ALIGNMENT ON THE POLICIES AND REGULATIONS FOR GEOTHERMAL DEVELOPMENT IN FOREST AREA

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1 ALIGNMENT ON THE POLICIES AND REGULATIONS FOR GEOTHERMAL DEVELOPMENT IN FOREST AREA By Director General of Nature Resources Conservation and Ecosystem Directorate General of Nature Resources Conservation and Ecosystem Ministry of Enviroronment and Forestry Jakarta, 10 Augusts 2016

Potency of Geothermal in Forest Conservation Indonesia has great potential

Java, Bali, Nusa Tenggara, North Sulawesi to Maluku.

as in National Park (8): Gunung Leuser, Batang Gadis, Kerinci Seblat,

2 Potency of Geothermal in Forest Conservation Indonesia has great potential Geothermal (± 29 GW) are scattered throughout ring of fire from Sumatra, Java, Bali, Nusa Tenggara, North Sulawesi to Maluku. Some locations Geothermal resources located in forest conservation, such as in National Park (8): Gunung Leuser, Batang Gadis, Kerinci Seblat, Bukit Barisan Selatan, Gunung Halimun Salak, Gunung Ciremai, Gunung Rinjani, and Boganinani Wartabone.

National Policy Direction As national policy direction for developing renewable energy in the forest area, notably in forest conservation, the Ministry of

firmly regarding the principle of conservation. Timeline below describes a progress of policy and regulation to use potency geothermal in forest conservation.

3 National Policy Direction As national policy direction for developing renewable energy in the forest area, notably in forest conservation, the Ministry of Environment and Forests is committed to supporting the setting up of regulation that utilization of geothermal in a nature conservation area can be done, with firmly regarding the principle of conservation. Timeline below describes a progress of policy and regulation to use potency geothermal in forest conservation MOU Revised: Achievment: Achievement: UU 7/2003 (ESDM) PP 28/2011 (LHK) UU 21/2014 PP 108/2015; Peraturan MenLHK: P.46/2016; revised PP 12/2014

GOVERNMENT REGULATION NUMBER 108 YEAR 2015 CONCERNING A CHANGE OF GOVERNMENT REGULATIN NUMBER 28 YEAR 2011 CONCERNING MANAGEMENT OF NATURE CONSERVATION AREA AND RESTRICTED

phenomena, peculiarities types, and cultural relics are in KSA and KPA, which is manifested in the form of nature tourism activities, water harvesting and water energy, storage and

Article 35: The national park can be used for: research and development of science; education and increased awareness of nature conservation; storage and / or sequestration, water

4 GOVERNMENT REGULATION NUMBER 108 YEAR 2015 CONCERNING A CHANGE OF GOVERNMENT REGULATIN NUMBER 28 YEAR 2011 CONCERNING MANAGEMENT OF NATURE CONSERVATION AREA AND RESTRICTED CONSERVATION AREA Article 1: The use of environmental services is the use of environmental conditions such as exploiting the potential of ecosystems, climatic conditions, natural phenomena, peculiarities types, and cultural relics are in KSA and KPA, which is manifested in the form of nature tourism activities, water harvesting and water energy, storage and / or carbon sequestration, the use of solar heat and wind, as well as the use of geothermal energy to meet the electricity needs. Article 35: The national park can be used for: research and development of science; education and increased awareness of nature conservation; storage and / or sequestration, water harvesting and water energy, wind energy, solar thermal energy, geothermal energy and natural attractions; the use of plants and wildlife; utilization of germ plasm resources to support the cultivation; Traditional use by the local community.

Preparing other regulation related to implement Geothermal development in Forest

12 of 2014 Revision of the manuscript has been prepared later in 2014.

Resources Ministry has undertaken to discuss the matter related to non-tax revenue of

5 Preparing other regulation related to implement Geothermal development in Forest Conservation Revision of Government Regulation No. 12 of 2014 Revision of the manuscript has been prepared later in March 2015, discussions between the Ministry LHK meeting with Energy and Mineral Resources Ministry has undertaken to discuss the matter related to non-tax revenue of geothermal activity in the area of nature conservation. The manuscript revision PP 12/2014 currently still under internal discussion KemenLHK.

6 Decree of the Minister of Environment and Forestry of the Republic of Indonesia Number: P.46/Menlhk/Setjen/Kum.1/5/2016 dated May 23, 2016 concerning the Utilization of Environmental Service for Geothermal in National Park, Grand Forest Parks and Forest Recreation Park. Article 7: Area of Operations: The area of business activity for the utilization of environmental services for Geothermal is on the utilization zone that is already approved in the National Parks, Grand Forest Parks and Forest Recreation Park, and are outside of areas that have been granted permission previously.

paka forest areas that have been there and is a National Strategic, operations can be resumed and processed be IPJLPB after an assessment by a team formed by the Director General.

7 IMPLEMENTATION OF DECREE OF MINISTER OF ENVIRONMENT AND FOREST NUMBER: P.46/Menlhk/Setjen/Kum.1/5/2016 Article 51 letter a Transitional Provisions of the Decree: "Environment Services Geothermal in National Parks, Forest Parks and Wildlife Nature made through cooperation / agreement / permit paka forest areas that have been there and is a National Strategic, operations can be resumed and processed be IPJLPB after an assessment by a team formed by the Director General. " IPJLPB request has been processed for PT. Pertamina Geothermal Energy - Chevron Geothermal Salak, Ltd. In Gunung Halimun Salak National Park. IPJLPB Exploitation Stage and Utilization has been issued on/should be issued before August 14, For 2017, IPJLPB issued also for PT. Pertamina Geothermal Energy in Kamojang region, and to Chevron Geothermal Indonesia, Lt. Papandayan in the region (with firstly change in function of the area, from the Nature Reserve into the Forest Recreation Park: in the process 2016).

8 Thank You

Energy and Mineral Resources for People s Prosperity

Energy and Mineral Resources for People s Prosperity MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION by: Sjaiful Ruchijat Directorate of Geothermal APERC Annual Conference 2014 Tokyo, March 27,