E L E C T R I C I T Y F O R A B E T T E R L I F E INDONESIA Geothermal Power Plants in the 2 nd Phase 10,000 MW Project APEC ENERGY BUSINESS FORUM 17 November 2009

E L E C T R I C I T Y F O R A B E T T E R L I F E OUTLINE Indonesian Electricity Update Geothermal under the 2 nd 10,000 MW Projects How to Accelerate GPP Development Pipe Line for GPP Development

E L E C T R I C I T Y F O R A B E T T E R L I F E 3 POWER DEVELOPMENT PLAN Average electricity demand growth is estimated 9.7%/year. Based on assumption of GDP 6.2%/year, with elasticity = Electricity demand by 2018 will be 325 TWh. 2.Targeted Electricity Ratio by 2018 will be 95.5%. 3.Total New Power Plant Built will be 57,442 MW, while PLN will contributes 35,274 MW (61 %) and IPP will be 22,168 MW (39 %). 4.Requires Additional Investment at USD billion; consists of USD billion for Generation; USD 9.52 billion for Transmission and USD 8.55 billion for Distribution 5.New Built for Geothermal will be 5,006 MW. PLN is planned to contribute 1,015 MW (20 %) while IPP = 3,991 MW (80 %).

E L E C T R I C I T Y F O R A B E T T E R L I F E Projection of Electricity Demand Growth Unit Energy Demand - Indonesia - Jawa-Bali - Outside Jawa-Bali Growth - Indonesia - Jawa-Bali - OutsideJawa-Bali Electrification Ratio - Indonesia - Jawa-Bali - OutsideJawa-Bali TWh % , ,6 6, , Outside J & B grows higher than in J & B -Growth in J & B is required to support the GDP Growth in the area (most industries located in J & B) -Targeted electrification ratio in outside J & B is at 77 % by year 2018

E L E C T R I C I T Y F O R A B E T T E R L I F E Projection Fuel Mix Source: Draft RUPTL Contribution of Renewable energy will gradually increased to replace Oil. Contribution of coal PP is targeted to maintain capacity requirement 5

E L E C T R I C I T Y F O R A B E T T E R L I F E Goal Fuel Mix Adjustment Besides to meet the targeted electrification ratio and demand growth, new pp built is also targeted to improve a better Fuel Mix to gain a lower COGS Decrease COGS

E L E C T R I C I T Y F O R A B E T T E R L I F E SALAK 375 MW DARAJAT 255 MW WAY. WINDU I 110 MW PATUHA 400 MW KARAHA 400 MW KAMOJANG 150 MW DIENG 60 MW LUMUTBALAI (UNOCAL) SEULAWAH AGAM 160 MW SIBAYAK 12 MW ULUBELU 110 MW SARULA 330 MW LUMUT BALAI 110 MW ULUMBU 10 MW MATALOKO 2.5 MW LAHENDONG I, II,III,IV 80 MW BEDUGUL 175 MW Ready for Exploitation Production Stage Indonesia’s Geothermal Status January 2009 Planned to be Tendered Capacity is initial indication UNGARAN 50 MW TAMPOMAS 50 MW NGEBEL 120 MW JAILOLO 75 MW WAY. WINDU II 117 MW Total Installed Capacity January 2009 : 1,196 MW CISOLOK 45 MW Tangkuban Perahu 55 MW 7

E L E C T R I C I T Y F O R A B E T T E R L I F E Total Location : 256 Schemes Total Potential : 27 GWe Non Volcanic Location : 53 Schemes Potential :1. 15 GWe DISTRIBUTION OF GEOTHERMAL IN INDONESIA

E L E C T R I C I T Y F O R A B E T T E R L I F E Targets of Long Term Geothermal Development 1.Development of geothermal must able to achieve Government’s target in the Road Map of Geothermal Development (6000 MW by 2020 and 9500 MW by 2025) 2.Both Investor and off taker shall gain benefit (win-win Solution) 3.Both Investor and off taker must together bear the risk of geothermal development according to their respective share and role. 4.All risks of geothermal development will then be accounted in the price of electricity produced. 9 9

E L E C T R I C I T Y F O R A B E T T E R L I F E 10 Phase II of MW Acceleration Program Phase II Acceleration program is dominated by renewable energy power plants (60%): geothermal with 48% and hydro at 12%. Total kapasitas MW

E L E C T R I C I T Y F O R A B E T T E R L I F E 11 SUMATERA Core Project: HEPP: 174 MW GeoPP: MW SCPP: 724 MW CCPP: 66 MW Locations of Phase II Acceleration Project KALIMANTAN Core Project: SCPP:676 MW CCPP:120 MW SULAWESI Core Project: GeoPP:125 MW SCPP:298 MW MALUKU Core Project: GeoPP:37 MW SCPP:32 MW PAPUA Core Project: SCPP:114 MW NTT Core Project: GeoPP:41 MW SCPP:30 MW NTB Core Project: GeoPP:40 MW SCPP:70 MW JAMALI Core Project: GeoPP: MW SCPP: MW CCPP: MW HEPP : MW TOTAL Core Project: HEPP: MW GeoPP: MW SCPP: MW CCPP: MW TOTAL: MW

E L E C T R I C I T Y F O R A B E T T E R L I F E 12 PLN and IPP Project in Phase II Acceleration Program Total Investment Required for PLN & IPP : USD 15,823 million Power PlantPLN + IPP Capacity (MW) PLNIPP Capacity (MW) Investment (MM USD) Capacity (MW) Investment (MM USD) Steam3,9443,0003, ,730 CCGT1,3861,2001, Geothermal3, ,5292,5515,925 Hydro1,174 1,010- Total10,0326,3517,4703,6817,813

E L E C T R I C I T Y F O R A B E T T E R L I F E 13 PLN & IPP Project Schedule in Phase II Acceleration Program

E L E C T R I C I T Y F O R A B E T T E R L I F E 14 The largest geothermal potential Number of Volcanoes : 150 Potential : 40% of the World potential Promising fields : 250 fields, Potential : more than 27,000 MW Current Installed Capacity : 1,196 MW

E L E C T R I C I T Y F O R A B E T T E R L I F E Short Term Pipe Line for GPP Development 1.Development of Fields under the Old Law 2.Cooperation of Existing Developers and PLN 3.Entry : Can be a Direct Appointment 4.Existing Developer already had experience in assessing the risks 5.Potential to have new PP built 1,300 MW in short term 6.Extension of Existing Site 7.New wells had already been drilled 8.Scheme : Selling Steam or Selling Electricity

E L E C T R I C I T Y F O R A B E T T E R L I F E Mid Term for GPP Development 1.Development of Green Fields as result New Law 2.New Developers need adaptation in assessing the risks 3.Scheme: Mostly through Selling Electricity

E L E C T R I C I T Y F O R A B E T T E R L I F E 100 Days Program 1.PLN plan to propose to the Government to review the regulation related to GPP development 2.Focus of Restructuring : a.Mechanism of Tender b.Improve Quality of Tender Document c.Standardization ESC d.Risks distribution and Guarantee e.Pricing

E L E C T R I C I T Y F O R A B E T T E R L I F E 18 PT PLN (PERSERO) Conclusion 1.Following-up the government policy, maximizing of renewable energy/geothermal role has been anticipated in the fast-track program of generating development Phase-II by PLN and Directorate General of Mineral, Coal and Geothermal, MEMR. 2.The total target of geothermal power plant development of year 2008 to 2018 is 3080 MW of the Java Bali System and 1926 MW of the outer island, which cover green-field and brown-field that will be funded by the soft-loan of bilateral and multilateral funding agencies, and also through IPP participation.

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