Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2014
Scope: 
National
Document Type: 
Law
Economic Sector: 
Energy, Power
Energy Types: 
Power, Renewable, Geothermal
Issued by: 
President of the Republic of Indonesia
Overall Summary: 
The Law establishes the principles of geothermal energy activities as follows: a. benefits; b. efficiency; c. justice; d. economic optimization in the utilization of energy resources; e. affordability; f. sustainable; g. independence; h. security and safety; and i. preservation of the environment. It also addresses the rights and obligations, licenses and permits to regulate the use of geothermal energy. Focus is on environmental aspects and on the involvement of local communities.
Renewable Energy
RE priorities: 
The arrangement of the Geothermal aims: b. increase the utilization of renewable energy in the form of geothermal energy to meet national needs; [...].
Environment
Energy environmental priorities: 
a. Geothermal control activities performed to support the resilience and energy independence to support sustainable development and provide maximum benefit to the welfare and prosperity of the people; [...] c. increase the utilization of environmentally friendly clean energy to reduce greenhouse gas emissions.
Land use change for energy production purposes: 
The operation of the Geothermal by the Government [...] shall apply to: a. Geothermal for Direct Utilization located at: 1. The cross-province including production forest area and forest lands protected; 2. Conservation Forest Area; 3. conservation area in the waters; and 4. The sea area of more than twelve (12) miles measured from the coastline to the open sea in Indonesia. b. Geothermal for Utilization Indirect located in all parts of Indonesia, including the production of Forest Areas, Protected Forest Areas, Forest Areas conservation and marine areas.---Prior to drilling exploration wells, Geothermal Permit holders are required to have an environmental permit in accordance with the provisions of the legislation in the field of environmental protection and management.---Direct Utilization Permit Holder shall: a. understand and obey the laws and regulations in the field of occupational safety and health and the protection and management of the environment and meet applicable standards; b. to control pollution and / or damage to the environment that covers prevention, mitigation, and restoration of environmental functions;[...].---In the management of the Geothermal, the community has a role as well as to: a. maintain, protect, and sustainment activities performed Geothermal area; and b. submit reports of hazards, pollution, and / or destruction of the environment in the area of operation of geothermal activity.
Pricing
Energy taxation: 
(1) Direct Utilization Permit Holder shall meet the obligations in the form of: a. production fees; b. local taxes; and c. levies.
Energy pricing: 
Geothermal energy prices for Direct Utilization regulated by the Government.---Geothermal energy prices for Utilization of Indirect set by the Government taking into account the economic price.
Governance
Energy management principles: 
The arrangement of the Geothermal aims: a. Geothermal control activities performed to support the resilience and energy independence to support sustainable development and provide maximum benefit to the welfare and prosperity of the people;---(1) Geothermal is a national assets controlled by the state and used for the greatest prosperity of the people.---(2) The control Geothermal by country referred to in paragraph (1) shall be managed by the government, provincial government and district / city governments in accordance with the authority and based on the principle of utilization.---Geothermal Permit Holder shall [...] implementing development programs and empowerment of local communities;---In the management of the Geothermal, the community has a role as well as to: a. maintain, protect, and sustainment activities performed Geothermal area; and b. submit reports of hazards, pollution, and / or destruction of the environment in the area of operation of geothermal activity.
M&E of policy implementation: 
Minister to provide guidance and supervision over the implementation of concession Geothermal Utilization Indirect carried by permit holders Geothermal.
Statistics collection and management: 
All data and information obtained from the operation of geothermal activity is state-owned utilization arrangements made by the Government. Every person is prohibited to send, submit, and / or transfer of data and information referred to in subsection (1) without the permission of the Government.
Technology
R&D renewable energy: 
Geothermal Permit Holder shall [...] providing support for research and development of science and technology Geothermal;