ELEC

TRICITY

INVESTMENTIndonesia Investment One Stop Service (OSS) Center and Marketing Officer

An Indonesian power project is subject to list of permits from variety of government departments and ministries. The main permits that a power project developer is required to obtain are:

— Registration of the establishment of the project company and Investment Principal License in BKPM

— Business license

— Approval of an environmental impact assessment (AMDAL)

— Location permit, which allows the Company to procure the land that is required for the project from a third party (by way of sale and purchase or relinquishment) or from the state

— Electricity Business License (IUPTL)

— Certificate of operation worthiness (SLO) from the National Committee for Electrical Installation (KONSUIL) or the Society for the Protection of National Electrical Installation (PPILN)

Indonesian President, Joko Widodo, officially launched the Integrated One Stop Service Centre (PTSP) at Indonesia Investment Coordinating Board (BKPM) in early January 2015. This service aims to smoothen and simplify licensing procedures for investment projects. From now on, investors will not need to visit various ministries or government agencies to obtain necessary permits but can simply turn to the BKPM's OSS centre.

In addition, currently the BKPM has established what so called Marketing Officers (MO) who will take care any investment interest to explore investment opportunities in the country. The contact of MO is Directorate of Sector Promotion, BKPM (Phone: [62-21] 525-2008 Ext: 3568, Fax: [62-21] 5288-0390, Email: info@bkpm.go.id).

Beside other energy source such as coal, gas, hydro, biomass, and solar, Indonesia endowed with the biggest geothermal energy reserves amounted to 16,484 MW, but until 2013 only as much as 1,242 MW has been exploited. Therefore, widely investment opportunities to develop this renewable energy source are awaiting to be explored.As an example of the industry zoning in Indonesia, the following graph shows the zoning for geothermal potential projects:

Geothermal Poten�al Projects

ACEH 2 WKP- Jabok: 70 MW- Seilawah Agam: 130 MW

CENTRAL JAVA 5 WKP- Baturaden: 175 MW- Dataran Tinggi Dieng: 780 MW- Guci: 79 MW- Gn. Ungaran: 100 MW- Umbul Telomoyo: 120 MW

NORTH SUMATERA 5 WKP- Sibayak-Sinabung: 130 MW- Sibual-Bual: 750 MW- Sipaholon Ria-ria: 75 MW- Sorik Marapi: 200 MW- Simbolon Samosir: 155 MW

SOUTH SUMATERA 3 WKP- Lumut Balai: 250 MW- Rantau Dedap: 106 MW- Danau Ranau: 210 MW

JAMBI 1 WKP- Sungai Penuh: 70 MW

WEST SUMATERA 4 WKP- Bukit Kili: 83 MW

- Gn Talang: 35 MW- Liki Pinangawan: 400 MW

- Bonjol: 200 MW

BENGKULU 2 WKP- Tmbg Sawah-Hululais: 873 MW

- Kepahiang: 180 MW

LAMPUNG 4 WKP- Gn. Rajabasa: 91 MW

- Suoh Sekincau: 230 MW-

- Danau Ranau: 210 MW- Wan Ratai: 105 MW

WEST JAVA 10 WKP- Ciater-Tangkuban Perahu: 60 MW

- Cibeureum-Parabakti: 485 MW- Cibuni: 140 MW

- Cisolok Cisukarame: 45 MW- Gn. Tampomas: 50 MW

- Gn. Tangkuban Perahu: 100 MW- Kamojang-Darajat: 1465 MW- Karaha Cakrabuana: 725 MW

- Pangalengan: 1106 MW- G. Ceremai: 150 MW

EAST JAVA 3 WKP- Blauran-Ijen: 270 MW- Gn. Iyang Angopuro: 295 MW- Telaga Ngebel: 120 MW Gn. Lawu: 195 MW

BALI 1 WKP- Tabanan: 276 MW

WEST Nusa Tenggara 2 WKP- Hulu Daha: 65 MW- Sembalun: 100 MW

BANTEN 2 WKP- Kaldera Danau Banten: 115 MW

- G. Endut: 80 MW

EAST Nusa Tenggara 2 WKP- Atadai: 40 MW- Sokoria: 30 MW- Ulumbu: 199 MW- Mataliko: 63 MW- Oka Lie Ange: 40 MW

CENTRAL SULAWESI 2 WKP- Marana: 35 MW- Bora Pulu: 152 MW

MALUKU 1 WKP- Tulehu: 100 MW

GORONTALO 2 WKP- Sumawa: 110 MW

NORTH SILAWESI 2 WKP- Kotamobangu: 410 MW- Lahendong-Tompaso: 358 MW

MORTH MALUKU 2 WKP- Jalolo: 75 MW- Songa Wayawa: 140 MW

Jl. Gatot Subroto No. 44Jakarta 12190, PO. Box 3186Indonesia.

p. +6221 5292 1334 f. +6221 5264 211www.bkpm.go.id e. :info@bkpm.go.id

Association of Indonesian Electricity Power Contractor(Asosiasi Kontraktor Listrik Indonesia)

Website: www.aklndoi.org ,

Ministry of Energy and Mineral Resources of the Republic of Indonesia(Kementerian Energi dan Sumber Daya Mineral Republik Indonesia)

Website: www.esdm.go.id

Local Partners

Zoning Industry

Investment Incentives

, Association of Electrical and

mechanical Indonesia

Associa�on of Indonesian Electricity and Mechanical Contractor(Asosiasi Kontraktor Listrik dan Mekanikal Indonesia)

Website: www.akli.orgwww.bkpm.go.id

BKPM ELECTRICITY_REVISI_foto

Wednesday, August 12, 2015 10:45:59 AM

ELECTRICITYINVESTMENT

ndonesia is an emerging global powerhouse in Asia. With a IGDP expected to reach US$ 1 trillion in 2014, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring

countries, Indonesia's economy grew around 5.5 % in 2013, making it “The World's Most Stable Economy in the Last Five Years” according to The Economist magazine.

As the economy grows, infrastructure is expected to be one of the main driving forces for economic development and the key contribu�ng factors for this will include new power plants, transmission and distribu�on channels. With strong government support, rising domes�c disposable income and expanding new industries, Indonesia offers great opportuni�es for investment in the electricity power sector.

WHY INDONESIA?Indonesia's vast geographical area with a popula�on of nearly 250 million people, presents significant opportuni�es for investment in the energy industry. Known as one of the fastest growing economic na�on in the past 10 years, Indonesia energy consump�on has nearly touched 150% increase as the consequences of economic growth. With this growth rate, Indonesia is strugling to fulfill all its energy needs. In fact, electricity has had the fastest growing demand energy forms needed in Indonesia; with more than 5% demand increase but with less than 1% increasing supply every year. The current condi�on is Indonesia supply-demand ra�o is only 1.05, it means that Indonesia only has 5% of extra capacity for its installed system. This number reflects instability of electricity supply in Indonesia which compared to other cause supplydemand gap significantly.

MARKET OPPORTUNITIES· Ample room for growth as Indonesia has one of the lowest

electricity consump�on per capita in South East Asia.· Increasing demand for electricity from both households and

commercial/industry will likely to con�nue in line with the economic development

· Abundant supply of coal, solar energy, hydro-power and geothermal resources. Indonesia is a major coal exporter, and endowed with huge geothermal energy reserves of around 16,484 MW but only 1,242 Mw has been exploited.

· Total installed capacity of electricity genera�ng plants up to 2014 is 53,585 MW, which is supplied by the State Owned El ectri ci ty Company (PLN) 37,280 MW, Independent Power Provider (IPP) 10,995 MW, Public Private U�lity (PPU) 2,634 MW, and others 2,677 MW.

In term of the kind of energy sources used most electricity genera�ng plants are steam power, followed by diesel, combina�on gas and steam, gas, hydro, geothermal, microhydro, and others.

In order to meet the increasing demand for the next 5 years (2015 – 2019) averaging 8.7% per year, the government will add electricity plan capacity as much as 42,900 MW which consist of 7,400 MW (having been undergoing) and 35,500 MW (planned) during the period of 2015 – 2019.

In term of loca�on the plan to build 35,500 MW electricity genera�ng plants will be spread throughout the regions in the country, being the biggest capacity in Java and Bali Islands (20,900 MW), followed by Sumatera (8,700 MW), Sulawesi (2,700 MW), Kalimantan (1,870 MW), Nusa Tenggara (700 MW), Papua (340 MW), and Maluku (280 MW).

INSTALLED ADDITIONAL CAPACITY BY SOURCE OF GENERATING PLANT

OTHERS, 41HYDRO, 424MICROHYDRO, 89

DIESEL, 2,960

GAS, 1,516

COMBINATION 0F GAS &

STEAM, 1,733

GEOTHERMAL, 216

STEAM, 10,516

THE PLAN OF ADDITIONAL CAPACITY BY SOURCE OF GENERATING PLANT

STEAM, 25,839

OTHERS, 81PS, 1.040HYDRO, 634

GAS, 4,288

COMBINATION 0F GAS &

STEAM, 9,165

GEOTHERMAL, 1,160

MICROHYDRO, 737

Sumatera Kalimantan

Sulawesi

Maluku

Papua

Nusa TenggaraJava-Bali

Sumatera:PLN : 1.1 GWIPP : 7.6 GWTotal : 8.7 GW

Jawa-Bali:PLN : 5,0 GWIPP : 15,9 GWTotal : 20,9 GW

Kalimantan:PLN : 0,92 GWIPP : 0,95 GWTotal : 1,87 GW

Sulawesi:PLN : 2,0 GWIPP : 0,7 GWTotal : 2,7 GW

Nusa Tenggara:PLN : 0,67 GWIPP : 0,03 GWTotal : 0,70 GW

Papua:PLN : 0,22 GWIPP : 0,12 GWTotal : 0,34 GW

Maluku:PLN : 0,26 GWIPP : 0,02 GWTotal : 0,28 GW

Indonesia:PLN : 10,2 GWIPP : 25,3 GWTotal : 35.5 GW

Advantages in Indonesia· Compe��ve labor cost in Asia· Successful partnership between investors with PLN during the

last five years indicates the government's commitment to develop this sector, as well as its a�rac�veness to the investor.

PROVISIONS AND SUPPORTSThe Indonesian government endeavors to create a fully suppor�ve environment for foreign investment par�cularly in the electricity power sector by establishing the following policies, as described more detail:

Negative Investment List - Presidential Regulation No. 39 of 2014-Construction and installation

Year

DDI FDI

ProjectInvestment value

(Rp. in million)Project

Investment value(US$ in thousand)

2010 25 5,061,595.1 34 1,354,066.5

2011 27 8,706,044.1 35 1,827,126.6

2012 32 3,107,830.4 51 1,487,423.8

2013 41 25,437,341.5 73 2,145,450.7

2014 57 35,794,222.3 99 1,145,416

Source: BKPM, 2015

BKPM ELECTRICITY_REVISI_foto

Wednesday, August 12, 2015 10:46:01 AM