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MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

REGULATION
NUMBER 50 OF 2017
ON
UTILIZATION OF RENEWABLE-ENERGY RESOURCES FOR THE PRODUCTION OF ELECTRICITY

BY THE GRACE OF GOD ALMIGHTY

THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA,

Considering:
a. that in order to accelerate the development of renewable energy in regard to fulfil the national demand
of electricity, it is necessary to redefine the provisions on the mechanism and purchase price of electricity
determined by PT Perusahaan Listrik Negara (Persero) which utilizes renewable-energy sources as
regulated under Ministry of Energy and Mineral Resources Regulation Number 12 of 2017 on the
Utilization of Renewable-Energy Resource for the Production of Electricity as amended by Ministry of
Energy and Mineral Resources Regulation Number 43 of 2017 on the Amendment to Ministry of Energy
and Mineral Resources Regulation Number 12 of 2017 on the Utilization of Renewable-Energy
Resource for the Production of Electricity;
b. that based on the consideration as referred to in letter a, it is deemed necessary to establish the
Regulation of Minister of Energy and Mineral Resources on the Utilization of Renewable-Energy
Resource for the Production of Electricity.

Observing:
1. Law Number 30 of 2007 on Energy (State Gazette of the Republic of Indonesia of 2007 Number 96,
Supplement to the State Gazette of the Republic of Indonesia Number 4746);
2. Law Number 30 of 2009 on Electricity (State Gazette of the Republic of Indonesia of 2009 Number 133,
Supplement to the State Gazette of the Republic of Indonesia Number 5052);
3. Law Number 21 of 2014 on Geothermal Energy (State Gazette of the Republic of Indonesia of 2014
Number 217, Supplement to the State Gazette of the Republic of Indonesia Number 5585);
4. Government Regulation Number 23 of 1994 on the Transformation of State-Electricity Public Utility
Company (Public Utility Company) into Limited Liability Company (Persero) (State Gazette of the
Republic of Indonesia of 1994 Number 34);
5. Government Regulation Number 14 of 2012 on Business Activities in Electricity Supply (State Gazette
of the Republic of Indonesia of 2012 Number 28, Supplement to the State Gazette of the Republic of
Indonesia Number 5281) as amended by Government Regulation Number 23 of 2014 on the
Amendment to Government Regulation Number 14 of 2012 on Business Activities in Electricity Supply
(State Gazette of the Republic of Indonesia of 2014 Number 75, Supplement to the State Gazette of the
Republic of Indonesia Number 5530);
6. Government Regulation Number 79 of 2014 on the Policy on National Energy (State Gazette of the
Republic of Indonesia of 2014 Number 300, Supplement to the State Gazette of the Republic of
Indonesia Number 5609);
7. Presidential Regulation Number 68 of 2015 on the Ministry of Energy and Mineral Resources (State
Gazette of the Republic of Indonesia of 2015 Number 132) as amended by Presidential Regulation
Number 105 of 2016 on the Amendment to Presidential Regulation Number 68 of 2015 on the Ministry
of Energy and Mineral Resources (State Gazette of the Republic of Indonesia of 2016 Number 289);
8. Presidential Regulation Number 4 of 2016 on Acceleration of Development of Electricity Infrastructure
(State Gazette of the Republic of Indonesia of 2016 Number 8) as amended by Presidential Regulation
Number 14 of 2017 on the Amendment to Presidential Regulation Number 4 of 2916 on Acceleration of
Development of Electricity Infrastructure (State Gazette of the Republic of Indonesia of 2017 Number
27);

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9. Ministry of Energy and Mineral Resources Regulation Number 13 of 2016 on the Organization and Work
Procedures of the Ministry of Energy and Mineral Resources (Official Gazette of the Republic of
Indonesia of 2016 Number 762).

HAS DECIDED:

To establish:
THE MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION ON UTILIZATION OF
RENEWABLE-ENERGY RESOURCE FOR THE PRODUCTION OF ELECTRICITY.

CHAPTER I
GENERAL PROVISIONS

Article 1
Under this Ministerial Regulation, the following definitions are employed:
1. PT Perusahaan Listrik Negara (Persero) from this point onwards is referred to as PT PLN (Persero), is
a state-owned enterprise which was formed under Government Regulation Number 23 of 1994 on the
Change of the State-Electricity Public Utility Company (Public Utility Company) into a Limited Liability
Company (Persero).
2. Renewable-Energy Sources are energy sources generated from well-managed sustainable energy
resources, i.e. geothermal energy, wind, bioenergy, sunlight, water streams and falls, and ocean-
thermal-energy movement and conversion.
3. Business Entities are state-owned business enterprises, regional-state-owned enterprises, private
business enterprises, or cooperatives which are incorporated in Indonesia and engage in the
electricity-supply sector.
4. Power-Plan Developers (Pengembang Pembangkit Listrik), from this point onwards is referred to as
PPL, is Business Entities which supply electrical power in collaboration with PT PLN (Persero) through
a signing of an agreement of sale-purchase/lease of electrical-power grid.
5. Generation of Electrical-Power is activities to generate electrical power.
6. Basic Costs of Production (Biaya Pokok Penyediaan Pembangkitan), from this point onwards is
referred to as BPP Pembangkitan, are the costs of supplying electricity incurred by PT PLN (Persero)
in Generation of Electrical Power, excluding any costs of electricity distribution.
7. Photovoltaic Solar-Power Plants (Pembangkit Listrik Tenaga Surya Fotovoltaik), from this point
onwards is referred to as PLTS Photovoltaic, are power plants which transform solar energy into
electricity by using the photovoltaic module which is directly interconnected to the electrical power grid
of PT PLN (Persero).
8. A Capacity Quota is the maximum amount of a plant’s capacity which is offered to Business Entities
within a certain period at the determined purchase price of electricity.
9. Wind Power Plants (Pembangkit Listrik Tenaga Bayu), from this point onwards is referred to as PLTB,
are power plants which utilize wind energy and transforms it into electricity.
10. Hydroelectric Power Plants (Pembangkit Listrik Tenaga Air) from this point onwards is referred to as
PLTA, are power plants which utilize energy from water streams/falls, dams/reservoirs, or irrigation
pipes of which the construction is multi-functional.
11. Biomass Power Plants (Pembangkit Listrik Tenaga Biomassa) from this point onwards is referred to as
PLTBm, are power plants which utilize biomass energy.
12. Biogas Power Plants (Pembangkit Listrik Tenaga Biogas) from this point onwards is referred to as
PLTBg, are power plants which utilize biogas energy.
13. Waste Power Plants (Pembangkit Listrik Berbasis Sampah Kota) from this point onwards is referred to
as PLTSa, are power plants which utilize waste-based renewable energy which is transformed into
electrical energy.

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14. Geothermal Power Plants (Pembangkit Listrik Tenaga Panas Bumi), from this point onwards is
referred to as PLTP, are power plants which utilize geothermal energy.
15. Ocean-Thermal-Energy Movement and Conversion Power Plants (Pembangkit Listrik Tenaga
Gerakan dan Perbedaan Suhu Lapisan Laut), from this point onwards is referred to as PLTA Laut. are
power plants which utilize ocean currents, ocean waves, tidal, or ocean-thermal energy conversion.
16. A Power Purchase Agreement (Perjanjian Jual Beli Tenaga Listrik), from this point onwards is referred
to as PJBL, is a power-purchase agreement between a PPL and PT PLN (Persero).
17. A Minister is the minister who organizes government affairs within the energy-and-mineral-resources
sector.

CHAPTER II
UTILIZATION OF RENEWABLE-ENERGY SOURCES

Article 2
(1) In supplying sustainable electricity, PT PLN (Persero) shall purchase electricity from power plants
which utilizes Renewable-Energy Sources.
(2) The Utilization of Renewable-Energy Sources for electricity supply as referred to in paragraph (1) shall
refer to the Policy on National Energy and General Plan on Electricity.

CHAPTER III
SCOPE

Article 3
(1) This Ministerial Regulation is the guidelines for PT PLN (Persero) in purchasing electricity from power
plants which utilize Renewable-Energy Sources.
(2) The Renewable-Energy Sources as referred to in paragraph (1) encompass:
a. sunlight;
b. wind;
c. hydropower;
d. biomass;
e. biogas;
f. waste;
g. geothermal energy; and
h. ocean-thermal-energy movement and conversion.
(3) Any purchase of electricity from power plants which utilize Renewable-Energy Sources by PT PLN as
referred to in paragraph (1) and paragraph (2) encompasses:
a. purchase of electricity from PLTS Photovoltaic;
b. purchase of electricity from PLTB;
c. purchase of electricity from Hydropower;
d. purchase of electricity from PTLBm;
e. purchase of electricity from PTLBg;
f. purchase of electricity from PTLSa;
g. purchase of electricity from PLTP; and
h. purchase of electricity from PLTA Laut.

CHAPTER IV
THE IMPLEMENTATION OF PURCHASE OF ELECTRICITY FROM POWER PLANTS UTILIZING

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RENEWABLE-ENERGY SOURCE

Division One
General

Article 4
(1) PT PLN (Persero) shall purchase electricity from power plants which utilize Renewable-Energy
through a direct-appointment mechanism.
(2) PT PLN (Persero) shall purchase electricity from power plants which utilize Renewable-Energy
Sources as referred to in paragraph (1) which are based on advanced technology, are of varied
efficiency and highly dependable upon local radiation level or weather such as the sunlight and wind
through a direct-appointment mechanism based on Capacity Quotas
(3) PT PLN (Persero) shall operate power plants which utilize Renewable-Energy Sources as referred to
in paragraph (1) and paragraph (2) with the capacity of up to 10MW (ten megawatts) continuously
(must-run).

Division Two
Purchase of Electricity from PLTS Photovoltaic

Article 5
(1) PT PLN (Persero) is entitled to purchase electricity from any PLTS Photovoltaic as referred to in
Article 3 paragraph (3) letter a in the event:
a. the local electrical system is able to receive electricity supply which utilizes solar-energy source;
b. it is aimed to decrease the BPP Pembangkitan of the local electrical system; and/or
c. it is aimed to fulfill the demand of electricity in the location in which there is no other primary-
energy sources.
(2) Any purchase of electricity from a PLTS Photovoltaic as referred to in paragraph (1) shall be made
through a direct-appointment mechanism based on Capacity Quotas.
(3) In the event the BPP Pembangkitan of the local electrical system is above the national average BPP
Pembangkitan, then the maximum purchase price of electricity from such PLTS Photovoltaic as
referred to in paragraph (2) shall be 85% (eighty-five percent) from the BPP Pembangkitan of the local
electrical system.
(4) In the event the BPP Pembangkitan of the local electrical system is equivalent to or below the national
average BPP Pembangkitan, then the purchase price of electricity from such PLTS Photovoltaic as
referred to in paragraph (2) shall be determined based of an agreement between the relevant parties.
(5) The BPP Pembangkitan of the local electrical system and the national average BPP Pembangkitan as
referred to in paragraph (3) and paragraph (4) are the BPP Pembangkitan of the local electrical
system and the national average BPP Pembangkitan of the previous year which have been
determined by the Minister based on recommendations of PT PLN (Persero).
(6) Any purchase of electricity from any PLTS Photovoltaic as referred to in paragraph (2) shall use the
cooperation scheme of Build, Own, Operate, and Transfer / BOOT.
(7) Construction of electrical power grid for energy evacuation from a PLTS Photovoltaic to a connecting
point of PT PLN (Persero) can be carried out by a PPL based on a mutually-beneficial mechanism
(business-to-business).

Division Three
Purchase of Electricity from PLTB

Article 6

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(1) PT PLN (Persero) is entitled to purchase electricity from any PLTB as referred to in article 3 paragraph
(3) letter b in the event:
a. the local electrical system is able to receive electricity supply which utilizes wind-energy source;
b. it is aimed to decrease the BPP Pembangkitan of the local electrical system; and/or
c. it is aimed to fulfill the demand of electricity in the location in which there is no other primary-
energy sources.
(2) Any purchase of electricity from any PLTB as referred to in paragraph (1) can be made through a
direct-appointment mechanism based on Capacity Quotas.
(3) In the event the BPP Pembangkitan of the local electrical system is above the national average BPP
Pembangkitan, then the maximum purchase price of electricity from such PLTB as referred to in
paragraph (2) shall be 85% (eighty-five percent) from the BPP Pembangkitan of the local electrical
system.
(4) In the event the BPP Pembangkitan of the local electrical system is equivalent to or below the national
average BPP Pembangkitan, then the purchase price of electricity from such PLTB as referred to in
paragraph (2) shall be determined based of an agreement between the relevant parties.
(5) The BPP Pembangkitan of the local electrical system and the national average BPP Pembangkitan as
referred to in paragraph (3) and paragraph (4) are the BPP Pembangkitan of the local electrical
system and the national average BPP Pembangkitan of the previous year which have been
determined by the Minister based on recommendations of PT PLN (Persero).
(6) Any purchase of electricity from any PLTB as referred to in paragraph (2) shall use the cooperation
scheme of Build, Own, Operate, and Transfer / BOOT.
(7) Construction of electrical power grid for energy evacuation from a PLTB to a connecting point of PT
PLN (Persero) can be carried out by a PPL based on a mutually-beneficial mechanism (business-to-
business).

Division Four
Purchase of Electricity from Hydropower

Article 7
(1) Any purchase of electricity from Hydropower by PT PLN (Persero) as referred to in Article 3 paragraph
(3) letter c is purchase of electricity for all the capacity of Hydropower Power Plants
(2) Any purchase of electricity from Hydropower by PT PLN (Persero) as referred to in paragraph (1) can
be from any Hydropower which utilizes:
a. energy from river streams/falls; or
b. hydro energy from reservoirs/dams or irrigation pipes of which the construction is multi-
functional.
(3) Any purchase of electricity from a Hydropower by PT PLN (Persero) as referred to in paragraph (2)
shall be made through a direct-appointment mechanism.
(4) Any Hydropower with a maximum capacity of 10MW (ten megawatts) shall be able to operate with a
minimum capacity factor of 65% (sixty-five percent), and any Hydropower with a capacity higher than
10MW (ten megawatts) shall operate with a capacity factor based on the requirements of the system.
(5) In the event the BPP Pembangkitan of the local electrical system is above the national average BPP
Pembangkitan, then the maximum purchase price of electricity from such Hydropower as referred to in
paragraph (3) shall be equivalent to the BPP Pembangkitan of the local electrical system.
(6) In the event the BPP Pembangkitan of the electricity system in Sumatra, Java, and Bali or other local
electrical system is equivalent to or below the national average BPP Pembangkitan, then the purchase
price of electricity from such Hydropower shall be determined based of an agreement between the
relevant parties.
(7) The BPP Pembangkitan of the local electrical system and the national average BPP Pembangkitan as
referred to in paragraph (5) and paragraph (6) are the BPP Pembangkitan of the local electrical
system and the national average BPP Pembangkitan of the previous year which have been

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determined by the Minister based on recommendations of PT PLN (Persero).

(8) Any purchase of electricity from any Hydropower as referred to in paragraph (3) shall use the
cooperation scheme of Build, Own, Operate, and Transfer / BOOT.
(9) Construction of electrical power grid for energy evacuation from a Hydropower to a connecting point of
PT PLN (Persero) can be carried out by a PPL based on a mutually-beneficial mechanism (business-
to-business).

Division Five
Purchase of Electricity from PTLBm

Article 8
(1) Any purchase of electricity from any PTLBm by PT PLN (Persero) as referred to in Article 3 paragraph
(3) letter d can only be made involving PPL’s which have enough source of fuel supply (feedstock) for
the continuity of such PLTBm operation during the PJBL.
(2) Any purchase of electricity from any PLTBm by PT PLN (Persero) as referred to in paragraph (1) shall
be made through a direct-appointment mechanism.
(3) In the event the BPP Pembangkitan of the local electrical system is above the national average BPP
Pembangkitan, then the maximum purchase price of electricity from such PTLBm as referred to in
paragraph (2) shall be 85% (eighty-five percent) from the BPP Pembangkitan of the local electrical
system.
(4) In the event the BPP Pembangkitan of the local electrical system is equivalent to or below the national
average BPP Pembangkitan, then the purchase price of electricity from such PTLBm as referred to in
paragraph (2) shall be determined under an agreement between the relevant parties.
(5) The BPP Pembangkitan of the local electrical system and the national average BPP Pembangkitan as
referred to in paragraph (3) and paragraph (4) are the BPP Pembangkitan of the local electrical
system and the national average BPP Pembangkitan of the previous year which have been
determined by the Minister based on recommendations of PT PLN (Persero).
(6) Purchase of electricity from any PLTBm as referred to in paragraph (2) shall use the cooperation
scheme of Build, Own, Operate, and Transfer / BOOT.
(7) Construction of electrical power grid for energy evacuation from a PLTBm to a connecting point of PT
PLN (Persero) can be carried out by a PPL based on a mutually-beneficial mechanism (business-to-
business).

Division Six
Purchase of Electricity from PLTBg

Article 9
(1) Purchase of electricity from a PLTBg by PT PLN (Persero) as referred to in Article 3 paragraph (3)
letter e can only be made involving PPL’s which have enough source of fuel supply (feedstock) for the
continuity of such PLTBg operation during the PJBL.
(2) Any purchase of electricity from any PLTBg by PT PLN (Persero) as referred to in paragraph (1) shall
be made through a direct-appointment mechanism.
(3) In the event the BPP Pembangkitan of the local electrical system is above the national average BPP
Pembangkitan, then the maximum purchase price of electricity from such PLTBg as referred to in
paragraph (2) shall be 85% (eighty-five percent percent) from the BPP Pembangkitan of the local
electrical system.
(4) In the event the BPP Pembangkitan of the local electrical system is equivalent to or below the national
average BPP Pembangkitan, then the purchase price of electricity from such PLTBg as referred to in
paragraph (2) shall be determined under an agreement between the relevant parties.
(5) The BPP Pembangkitan of the local electrical system and the national average BPP Pembangkitan as

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referred to in paragraph (3) and paragraph (4) are the BPP Pembangkitan of the local electrical
system and the national average BPP Pembangkitan of the previous year which have been
determined by the Minister based on recommendations of PT PLN (Persero).
(6) Any purchase of electricity from any PLTBg as referred to in paragraph (2) shall use the cooperation
scheme of Build, Own, Operate, and Transfer / BOOT.
(7) Construction of electrical power grid for energy evacuation from a PLTBg to a connecting point of PT
PLN (Persero) can be carried out by a PPL based on a mutually-beneficial mechanism (business-to-
business).

Division Seven
Purchase of Electricity from PLTSa

Article 10
(1) Purchase of electricity from PLTSa shall be made by PT PLN (Persero) as referred to in Article 3
paragraph (3) letter f in regard to supporting the Government and/or regional governments in
overcoming or solving waste problems.
(2) PLTSa as referred to in paragraph (1) can collect and utilize methane gas using the sanitary-landfill
and anaerobic-digestion technology, or other similar technology, from landfills or by utilizing thermal
energy with thermochemical technology.
(3) Any purchase of electricity from any PLTSa by PT PLN (Persero) as referred to in paragraph (1) shall
be made in accordance with the laws and regulations.
(4) In the event the BPP Pembangkitan of the local electrical system is above the national average BPP
Pembangkitan, the maximum purchase price of electricity from such PLTSa as referred to in
paragraph (3) shall be equivalent to the BPP Pembangkitan of the local electrical system.
(5) In the event the BPP Pembangkitan of the electricity system in Sumatra, Java, and Bali or any other
local electrical system is equivalent to or below the national average BPP Pembangkitan, then the
purchase price of electricity from such PLTSa shall be determined based of an agreement between
the relevant parties.
(6) The BPP Pembangkitan of the local electrical system and the national average BPP Pembangkitan as
referred to in paragraph (5) and paragraph (6) are the BPP Pembangkitan of the local electrical
system and the national average BPP Pembangkitan of the previous year which have been
determined by the Minister based on recommendations of PT PLN (Persero).
(7) Any purchase of electricity from any Hydropower as referred to in paragraph (3) shall use the
cooperation scheme of Build, Own, Operate, and Transfer / BOOT.
(8) Construction of electrical power grid for energy evacuation from a PLTSa to a connecting point of PT
PLN (Persero) can be carried out by a PPL based on a mutually-beneficial mechanism (business-to-
business).

Division Eight
Purchase of Electricity from PLTP

Article 11
(1) Any purchase of electricity from any PLTP by PT PLN (Persero) as referred to in Article 3 paragraph
(3) letter g can only be made involving PPLs which have the geothermal working area according to its
proven-reserves after exploration.
(2) Any purchase of electricity from any PLTP by PT PLN (Persero) as referred to in paragraph (1) shall
be made in accordance with the laws and regulations.
(3) In the event the BPP Pembangkitan of the local electrical system is above the national average BPP
Pembangkitan, the maximum purchase price of electricity from such PLTP as referred to in paragraph
(2) shall be equivalent to the BPP Pembangkitan of the local electrical system.

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(4) In the event the BPP Pembangkitan of the electricity system in Sumatra, Java, and Bali or any other
local electrical system is equivalent to or below the national average BPP Pembangkitan, then the
purchase price of electricity from such PLTP shall be determined based of an agreement between the
relevant parties.
(5) The BPP Pembangkitan of the local electrical system and the national average BPP Pembangkitan as
referred to in paragraph (3) and paragraph (4) are the BPP Pembangkitan of the local electrical
system and the national average BPP Pembangkitan of the previous year which have been
determined by the Minister based on recommendations of PT PLN (Persero).
(6) Any purchase of electricity from any PLTP as referred to in paragraph (2) shall use the cooperation
scheme of Build, Own, Operate, and Transfer / BOOT.
(7) Construction of electrical power grid for energy evacuation from a PLTP to a connecting point of PT
PLN (Persero) can be carried out by a PPL based on a mutually-beneficial mechanism (business-to-
business).

Division Nine
Purchase of Electricity from PLTA Laut

Article 12
(1) Any purchase of electricity from any PLTA Laut by PT PLN (Persero) as referred to in Article 3 shall be
made through a direct-appointment mechanism.
(2) In the event the BPP Pembangkitan of the local electrical system is above the national average BPP
Pembangkitan, then the maximum purchase price of electricity from such PLTA Laut as referred to in
paragraph (1) shall be 85% (eighty-five percent percent) from the BPP Pembangkitan of the local
electrical system.
(3) In the event the BPP Pembangkitan of the local electrical system is equivalent to or below the national
average BPP Pembangkitan, then the purchase price of electricity from such PLTA Laut shall be
determined based of an agreement between the relevant parties.
(4) The BPP Pembangkitan of the local electrical system and the national average BPP Pembangkitan as
referred to in paragraph (2) and paragraph (3) are the BPP Pembangkitan of the local electrical
system and the national average BPP Pembangkitan of the previous year which have been
determined by the Minister based on recommendations of PT PLN (Persero).
(5) Any purchase of electricity from any PLTP Laut as referred to in paragraph (1) shall use the
cooperation scheme of Build, Own, Operate, and Transfer / BOOT.
(6) Construction of electrical power grid for energy evacuation from the Electricity to a connecting point of
PT PLN (Persero) can be carried out by a PPL based on a mutually-beneficial mechanism (business-
to-business).

Division Ten
Due Diligence

Article 13
(1) In purchasing electricity as referred to in Article 5 until Article 12, PT PLN (Persero) shall perform due
diligence on technical and financial capabilities of PPL’s.
(2) The Due Diligence as referred to in paragraph (1) can be performed by a procurement agent which
has been appointed by PT PLN (Persero).

CHAPTER V
APPROVAL FOR SELLING PRICE OF ELECTRICITY

Article 14

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Any purchase of electricity as referred to in Article 5 until Article 12 shall obtain approval for the electricity
selling price from the Minister.

CHAPTER VI
USAGE OF DOMESTIC-COMPONENT LEVELS AND STANDARD FULFILLMENT

Article 15
(1) In selecting a PPL, PT PLN (Persero) shall prioritize PPL’s which use domestic-component levels in
accordance with the laws and regulations.
(2) The domestic-components used in the system of power-plants which utilize Renewable Energy
Sources shall meet:
a. the Indonesia national standards in electricity
b. the international standards; or
c. standards of other countries to the extent not contrary to the standards of the International
Organization for Standardization (ISO) or International Electrotechnical Commission (IEC).
(3) Any construction of power plants which utilize Renewable Energy Sources shall meet:
a. the Indonesia national standards in electricity
b. the international standards;
c. standards of other countries to the extent not contrary to the standards of the International
Organization for Standardization (ISO) or International Electrotechnical Commission (IEC); or
d. the standards applied at PT PLN (Persero).

CHAPTER VII
ADOPTION AND OPERATION OF POWER PLANTS WHICH UTILIZE RENEWABLE ENERGY SOURCES
IN ELECTRICITY SYSTEM

Article 16
(1) In order to enhance transparency in purchasing electricity from power plants which utilize Renewable-
Energy Sources, PT PLN (Persero) shall:
a. transparently inform the condition of the local electrical system that is ready to adopt power
plants which utilize Renewable-Energy Sources;
b. partly inform the average BPP Pembangkitan of the local electrical system to any PPL that is
interested in developing power plants which utilize Renewable-Energy Sources.
(2) PT PLN (Persero) shall report such information as referred to in paragraph (1) to the Minster regularly
every 3 (three) months or at any time required.
(3) Any recommendations on development of power plants which utilize Renewable-Energy Sources from
any PPL to PT PLN (Persero) shall be completed with the related feasibility study on electricity-system
connection.

CHAPTER VIII
STANDARDS FOR PJBL OF POWER PLANTS WHICH UTILIZE RENEWABLE-ENERGY SOURCES

Article 17
(1) To accelerate the purchase of electricity from power plants which utilize Renewable-Energy Sources,
PT PLN (Persero) shall draw up and publish:
a. standards for documents on procurement of power plants which utilize Renewable-Energy
Sources;
b. standards for PJBL for each type of power plants which utilize Renewable-Energy Sources; and

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c. technical instructions for the implementation of direct appointment.

(2) Subject matters of PJBL as referred to in paragraph (1) letter b shall be in accordance with the laws
and regulations.

CHAPTER IX
SANCTIONS FOR DELAYS IN CONSTRUCTION OF POWER PLANTS WHICH UTILIZE RENEWABLE-
ENERGY SOURCES

Article 18
(1) Any PPL which has been selected as a developer of utilization of Renewable-Energy Sources to
supply electricity shall complete the construction of the power plants which have become their liability
in accordance with the Commercial Operation Date (COD) which has been agreed on under the
relevant PJBL.
(2) In the event a PPL experiences a delay in completing the construction of power plants as referred to in
paragraph (1), such PPL shall be subject to sanctions and/or penalties.
(3) The sanctions and/or penalties as referred to in paragraph (2) shall be set out under the relevant
PJBL.

CHAPTER X
TRANSITIONAL PROVISIONS

Article 19
At the time this Ministerial Regulation comes into force, any Business Entities which:
a. have been appointed as the winners of Capacity Quotas of PLTS Photovoltaik or have obtained
approval for the price of electricity from the Minister, appointed as the managers of Hydropower for
power plants, the developers of PLTBm, PLTBg, or PLTSa, or the winners of tender of geothermal
working areas; and
b. have signed PJBL with PT PLN (Persero),
then the process of the purchasing and the determination of the price of electricity shall be in accordance
with the provisions regulated under such PJBL which has been signed.

Article 20
At the time this Ministerial Regulation comes into force, any Business Entities which:
a. have been appointed as managers of Hydropower for power plants or as developers of PLTBm,
PLTBg, or PLTSa; and
b. have not yet signed any PJBL with PT PLN (Persero),
then the process of the purchase of electricity shall be in accordance with the laws and regulations before
the enforcement of this Ministerial Regulation, and the provisions on the purchase price of electricity in
accordance with the provisions under this Ministerial Regulation.

Article 21
At the time this Ministerial Regulation comes into force:
a. any Business Entities which have been appointed as the winners of tender of Geothermal Working
Areas and have not yet signed any PJBL with PT PLN (Persero); and
b. any State-owned Enterprises (BUMN) which have been assigned to exploitation of geothermal-energy,
then the process of the purchase and the determination of the price of electricity shall be in accordance with
the provisions regulated under the laws and regulations prevailing prior to the enforcement of this Ministerial
Regulation.

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Article 22
At the time this Minsiterial Regulation comes into force, any Holders of Concessions Exploitation of
Geothermal-Energy Resources which have signed any steam sales contract (perjanjian jual beli uap) and/or
PJBL which has been verified and/or in the process of verification by the financial and development
supervisory board, the process of purchasing and determination of price of steam or electricity shall be in
accordance with the provisions of the laws and regulations prevailing prior to the enforcement of this
Ministerial Regulation.

Article 23
At the time this Ministerial Regulation comes into force, for any Business Entities which:
a. have obtained approval for selling price of electricity from the Minster under Regulation of Minister of
Energy and Mineral Resources Number 12 of 2017 on Utilization of Renewable-Energy Resource for
the Production of Electricity (Official Gazette of the Republic of Indonesia of 2017 Number 189) as
amended by Regulation of Minister of Energy and Mineral Resources Number 43 of 2017 on the
Amendment to Regulation of Minster of Energy and Mineral Resources Number 12 of 2017 on
Utilization of Renewable-Energy Resource for the Production of Electricity (Official Gazette of the
Republic of Indonesia of 2017 Number 975); and
b. have not yet signed PJBL with PT PLN (Persero),
the selling price of electricity as referred to in letter a, and the process of purchasing electricity shall remain
prevail.

Article 24
At the time this Ministerial Regulation comes into force, any process of purchasing electricity through
auctions of Capacity Quotas which has already commenced before the enforcement of this Ministerial
Regulation shall be in accordance to the laws and regulations prevailing prior to the enforcement of this
Ministerial Regulation, and the provisions on the purchase price of electricity shall be in accordance to this
Ministerial Regulation.

Article 25
The provisions as referred to in Article 19 until Article 24 can be exemptions for Business Entities and PT
PLN (Persero) which agree to follow the provisions on the process of purchasing and determination of price
of electricity under this Ministerial Regulation.

Article 26
At the time this Ministerial Regulation comes into force, any purchase of electricity from PLTSa related to
PLTSa construction-acceleration program, the provisions on the implementation of the purchasing and the
price of electricity shall be in accordance with the provisions regulated under the laws and regulations
prevailing prior to the enforcement of this Ministerial Regulation.

CHAPTER XI
CLOSING PROVISIONS

Article 27
At the time this Ministerial Regulation comes into force, the provisions on the implementation of purchasing
electricity under:
a. Regulation of Minster of Energy and Mineral Resources Number 17 of 2014 on Purchase of Electricity
from PLTP and Geothermal Steam for PLTP by PT PLN (Persero) (Official Gazette of the Republic of
Indonesia of 2014 Number 713);
b. Regulation of Minister of Energy and Mineral Resources Number 19 of 2015 on Purchase of Electricity
and Hydroelectric Power Plants with the Capacity up to 10 MW (ten megawatts) by PT Perusahaan

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Listrik Negara (Persero) (Official Gazette of the Republic of Indonesia of 2015 Number 963);
c. Regulation of Minister of Energy and Mineral Resources Number 44 of 2015 on Purchase of Electricity
by PT Perusahaan Listrik Negara (Persero) from Waste Power Plants (Official Gazette of the Republic
of Indonesia of 2015 Number 2051);
d. Regulation of Minister of Energy and Mineral Resources Number 19 of 2016 on Purchase of Electricity
from Photovoltaic Solar-Power Plants by PT Perusahaan Listrik Negara (Persero) (Official Gazette of
the Republic of Indonesia of 2016 Number 1013); and
e. Regulation of Minister of Energy and Mineral Resources Number 21 of 2016 on Purchase of Electricity
from Biomass Power Plants and Biogas Power Plants by PT Perusahaan Listrik Negara (Persero)
(Official Gazette of the Republic of Indonesia of 2016 Number 1129),
are declared to remain valid to the extent not contrary to this Ministerial Regulation.

Article 28
At the time this Ministerial Regulation comes into force, Regulation of Minister of Energy and Mineral
Resources Number 12 of 2017 on Utilization of Renewable-Energy Resource for the Production of Electricity
(Official Gazette of the Republic of Indonesia of 2017 Number 189) as amended by Regulation of Minister of
Energy and Mineral Resources Number 43 of 2017 on the Amendment to Regulation of Minister of Energy
and Mineral Resources Number 12 of 2017 on Utilization of Renewable-Energy Resource for the Production
of Electricity (Official Gazette of the Republic of Indonesia of 2017 Number 975) is repealed and declared
invalid.

Article 29
This Ministerial Regulation comes into force on the date of its promulgation.
For the purpose of public cognizance, it is hereby ordered that this Ministerial Regulation be promulgated in
the Official Gazette of the Republic of Indonesia.

Established in Jakarta,
on 7 August 2017
MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA,
Signed
IGNASIUS JONAN

Promulgated in Jakarta,
on 8 August 2017
DIRECTOR GENERAL OF LAWS AND REGULATIONS MINISTRY OF LAW AND HUMAN RIGHTS OF
THE REPUBLIC OF INDONESIA,
Signed.
WIDODO EKATJAHJANA

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA OF 2017 NUMBER 1107

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