibres: 3.6
palm shells: 1.2
67 Palm shells and fibres are
common fuel sources, EFB
are generally incinerated.
Notes: 1. General Potential refers to municipal waste that is yet scattered over various places.
2. Technical Potential refers to municipal waste that has been gathered in designated
areas, that is, landfill sites.
Source: DG NREC, Ministry of EMR, 2014.

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Notes: 1. FIT for the purchase of electricity from power plants with capacity of more than 10 MW is
negotiated with PLN and subject to approval from Minister of EMR.
2. MV = Medium Voltage (1000 Volts – 36 Kilovolts)
3. LV = Low Voltage (50 Volts – 1000 Volts)
4. Zero Waste is waste management technology that allows the processed waste to be fully
reused through the process of gasification or incineration.
5. Sanitary landfills are sites that are used to isolate waste so as to keep the environment safe.
Feed-in Tariff
State Electricity Company (PLN) is obliged to purchase electricity generated from biomass
power plants under the Power Purchase Agreement (PPA), as regulated in Ministry of Energy
and Mineral Resources Regulation No. 4 of 2012 and No. 19 of 2013, with the following Feed-in
Tariff (FIT):
No Region
Feed-in Tariff (IDR / kWh) for
Biomass Power Plant up to 10 MW 1
‘Zero Waste' ‘Sanitary Landfill’
Crop or Forestry-
based Biomass
MV LV MV LV MV LV
1
Mollucas and
Papua
1,450.00 1,798.00 1,250.00 1,598.00 1,267.50 1,722.50
2 Sulawesi 1,450.00 1,798.00 1,250.00 1,598.00 1,170.00 1,590.00
3
West Nusa
Tenggara and
East Nusa
Tenggara
1,450.00 1,798.00 1,250.00 1,598.00 1,170.00 1,590.00
4 Kalimantan 1,450.00 1,798.00 1,250.00 1,598.00 1,170.00 1,590.00
5 Sumatera 1,450.00 1,798.00 1,250.00 1,598.00 975.00 1,325.00
6
Java, Madura
and Bali
1,450.00 1,798.00 1,250.00 1,598.00 975.00 1,325.00

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Potential Projects
Solid Waste Treatment and Final Disposal
Management in Bogor Area, West Java
Location West Java Province.
Project
Background
Solid waste management in
final waste disposal site
(TPPAS) in the Bogor City,
Bogor Regency and Depok City
is still using open landfill. Solid
waste from Bogor City and
Bogor Regency recently
processed at TPPAS Galuga
based on an agreement
between Government of
Bogor City and Bogor Regency.
This agreement has already
extended for many times and
planned to be finished in
2015. Therefore, Government
of West Java Province has
planned to develop and
manage a newly TPPAS Nambo through PPP scheme. TPPAS Nambo is located in Nambo
Village Kelapanunggal Subdistrict, Bogor Regency, with total area of 55 Ha (40 Ha
owned by National Forest Company and 15 Ha owned by Local Government). The
current waste composition processed at TPPAS Galuga as on the table above.

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Scope of Works
The overall of this project implementation in TPPAS Nambo consisted of infrastructure
development as follows: intermediate treatment facility (ITF) and sanitary landfill
specification with air, water and land pollution control, insect vector and odour control.
All infrastructures should comply with the prevailing environmental law.
Government
Support
Land acquisition, access road, sanitary landfill, leachate treatment plant, supporting
facility and building.
Capacity
Operational hours: 8 hours/day, 365 days/year.
Operational capacity: 1000 Ton/day.
Refuse derived fuel (RDF) with capacity of 1000 Ton consists of 3 modules.
Compost processing unit with capacity of 100 Ton consists of 1 module.
Output target:
- Compost 45.4 Ton per day.
- RDF 408.6 Ton per day.
Estimated
Project Cost and
Revenue
Investment cost: ± US $ 60 Million.
Main income: Tipping fees and product sales.
- Tipping fees estimation: US $ 12/Ton.
- EIRR: 41.94%, IRR: 12.5 %, with Government support 60 %.
- Other potential operating revenues (waste/biomass to energy, recycling products).
Project
Implementation
Schedule
H2 2013: Finalisation of Final Business Case.
2015: Pre-Qualification.
2015: Bidding & Evaluation.
2015: Negotiation with Preferred Bidders.
2015: Contract Award.
Contracting
Agency
West Java Provincial Government
PIC: Mr Uus Mustari
Head of West Java Regional Solid Waste Management (BPSR Jawa Barat)
Jl. Kawaluyaan Indah No. 4 Bandung 40286
West Java - INDONESIA
Phone: +62 22 7332078, Fax: +62 22 7332078, Email: uusmustari@gmail.com

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Solid Waste Treatment and Final Disposal Management
in Surakarta, Central Java
Location Surakarta City, Central Java Province.
Project
Background
The Final Waste Disposal Site (TPPAS) Mojosongo, Surakarta, is technically over-loaded.
TPPAS Mojosongo consists of 17 Ha land, 13 Ha of the area are for waste disposal, 2 Ha
for office and road infrastructure, 1 Ha for graveyard and 1 Ha for leachate treatment
that have been operated since 1987. Government of Surakarta City is constrained by
the difficulty of obtaining new location, financial limitation and also the service demand
of society. Thus, Government of Surakarta City proposed PPP project to solve the city’s
problem.
Scope of Works
This project plans to reduce the solid waste volume at the new TPPSA Putri Cempo and
conduct proper waste management system. The concept is to integrate solid waste
management (waste prevention, recycling and composting, and combustion and
disposal in properly designed, constructed, and managed landfills) for Surakarta City.
The private partner shall responsible to perform the solid waste project, including
finance, engineering, design, construction, operation, and maintenance based on the
cooperation agreement as well as prevailing Indonesian law. The technical profile of this
project comprises of two options of waste management named Sanitary Landfill or
Anaerobic Digestion.

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Scope of Works
This project plans to reduce the solid waste volume at the new TPPSA Putri Cempo and
conduct proper waste management system. The concept is to integrate solid waste
management (waste prevention, recycling and composting, and combustion and
disposal in properly designed, constructed, and managed landfills) for Surakarta City.
The private partner shall responsible to perform the solid waste project, including
finance, engineering, design, construction, operation, and maintenance based on the
cooperation agreement as well as prevailing Indonesian law. The technical profile of this
project comprises of two options of waste management named Sanitary Landfill or
Anaerobic Digestion.
Estimated
Project Cost US$ 30.00 Million
Project
Implementation
Schedule
Pre-Qualification, Bidding & Evaluation, Negotiation with Preferred Bidders and
Contract Award is scheduled to be undertaken in 2015.
Contracting
Agency
City Government of Surakarta
PIC: Mr Zubaidi HS
Head of Investment and Financial Division, Surakarta Development Planning Agency
Jl. Jenderal Sudirman No.2 Surakarta, Central Java, INDONESIA
Phone: +62 271 655277, Fax: +62 271 655277, Email: ekonomi.bappeda@yahoo.com

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Existing Players
Sara Rasa Bio Mass
SaraRasa specialises in providing industrial grade pellets to power plants worldwide. Its
operation is located in Riau province, Indonesia and runs 24 hours, 7 days a week, producing
50,000 tons of pellets per annum. This strategic location and uninterrupted production gives
SaraRasa a great advantage in the biomass markets.
Website : www.sararasa.com
Address : 161 Lavender Street, #02-04 Lavender Place, Singapore 338750
Phone : +65 62927582
Email : info@sararasa.com
GE
In terms of renewable energy, last year GE has signed a Letter of Intent with PLN to develop a
pilot biomass power plant in Sumba that will use wood chips as fuel. The power plant will use
GE’s Integrated Biomass Gasification solution to generate 1 megawatt (MW) of electricity to
remote areas in Indonesia.
Website : www.ge.com/id/in
Address : BRI 2 Tower, 16 th floor, Jl. Jend. Sudirman Kav 44-46, Jakarta 10210
Phone : +62 21 573 0500
Fax : +62 21 574 7117
PT. Indonesia Biomass Resources
PT Indonesia Biomass Resources distributes palm kernel shell. The company was founded in
2010 and is based in Jakarta, Indonesia. PT Indonesia Biomass Resources operates as a subsidi-
ary of Bioenergy Resources Co., Ltd.
Address : 8th Floor, Suite 888, Palma One Building, Jalan H.R. Rasuna Said Block X-2 Kav 4,
Jakarta, 12950
Phone : +62 21 527 2562
Fax : +62 21 527 2565

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SOLAR PV

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Indonesian history of solar energy utilisation with solar photovoltaic (solar PV) technology
has been introduced and developed since the end of 1970s, especially to meet the electricity
demand in rural or remote areas which are not connected to national power grid owned by
PLN. Consequently, power generation and distribution are operated by the so called Private
Power Utility (PPU).
Installed capacity of electricity generation from solar PV in Indonesia was 4.09 MW in 2012,
increased from 0.19 MW in 2010. During the same period, the number of electricity generated
also grew from 0.50 GWh to 2.85 GWh originated from all solar PV operated by PLN. These
figures can be seen on the charts below. With the potential of solar energy that Indonesia has,
electricity generation from solar PV is expected to reach 1,016 GWh with the capacity of 580
MW, as shown in the following table. Pertaining to the facts above, Indonesia Solar PV energy,
therefore, still has plenty rooms for development.
Solar PV Installed Capacity (2008-2012)
Notes: PPU: Private Power Utility.

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Electricity Generation from Solar PV (2008-2012)
Solar PV Capacity and Electricity Generation Target (2010-2025)
Year Units 2010 2011 2012 2013 2014 2015 2020 2025
Capacity MW 245 279 314 348 383 417 760 1,425
Production GWh 1,717 1,958 2,199 2,440 2,681 2,922 5,326 9,986
Investment Million $ 735 699 785 696 765 834 1,140 1,781
Production cost Million $ 258 294 330 366 402 438 533 749
Emmision reduction Ton of CO2 192,815 219,888 246,961 274,033 301,106 328,179 598,120 1,121,475
Eletrifed houses Units 1,470,000 1,674,000 1,884,000 2,088,000 2,298,000 2,502,000 4,560,000 8,550,000

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Potential Locations
Indonesia is geographically located in the equatorial regions with relatively high solar
radiation intensity of about 4.5 KWp/m2 per day in all parts of Indonesia.To put it simply, every
1 KWp solar PV can produce 4.5 KWh of electricity per day.
Mapping of potential source of solar PV, solar PV capacity and electricity generation target,
and electricity generation from solar PV are as follows.
Feed-in Tariff
State Electricity Company (PT PLN) is obliged to purchase electricity generated from solar PV
power plants under the Power Purchase Agreement (PPA), as regulated in Ministry of EMR
Regulation No. 17 of 2013, with the following Feed-in Tariff (FIT):
No Region
Feed-in Tariff (Cent USD / kWh) for
Solar PV Power Plant
Max. Tariff
> 40% local
components
1 Moluccas and Papua 25.00 30.00
2
West Nusa Tenggara and
East Nusa Tenggara
25.00 30.00
3 Kalimantan 25.00 30.00
4 Sulawesi 25.00 30.00
5 Sumatera 25.00 30.00
6 Java, Madura and Bali 25.00 30.00

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Existing Players
PT. Surya Utama Putra
Located in Bandung (West Java), the Company has been producing solar panel and other re-
newable energy products such as refrigerator, pats, off grid, grid connected and multimedia
stall. With the vision to utilise renewable energy for people’s welfare.
Website : http://www.suryautamaputra.com/
Address : Jl. Raya Bandung – Garut, Km. 23, Rancaekek, Kab. Bandung 40394
Phone : +62 22 7798316
Fax : +62 22 7792082
PT LEN Industri
LEN Industry has developed Solar Panels since 1997. Its products have been installed in re-
mote areas of Indonesia with more than 3.5 MW generated. LEN is currently the only manu-
facturer that is capable of producing solar panels in Indonesia, which is the main element of
energy generation from solar energy.
Website : www.len.co.id
Address : Jl. Soekarno Hatta 442, Bandung 40254
Phone : +62 22 5202682
Fax : +62 22 5202695
PT Solar Power Indonesia
Solar Power Indonesia is a foreign company based in Bali and established to provide
affordable and economical renewable energy solutions for remote communities, resorts,villas,
hotels, and businesses throughout Indonesia and Asia. Products provided are combinations
of solar panels (photovoltaic panels), wind generators, hydro generators, energy storage sys-
tem, water generators, backup power systems, and energy efficient products. These solutions,
provided by SPI’s accredited ‘Renewable Energy’ engineers, uniquely optimise the
environmental conditions in which we live; abundant sunshine, ample winds, and flowing
streams.
Website : http://www.solarpowerindonesia.com/
Address : Jl. Sunset Road No. 18X, Kuta, Bali
Phone : +62 361 778802

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ONSHORE WIND

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Current Statistics
Installed wind power plant capacity in Indonesia was 0.94 MW in 2012 as displayed in the
chart below. To date, the biggest capacity of wind turbine installed is 100 KW
implemented by PLN and Ministry of EMR in Selayar Island, South Sulawesi. With the
wind speed roughly up to 7.5 m/s,Indonesia is suitable for small to
medium scaled wind turbines. Based on National Electricity Generation Plan 2
013-2022, Indonesia is seeking an additional capacity of 280 MW from 2013 to 2022.
Wind Power Plant Installed Capacity (2008-2012)
Note: PPU: Private Power Utility.

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Potential Locations
Mapping of potential electricity generated from wind power per region and potential onshore
wind locations are illustrated on the following diagrams.
Wind-Mapping based on Potential Electricity Generated
Source: Rachman, A., 2012.
Potential Onshore Wind Locations
No Village/Districts Provinces
Period of
Measurement
Average
Speed at
Elevation
of 24m
(m/s)
Wind
Turbine Size
1 Bulak Baru, Jepara Central Java 1995 4.6
Medium
Scale
2 Karimunjawa, Jepara Central Java 1996 3.6
Medium
Scale
3 Bungaiya, Selayar South Sulawesi 1996 4.9
Medium
Scale
4
Station Inderaja
Lapan Pare-pare South Sulawesi 1996 3.53
Medium
Scale
5 Dongin, Banggai Central Sulawesi 1996 2.8 Small Scale
6 Bulungkobit, Banggai Central Sulawesi 1996 2.2 Small Scale
7 Palu Central Sulawesi 1991-1994 2.85 Small Scale
8 Paudean, Bitung North Sulawesi 1995 2.8 Small Scale
9 Libas, Minahasa North Sulawesi 1995 3.23
Medium
Scale
10
Dsn. Doropeti,
Dompu
West Nusa
Tenggara 1995 3.7
Medium
Scale
11 Bajo Pulau, Bima
West Nusa
Tenggara 1995 3.7
Medium
Scale

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Period of
Measurement
Average
Speed at
Elevation
of 24m
(m/s)
Wind
Turbine Size
Medium
Scale
Medium
Scale
Medium
Scale
4
Station Inderaja
Medium
Scale
Medium
Scale
10
Dsn. Doropeti,
Dompu
West Nusa
Tenggara 1995 3.7
Medium
Scale
11 Bajo Pulau, Bima
West Nusa
Tenggara 1995 3.7
Medium
Scale
12
Sambela, East
Lombok
West Nusa
Tenggara 1995 4.5
Medium
Scale
13
Dsn. Tember, East
Lombok
West Nusa
Tenggara 1995 4.4
Medium
Scale
14
Dsn. Selayar, East
Lombok
West Nusa
Tenggara 1995 3
Medium
Scale
15
Dsn. Giligede, West
Lombok
West Nusa
Tenggara 1995 4.95
Medium
Scale
16
Dsn. Nangadoro,
Dompu
West Nusa
Tenggara 1995 4.3
Medium
Scale
17 Pai, Bima
West Nusa
Tenggara 1996 3.7
Medium
Scale
18 Kute, Central Lombok
West Nusa
Tenggara 1996 3.1
Medium
Scale
19 Sajang, East Lombok
West Nusa
Tenggara 1996 3.3
Medium
Scale
20
Nangabalang,
Manggarai
East Nusa
Tenggara 1995 3.3
Medium
Scale
21 Nangalili, Manggarai
East Nusa
Tenggara 1996 4.5
Medium
Scale
22
National Park
Komodo, Manggarai
East Nusa
Tenggara 1995 3
Medium
Scale
23
Pasir Putih,
Manggarai
East Nusa
Tenggara 1995 3.5
Medium
Scale
24 Maubesi, Kupang
East Nusa
Tenggara 1996 4.1
Medium
Scale
25
Palakahembi, East
Sumba
East Nusa
Tenggara 1996 4.84
Medium
Scale
26
Watumbelar, East
Sumba
East Nusa
Tenggara 1996 2.86 Small Scale
27 Sibowuli, Ngada
East Nusa
Tenggara 1996 3.2
Medium
Scale
28
Dsn. Ujung,
Manggarai
East Nusa
Tenggara 1996 3.4
Medium
Scale
29
Dsn. Papanggarang,
Manggarai
East Nusa
Tenggara 1996 2.8 Small Scale
30 Waingapu
East Nusa
Tenggara 1991-1994 2.6 Small Scale
31 Kaimbulawa, Buton
Southeast
Sulawesi 1996 3.95
Medium
Scale

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32
Gerak Makmur,
Buton
Southeast
Sulawesi 1996 2.81 Small Scale
33
Kalasuge, Sangihe-
Talaud North Sulawesi 1996 3.2
Medium
Scale
34
Kamangge, East
Sumba
East Nusa
Tenggara 1996 4.01
Medium
Scale
35 Parang, Jepara Central java 1996 6 Large Scale
36 Jorang, Tana Laut South Kalimantan 1996 2.3 Small Scale
37 Semaras. Kota Baru South Kalimantan 1996 2.2 Small Scale
38 Masebewa, Sikka
East Nusa
Tenggara 1996 3.1
Medium
Scale
39
Tomenas, South
Central Timor
South Central
Timor 1996 6.7 Large Scale
40 Netpala
South Central
Timor 1996 5.3
Medium
Scale
41 Oil Bubuk
South Central
42 Sakteo
South Central
43 Oesao, Kupang
South Central
Timor 1996 3.1
Medium
Scale
44 Hansisi, Kupang
South Central
Timor 1996 4.2
Medium
Scale
45 Unkris (Rote)
East Nusa
Tenggara 1996 6 Large Scale
46 Mondu
East Nusa
Tenggara 1996 4.6
Medium
Scale
47 Tuak Luba
East Nusa
Tenggara 1996 3.6
Medium
Scale
48 Nusa
East Nusa
Tenggara 1996 4.3
Medium
Scale
49 Paipaha, East Sumba
East Nusa
Tenggara 1996 3.3
Medium
Scale
50 Wala Kiri
East Nusa
Tenggara 1996 4.8
Medium
Scale
51 Napu
East Nusa
Tenggara 1996 5.2
Medium
Scale
Period of
Measurement
Average
Speed at
Elevation
of 24m
(m/s)
Wind
Turbine Size
Medium
Scale
Medium
Scale
Medium
Scale
4
Station Inderaja
Medium
Scale
Medium
Scale
10
Dsn. Doropeti,
Dompu
West Nusa
Tenggara 1995 3.7
Medium
Scale
11 Bajo Pulau, Bima
West Nusa
Tenggara 1995 3.7
Medium
Scale
Source: Statistics 2013, DG NREC, Ministry of EMR, 2013.

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Feed-in Tariff
State Electricity Company (PT PLN) is obliged to purchase electricity generated from onshore
wind power plants under the Power Purchase Agreement (PPA), as regulated in Ministry of
EMR Regulation No. 4 of 2012, with the following Feed-in Tariff (FIT):
No Region
Feed-in Tariff (IDR / kWh) for Wind
Power Plant
Electric Capacity up to 10 MW1
MV2
LV3
1 Mollucas and Papua Rp 984.00 Rp 1,506.00
2
West Nusa Tenggara and East
Nusa Tenggara
Rp 852.80 Rp 1,305.20
3 Kalimantan Rp 852.80 Rp 1,305.20
4 Sulawesi Rp 787.20 Rp 1,204.80
5 Sumatera Rp 787.20 Rp 1,204.80
6 Java, Madura and Bali Rp 656.00 Rp 1,004.00
1. FIT for the purchase of electricity from power plants with capacity of more than 10
MW is negotiated with PLN and subject to approval from Minister of EMR.
2. MV = Medium Voltage (1000 Volts – 36 Kilovolts).
3. LV = Low Voltage (50 Volts – 1000 Volts).
Notes:
Existing Players and Projects
In 2012, few projects have been developed at several locations, such as:
• Hybrid System Wind – PV and Diesel at Rote Ndao Regency, East Nusa Tenggara Province,
with 4 units of 10 KW wind turbine and 36 KW PV.
• Hybrid System Wind-PV-PLN at Girisari Village, Bali, consists of 1 unit wind turbine of 2.5
KW and 4.8 KW of Photovoltaic, for powering Indosat BTS.
• Small isolated grid connection at Nusa Penida Island, Bali, total installed of 735 KW
consists of 9 units and at Selayar Island (Sulawesi) installed of 2 units with output 200 KW.

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UPC Renewables Indonesia Limited
In 2012, UPC Renewables Indonesia Limited and PT Binatek Reka Energi signed a Power
Purchase Agreement (PPA) with State Electricity Company (PLN) whereby acting as the
off taker of the 50MWh electricity produced located at Samas Beach in Bantul Regency,
Yogyakarta Province on the island of Java. This PPA has a long term binding agreement of 30
years.
Website : http://www.upcrenewables.com
Address : Pusat Niaga Duta Mas Fatmawati, Block C1 No. 2-3, Jl. RS Fatmawati No. 39, Jakarta
Phone : +62 21 727 90151
United Nations Development Program (UNDP)
In 2013, Indonesia cooperated with the United Nations Development Program (UNDP) to
develop wind power generation projects at East Nusa Tenggara (NTT), Banten, Bali, West
Java and Jogjakarta Provinces aiming to increase the use of renewable sources in power
generation and reduce carbon emission in the areas. The joint program between Indonesia
science and technology research of BPPT and UNDP called Wind Hybrid Power Generation
(WhyPGen), is expected to improve electricity production from wind energy generation up
to 19.27 GWh per year and reduce carbon emission by 17,071 Metric Tons per year by 2015.
Website : http://www.evwind.es
Address : UNDP Indonesia, Menara Thamrin 8-9 Floor, Jl. MH Thamrin Kav. 3, Jakarta 10250
Phone : +62 21 3141308
Asia Green Capital Partners
In 2014, Singaporean investment firm Asia Green Capital Partners is planning to construct
wind projects with expected electricity generation of 157.5 MWh in Indonesia through its
subsidiary Indo Wind Power Holdings, it is negotiating Power Purchase Agreements (PPA) for
the initial 62.5 MWh Jeneponto 1 and 75 MWh Jeneponto 2 wind farms in Sulawesi. Those
wind farms will be located at the frontier region of Jeneponto Regency, South Sulawesi. The
proposed site is located 2 km from the coast on a ridge which creates optimal conditions for
wind turbines. The sites altitudes are ranging from 122 m to 320 m above sea level. The area’s
infrastructure is well developed with 150 KV transmission lines passing near the site. In 2 or
3 years’ time, West Timor 1 and 2 will be developed, and are likely to be financed through a
feed-in tariff (FIT) mechanism, which the government is expected to introduce later this year.
Website : http://www.asiagreencapital.com
Address : Jl. TB Simatupang, Kav 22-26, Jakarta Selatan 12430
Phone : +62 21 7599 9994

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GEOTHERMAL

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Geothermal energy is predicted to be Indonesia’s key source of electricity generation in the
future. In 2012, Indonesia generated 9,356 GWh of electricity from geothermal, a growth of
1,145 GWh from 2008 as can be seen from the following chart.
Although potential geothermal reserves of 28.6 GW is located in Indonesia (equal to 40%
of the world’s reserves), it is still underdeveloped since the installed capacity was only 1.34
GW in 2012. Knowing this huge opportunity, private parties are encouraged to take part in
any geothermal development stages from Preliminary Survey, Exploration, Feasibility Study,
Exploitation and Utilisation.
Geothermal Development Stages

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Electricity Production from Geothermal in 2008-2012
Source: 2013 Statistics, DG NREC, Ministry of EMR 2013
Based on Road Map of Geothermal Development (2006-2025) as stated on President
Regulation No. 5 of 2006 on the National Energy Policy, Indonesian Government has set a
targeted capacity of electricity production from geothermal with the total of 4.6 GW by 2016,
6 GW by 2020 and 9.5 GW by 2025.
Indonesia is located on the Ring of Fire which provides 28.6 GW geothermal energy potential
scattered across 299 locations. With only 4.5% of the whole potential are utilised, Indonesia
opens up opportunities for development in the geothermal energy sector.
Within more than 17,000 islands, the islands of Sumatra and Java hold around 12.8 GW and
9.7 GW of electricity generation potentials from geothermal respectively, as can be seen from
the table below. From those huge under and undeveloped potential reserves, only certain
area has been developed after being declared by Ministry of EMR as Geothermal Working
Areas (Wilayah Kerja Pertambangan Geothermal or WK). Complete list of 65 WKs, including 14
WKs managed by state-owned Pertamina Geothermal Energy (PGE), are illustrated in the next
page.
Potential Locations

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Geothermal Sources Located at 7 Big Islands in Indonesia
Source: Ministry of Energy and Mineral Resources, 2013.
The DG NREC, Ministry of EMR has also created an interactive map of geothermal reserves in
various locations in Indonesia that can be accessed from this link:
http://pabum.ebtke.esdm.go.id/gis/
Mapping of Geothermal Working Areas (WK) based on Province
Speculative Hypothesis Presumed Possible Proven
1 Sumatra 90 3089 2427 6849 15 380 12760 122
2 Java 71 1710 1826 3708 658 1815 9717 1134
3 Bali & Nusa Tenggara 28 360 417 1013 0 15 1805 5
4 Kalimantan 12 145 0 0 0 0 145 0
5 Sulawesi 65 1323 119 1374 150 78 3044 80
6 Moluccas 30 545 97 429 0 0 1071 0
7 Papua 3 75 0 0 0 0 75 0
299 7247 4886 13373 823 2288 28617 1341
Total Installed
12133 16484
28617
Total
Potential Energy (MW)
ReserveResourcesNo Island
Number of
Location

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No. Province
Geothermal Working
Area (WK)
Potential
Capacity (MW)
1 Nanggroe Aceh Darussalam
Jaboi 70
Seulawah Agam 130
2 North Sumatera
Sibayak - Sinabung 130
Sibual - Buali 750
Sipaholon Ria-ria 75
Sorik Marapi 200
Simbokon Samosir 155
3 Jambi
Sungai Penuh 70
Graho Nyabu 200
4 South Sumatera
Lumut Balai 250
Rantau Dedap 106
Danau Ranau 210
5 West Sumatera
Gn Talang-Bukit Kili 65
Liki Pinagawan 400
Bonjol 200
6 Bengkulu
Tmbg Sawah-Hululais 873
Kepahiang 180
7 Lampung
Gn. Rajabasa 91
Suoh Sekincau 230
Waypanas - Ulubelu 556
Danau Ranau 210
Way Ratai 105
8 Banten
Kaldera Danau Banten 115
G. Endut 80
9 West Java
Ciater - Tangkuban Perahu 60
Cibeureum - Parabakti 485
Cibuni 140
Cisolok Cisukarame 45
Gn. Tampomas 50
Gn. Tangkuban Perahu 100
Kamojang - Darajat 1465
Karaha Cakrabuana 725
Pangalengan 1106
G. Ciremai 150
Gn. Gede Pangrango 85
10 Central Java
Baturaden 175
Dataran Tinggi Dieng 780
Guci 79
Gn. Ungaran 100
Candi Umbul Telomoyo 72
Gunung Lawu 195

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No. Province
Geothermal Working
Area (WK)
Potential
Capacity (MW)
1 Nanggroe Aceh Darussalam
Jaboi 70
Seulawah Agam 130
2 North Sumatera
Sibayak - Sinabung 130
Sibual - Buali 750
Sipaholon Ria-ria 75
Sorik Marapi 200
Simbokon Samosir 155
3 Jambi
Sungai Penuh 70
Graho Nyabu 200
4 South Sumatera
Lumut Balai 250
Rantau Dedap 106
Danau Ranau 210
5 West Sumatera
Gn Talang-Bukit Kili 65
Liki Pinagawan 400
Bonjol 200
6 Bengkulu
Tmbg Sawah-Hululais 873
Kepahiang 180
7 Lampung
Gn. Rajabasa 91
Suoh Sekincau 230
Waypanas - Ulubelu 556
Danau Ranau 210
Way Ratai 105
8 Banten
Kaldera Danau Banten 115
G. Endut 80
9 West Java
Ciater - Tangkuban Perahu 60
Cibeureum - Parabakti 485
Cibuni 140
Cisolok Cisukarame 45
Gn. Tampomas 50
Gn. Tangkuban Perahu 100
Kamojang - Darajat 1465
Karaha Cakrabuana 725
Pangalengan 1106
G. Ciremai 150
Gn. Gede Pangrango 85
10 Central Java
Baturaden 175
Dataran Tinggi Dieng 780
Guci 79
Gn. Ungaran 100
Candi Umbul Telomoyo 72
Gunung Lawu 195
11 East Java
Blawan - Ijen 270
Gn. Iyang Argopuro 295
Telaga Ngebel 120
Arjuno Welirang 185
Gunung Pandan 60
Gunung Wilis 50
Songgoriti 35
12 Bali Tabanan 276
13 West Nusa Tenggara
Hu'u Daha 65
Sembalun 100
14 East Nusa Tenggara
Atadei 40
Sokoria 30
Ulumbu 199
Mataloko 63
Oka Lle Ange 40
15 Central Sulawesi
Marana 35
Bora Pulu 123
16 Gorontalo Suwawa 110
17 North Sulawesi Kotamobagu 410
18 North Moluccas
Jailolo 75
Songa Wayaua 140
Gn. Hamiding 265
Telaga Ranu 85
19 Moluccas Tulehu 100

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Feed-in Tariff
State Electricity Company (PLN) is obliged to purchase electricity generated from geothermal
power plants under the Power Purchase Agreement (PPA), as regulated in Ministry of EMR
Regulation No. 17 of 2014, with the following Feed-in Tariff (FIT):
Year of
Commercial
Operation Date
(COD)
Feed-in Tariff (Cent USD / kWh) for Geothermal Power Plant
Region I1
Region II2
Remote areas which
are situated in Region I
and II
2015 11.80 17.00 25.40
2016 12.20 17.60 25.80
2017 12.60 18.20 26.20
2018 13.00 18.80 26.60
2019 13.40 19.40 27.00
2020 13.80 20.00 27.40
2021 14.20 20.60 27.80
2022 14.60 21.30 28.30
2023 15.00 21.90 28.70
2024 15.50 22.60 29.20
2025 15.90 23.30 29.60
1. Geothermal power plant located in Sumatera, Java and Bali.
2. Geothermal power plant located in Sulawesi, West Nusa Tenggara, East
Nusa Tenggara, Halmahera, Moluccas, Papua and Kalimantan.
Notes:
Fast Track Programme Phase 2 (FTP-2)
FTP-2 is PLN’s effort to rapidly build power plants to address the increasing demand for
electricity in Indonesia, as stated in President Regulation No. 4 of 2010 jo. No. 48 of 2011 and
Ministry of ERM Regulation No. 15 of 2010 jo. No. 1 of 2012 jo No. 21 of 2013. Under FTP-2
scheme, electricity generated by IPPs will be purchased by PLN as agreed on PPA. Moreover,
the government will issue Business Viability Guarantee Letter (BVGL) stating that IPPs will be
protected from payment default regardless the risk event.
Through FTP-2, Indonesia is expected to further increase its electricity generation capacity by
17,918 MW by 2020, including 4,965 MW from geothermal power plants. List of geothermal
power plant development projects are listed on the following table.

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Geothermal Power Plant Development Projects based on FTP – 2
Province Owner Project Name Capacity (MW) Operation
Nanggroe Aceh
Darussalam
IPP
Jaboi 10 2019
Seulawah Agam 2 x 55 2021 -2022
Banten IPP
Endut 55 2021
Rawa Dano 110 2019
Bengkulu PLN Hululais 2 x 55 2018 – 2019
Jambi PLN Sungai Penuh 2 x 55 2024
West Java IPP
Cibuni 10 2019
Cisolok - Cisukarame 50 2019
Gn. Ciremai 2 x 55 2017
Kamojang 5 30 2015
Karaha Bodas 30 2016
Karaha Bodas 55 2019
Patuha 3 x 55 2014 & 2017
Tampomas 45 2019
Tangkuban Perahu 1 2 x 55 2019
Tangkuban Perahu 2 2 x 30 2019
Wayang Windu 2 x 110 2019
Central Java IPP
Baturaden 2 x 110 2019
Dieng 55 + 60 2017
Guci 55 2019
Umbul - Telomoyo 55 2021
Ungaran 55 2019
East Java IPP
Ijen 2 x 55 2019
Iyang Argopuro 55 2020
Wilis/Ngebel 3 x 55 2019 - 2020
Lampung IPP
Danau Ranau 2 x 55 2022
Rajabasa 2 x 110 2021 - 2022
Suoh Sekincau 2 x 110 2021-2022
Ulubelu 3 & 4 2 x 55 2016 - 2017
Wai Ratai 55 2022
Moluccas PLN Tulehu 2 x 10 2018
North Moluccas IPP Jailolo 2 x 5 2019
West Nusa
Tenggara
PLN
Songa Wayaua 5 2019
Sembalun 2 x 10 2020
IPP Huu 20 2021
East Nusa
Tenggara
IPP
Atadei 5 2017
Mataloko 5 2018
Sokoria 3 x 5 2018 - 2020
Oka Iie Ange 10 2020
Central
Sulawesi
IPP
Bora Pulu 55 2022
Marana/Masaingi 20 2022
North Sulawesi
PLN
Kotamobagu 1 & 2 2 x 20 2022
Kotamobagu 3 & 4 2 x 20 2022
IPP Lahendong V & VI 2 x 20 2017 – 2018
West Sumatra IPP Bonjol 3 x 55 2022

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Potential Projects
Below are existing assets and pipeline of planned and new developments projects from
various WKs managed by Pertamina Geothermal Energy (PGE).
Existing Assets and Pipeline of Planned Projects and New Developments
Managed by Pertamina Geothermal Energy (PGE)
Source: Pertamina Geothermal Energy, 2013.

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BIOFUEL

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Current Statistics
Installed production capacity of biofuel in Indonesia steadily increased from 3,403,172 KL in
2008 to 5,976,543 KL in 2012 as portrayed in the following chart. It is evident that Indonesia
at the moment is still dependent on imported crude oil, and thus biofuel offer a promising
opportunity, not only as an additional mixture to fuel, but also as crude oil replacement in the
future.
Currently, there are 25 bio diesel producers and 15 bio-ethanol producers with the total
production capacity of 5,646,199 KL and 3,922,500 KL per year respectively (presented in
the following pages). Taking the growth of fuel consumption and government regulation on
Biofuel Usage Mandatory into account, this sector clearly provides golden investment
opportunities.
Biofuel Production Capacity
Source: 2013 Statistics, DG NREC, Ministry of EMR, 2013.

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Bio Diesel Production Capacity by Biofuel Business License Holders
Note: Numbers provided above indicate locations of bio diesel production sites stated in the following
table.
No. Province Company Name MT/Yr Kl/Yr
Own
Feedstock
In
production
1. North Sumatra PT Sintong Abadi 30,450 35,000 No Yes
2. Riau PT Wilmar
Bioenergy
Indonesia
1,050,000 1,206,897 Yes Yes
PT Pelita Agung
Agriindustri
200,000 229,885 Yes Yes
PT Cemerlang
Energi Perkasa
400,000 459,770 Yes Yes
PT Ciliandra
Perkasa
250,000 287,356 Yes Yes
PT Musim Mas 850,000 977,011 Yes Yes
PT Petro Andalan
Nusantara
130,500 150,000 No No
3. Banten PT Indo Biofuels
Energy
60,000 68,966 No Yes
PT Eternal Buana
Chem, Ind
40,000 45.977 No No
PT Alia Mada
Perkasa
9,570 11,000 No No
PT Oil Tanking
Merak
504,000 579,310 No No
4. DKI Jakarta PT Primanusa
Palma Energi
20,880 24,000 No No
PT Wahana Abdi
Tirta Tehnika
11,484 13,200 No No
PT Tjengkareng
Djaya
72,000 82,759 No No
PT Energi
Alternatif
7,000 8,046 No No

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Source: Bio Diesel Technical Information, DG NREC, Ministry of EMR, 2013.
Bio Ethanol Production Capacity by Biofuel Business License Holders
Source: 2013 Statistics, DG NREC, Ministry of EMR, 2013.
No. Province Company Name MT/Yr Kl/Yr
Own
Feedstock
In
production
1. North Sumatra PT Sintong Abadi 30,450 35,000 No Yes
2. Riau PT Wilmar
Bioenergy
Indonesia
1,050,000 1,206,897 Yes Yes
PT Pelita Agung
Agriindustri
200,000 229,885 Yes Yes
PT Cemerlang
Energi Perkasa
400,000 459,770 Yes Yes
PT Ciliandra
Perkasa
250,000 287,356 Yes Yes
PT Musim Mas 850,000 977,011 Yes Yes
PT Petro Andalan
Nusantara
130,500 150,000 No No
3. Banten PT Indo Biofuels
Energy
60,000 68,966 No Yes
PT Eternal Buana
Chem, Ind
40,000 45.977 No No
PT Alia Mada
Perkasa
9,570 11,000 No No
PT Oil Tanking
Merak
504,000 579,310 No No
Palma Energi
20,880 24,000 No No
PT Wahana Abdi
Tirta Tehnika
11,484 13,200 No No
PT Tjengkareng
Djaya
72,000 82,759 No No
PT Energi
Alternatif
7,000 8,046 No No
Palma Energi
20,880 24,000 No No
PT Wahana Abdi
Tirta Tehnika
11,484 13,200 No No
PT Tjengkareng
Djaya
72,000 82,759 No No
PT Energi
Alternatif
7,000 8,046 No No
5. West Java PT Multi Energi
Nabati
20,000 22,989 No Yes
PT Darmex
Biofuels
150,000 172,414 No Yes
PT Pasadena
Biofuels Mandiri
40,000 10,240 No No
PT Sumi Asih Oleo
Chemical
100,000 114,943 No No
6. East Java PT Wilmar Nabati
Indonesia
690,000 793,103 Yes Yes
PT Anugerah Inti
Gemanusa
40,000 45,977 No Yes
PT Eterindo Nusa
Graha
40,000 45,977 No Yes
PT Damai
Sejahtera Sentosa
120,000 137,931 No No
7. Central
Kalimantan
PT Sinar Alam
Permai
41,400 37,586 Yes Yes
8. East
Kalimantan
PT Bioenergi
Pratama Jaya
66,000 75,862 No Yes
Total Installed Capacity 4,912,193 5,646,199
Total Active Producing 3,887,850 4,468,793

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Potential Sources
Biofuel (biodiesel, bioethanol and biokerosene/bio-oil) is renewable liquid fuel that can be
produced locally, thus helping to reduce Indonesia’s dependence on imported crude. The
processed biodiesel fuel can be derived from Palm Oil, Jatropha Curcas, Coconut Oil, or
Soybean Oil. Bioethanol comes from anhydrous alcohol produced from the fermentation of
sugar cane, cassava, or corn.
Mapping of potential sources of biofuel and estimated biofuel production potential are
presented as follows.
Potential Sources of Biofuel in Indonesia
Source: Biopact, 2014.
Source: Biopact, 2014.
Indonesia Biofuel Production Potential

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Biofuel Usage Mandatory
Based on Ministry of EMR Regulation No. 20 of 2014, every trading company and user of
gasoline and diesel are required to use locally-sourced biofuel (bio ethanol, bio diesel and bio
oil) for certain percentage gradually with the details are in the following tables. Additionally,
in 2012, the government sets subsidised prices at Rp 3,500.00 per litre for bioethanol and Rp
3,000.00 per litre for biodiesel.
BIO Minimum% )
Sector
Sept
2013
January
2014
January
2015
January
2016
January
2020
January
2025
0.50% 1% 2% 5% 20%
PSO
1% 1% 2% 5% 10% 20%
Commercial
1% 2% 5% 10% 20%
Note: PSO: Public Service Obligation.
BIO )
Sector
Sept
2013
January
2014
January
2015
January
2016
January
2020
January
2025
10% 10% 10% 20% 20% 25%
PSO
3% 10% 10% 20% 20% 25%
Commercial
5% 10% 10% 20% 20% 25%
Electricity 7.5% 20% 25% 30% 30% 30%
BIO um %)
Sector
Sept
2013
January
2014
January
2015
January
2016
January
2020
January
2025
Industry 1% 5% 10% 20% 20% 20%
Transport
5% 10% 20% 20% 20%
Transport
2% 3% 5%
Electricity 1% 6% 15% 20% 20% 20%

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Existing Players
PT. Indo Biofuels Energy
Indo Biofuels Energy is one of the nation’s leading commercial biodiesel refiners,
developing technology for cleaner air and energy independence. The company is operating a
commercial-scale biodiesel refinery producing fuel that meets or exceeds SNI-04-7182-2006,
ASTM D-6751, EN 14214 and DIN 51606 specifications.
Website : www.indobiofuels.com
Address : RNI Building, Ground Fl., Jl. Denpasar Raya Kav. D – III Kuningan, Jakarta Selatan
12950
Phone : +62 21 5291 4292
Fax : +62 21 5291 4293
Email : ibe@indobiofuels.com
Wilmar Group
Wilmar’s business activities include oil palm cultivation, oilseed crushing, edible oil refining,
sugar milling and refining, specialty fat, oleochemical, biodiesel and fertiliser manufacturing
and grain processing. World’s largest processor and merchandiser of palm and lauric oils, as
well as largest in edible oils refining and fractionation, oleochemicals, specialty fats and palm
biodiesel, one of the largest oil palm plantation owners and the largest palm oil refiner in
Indonesia.
Website : http://www.wilmar-international.com/
Address : B & G Tower, 7th Floor, Jl. Putri Hijau No. 10, Medan 20111
Phone : +62 61 410 2777
Fax : +62 21 415 4891
PT Musim Mas
PT Musim Mas is a fully integrated company with operations spanning the entire palm oil
value chain: from upstream oil palm plantations to midstream and downstream operations,
to producing value-added products such as specialty fats, oleochemicals, biodiesel, soap
noodles, palm wax and functional products.
Website : http://www.musimmas.com/
Address : PT. Musim Mas, Jl. K.L. Yos Sudarso Km 7.8, Tanjung Mulia, Medan 20241
Phone : +62 61 6619866

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LOW CARBON
TRANSPORT

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Domestic Market Opportunities
Indonesia domestic auto production is ascending steadily during last 5 years with 161.74%
increase from 461,612 (2009) to 1,208,211 (2013). Meanwhile sales also hit an all-time high
with 154.37% increase from 483,548 (2009) to 1,230,011 (2013). Year 2013 marked the
introduction of Low Carbon Emission Car (LCEC) and Low Cost Green Car (LCGC) policies and
products to the Indonesian market.
Based on Indonesia Road Map of Automotive Industrial Cluster Development (Minister of
Industry Regulation No. 123/M-IND/PER/10/2009), domestic auto production is targeted to
grow to 2.59 Million by 2020 and further to 4.18 Million by 2025. Meanwhile, domestic auto
sales are expected to grow to 1.97 Million by 2020 and further to 3.18 Million by 2025.
Domestic Auto Production by Category (2009 - 2013)
Domestic Auto Sales by Category (2009 - 2013)
Source: The Association of Indonesia Automotive Industries (GAIKINDO), 2014.
Source: GAIKINDO, 2014.

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Japanese brands are majority in the
Indonesia auto market with Toyota as
the market leader, followed by Daihatsu,
Suzuki, Mitsubishi and Honda. Ameri-
can brands include Chrysler, Ford and
Chevrolet. Asian (non Japanese) brands in-
clude Hyundai, Geely, Tata and Proton. Eu-
ropean brands include BMW, Peugeot, VW,
Mercedes, Audi and Renault.
Source: Kompas Otomotif, 2013.
REGIONAL AND GLOBAL MARKET OPPORTUNITIES
Indonesia auto products are exported
globally to the closest destination of
neighbouring ASEAN to farther areas
such as East Asia, Middle East, Africa and
America. The biggest Indonesia auto
export destinations for Completely Build
Unit (CBU) category in 2013 are Saudi
Arabia and two ASEAN countries namely
Thailand and Philippines.
Indonesia exported almost 100,000 cars
last years to those 3 countries with Saudi
Arabia became the biggest importer of
43,000 cars. Besides those 3 countries
Indonesian cars also exported to Mexi-
co, Peru, Lebanon, Algeria, Egypt, South
Africa, Kuwait, United Arab Emirates,
Oman, Yemen, Brunei, Singapore, Taiwan
and Japan.
Auto Export by Category (2009-2013)
Source: GAIKINDO, 2014.

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ASEAN Countries are the closest export destination for auto companies that have great
interest in setting up their production base in Indonesia. Observing the current auto
products consumption and purchasing power patterns from ASEAN member countries,
as can be seen from their GDP and GDP per Capita, the huge opportunities are still there.
Under the ASEAN Economic Community (AEC), a single regional common market of
ASEAN countries will be created by 2015. The regional integration’s objective is to create a
competitive market of over 600 million people in ASEAN. There will be free flow of goods,
services, investment capital and skilled labour following the liberalisation. These will
include tariff reductions and streamlining of certain administrative procedures.
Auto Sales in Major ASEAN Countries (2012)
Source: ASEAN Automotive Federation, 2013.
ASEAN
Countries
Population
(Thousand)
GDP at current
prices,
as of 31 Jan 2014
(US$ Million)
GDP per Capita at
current prices, as of 31
Jan 2014 (US$ Million)
Indonesia 244,775.8 878,223.4 3,587.86
Philippines 97,690.9 250,542.7 2,564.64
Vietnam 88,772.9 141,669.1 1,595.86
Thailand 67,912.0 366,126.6 5,391.19
Myanmar 60,976.0 52,524.9 861.40
Malaysia 29,518.0 305,154.4 10,337.91
Cambodia 14,741.4 14,411.2 977.60
Lao PDR 6,514.4 9,083.1 1,394.30
Singapore 5,312.4 276,609.5 52,068.65
Brunei 399.8 16,969.7 42,445.50
ASEAN 616,613.7 2,311,314.7 3748.40
ASEAN Countries Statistics (2012)
Source: ASEAN Statistics, 2014.

INDONESIA
Contact us at
Phone: +44 207 387 8564
73
Fiscal Incentives for Production and Sales of Low Carbon Emission Car (LCEC) &
Low Cost Green Car (LCGC)
With the growth of auto-sales that reached 154.37%, grew from 483,548 in 2009 to
1,230,011 in 2013, the consumption of fuel soared, leading to the significant increase of gas
emissionfrompublicandprivatetransportations.However,sincelowcarbontransports,suchas
electric, hybrid, LCEC and LCGC cars were mostly imported, hence imposed with high import
duties (15-50%) and high luxury-goods sales (10-75%), these vehicles were less attractive to
customers due to the high selling price in the market.
Due to reasons mentioned above, the government introduced fiscal incentives for the
production and sales of LCEC and LCGC. These fiscal incentives will help to increase the
domestic auto production and sales of low carbon transports. In the future, Indonesia is
expected to become the production hub of LCEC and LCGC for the ASEAN market which are
growing in popularity in the region due to the economic growth and increasing number of
population.
Government Regulation No. 41 of 2013 on Luxury-Goods Sales Tax (PPNBM) for Auto Products
Government Regulation No. 41 of 2013 on “Luxury-Goods Sales Tax (Pajak Pertambahan
Nilai Barang Mewah or abbreviated as PPNBM) for Auto Products” applied fiscal incentives
(reduction or exemption of PPNBM) imposed for sales of all auto products categorized as
LCEC & LCGC. This incentive expected to make LCEC & LCGC more affordable for Indonesia
consumers as well as to stimulate production and sales of such car for supplying regional and
global markets.

INDONESIA
Contact us at
Phone: +44 207 387 8564
74
PPNBM
Rate
Auto Products Imposed
10% - Any auto products which able to carry 10-15 people, with spark ignition (SI) or
compression ignition (CI or diesel & semi-diesel) engines for all cylinder
capacities.
- Besides sedan and station wagon which able to carry less than 10 people,
with spark ignition (SI) or compression ignition (CI or diesel & semi-diesel)
engines, single axle (4x2) system and cylinder capacity up to 1,500 cc.
20% - Besides sedan and station wagon which able to carry less than 10 people,
with spark ignition (SI) or compression ignition (CI or diesel & semi-diesel)
engines, single axle (4x2) system and cylinder capacity above 1,500 cc up to
2,500 cc.
- Double cabin pickup vehicles which able to carry more than 3 people, with
spark ignition (SI) or compression ignition (CI or diesel & semi-diesel) engines,
single axle (4x2) or double axel (4x4) systems, for all cylinder capacities, with
total weight below 5 Ton.
30% - Sedan and station wagon which able to carry less than 10 people, with spark
ignition (SI) or compression ignition (CI or diesel & semi-diesel) engines with
cylinder capacity up to 1,500 cc.
- Besides sedan and station wagon which able to carry less than 10 people,
with spark ignition (SI) and compression ignition (CI or diesel & semi-diesel)
engines, double axel (4x4) system and cylinder capacity up to 1,500 cc.
40% - Besides sedan and station wagon which able to carry less than 10 people,
with spark ignition (SI) engine, single axle (4x2) system and cylinder capacity
above 2,500 cc up to 3,000 cc.
- Sedan and station wagon, or besides sedan and station wagon with double
axel (4x4) system. Both able to carry less than 10 people, with spark ignition
(SI) engine and cylinder capacity above 1,500 cc up to 3,000 cc.
- Sedan and station wagon, or besides sedan and station wagon with double
axel (4x4) system. Both able to carry less than 10 people, with compression
ignition (CI or diesel & semi-diesel) engine and cylinder capacity above 1,500
cc up to 2,500 cc.
50% - Golf vehicles.
60% - Two-wheel vehicles with cylinder capacity above 250 cc up to 500 cc.
- Special purpose vehicles like snowmobile, beach vehicle, mountain vehicle
and such.
75% - Sedan and station wagon, or besides sedan and station wagon with single
axle (4x2) or double axel (4x4) systems. Both able to carry less than 10
people, with spark ignition (SI) engine and cylinder capacity above 3,000 cc.
- Sedan and station wagon, or besides sedan and station wagon with single
axle (4x2) or double axel (4x4) systems. Both able to carry less than 10
people, with compression ignition (CI or diesel & semi-diesel) engine and
cylinder capacity above 2,500 cc.
- Two-wheel vehicles with cylinder capacity above 500 cc.
- Trailer, semi-trailer and caravan.
Below are PPNBM rates imposed to sales of various types of auto products.

INDONESIA
Contact us at
Phone: +44 207 387 8564
75
The Government Regulation No. 41 of 2013 gives reduction or exemption from aforemen-
tioned PPNBM for LCEC & LCGC Programs as can be seen from the table below
Minister of Industry Regulation No. 33/M-IND/PER/7/2013 on Production Development of
Four Wheel Vehicles for Energy Saving and Affordable Prices
Indonesia Minister of Industry Regulation No. 33/M-IND/PER/7/2013 on “Production
Development of Four Wheel Vehicles for Energy Saving and Affordable Prices”provided more
technical specification that must be met by LCGC in order to qualify for PPNBM exemption.
This regulation applies to LCGC manufacturers and component manufacturers. Below are the
required technical specifications.
Gasoline (spark ignition engine) type
LCGC
Diesel (compression ignition engine)
type LCGC
- Cylinder capacity of between 980 cc and
1,200 cc.
- Cylinder capacity of up to 1,500 cc.
- Minimum fuel consumption of 20 km/litre
using Research Octane Number (RON) 92
gasoline or its equivalent.
- Minimum fuel consumption of 20 km/litre
using Cetane Number (CN) 51 diesel or its
equivalent.
- To satisfy additional technical specifications (turning radius, ground clearance, etc.). To be
outlined in forthcoming technical guidelines.
- To affix approved Indonesian branding, model and logos.
- The sale price (off the road) must not exceed Rp 95 Million (approx. US$ 9,500). To be
adjusted, subject to macroeconomics situation (to be verified with data/survey) or if LCGC is
embedded with additional automatic transmission or safety features (plus 15% or 10%
additional prices adjustment).
PPNBM
Reduction
or
Exemption
Auto Products Imposed
LCEC Program
75% x PPNBM - Any auto products using advance diesel/petrol engine technology, dual
petrol gas engine (converter kit CNG/LGV), biofuel engine, hybrid engine,
CNG/LGV dedicated engine, with fuel consumption of 20-28 km/litre or its
equivalent.
50% x PPNBM - Any auto products using advance diesel/petrol engine technology, biofuel
engine, hybrid engine, CNG/LGV dedicated engine, with fuel consumption
above 28 km/litre or its equivalent.
LCGC Program
0% x PPNBM - Besides sedan and station wagon, with spark ignition (SI) engine, cylinder
capacity up to 1,200 cc and minimum fuel consumption of 20 km/litre or its
equivalent.
- Besides sedan and station wagon, with compression ignition (CI or diesel &
semi-diesel) engine, cylinder capacity up to 1,500 cc and minimum fuel
consumption of 20 km/litre or its equivalent.

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