1. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL BdaUKU STATISTIK INDONESIAN ECONOMY AND RENEWABLE ENERGY DEVELOPMENT 23 May 2016

2. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL Global Economic Power Shifts to Asia Pacific 2 Source: Will the Shift in Global Economic Power continue? The World in 2050, PWC 2014 2050 Many countries in Asia and the Pacific will experience rapid economic growth towards 2050

3. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 3 Source: IMF estimates for 2014, PwC projections for 2030 and 2050 Ranking PDB/GDP 2014, 2030 dan 2050 2014 1.China 2.United States 3.India 4.Japan 5.Germany 6.Russia 7.Brazil 8.France 9.Indonesia 10.United Kingdom 2030 1.China 2.United States 3.India 4.Japan 5.Indonesia 6.Brazil 7.Russia 8.Germany 9.Mexico 10.United Kingdom 2050 1.China 2.India 3.United States 4.Indonesia 5.Brazil 6.Mexico 7.Japan 8.Russia 9.Nigeria 10.Germany Indonesia is predicted to become the fourth largest economy in 2050

4. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 4 Imagining Indonesia 2045 Population 321 millions, number 5 in the world GDP Indonesia, rank 4 globally, USD 12,210 billions Infrastructure reaches all parts of Indonesia Regional and global growth centre Food and energy security Electricity access for all Indonesian professionals in the regional and global market Clean energy for all

5. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 5 Towards Indonesia 2045: Our Challenge “Indonesia shifts from the economy based on natural resource exploitation to a high-productive and innovative-led economy” Keys to achieve this are: 1.Growth are distributed well across all parts of Indonesia 2.Infrastructure and connectivity support growth and development 3.Innovation and technology in the utilization of natural resources 4.Qualified human resources for global competition. 5.Food security and energy resilience across the nation Prerequisite: Bureaucracy reform, law enforcement, corruption eradication

6. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 6 The Paradox Indonesia turned into an oil importing countries since 2003 “Cadangan terbukti minyak bumi dikhawatirkan akan habis dalam 10-13 tahun.” ~ RPJMN 2015-2019, 7 Januari 2015 ~ Trap of comfort zone: No oil and gas exploration No infrastructure developed No renewable energy No energy efficiency Subsidy is given to fossil fuel

7. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 7 Priority in Energy Development Law on Energy (UU 30/2007) and Government Regulation on National Energy Policy (PP 79/2014): a)Maximizing use of renewable energy; b)Minimizing utilization of oil; c)Optimizing utilization of natural gas and new energy; and d)Use coal as drive of national energy reserve

8. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL Indonesia’s Renewable Energy Potential Energy Type Potential Installed Capacity Utilization Geothermal Hydro Bioenergy Solar Wind Ocean Wave 29,544 MW 75,000 MW 32,654 MW 523,579 MW (4.8 kWh/m²/day) 17,989 MW 113,545 MW (3 – 6 m/s) 1,438.5 MW 5,024.2 MW 1,671 MW 78.5 MW 3.1 MW 0.3 MW 5% 7% 5.1% 0.01% 0.003% 0.002% Total 801,311 MW 8,215.6 MW 1% Source : National Energy Plan (Draft) 8

9. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 9 National Energy Mix in 2025 and 2050

10. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL BREAKTHROUGH IN RENEWABLE ENERGY DEVELOPMENT

11. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL Government’s Commitment and Incentives to Accelerate RE Development Commitment & Incentives Energy Resilience Fund Regulation Prioritizing Renewable Energy Incentives and subsidy on Tariff Simplification of Licensing Process Promoting technology and human resources Fiscal incentives Incentives Promoting Energy Conservation 11 Rural Electrification

12. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 12 35,000 MW Electricity Program 35,000 MW IPP : 25,000 MW PLN : 5,000 MW Target for 2019: 8,800 MW for the 35,000 MW Program to come from Renewable Energy

13. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 13 Program Indonesia Terang (1) PLN telah hadir di 86% desa di Indonesia Desa tempat PLN telah hadir Sumber: Pendataan Potensi Desa/Kelurahan 2014, Badan Pusat Statistik 12.659 desa yg belum sepenuhnya menikmati listrik 2.519 desa diantaranya masih gelap gulita

14. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 14 Program Indonesia Terang (2) Meningkatkan Elektrifikasi 86% menjadi 97% di tahun 2019 Tujuan desa berlistrik pada 2019

15. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 15 ENERGY RESILIENCE FUND (DKE) Fossil Depletion Premium (oil, gas, coal) Premium from Fossil Fuel Consumption Premium from Business Entities operating in Conventional Energy Grant ENERGY RESILIENCE FUND Renewable Energy based Electricity in Remote Areas Diversification of Energy Supply Incentives for Renewable Energy & Energy Eficiency Business Capaity building, R&D incl. Pilot Project Strategic Petroleum Reserves* Source of Fund Utilization Fuel Price Buffer LEGAL BASIS: Law 30/2007 on Energy Government Regulation No. 79/2014 on National Energy Policy A pool of funds specifically established to support the Government of Indonesia’s target in achieving the National Energy Mix and Energy Resiliency as mandated by Law 30/2007 and GR 79/2014 Energy Conservation Energy resilience: availability, access, affordability, social and environmental sustainability

16. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 16 CENTER OF EXCELLENCE FOR CLEAN ENERGY Diffusion and adaptation of clean technologies Capacity development Facilitation on investment Innovation and breakthrough in CE implementation Facilitation global and international partnership CoE is an integrated center for research, development and utilization of research results, as well as the implementation and facilitation of clean energy investments.

17. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 17 CoE links to “MISSION INNOVATION” Revolution of Clean Energy Technology Innovation 2 fold increase in clean energy research and development. Transparency, collaboration and dissemination information of research and development efforts. Plurilateral agreement to push the market barriers of clean energy goods and services. Build capacity worldwide to harmonize technical standards provision and maintenance of clean energy. Revolution of Clean Energy Technology Innovation 2 fold increase in clean energy research and development. Transparency, collaboration and dissemination information of research and development efforts. Plurilateral agreement to push the market barriers of clean energy goods and services. Build capacity worldwide to harmonize technical standards provision and maintenance of clean energy. Indonesia promotes this global initiative of technology innovation for the development and deployment of clean energy. This initiative was announced at COP21 in Paris 2 -fold increase in clean energy research. Transparency, collaboration and dissemination of information research and development efforts. Plurilateral agreement to push the market barriers to clean energy goods and services. Build capacity worldwide to harmonize technical standards provision and maintenance of clean energy. Indonesia leads the global initiative led to the " technological innovation " for the development and deployment of clean energy. This initiative was announced at COP21 in Paris

18. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 18 Energy Patriot and Energy Facilitator (PETA)

19. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 19 WHAT CAN WE DO AND CONTRIBUTE?

20. KEMENTERIAN ENERGI & SUMBER DAYA MINERAL BdaUKU STATISTIK THANK YOU