Waste to Energy Investment

9/12/2017

Waste to Energy Investment Presented on Waste to Energy National Conference Director for Infrastructure Planning

Jakarta, 12 September 2017 © Badan Koordinasi Penanaman Modal, 2017

Return of Investment on Waste to Energy Projects

Local Government

Waste Management

Power Production

Tipping Fee

Power Price

PLN

Waste to Energy Project

Benchmark:  Waste volume  Power capacity  Power price  Tipping fee

: 1.000 tons per day, : 12 – 16 MW, : 18,77 cent per kWh, : Rp 432.000 per tons of waste

The Investment Coordinating Board of the Republic of Indonesia

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9/12/2017

Waste to Energy Projects Opportunities

8

Energy Infrastructure Waste to Energy Projects Waste to Energy in Large Cities

National Strategic Projects

(Jakarta, Tangerang, Bandung, Semarang, Surakarta, Surabaya, Denpasar, Makassar)

Located in Province of DKI Jakarta, Banten, West Java, Central Java, East Java, Bali and South Sulawesi Based on Presidential Regulation Number 58 Year 2017 regarding Amendment of Presidential Regulation Number 3 Year 2016 on the Acceleration of National Strategic Projects

9 Projects in RUPTL PLN

No. 1

Location South Sumatera

Project Name Sukawinatan Palembang

Capacity (MW) 0.5

Status Plan

2

DKI Jakarta

-

85

Plan

3

Banten

-

15

Plan

4

West Java

-

10

Plan

5

Central Java

-

15

Plan

6

Central Java

-

5

Plan Procurement

7

East Java

-

10

8

Bali

-

15

Plan

9

South Sulawesi

10.00

Plan

Makassar

Based on RUPTL PLN 2017-2026


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Investment on Waste to Energy Projects Principal License on Waste to Energy Projects in 2012-2017 by Number of Projects Investment value: Rp 642 billion ~US$ 47.5 million

by Country of Origin

PMDN, 1

Indonesia, 1 Various Countries, 1

PMA, 12

United Arab Emirates, 1 Malaysia, 2

Hongkong, RRT, 6

Singapore, 2

Investment value: Rp 47.6 trillion ~US$ 3.5 billion

Investment Realization* on Waste to Energy Projects in 2012-2017 by Number of Projects

by Country of Origin Indonesia, 1

Investment value: Rp 68.2 billion ~US$ 5.0 million

PMDN, 1 Hongkong, RRT, 1

PMA, 7

* Based on LKPM

Investment value: Rp 122,7 billion ~US$ 8.9 million

Singapore, 6


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Improvement of Investment Climate

Foreign Capital Ownership for Waste to Energy Project Sector

Maximum Foreign Capital Ownership < 1 MW

Power Plant

Closed for Foreign Investor

1 – 10 MW

49 %

> 10 MW

95 % (for non PPP scheme) or 100% (for PPP scheme during concession period)

Power Transmission

95 % (for non PPP scheme) or 100% (for PPP scheme during concession period)

Power Distribution

95 % (for non PPP scheme) or 100% (for PPP scheme during concession period) 95%

Power Installation Consultation

95% (for power plant), 49% (for power transmission), Closed for Foreign Investor (for power distribution)

Construction and Installation of Electric Power

95%

Operation and Maintenance of Electric power Installation Examination and Testing of Electric Power Installation

49% (for power plant and power transmission), Closed for Foreign Investor (for power distribution)

Source: Presidential Regulation Number 44 Year 2016 The Investment Coordinating Board of the Republic of Indonesia

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Priority Investment Service

3-hour Service

8+1 documents obtained

Available for investors with minimum (new or expansion project) investment of IDR 100 billion (USD 8 million) and/or employing 1,000 local workers. Or supplier of the existing manufacturing company with minimum investment of IDR 100 billion (USD 8 million) and/or employing 1,000 local workers. • Except for investment in infrastructure sector, including oil & gas and electricity • In accordance to MEMR Regulation No. 13/2017, 3 sectors have been determined to receive 3 hour licensing service

Certainty to start a business

• Investment license • Certificate of incorporation • NPWP / Tax registration • TDP / Company registration

Certainty to work

•RPTKA / Employment plan •IMTA / Working permit

Certainty to import capital goods

• APIP / Import identification • NIK / Customs registration

Accurate land Information

• Letter of land availability

BKPM

• Arrive at One-stop Integrated Service at BKPM directly from the airport. • Consult with Director of Investment Service. • Submit the required documents & data.

Wait at the lounge while documents are processed by BKPM, in-house notary, ministries, & other government institutions.

Obtain eight documents & letter of land availability within three hours to start your business.


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9/12/2017

3 HOURS INVESMENTLICENSING SERVICE FOR ENERGYAND MINERALRESOURCESSECTOR RECEIVE Requested licensing products

BKPM

9 Type of Licensing Issued by ESDM3J service

WAITING In Priority Lounge • Director ARRIVES at Central OSS. • SUBMIT required documents.

• •

NO

TYPE OF SERVICES

REGULAR SERVICE

1.

Temporary Business License for Electricity

2.

Temporary Business License for Oil / Fuel / LPG Storage

REQUIREMENTS

3.

ESDM3J service is given if the company has fulfiiled the checklist of administrative and technical requirements as regulated on MEMR Ministrial Decree No. 15 of 2016 as revised in Ministrial Decree No. 13 of 2017.

Temporary Business License for Storage of Processed Products / CNG

4.

Temporary Business License for LNG Storage

32 Working Days

5.

Temporary Business License for Oil Refinery

32 Working Days

6.

Temporary Business License for Processing Oil Residue Industry

32 Working Days

OSS : One Stop Service (PTSP) MEMR : Minister of Energi and Mineral Resources

20 Working Days 32 Working Days 32 Working Days for Processed Products --------40 Working days for CNG

7.

Temporary Business License for Natural Gas Processing

32 Working Days

8.

Temporary Business License for General Trade of Oil/Fuel

40 Working Days

9.

Temporary Business License for General Trade of Processed Products

40 Working Days


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Incentives IMPORT DUTY FACILITY PMK No.176/PMK.011/2009 jo. PMK No. 76/PMK.011/2012 jo. PMK 188/PMK.010/2015

Import duty on Machineries and Equipments, goods, and raw materials for production

• Exemption of import duty on machineries and equipments • 2 years exemption of import duty on raw materials • Additional 2 years import duty exemption for raw materials if company using locally-produced machineries and equipments (min 30%)

CUSTOMS CLEARANCE

Import Facility for Capital Goods

Four customs checking status: •Red line is for new companies. Physical & document checks before transported from ports.

Acceleration and certainty in custom clearance process

•Yellow line

Document check before goods transported from ports.

•Green line

Document check after goods transported from ports. •Main Partner Priority for companies with proven track record. No checking required.

Faster & Certain

•Capital goods do not require screening. •Cutting the processing time from 3-5 days to only 30 minutes.

Simple requirements PMK No. 66/PMK.010/2015

Import duty on Capital Goods for Development and Expansion of Power Generation Industries for Public Purpose.

New Facility:

Status upgrade from red to green line for new companies under construction

• Projects under construction • Obliged in reporting quarterly investment activities (LKPM) • Recommendation from BKPM


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9/12/2017

Thank You Terima Kasih

Indonesia Investment Promotion Centre (IIPC)

Badan Koordinasi Penanaman Modal (BKPM) Indonesia Investment Coordinating Board Jln. Jend. Gatot Subroto No. 44 Jakarta 12190 - Indonesia t . +62 21 525 2008 f . +62 21 525 4945 e . [email protected] PTSP Pusat Contact Center: 0807-100-BKPM (2576)

www.bkpm.go.id The Investment Coordinating Board of the Republic of Indonesia

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Improvement of Investment Service

One

place

All

22 ministries integrated

3-hour

sectors 167 permits are delegated to BKPM

Service

One-Stop Services

One-Stop

Service Industry,

(PTSP) at BKPM

power,

Direct

oil & gas,

Construction

tourism at one place

91% Regional PTSP formed. 61% regional PTSP implement e-licensing.

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9/12/2017

Incentives TAX ALLOWANCE PP No. 9/2016 jo PP No. 18/2015

30

% of investmentvalue Reduction of corporate net income tax for 6 years, 5% each year.

145

business segments Eligible for tax

allowance, expanded from 129 segments in the previous regulation.

Under certain

requirements among others: investment value or export orientation, manpower absorption, local content.

PEMBEBASAN PAJAK PENGHASILAN (TAX HOLIDAY)

IMPORT DUTY FACILITY

PMK No.159/PMK.010/2015

PMK No.176/PMK.011/2009 jo. PMK No. 76/PMK.011/2012 jo. PMK 188/PMK.010/2015

5-15years


IDR

• Exemption of import duty on machineries and equipments • 2 years exemption of import duty on raw materials • Additional 2 years import duty exemption for raw materials if company using locally-produced machineries and equipments (min 30%)

1

Tax relief facility, starting from the commencement of commercial production. Can be extended for Max. 20 years under certain consideration.

trillion Minimum investment plan (USD 80 million). Or Minimum IDR 500 Billion if introduce new technology

Max.100% 10-100% Reduction of corporate income tax for Pioneer Industry. Max. 50% for industry that implement high technology with investment plan IDR 500 M – less than 1 Trillion.

Pioneer Industry 1. 2. 3. 4.

PMK No. 66/PMK.010/2015

5.


6. 7. 8.

Upstream metal; Oil refinery; Basic organic-chemical from oil and gas; Machinery industry that manufacture industrial machine; Processing industry based on commodity from agriculture, forestry and fishery; Telecommunication, information and communication; Sea transport; Processing industry as main industry located in Special Economic Zone (SEZ); and or

9.Infrastructure (economical, nonPPP scheme)


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Incentives IMPORT DUTY FACILITY

TAX HOLIDAY PMK No.159/PMK.010/2015

PMK No.176/PMK.011/2009 jo. PMK No. 76/PMK.011/2012 jo. PMK 188/PMK.010/2015

5-15years

Tax relief facility, starting from the commencement of commercial production. Can be extended for Max. 20 years under certain consideration.


• Exemption of import duty on machineries and equipments • 2 years exemption of import duty on raw materials • Additional 2 years import duty exemption for raw materials if company using locally-produced machineries and equipments (min 30%) PMK No. 66/PMK.010/2015


IDR

1

trillion Minimum investment plan (USD 80 million). Or Minimum IDR 500 Billion if introduce new technology

Max.100% 10-100% Reduction of corporate income tax for Pioneer Industry. Max. 50% for industry that implement high technology with investment plan IDR 500 M – less than 1 Trillion.

Pioneer Industry 1. 2. 3. 4. 5.

Upstream metal; Oil refinery; Basic organic-chemical from oil and gas; Machinery industry that manufacture industrial machine; Processing industry based on commodity from agriculture, forestry and fishery; 6. Telecommunication, information and communication; 7. Sea transport; 8. Processing industry as main industry located in Special Economic Zone (SEZ); and or

9.Infrastructure (economical, non-PPP scheme) The Investment Coordinating Board of the Republic of Indonesia

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9/12/2017

Improvement of Investment Climate

CUSTOMS CLEARANCE Four customs checking status: •Red line is for new companies. Physical & document checks before transported from ports.

•Yellow line

Document check before goods transported from ports.

•Green line

Document check after goods transported from ports. •Main Partner Priority for companies with proven track record. No checking required. New Facility:

Status upgrade

Import Facility for Capital Goods Acceleration and certainty in custom clearance process Faster & Certain

•Capital goods do not require screening. •Cutting the processing time from 35 days to only 30 minutes. Simple requirements

• Projects under construction • Obliged in reporting quarterly investment activities (LKPM) • Recommendation from BKPM

from red to green line for new companies under construction The Investment Coordinating Board of the Republic of Indonesia

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Issues on Waste to Energy Projects

Tipping Fee Deskripsi Pengembalian investasi untuk proyek pembangkit listrik berbasis sampah (PLTSa) harus didukung oleh pendapatan dari biaya pengelolaan sampah (Tipping Fee) dari Pemkab/kota terkait. Namun sebagian besar Pemerintah Kota tidak dapat memenuhi kewajibannya menyediakan anggaran tipping fee yang layak. Usulan Solusi Penetapan kembali harga pembelian listrik khusus untuk PLTSa sesuai dengan Permen ESDM No 44 Tahun 2015. Diharapkan dengan harga listrik yang lebih baik walaupun Tipping Fee yang kurang dari target, sehingga investasi proyek PLTSa tetap menarik.

Power Price Deskripsi Harga pembelian tenaga listrik untuk PLTSa di luar 8 provinsi/kota masih tergolong rendah sehingga tidak menarik minat investasi. Usulan Solusi 1) Menaikkan harga pembelian tenaga listrik sesuai dengan kelayakannya 2) Meningkatkan dukungan pemerintah dalam bentuk insentif


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9/12/2017

Lampiran I PP 9/2016 Tax Allowance – Bidang Usaha Tertentu (1/2) KBLI Tahun 2009 Cetakan III

Bidang Usaha

Cakupan Produk

Persyaratan

PERTAMBANGAN BATU BARA DAN LIGNIT Gasifikasi batubara di lokasi penambangan

05102

Coal gasification.

Hanya untuk memenuhi kebutuhan dalam negeri.

Pengusahaan tenaga panas bumi

06202

Industri pemurnian dan pengilangan minyak bumi

19211

Pemurnian pengilangan minyak bumi yang menghasilkan gas/LPG, avtur, avigas, naphtha, minyak solar, minyak tanah atau kerosin, minyak diesel, minyak bakar atau bensin, lubricant, waz, solvent/pelarut, residu dan aspal.

Industri pemurnian dan pengolahan gas alam

19212

Kelompok ini mencakup usaha pemurnian dan pengolahan gas bumi menjadi Liquified Natural Gas (LNG) dan Liquified Petroleum Gas (LPG).

Industri pembuatan minyak pelumas

19213

Semua cakupan produk yang termasuk dalam KBLI ini.

Industri kimia dasar organik yang bersumber dari minyak bumi, gas alam, dan batubara

20117

PERTAMBANGAN MINYAK BUMI DAN GAS ALAM DAN PANAS BUMI - Pencarian - Pengeboran - Pengubahan tenaga panas bumi menjadi tenaga listrik. INDUSTRI PRODUK DARI BATU BARA DAN PENGILANGAN MINYAK BUMI Prioritas untuk memenuhi kebutuhan dalam negeri.

INDUSTRI BAHAN KIMIA DAN BARANG DARI BAHAN KIMIA - Hulu kelompok olefin: ethylene, propylene, crylic acid, butadien, buthane, butene-I, Ethyl Tert Butyl Ether, ethylene dichloride, vinyl chloride monomer, raffinate, pyrolisis gasoline, crude C-4. - Hulu kelompok aromatik: purified terephthalic acid (PTA), paraxylene, benzene, toluene, orthoxylene. - Hulu berbasis synthesis gas: methanol, ammonia. - Lainnya: carbon black IndonesiaInvestment Coordinating Board

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Lampiran I PP 9/2016 Tax Allowance – Bidang Usaha Tertentu (2/2) Bidang Usaha

KBLI Tahun 2009 Cetakan III

Cakupan Produk

Persyaratan

INDUSTRI PERALATAN LISTRIK Industri pengubah tegangan (transformator), pengubah arus (rectifier) dan pengontrol tegangan (voltage stabilizer)

27113

Industri transformator di atas 500 (lima ratus) kV.

Melakukan alih teknologi.

INDUSTRI MESIN DAN PERLENGKAPAN YTDL (Yang Tidak Dapat Diklasifikasikan di Tempat Lain) Industri mesin uap, turbin, dan kincir

28111

Industri turbin uap, turbin gas.

PENGADAAN LISTRIK, GAS, UAP/AIR PANAS DAN UDARA DINGIN Pembangkitan tenaga listrik

35101

Pengubahan tenaga energi baru (hidrogen, CBM, batubara tercairkan atau batubara tergaskan) dan energi terbarukan (tenaga air dan terjunan air, tenaga surya, angin atau arus laut) menjadi tenaga listrik.

Pengadaan gas alam dan buatan

35201

- Regasifikasi LNG menjadi gas dengan menggunakan Floating Storage Regasification Unit (FSRU). - Coalbed Methana (Non PSC)gas metana batubara, shale gas, tight gas sand dan methane hydrate.

IndonesiaInvestment Coordinating Board

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9/12/2017

Lampiran I PP 9/2016 Tax Allowance – Bidang Usaha Tertentu dan Daerah Tertentu Bidang Usaha

KBLI Tahun 2009 Cetakan III

Cakupan Produk

Daerah/Provinsi

Persyaratan

PERTAMBANGAN BATU BARA DAN LIGNIT Pertambangan Batubara

05101

Pemanfaatan batubara untuk energi liquifaction.

Pengelolaan dan Pembuangan Sampah yang Tidak Berbahaya

38211

Listrik, uap, bahan bakar substitusi, dan/atau biogas, yang dihasilkan dari pengolahan limbah organik (Sludge dan POME (Palm Oil Mill Effluent) pabrik kelapa sawit.

Kalimantan Selatan, Kalimantan Timur, Kalimantan Utara, Kalimantan Tengah, Jambi, Bengkulu, Sumatera Selatan, Sumatera Barat, Riau, Aceh.

PENGELOLAAN LIMBAH Jakarta, Jawa Barat, Banten, Jawa Tengah, DI Yogyakarta, Jawa Timur (tidak termasuk Kabupaten di Pulau Madura), Sulawesi Utara, Sulawesi Barat, Sulawesi Tenggara, Sulawesi Tengah, Sulawesi Selatan, Gorontalo, Bali, Nusa Tenggara Barat, Nusa Tenggara Timur.

IndonesiaInvestment Coordinating Board

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Waste to Energy Investment

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