GEOTHERMAL ENERGY

GEOTHERMAL IN INDONESIA(OVER VIEW)

Jogjakarta , Mei 2013

Sigit Rahardjo

Operation Director

PT PERTAMINA GEOTHERMAL ENERGY

GEOTHERMAL ENERGY

CHARACTERISTIC OF GEOTHERMAL BUSINESS

1

GEOTHERMAL ENERGY

2

INDONESIA HAS THE HIGHEST POTENTIAL FOR GEOTHERMAL ENERGY IN THE WORLD

2

11

1

2

3

1

1 5

Mexico

113

5

Philippines

4

4

Others1

Iceland

New Zealand1 3

6

Total 102

6

18

Japan

6

1 19

U.S.

20

20

Indonesia

20

27

23

28

Conventional geothermal 2010 capacity and

total potential capacity

GW

Resource

Utilization

%

4

13

3

10

33

20

10

16

10

In spite of its worlds largest potential of

geothermal resource,

the utilization only

remains 4%

Geothermal resource in Indonesia is also

high temperature

resource which

enable more

economical

geothermal

development project

Installed

Potential

SOURCE: GEA; DOE; EER; World Geothermal Congress; Energy Information Administration (EIA); interviews

1 Includes mostly South/South-East Asia and Africa

GEOTHERMAL ENERGY

3

INDONESIAS WORLD LEADING GEOTHERMAL PROSPECT

MAGMA

Semarang

Medan

Tanjung Karang

Bandung

Manado

Speculative : 27.141 MW

Probable : 10.253 MW

Bali & NTTSpeculative : 1.676 MWe

Probable * : 871 MWe

JavaSpeculative : 9.471 MWe

Probable * : 3.086 MWe

SumateraSpeculative : 13.258 MWe

Probable * : 5.433 MWe SulawesiSpeculative : 1.907 MWe

Probable * : 721 MWe

Geothermal location

MalukuSpeculative : 734 MWe

Probable * : 142 MWe

BorneoSpeculative : 45 MWe

Probable * : - MWe

PapuaSpeculative : 50 MWe

Probable * : - MWe

Current Installed Capacity : 1,337 MW

GEOTHERMAL ENERGY

(GSDM, 2010, Update Jan 2013)

Current Condition

2006

852 MW

(Production)

2008 2012 2016 2020

2000 MW 3442 MW 5171 MW 7788 MW 12332 MW(Target baru )

1148 MW

Existing WKP

1442 MW

Existing WKP

3977 MW

Existing WKP +

New WKP

2617 MW

New WKP

4544 MW

New WKP

2025

1.337 MW

2014

Plus The second 10,000 MW fast track program

5171 MW

Ministry decree MEMRNo. 15/2010

4600 MW *9500 MW *

*) Road Map 2007

(Based on President Decree No. 5/2006 on National Energy Policy; Modified by MEMR.REG. No. 15/2010)

GEOTHERMAL ROAD MAP

Under the second 10,000 MW fast-track plan, 34% of energy

development come from geothermal energy.

4

GEOTHERMAL ENERGY5

PERTAMINA AIMS TO BE A LEADER IN GEOTHERMAL DEVELOPMENT

0.4

1.2

1.2

0.5

0.4

1.2

New Zealand 0.70.3

Iceland 0.60.1

Mexico 0

Philippines 2.00.8

Indonesia 1.30.9

SOE 1 PrivateShare of SOE

%

23

61

100

84

54

State-owned Enterprise energy companies developed more than 50%

of geothermal energy in respective markets

SOURCE: company websites

Geothermal development by operator type

Capacity

GW

1 State Owned Enterprise

GEOTHERMAL ENERGY

6

PGEs WORKING AREA

TOTAL PGES INSTALLED CAPACITY: 402 MW

3

5

4

6

79

10

12

13

8

11

1

2

Ref. Ministerial Decree MEMR

No 2067K/30/MEM/2012

1. Sibayak-Sinabung

2. Sibual-buali

3. Sungai Penuh

4. Hululais

5. Lumut Balai &

Margabayur

6. Gunung Waypanas

7. Cibeureum Parabakti

8. Pangalengan

9. Kamojang/Drajat

10. Karaha Cakrabuana

11. Gn. Iyang Argopuro

12. Tabanan

13. Kotamobago

14. Lahendong

14

GEOTHERMAL ENERGY

7

GEOTHERMAL DEVELOPMENT CONCEPT

TE

CH

NIC

AL

AS

PE

CT

GG

GR

, O

PE

RA

TIO

NA

L,

MA

INT

EN

AN

CE

LE

GA

L A

SP

EC

TS

LA

W,

RE

GU

LA

TIO

N,

PE

RM

IT

BU

SIN

ES

S P

OR

TF

OL

IO

EC

ON

OM

IC A

PP

RO

AC

H

IMP

LE

ME

NTA

TIO

N

PR

OJ

EC

T M

AN

AG

EM

EN

T,

RIS

K A

SS

ES

SM

EN

T,

EN

V M

GT

GEOTHERMAL ENERGY DEVELOPMENT POLICY(PRES DECREE No. 5 / 2006; GOVT REGULATION No. 3/2005 No. 70/2010 : PERMEN ESDM. No. 5 / 2009; No. 2/2011;

PERPRES No. 4/2010 : PERPRES No. 10/2011)

1000 MW :42.250 BOEPD

6.1 JT TON CERS/YEAR

TO SUPPORT ACCELERATION OF GEOTHERMAL DEVELOPMENTIN LINE WITH 10,000 MW POLICY STAGE II

EBTKES VISION 25/25 (5 % ENERGY MIX / 12.332 MW - 2025)

GEOTHERMAL ENERGY

8

IDEAL GEOTHERMAL BUSINESS PROCESS IN INDONESIA

INVENTORY WKP

EXPLORATION

EXPLOITATION

EPC

FEED

COD

US$

AMDAL / UKL / UPL(EIA/Environment Management

Effort/Environment Monitoring

Effort)

Location Permit Permit of Land usage for

Exploration Activities ForestryMinister

SIPPA (Surface Water UsagePermit)

IMB (Construction Permit)

HEAD OF AGREEMENTPRICE AND CONTRACT

NEGOTIATION

Notice Of Resorces ConfirmationNotice Of Intend to

Develop

AMDAL (EIA) Location Permit Land Usage Permit SIPPA (Surface Water Usage

Permit)

IMB (Construction Permit)

2 Years 3 Years

GEOTHERMAL ENERGY9

Pertamina aspires to achieve by 2015

9

2,5052,4452,2952,0901,508

823610

201817161514132012

Steam Availability

Oil equivalent

MW

122119112102

73

4030

2018201720162015201420132012

K Boepd

GEOTHERMAL ENERGY

KEY BARRIERS TO GEOTHERMAL DEVELOPMENT IN INDONESIA

Uncertain

economics

Uncertain

environ-

ment

High upfront

capital

requirement

Uncertainty

on pricing

Regulatory

uncertainty

Other risks

Description

Higher capital expenditure compared with other power generation technologies

Cost of USD 35-50 Mn for preliminary studies including exploration wells to prove the reserves without any

external financing

Development and exploration costs are solely borne by geothermal company and are not reimbursed by

government unlike the practice in oil & gas industry

Implementation of MEMR Decree on Feed In Tariffrequires further negotiation with PLN as a single buyer

Most of the geothermal reserves are located in protected forests and geothermal activities are not

allowed to carry out in forest conservation areas

Overlapping jurisdictions increases lead time and complexity as local authorities often block the projects

approved by the central government

Tariff agreement with PLN often comes back for the renegotiation, hence no guarantee on the price

PLN off take is not guaranteed by government

All these together

mean that under

the current

environment,

geothermal

development

projects are

potentially high

risk, especially for

smaller operators

10

GEOTHERMAL ENERGY

PGE PRODUCTION FIELD - OWN OPERATION

KAMOJANG GEOTHERMAL FIELDS SIBAYAK GEOTHERMAL FIELD

LAHENDONG GEOTHERMAL FIELDS

POWER PLANT UNIT-1

POWER PLANT UNIT 4 ( 60 MW ) POWER PLANT UNIT 1,2 & 3 (30; 2 x 55 MW)

PRODUCTION

CLUSTER UNIT-2

11

POWER PLANT UNIT-4

GEOTHERMAL ENERGY

WAYANG-WINDU GEOTHERMAL FIELDS (JOC-STAR ENERGY)

PLTP 1x110 MW & 1x117 MW

DARAJAT GEOTHERMAL FIELD (JOC-CHEVRON)

PLTP 1x55 MW, 1x95 MW & 1x121 MW

PGE GEOTHERMAL FIELDS UNDER JOC SCHEME

SALAK GEOTHERMAL FIELD (JOC-CHEVRON)

PLTP 3x60 MW & 3x65 MW

12

GEOTHERMAL ENERGY

No Project Name Location Capacity (MW) Project Type

1 Lumutbalai Unit 1&2, Sumatera Selatan 2 x 55 MW Total Project

2 Lumutbalai Unit 3&4, Sumatera Selatan 2 x 55 MW Total Project

3 Ulubelu Unit 3&4, Lampung 2 x 55 MW Total Project

4 Kamojang Unit 5 Jawa Barat 30 MW Total Project

5 Lahendong Unit 5&6 Sulawesi Utara 2x20 MW Total Project

6 Kotamobagu Unit 1&2 Sulawesi Utara 2 x 20 MW Steam Supply

7 Hululais Unit 1&2 Bengkulu 2 x 55 MW Steam Supply

8 Sungai Penuh Unit 1 Jambi 55 MW Steam Supply

9 Karaha Jawa Barat 30 MW Total Project

PGES GEOTHERMAL ONGOING PROJECTS

GEOTHERMAL ENERGY

14

UPCOMING GREENFIELDS DEVELOPMENT PLAN

Name of Prospect AreaIns. Capacity

(MW)

Sumatera Island

1 WKP Sungai Penuh1. Semurup 40

2 WKP Hululais Tambang Sawah

1.Tambang Sawah

2.Bukit Daun

70

110

3 WKP Lumut Balai1. Margabayur 75

4 WKP Ulubelu Way Panas1. Way Panas 120

Java Island

5 WKP Kamojang1.G. Masigit Guntur

2.Ciharus

50

30

6 WKP Iyang Argopuro1. Iyang Argopuro 55

Sulawesi Island

7 WKP Kotamobago

1. Kotamobago

60

MAGMASemarang

Medan

Tanjung Karang

Bandung

Manado

Way Panas

Kotamobagu

Tambang SawahBukit Daun

Margabayur

Ciharus

Iyang Argopuro

Masigit-Guntur

Sumurup

Sinabung

Key Indicators: New Geothermal Power Generation

Capacity : 610 MW Additional Power Generation (kWh per

year) : 4800 million Avoided CO2 : 4,5 million tonnes per

Year

GEOTHERMAL ENERGY

Bekerja dan ibadah

adalah energi kami

Semoga semua upaya

menghasilkan manfaat

Insya Allah!

THANK YOU

15