Comprehensive Guide to Energy in Indonesia

1. National Energy Infrastructure

• Energy Sources: Indonesia's energy mix includes fossil fuels (coal, oil, natural gas), renewable energy (hydropower, geothermal, solar, wind), and biomass. Coal is the dominant source, followed by natural gas and renewables.

• Electricity Generation: The state-owned company, PT PLN (Persero), is the primary electricity provider. The country has a mix of large-scale power plants and smaller, decentralized systems.

• Transmission and Distribution: The electricity grid is divided into several regions, with major grids in Java-Bali, Sumatra, and Sulawesi. Rural areas may rely on local generators or microgrids.

• Renewable Energy Development: Indonesia aims to increase the share of renewables in its energy mix to 23% by 2025, focusing on geothermal, solar, and wind energy.

2. Relevant Regulations

• Energy Law: The primary regulation governing energy in Indonesia is Law No. 30/2007 on Energy, which outlines the management and utilization of energy resources.

• Renewable Energy Policy: Government Regulation No. 79/2014 encourages renewable energy development, providing incentives for investment in renewable projects.

• Feed-in Tariffs: The government offers feed-in tariffs for renewable energy producers, ensuring fixed prices for electricity sold to the grid.

• Licensing: Energy businesses must obtain licenses from the Ministry of Energy and Mineral Resources (MEMR) and comply with local regulations.

3. General Costs for Energy Consumption

• Electricity Tariffs: PLN sets tariffs based on consumption levels. As of 2023, residential tariffs range from IDR 1,500 to IDR 2,500 per kWh, depending on usage. Higher consumption leads to higher rates.

• Fuel Prices: Fuel prices are regulated by the government. As of late 2023, gasoline prices are approximately IDR 10,000 per liter, while diesel is around IDR 8,000 per liter.

• Renewable Energy Costs: The cost of renewable energy technologies is decreasing, with solar PV systems averaging IDR 10,000 to IDR 15,000 per kWh for installation.

4. Standard Procedures for Accessing Energy Services

• Electricity Connection: To connect to PLN's grid, submit an application to the nearest PLN office. Required documents include identification, property ownership proof, and a site plan.

• Meter Installation: After approval, PLN will install a meter and provide a connection. A fee is charged based on the connection capacity.

• Billing: Monthly bills are issued based on consumption. Payments can be made through banks, online platforms, or PLN offices.

• Renewable Energy Projects: For private renewable energy projects, submit a proposal to MEMR, including technical and financial plans. Approval is required before construction.

5. Country-Specific Considerations and Challenges

• Infrastructure Gaps: Remote areas may face limited access to electricity and energy services. Off-grid solutions are often necessary.

• Regulatory Complexity: Navigating the regulatory landscape can be challenging due to varying local regulations and bureaucratic processes.

• Investment Climate: While the government encourages investment in renewable energy, challenges include land acquisition, permitting delays, and local community engagement.

• Environmental Concerns: Energy projects must consider environmental impacts, with regulations in place to mitigate adverse effects.

• Energy Security: Indonesia is working to diversify its energy sources to enhance energy security and reduce reliance on fossil fuels.

This guide provides a foundational understanding of Indonesia's energy landscape, essential for visitors and immigrants looking to navigate the system effectively.