Ministry of Energy and Mineral Resources Republic of Indonesia Electricity Investment Opportunity In Indonesia Economic Development Corridors

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1 Ministry of Energy and Mineral Resources Republic of Indonesia Electricity Investment Opportunity In Indonesia Economic Development Corridors Presented at Seminar of The for Promotion Clean Coal Technology In Indonesia Tokyo, November

2 ACCELERATION AND EXPANSION OF INDONESIA ECONOMIC DEVELOPMENT (MP3EI) The Illustration of Indonesia s Economic Transformation Acceleration

POSTURE OF INDONESIA ECONOMIC CORRIDOR (EC) 1) Sumatra EC as a Center for Production and Processing of Natural Resources and As Nation s Energy Reserves 2) Java EC as a Driver for National Industry

Agricultural, Plantation, Fishery, Oil & Gas, and Mining 5) Bali Nusa Tenggara EC as a Gateway for Tourism and National Food Support 6) Papua Kepulauan Maluku EC as a Center for Development of Food,

3 POSTURE OF INDONESIA ECONOMIC CORRIDOR (EC) 1) Sumatra EC as a Center for Production and Processing of Natural Resources and As Nation s Energy Reserves 2) Java EC as a Driver for National Industry and Service Provision 3) Kalimantan EC as a Center for Production and Processing of National Mining and Energy Reserves 4) Sulawesi EC as a Center for Production and Processing of National Agricultural, Plantation, Fishery, Oil & Gas, and Mining 5) Bali Nusa Tenggara EC as a Gateway for Tourism and National Food Support 6) Papua Kepulauan Maluku EC as a Center for Development of Food, Fisheries, Energy, and National Mining The development of Economic Corridors requires a large amount of electricity supply. Under MP3EI, the additional electricity supply needed in Indonesia by the year 2025 is projected to reach about 90,000 MW. Of these, most of the electricity will be used to support the construction and development of major economic activities in the corridor.

4 NATIONAL ENERGY POLICY (Presidential Regulation No.5/2006) Reduce oil share from energy mix More new and renewable energy sources (e.g. bio-fuel, geothermal, solar, hydro, and wind power more than 17% in year 2025) Intensify energy diversification (fuel switching) Improve energy efficiency (energy elasticity < 1 ) (CO2 ~ 370 mill. Ton) 2025 (BaU) 2025 (Optimized) (CO2 ~ 1,150 mill. Ton) (as Presidential Regulation No. 5/2006) (CO2 ~ 950 mill. Ton) Optimization of Energy Management

NATIONAL ENERGY SUPPLY MIX Coal 26.6% Gas 22.1% Hydro 2.5% Geothermal 1.3% National Energy Supply and Utilization System (SISPENNAS ) is heavily dependent on fossil fuel (96.2%), consist of: oil (47.

5 NATIONAL ENERGY SUPPLY MIX Coal 26.6% Gas 22.1% Hydro 2.5% Geothermal 1.3% National Energy Supply and Utilization System (SISPENNAS ) is heavily dependent on fossil fuel (96.2%), consist of: oil (47.5%), gas (22.1%) and coal (26.6%), which produce GHGs emission Energy consumption is increasing (7% per year) Oil 47.5% Energy is still subsidized by the government Total electricity installed capacity only reached about 35 GW ENERGY MIX Electrification ratio about 67.2% Electricity growth about 6.7% Energy utilization is not efficient Utilization of renewable energy is not optimal.

Indonesian Power Sector Infrastructure (Current Status) : existing transmission : plan transmission : Generation SUMATERA : Generation: 5.711 MW 275 kv : 1.027 kms 150 kv : 9.

6 Indonesian Power Sector Infrastructure (Current Status) : existing transmission : plan transmission : Generation SUMATERA : Generation: MW 275 kv : kms 150 kv : kms 70 kv : 456 kms MV : kms LV : kms JAMALI : Generation: MW 500 kv : kms 150 kv : kms 70 kv : kms MV : kms LV : kms KALIMANTAN : Generation: MW 150 kv : kms 70 kv : 123 kms MV : kms LV : kms SULAWESI : Generation: MW 150 kv : kms 70 kv : 552 kms MV : kms LV : kms MALUKU : Generation: 216 MW MV : kms LV : kms Nusa Tenggara: Generation: 335 MW 150 kv : 83 kms MV : kms LV : kms TOTAL GENERATION INSTALL CAPACITY : MW PANJANG JARINGAN: KV : kms KV : kms KV : kms - 70 KV : kms - MV (Medium Voltage) : kms - LV (Low Voltage) : kms PAPUA : Generation: 211 MW MV : kms LV : kms

POWER GENERATION CURRENT CONDITION Power Generation by Owner IPP, 18% PPU, 3% PLN, 79% Power generation is still dominated

07% Note: CFPP CCPP DPP Electricity Production by Energy Mix Coal 28.85% Oil 22.36% Hydro 6.08% Gas 16.

which consist of those owned by PLN s (27,849 MW), IPP s (6,331 MW) and PPU s (1,133 MW). GeoPP, 3% WTPP,0.001% GEPP, 0.

demand (mostly happened in Outside Java-Bali system) Several CCPP and GTPP in the Java-Bali system are operating utilizing

7 POWER GENERATION CURRENT CONDITION Power Generation by Owner IPP, 18% PPU, 3% PLN, 79% Power generation is still dominated by CFPP, then followed by CCPP, DPP, HEPP, GTPP, Geo PP, MHPP, GEPP and WTPP. IPP ( Non Oil) 24.05% Geothermal 2.07% Note: CFPP CCPP DPP Electricity Production by Energy Mix Coal 28.85% Oil 22.36% Hydro 6.08% Gas 16.58% : Coal Fired Power Plant : Combine Cycle Power Plant : Diesel Power Plant Total installed capacity is about 35,313 MW, which consist of those owned by PLN s (27,849 MW), IPP s (6,331 MW) and PPU s (1,133 MW). GeoPP, 3% WTPP,0.001% GEPP, 0.07% CCPP, 22% DPP, 12% GTPP, 10% Oil share in electricity production is still high, because: Power Generation by Type MHPP, 0.08% HEPP, 11% CFPP, 41% DPP that should be operated in peak load period, is operating in base load period to fulfill the demand (mostly happened in Outside Java-Bali system) Several CCPP and GTPP in the Java-Bali system are operating utilizing oil as primary energy because of lack of gas supply. HEPP : Hydro Electric Power Plant GTPP : Gas Turbine Power Plant GeoPP : Geothermal Power Plant MHPP GEPP WTPP : Mini Hydro Power Plant : Gas Engine Power Plant : Wind Turbine Power Plant CGPP= Coal Gasification Power Plant

ENERGY MIX FOR POWER GENERATION 100% 80% 60% 40% 20% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Oil 39% 37% 27% 36% 25% 22% 19% 8.11% 7% 5% 4% Bio Diesel 0% 0% 0% 0% 0% 0% 0.08% 0.

8 ENERGY MIX FOR POWER GENERATION 100% 80% 60% 40% 20% 0% Oil 39% 37% 27% 36% 25% 22% 19% 8.11% 7% 5% 4% Bio Diesel 0% 0% 0% 0% 0% 0% 0.08% 0.50% 0.5% 0.5% 0.5% Hydro 10% 8% 8% 9% 8% 12% 7% 6.77% 6% 6% 6% Geothermal 3% 3% 3% 3% 3% 3% 2% 2.17% 2% 3% 3% Gas 16% 15% 19% 17% 25% 25% 26% 25.78% 25% 26% 27% Coal 33% 37% 43% 35% 39% 38% 46% 56.66% 59% 60% 59% Electricity efficiency effort is conducted through diversification of primary energy in power generation (supply side) by optimizing utilization of gas, replacement of HSD to MFO, increasing of coal utilization, and developing of renewable power generation Oil utilization is dedicated to isolated/remote areas with a higher priority for renewable energy resources Gas and coal given priority to reduce dependence on oil in power generation.

10 TARGET OF ENERGY MIX FOR POWER GENERATION Gas 26% Hydro 7% Coal 46% Gas 21% Hydro 5% Geothermal 2% Oil 19% Geothermal 13% Coal 58% Oil 3% Electricity efficiency effort is conducted through diversification of primary energy in power generation (supply side) by optimizing utilization of gas, replacement of HSD to MFO, increasing coal utilization, and developing renewable power generation Oil utilization is dedicated to isolated/remote areas with a higher priority for renewable energy resources Gas and coal are given priority to reduce dependence on oil in power generation.

11 Fast Track Program 10,000 MW Phase I 1 2 Sumatera 10 (1.425 MW) 1.CFPP NAD Meulaboh (2x110 MW) 2.CFPP SUMUT Pangkalansusu (2x220 MW) 3.CFPP SUMBAR Teluk Sirih (2x112 MW) 4.CFPP 1 RIAU - Bengkalis (2x10 MW) 5.CFPP 2 RIAU Selat Panjang (2x7 MW) *) 6.CFPP KEP. RIAU -Tj. Balai Karimun (2x7 MW) 7.CFPP RIAU - Tenayan (2x100 MW) 8.CFPP 3 BANGKA Bangka Baru (2x30 MW) 9.CFPP 4 BANGKA Belitung (2x16,5 MW 10.CFPP LAMPUNG Tj. Selaki (2x100 MW) Jawa-Bali 10 (7.490 MW) 11.CFPP 1 BANTEN Suralaya (1x625 MW) 12.CFPP 2 BANTEN - Labuan (2x300 MW) 13.CFPP 3 BANTEN - Lontar (3x315 MW) 14.CFPP 1 JABAR - Indramayu (3x330 MW) 15.CFPP 2 JABAR Pelabuhan Ratu (2x350 MW) 16.CFPP 1 JATENG Rembang (2x315 MW) 17.CFPP 2 JATENG Cilacap Baru (1x660 MW) 18.CFPP 1JATIM Pacitan (2x315 MW) 19.CFPP 2 JATIM - Paiton (1x 660 MW) 20. CFPP 3JATIM Tj. Awar Awar (2x350 MW) Nusa Tenggara 4 (117 MW) 21.CFPP 1 NTB Bima (2x10 MW) 22.CFPP 2 NTB Lombok (2x25 MW) 23.CFPP 1 NTT Ende (2x7 MW) 24.CFPP 2 NTT Kupang (2x16,5 MW) Kalimantan 5 (605 MW) 25.CFPP 1 KALBAR Parit Baru (2x50 MW) 26.CFPP 2 KALBAR Bengkayan (2x27,5 MW) 27.CFPP 1 KALTENG Pulang Pisau (2x60 MW) 28.CFPP 1 KALSEL Asam Asam (2x65 MW) 29.CFPP KALTIM Tl. Balikpapan (2x100 MW) Sulawesi 4 (220 MW) 30.CFPP SULUT Amurang (2x25 MW) 31.CFPP GORONTALO Anggrek (2x25 MW) 32.CFPP SULTRA Kendari (2x10 MW) 33.CFPP SULSEL Barru (2x50 MW) Maluku 2 (46 MW) 34.CFPP MALUT - Tidore (2x8 MW) 35.CFPP MALUKU Ambon (2x15 MW) Papua 2 (34 MW) 36.CFPP 1 PAPUA - Timika (2x7 MW) 37.CFPP 2 PAPUA Jayapura (2x10 MW) *) Terminate 10,000 MW Fast Track Program Phase I in 2006, of which all power generation utilize coal as primary energy source. This program aims at replacing existing Diesel Power Plant with new Coal Fired Power Plant, as well as to fulfill the electricity demand growth. Through this program, the fuel cost saving is expected reach about Rp. 129 Trillion p.a

Fast Track Program 10,000 MW Phase II TOTAL SUMATERA HEPP : 204 MW GeoPP : 1.767 MW CFPP : 531 MW CGPP : 16 MW TOTAL : 2.

12 Fast Track Program 10,000 MW Phase II TOTAL SUMATERA HEPP : 204 MW GeoPP : MW CFPP : 531 MW CGPP : 16 MW TOTAL : MW KALIMANTAN CFPP : 612 MW CGPP : 8 MW CCPP : 120 MW GTPP : 100 MW TOTAL : 840 MW GeoPP CFPP CGPP CCPP TOTAL SULAWESI : 145 MW : 360 MW : 24 MW : 240 MW : 769 MW HEPP : MW GeoPP : MW CFPP : MW CGPP : 88 MW GTPP : 100 MW CCPP : 860 MW TOTAL : MW PAPUA MALUKU CFPP TOTAL : 116 MW : 116 MW JAMALI GeoPP : MW CFPP : MW CCPP : 500 MW HEPP : MW TOTAL : MW GeoPP CFPP TOTAL NTB : 40 MW : 70 MW : 110 MW GeoPP CFPP CGPP TOTAL : 35 MW : 14 MW : 24 MW : 73 MW CGPP GeoPP TOTAL NTT : 16 MW : 10 MW : 26 MW 10,000 MW Fast Track Program Phase II in 2010, which consist of various primary energy source, of which : Hydro : 12.6% Geothermal : 41.7% Coal : 35.6% Gas : 10.1%.

Composition of Fast Track Program 10,000 MW Phase II based on It

35% HEPP, 3 1,204 MW 12% CCPP, 3 860 MW 9% GeoPP, 43 3,967 MW 42%

2 740 MW 18% PLN+IPP: 92, 9,522 MW GTPP, 1 100 2% CGPP, 10 80 MW

CCPP, 1 120 MW 2% Note: CFPP CCPP GeoPP, 6 340 MW 8% PLN: 21,

GTPP : Hydro Electric Power Plant : Gas Turbine Power Plant IPP:

13 Composition of Fast Track Program 10,000 MW Phase II based on It Developer CGPP, MW 1% GTPP, MW 1% CFPP, 31 3,303 MW 35% HEPP, 3 1,204 MW 12% CCPP, MW 9% GeoPP, 43 3,967 MW 42% CFPP, 9 1,854 MW 44% CGPP, 1 8 MW 0,2 % HEPP, 2 1,174 MW 28% CCPP, MW 18% PLN+IPP: 92, 9,522 MW GTPP, % CGPP, MW 2% CFPP, 22 1,449 MW 27% HEPP, 1 30 MW 1% GeoPP, MW 68% CCPP, MW 2% Note: CFPP CCPP GeoPP, MW 8% PLN: 21, 4,216 MW : Coal Fired Power Plant : Combine Cycle Power Plant HEPP GTPP : Hydro Electric Power Plant : Gas Turbine Power Plant IPP: 71, 5,306 MW GeoPP : Geothermal Power Plant CGPP : Coal Gasification Power Plant

14 INVESTMENT REQUIREMENT *) (in million USD) Infrastructure TOTAL Generation 12,798 6,542 7,978 12,790 4,504 44,612 Transmission 1,081 1, ,377 Substation 1,291 1, ,804 Distribution System MV-Medium Voltage ,524 LV-Low Voltage Distribution Substation TOTAL 16,122 9,786 10,116 15,359 6,913 58,295 *) Source: Master Plan of Electricity Development

15 INVESTMENT REQUIREMENT *) (in million USD) Infrastructure TOTAL Generation 12,798 6,542 7,978 12,790 4,504 2,934 4,014 4,816 5,211 61,587 Transmission 1,081 1, ,185 Substation 1,291 1, ,919 Distribution System MV-Medium Voltage ,604 LV-Low Voltage ,826 Distribution Substation ,937 TOTAL 16,122 9,786 10,116 15,359 6,913 4,795 5,532 6,518 6,918 82,058 *) Source: Master Plan of Electricity Development & RUPTL PLN

Dr. Hasrul Laksmana Azahari

DIRECTORATE GENERAL NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA By: Dr. Hasrul Laksmana Azahari Director of Various New Energy and Renewable