REPUBLIC OF INDONESIA
DEPARTMENT OF ENERGY AND MINERAL RESOURCES
DIRECTORATE GENERAL OF COAL, MINERAL AND GEOTHERMAL
FRAME WORK OF REGULATION ON GEOTHERMAL BUSINESS ACTIVITIES
DENPASAR, FEBRUARY 2007
TOPICS 1. Background 2. Geothermal Rules and Regulations
3. Draft of Government Regulations on Geothermal Business Activities Contents Part I
: INTERPRETATION
Part II
: GEOTHERMAL ACTIVITIES STAGES
Part III
: BIDDING ON DESIGNATED WORKING AREA (WKP)
Part IV
: MINING PERMIT (IUP)
Part V
: RIGHTS AND DUTIES FOR MINING PERMIT HOLDERS
Part VI
: GEOTHERMAL DATA
Part VII
: GUIDANCE AND SUPERVISION
Part VIII
: ADMINISTRATIVE SANCTIONS
Part IX
: TRANSFER STIPULATIONS
Part X
: CLOSING STIPULATIONS
GEOTHERMAL ADVANTAGES 1.
Geothermal as a renewable source of energy, environment friendly and can be utilized for based load, peak load and forever load.
2.
Geothermal energy in Indonesia has the potentials to generate up to 27.199 Mega Watt (equivalent to 11 billion barrels of oil), unfortunately the utilization for this source of energy is only 3% (852 MW) from its immense potentials.
3.
Since geothermal energy cannot be exported, it is mainly utilized as an on site source of energy.
4.
By releasing less carbon emission than conventional industrial plants, geothermal energy endorses The Clean Development Mechanism.
WORLDWIDE POTENTIALS GEOTHERMAL ENERGY World Potential (~60,000 MW), Installed Capacity (~8,500 MW)
POTENTIALS (MW)
INSTALLED CAPACITY (MW)
Indonesia
27,199
852
USA
12,000
2,300
P.R. China
6,700
30
Africa, including Kenya
6,500
120
The Philippines
6,000
1,900
South & Central America
3,500
1,220
Japan
2,400
550
Europe, including Iceland and Azores Islands
2,000
1,050
Russia
1,400
60
New Zealand
1,200
450
COUNTRY
Source: DOE, GRC, IGA
GEOTHERMAL POTENTIALS IN INDONESIA
The 253 locations of potential geothermal energy in Indonesia
ROADMAP ON THE DEVELOPMENT FOR GEOTHERMAL ENERGY 2006-2025
2006
2010
2012
2016
2020
852 MW
2000 MW
3442 MW
4600 MW
6000 MW
1148 MW existing WKP
1442 MW existing WKP
1158 MW Existing WKP + new WKP
1400 MW New WKP
2025 9500 MW (target)
3500 MW New WKP
GEOTHERMAL POTENTIALS AS A SOURCE OF ENERGY FOR POWERPLANTS 100% 90%
6% 15% 24% 9%
80% 70%
9%
6%
8% 6%
2% 8%
2% 8%
6%
7%
14%
12%
70%
71%
2009
2010
Hydro
Oil
20%
5%
60% 50%
24% 19%
40% 60%
30% 20%
42%
47%
2006
2007
Coal
Gas
10% 0% 2008
Geothermal
HANDYCAPS IN THE DEVELOPMENT OF GEOTHERMAL ENERGY 1.
Construction on a Geothermal Power Plant requires an a large amount of capital for initial investment (from 1,3 to 2,2 million USD per MW).
2.
Most locations in Indonesia which are Geothermal Energy potentially developed , are situated in Protected Forest and National Parks.
3.
Contracts that are already exist, have no certainty in concerns with Regional Government towards the distribution of the 34% nation’s income.
4.
Geothermal companies are tenuous towards changing in Government Regulations.
5.
Geothermal Power plants are hard to compete against other power plants, aside from Oil fired power plants.
6.
Lack of national’s capacity to develop geothermal power plant.
GEOTHERMAL REGULATIONS 1.
Geothermal Law No.27/2003 a.
The Purpose for Geothermal Mining : i.
To control the utilization of the geothermal energy for supporting a sustainable development and the additional value of the energy.
ii. To increase state revenue and to push the country’s economic development in order to achieve wealth and prosperity.
2.
b.
The utilization for geothermal mining will be controlled by local/ regional government and the central government.
c.
The distribution of authority for local/ regional government, provincial government in utilizing geothermal energy.
Implementing Government regulation required: a.
Government Regulation on Geothermal business activity (indirect utilization)- has been addressed to the President.
b.
Government regulation on direct use – in the process
c.
Government regulation on Non-Taxed State Revenue ( Royalty, dead rent and bonus) – in the process
PART I INTERPRETATION 1. Stages on Geothermal business activity includes: General Survey, Exploration, Feasibility Study, Exploitation and Utilization 2. Direct Use : Business activity on non generating electricity either for public usage or for the company its self. 3. Indirect use : Business activity on generating electricity either for public usage or for the company its self. 4. Designated Mining Area (WKP): Area which designated in the mining permit. 5. Bidding on designated mining are: Proposition of mining area to companies is a part of process of obtaining mining permit (IUP) .
PART II STAGES OF GEOTHERMAL BUSINESS ACTIVITY UU 15/1985
LOCAL.GOVT. CENTRAL.GOVT.
PP 10/1989 jis PP 3/2005 dan PP 26/2006
COMPANY
RESOURCES
GENERAL SURVEY
EXPLORATION
3 YEARS AUTHORISATION
FEASIBILITY STUDY
2 YEARS
GEOTHERMAL MINING PERMIT (IUP)
Designation of mining area Bidding
EXPLOITATION
30 YEARS
ELECTRICAL POWER GENERATION
PART III BIDDING ON DESIGNATED WORKING AREA (WKP) 1.
In the process of mining area bidding, the minister can decide the price steam or electricity
2.
Minister, Governor, Bupati/Walikota carry out bidding depend on their authority
3.
Requirements and the process of bidding
PART IV MINING PERMIT (IUP) 1.
Minister, Governor, atau Bupati/Walikota issue IUP to the winner of the bidding.
2.
One company can be granted only one designated mining area (WKP)
3.
IUP is given for 35 years long, namely : a. Exploration : 3 years, can be extended 2 times for 1 yr b. Feasibility study : 2 years c. Exploitation : 30 yrs can be extended each for 20 yrs
4.
WKP wide: a. Exploration < 200.000 Ha b. Exploitation < 10.000 Ha
CHAPTER V RIGHTS AND DUTIES FOR MINING PERMIT HOLDERS 1. Mining Permit Holder’s Rights: a. Tax Incentives b. Extension of Mining Permit 2. Duties as a Mining Permit Holder: a. Pay taxed and non-taxed state revenue b. Endorse the usage of Domestic Products, Services, Science and Technology, and Construction Designs c. Carry out Community Development Program for the local . d. Fulfilling Safety Regulations, Health Regulations, Environment Conservation Program and Technical Regulations on Geothermal Mining
CHAPTER VI GEOTHERMAL DATA 1.
All data and information belongs to the Indonesian Government
2.
The Utilizing Data for the purpose of :
3.
a.
Determining Work Areas and classifying them according to their Potentials
b.
To put together General Plans in accordance to the State’s usage for Electrical Energy and Electrical Supplies.
c.
To determine the State’s geothermal potential resources and reserves.
d.
For the purpose of Science and Technology development
Data Confidentiality : a.
Basic/ primary data (obtained from General Survey) : 4 Years
b.
Analyzed Data (obtained from evaluating Basic Data) : 6 Years
c.
Interpreted Data (obtained from Basic Data and Analyzed Data) : 8 Years
CHAPTER VII GUIDANCE AND SUPERVISION 1. Guidance and Supervision of which includes amending Utilization Policies, Guidelines, Counseling, Facilitating, Advising, Supervising, Monitoring and Training towards Governors, Bupati/Walikota will be conducted by The Minister of Energy and Mineral Resources. 2. Guidance and Supervising on geothermal business activities are carried out by The Minister of Energy and Mineral Resources, Governors, Bupati/Walikota in accordance to their authority. 3. Governors, Bupati/Walikota are subjected to report to The Minister of Energy and Mineral Resources every 6 months concerning Mining activities in their respective regions.
CHAPTER VIII ADMINSTRATIVE SANCTIONS
1. Ministers, Governors, Bupati/Walikota are authorized to give administrative sanctions to Mining Permit Holders that has violated certain regulations. 2. Forms of Administrative Sanctions : a. An official warning notice b. Stopping all mining activities c. Revoking Mining Permit
CHAPTER IX TRANSFER STIPULATION 1.
Mining Authorizations, Mining Permits and Working Contracts which are issued before the legalization of the new purposed regulation, are to be considered valid until they expire.
2.
For Working Areas that has not been exploited until 21st October 2010, should be return to the Government.
3.
The Minister of Energy and Mineral Resources carry out supervision on existing mining authorization, mining permit and contract of work.
CHAPTER X CLOSING STIPULATION
This Regulation is legally binding since the date it is amended.
FUTURE PLANS AND REALIZATION ON ELECTRICITY PRODUCTION (MWh) 9000
8326 7709
8000 7000
6560
6507
2004
2005
6556
6000 5000 4000 3000 2000 1000 0 2006
Realization on Electricity Production from Geothermal Future Plans on Electricity Production from Geothermal
2007
2008
LIST OF INSTALLED GEOTHERMAL PLANT CAPACITY 2006 - 2008 No.
1
2
3
4
5
Production Area
Kamojang
Location
Jabar
Lahendong
Sulut
Sibayak
Turbine capacity
Owner
1 x 30 MW
PLN
2 x 55 MW
PLN
1 x 60 MW
PLN
1 X 20 MW
PLN
1 x 20 MW
PLN
1 x 20 MW
PLN
1 x 2 MW
Pertamina
2 X 5 MW
Pertamina
3 x 60 MW
PLN
3 x 65 MW
CGS
1 x 55 MW
PLN
1 x 90 MW
CGI
1 X 110 MW
CGI
Sumut
G. Salak
Jabar
Darajat
Jabar
Total Capacity (MW) 2006
2007
140
140
2008
200
20 40 60
2
375
12
12
375
375
255
255
145
6
Wayang Windu
Jabar
1 x 110 MW
SE
110
110
110
7
Dieng
Jateng
1 x 60 MW
GDE
60
60
60
8
Bedugul
Bali
1 x 10 MW
Pertamina
10
10
1002
1082
Jumlah
852
KEMUDAHAN DAN KENDALA TERKAIT DENGAN PERATURAN PERUNDANG-UNDANGAN A. SEBELUM UU No. 27 / 2003 Jenis Peraturan
Kemudahan
Kendala
UU No. 41/1999 tentang Kehutanan, jo. UU No 19/2004 tentang Penetapan Peraturan Pemerintah Pengganti UU No 1/2004 tentang perubahan atas UU 41/1999 tentang Kehutanan menjadi UU
-
Mayoritas keberadaan lapangan panas bumi di Indonesia dalam kawasan hutan lindung dan beberapa di taman nasional,
UU No. 22/1999 tentang Pemerintahan Daerah
-
Meningkatnya tuntutan daerah atas bagi hasil bagian pemerintah.
Keputusan PresidenNo. 49/2001 Pasal 4
PPh, PBB, PPn, PDRI, Bea masuk dan pungutan lainnya termasuk dalam 34% dari NOI sebagai bagian Pemerintah
-
Keputusan Menteri Keuangan - No. 26/PMK.010/2005 - No. 78/PMK.010/2005
Pembebasan bea masuk
-
Keputusan Menteri Kehutanan No. 55/1994
-
Perubahan kompensasi lahan pengganti pinjam pakai penggunaan kawasan hutan lindung dari 1:1 menjadi 2:1
Keputusan Menteri LH 175/Kpts II/2003
-
Perubahan peruntukan lahan dari hutan lindung menjadi taman nasional dan cagar alam
Vooruistslag/ Penundaan Pajak Dalam Rangka Impor (PDRI)
-
Surat dari Dirjen Bea Cukai
KEMUDAHAN DAN KENDALA TERKAIT DENGAN PERATURAN PERUNDANG-UNDANGAN (Lanjutan) B. SESUDAH UU No. 27 / 2003 Jenis Peraturan UU No. 27/2003 tentang Panas Bumi
UU No. 41/1999 tentang Kehutanan, jo. UU No 19/2004 tentang Penetapan Peraturan Pemerintah Pengganti UU No 1/2004 tentang perubahan atas UU 41/1999 tentang Kehutanan menjadi UU Peraturan Menteri Kehutanan - No. P.12/Menhut-II/2004
Kemudahan - Memberikan kesempatan yang sama kepada pelaku bisnis untuk pengembangan usaha Panas Bumi melalui lelang terbuka - Pemerintah dapat melakukan survey pendahuluan dan eksplorasi untuk mengurangi resiko pengembang panas bumi - Memperoleh fasilitas perpajakan sesuai dengan Peraturan Perudang-undangan perpajakan yang berlaku - Hak mendapatkan perpanjangan jangka waktu IUP. -
-
- No. P.14/Menhut-II/2006 Peraturan Daerah
-
Kendala
-Belum ada Peraturan Perundang-undangan untuk mendapatkan insentif pajak dan bea masuk
Mayoritas lokasi prospek panas bumi di Indonesia berada di kawasan hutan lindung
Kompensasi lahan penggunaan kawasan hutan lindung untuk kegiatan pertambangan panas bumi: - Untuk provinsi yang luas hutannya <30%, areal kompensasinya 1:2 - Untuk provinsi yang luas hutannya >30%, areal kompensasinya 1:1 Kompensasi berupa dana yang dijadikan PNBP Departemen Kehutanan yang besarnya 1% dari nilai harga per satuan produksi dari seluruh produksi Pengusahaan panas bumi rentan terhadap perubahan peraturan daerah tentang pajak dan retribusi
INDONESIA’S GEOTHERMAL POTENTIALS RESOURCES ( MW ) LOCATION
RESERVES (MW)
INSTALLED CAPACITY
SPEKULATIF
HIPOTHESIS
ESTIMATIO N
PROBABILITY
PROVEN
SUMATERA
5,705
2,433
5,419
15
499
2
JAWA - BALI
2,300
1,611
3,088
603
1,727
830
NUSA TENGGARA
150
438
631
-
14
SULAWESI
1,000
125
632
110
65
MALUKU / IRIAN
325
117
142
-
-
KALIMANTAN
50
-
-
-
-
9,530
4,724
9,912
728
2,305
Total 253 locations
14,254
12,945 Total : 27,199
20
Total 852 MW
