Law No. 30/2007 of 2007 on Energy | ESCAP Policy Documents Managment

Meta Data

Draft:

Revision of previous policy?:

Effective Start Year:

2007

Scope:

National

Document Type:

Law

Economic Sector:

Energy

Energy Types:

All, Nuclear, Renewable, Bioenergy, Geothermal, Hydropower, Wind, Other

Issued by:

President of the Republic of Indonesia

Source:

Ecolex

File:

Law No. 30/2007 of 2007 on Energy

Overall Summary:

This Law aims at significantly reducing the economy's dependence on imported refined oil while boosting the use of other energy sources, including natural gas, biofuels and geothermal resources. In particular, the Energy Law sets for the establishment of the National Energy Council, which is tasked to design and formulate the national energy policy, and to determine the national energy general plan.

Access

Energy access priorities:

Anyone has the right to obtain energy.---[T]he objectives of energy management are: [...] c. the availability of energy sources from domestic and/or overseas as referred to in point b for: 1. the fulfilment of domestic energy needs; 2. the fulfillment of domestic industrial raw material needs; [...] d. the security of optimum, integrated, and sustainable management of energy resources;[...] The achievement of increased access of poor people and/or those who live in remote areas to the energy to realize that people welfare and prosperity in fair and evenly distributed way by: - 1. providing assistance to increase the availability of energy for poor people; 2. building energy infrastructure for under-developed regions in order to reduce the inter-regional disparity. ---The provision of energy by government and/or regional government is prioritized in underdeveloped regions, remote area, and village regions by using the local energy sources, especially renewable energy.

Consumer subsidies:

The price of energy is stipulated based on a fair economy value. Government and regional Governments provide subsidy fund for poor people groups.

Efficiency

EE priorities:

[T]he objectives of energy management are: [...] e. the efficient utilization of energy in all sectors.---Energy utilization is done based on the principles as preferred to in Article 2 by: a. optimizing all energy resources potential, b. considering the technological, social, economic, conservation and environmental aspects, and c. prioritizing the fulfillment of people needs and improvement of economic activities in energy source producing region.

EE financial incentives:

Energy consumers and producers of energy efficient appliances who perform the energy conservation are given facilities and/or incentive by the Government and/or regional government.[...]. [Incentive can take the form of capital, tax, and fiscal. Facilities can be in the form of simplified licensing procedure and exploitatlon requirements.]

Renewable Energy

RE priorities:

The provision of energy by government and/or regional government is prioritized in underdeveloped regions, remote area, and village regions by using the local energy sources, especially renewable energy.---The utilization of new energy and renewable energy must be increased by the Government and regional government.

RE capital subsidy, grant, or rebate:

The provision of energy from new energy sources and renewable energy sources done by business entity, permanent form of business and individual might obtain facility and/or incentive from the Government and/or regional government according to their authorities for certain period until the economic value is reached.

Environment

Energy environmental priorities:

Any energy management activity is obliged to prioritize the usage of environmental friendly technology and meets the terms required in the legislation on living environment sector.

Pricing

Energy pricing:

The price of energy is stipulated based on a fair economy value. Government and regional Governments provide subsidy fund for poor people groups. [What's meant by economic value is the value formed from the balance between the management on demand and supply].

Energy Supply and Infrastructure

Energy supply priorities:

[T]he objectives of energy management are: a. the achievement of independence in energy management; b. the security of domestic energy availability, both from domestic and overseas sources. c. the availability of energy sources from domestic and/or overseas as referred to in point b for: 1. the fulfillment of domestic energy needs; 2. the fulfillment of domestic industrial raw material needs; and 3. the increase of state currency; d. the security of optimum, integrated, and sustainable management of energy resources; e. the efficient utilization of energy in all sectors. The achievement of increased access of poor people and/or those who live in remote areas to the energy to realize that people welfare and prosperity in fair and evenly distributed way by: - 1. providing assistance to increase the availability of energy for poor people; 2. building energy infrastructure for under-developed regions in order to reduce the inter-regional disparity. g. the achievement of energy industrial capability development and domestic energy services to be independent and improving the professionalism of human resources. h. the creation of employment opportunity; and i. the preservation of the living environment functions sustainability.---To secure the national energy tenacity, the government ls obliged to provide energy buffering reserve. The terms on type, quantitv, time, and location of the energy buffering reserve are arranged further by National Energy Council.---The utilization of new energy and renewable energy must be increased by the Government and regional government.---National energy conservation becomes the responsibility of the Government, regional government, business entities, and the people.

Regional integration priorities:

International cooperation in energy sector can only be done to: a. secure the national energy tenacity; b. secure the domestic energy availability; and c. improve the national economy.

Trade

Energy trade priorities:

International cooperation in energy sector can only be done to: a. secure the national energy tenacity; b. secure the domestic energy availability; and c. improve the national economy.

Bi- and multi-lateral energy agreements:

In case the government entered into an international agreement in energy sector which causes a wide and principle consequence on the people' s life concerning to the state financial burden and/or requiring the amendment or creation of law, it must obtain the approval from DPR.

Investment

Tax and duty exemptions for energy equipment:

Local content requirement:

The domestic content level, both goods and services must be maximized in energy exertion.---Government is obliged to encourage the capability of domestic goods and services provision to support the energy industry which is independent, efficient and competitive.---The provision of energy by government and/or regional government is prioritized in underdeveloped regions, remote area, and village regions by using the local energy sources, especially renewable energy. The energy source producing regions get the priority to obtain the energy from the local energy source.

Project permitting:

Governance

Energy management principles:

Energy is managed on the basis of utility, rationality, fair efficiency, value added improvement, sustainability, people welfare, IIving environment preservation, national tenacity, and integrity principles by prioritizing the national capability.---[T]he objectives of energy management are: a. the achievement of independence in energy management; b. the security of domestic energy availability, both from domestic and overseas sources. c. the availability of energy sources from domestic and/or overseas as referred to in point b for: 1. the fulfillment of domestic energy needs; 2. the fulfillment of domestic industrial raw material needs; and 3. the increase of state currency; d. the security of optimum, integrated, and sustainable management of energy resources; e. the efficient utilization of energy in all sectors. The achievement of increased access of poor people and/or those who live in remote areas to the energy to realize that people welfare and prosperity in fair and evenly distributed way by: - 1. providing assistance to increase the availability of energy for poor people; 2. building energy infrastructure for under-developed regions in order to reduce the inter-regional disparity. g. the achievement of energy industrial capability development and domestic energy services to be independent and improving the professionalism of human resources. h. the creation of employment opportunity; and i. the preservation of the living environment functions sustainability.---Energy resources of fossil, geothermal, big scale hydro and nuclear energy sources are controlled by the state and utilized for the maximum welfare of the people. New energy resources and renewable energy resources are arranged by the state and utilised for the maximum welfare of the people. ---People, either individually or in group, can have the role in: a. the composing of national energy general plan and regional energy general plan and b. energy development for public interest.---The provision of energy can be done through: a. inventories or energy resources; b. increasing of energy reserve; c. composing of energy balance; d. diversification, conservation, and intensification of energy source and energy; and e. security on the smoothness of provision, transmission, and energy sources and energy saving.

National policy structure:

(1)The government composes the design of national energy general plan based on national energy policy.

Energy institutional structures:

The President established a National Energy Council. [...] (2)National Energy Council has the tasks of: to design and formulate the national energy policy to be stipulated by the Government by the approval from DPR as referred to in Article 11 paragraph (2). To determine the national energy general plan [...].

M&E of policy implementation:

Energy sources consumers and energy consumers who do not perform the energy conservation are given disincentive by the Government and/or regional government.

Technology

Clean energy technology priorities:

Any energy management activity is obliged to prioritize the usage of environmental friendly technology and meets the terms required in the legislation on living environment sector.---The research and development on science and technology of energy provision and utilization must be facilitated by the government and regional government according to their authorities.---The funding on research and development activity in energy science and technology [...] among others coming from the state revenue and expense, budget regional revenue and expenses budget, and funds from private sector. ---The development and utilization of the result of research on new energy and renewable energy is financed from the state revenue coming from the non renewable energy.

Industrialization support:

Research and development as referred to in paragraph (1) is mainly directed for the development of new energy and renewable energy to support the development of independent national energy industry.