INDONESIA: National Energy Policy 2006 (Presidential Regulation No. 5/2006 of 2006)

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2006
Effective End Year: 
2014
Scope: 
National
Document Type: 
Overarching Policy, Rule/Regulation
Economic Sector: 
Energy, Power
Energy Types: 
All, Coal, Oil, Power, Gas, Nuclear, Renewable, Bioenergy, Geothermal, Hydropower, Solar, Wave and Tidal, Wind, Other
Issued by: 
President of the Republic of Indonesia
Source: 
Faolex
File: 
Presidential Regulation No. 5/2006 of 2006
Overall Summary: 
The goal of the Presidential Decree No. 5 of 2006 on National Energy Policy is to direct efforts to the creation of sufficiency of domestic energy supply. Its targets include: a. Achievement of energy elasticity of less than one in 2005; b. Creation of mix (printer) energy optimally in 2020, namely the role of each type of energy in national energy consumption: l) Oil becomes less than twenty percent (20%); 2) Gas becomes less than thirty percent (30%); 3) Coal becomes less than thirty-three percent (33%); Biofuel becomes more than five percent (5%); Geothermal becomes more than five percent (5%); Other new energy and renewable energy, particularly biomass, nuclear, hydropower, solar power, and wind power becomes more than five percent (5%); 7) Liquified coal becomes more than two percent (2%).
Access
Bi-, multi-lateral mechanisms to expand access: 
(3) The supporting policy as meant in paragraph (1) consists of: a. Development of energy infrastructure including increase of consumers access to energy; b. Partnership between government and business world; [...]
Renewable Energy
RE priorities: 
b. Creation of mix (printer) energy optimally in 2020, namely the role of each type of energy in national energy consumption: [...] 4) Biofuel becomes more than five percent (5%); 5) Geothermal becomes more than five percent (5%); 6) Other new energy and renewable energy, particularly biomass, nuclear, hydropower, solar power, and wind power becomes more than five percent (5%);
Pricing
Energy pricing: 
Price of energy shall be adjusted gradually until a certain time toward its economic price. The gradual adjustment of price as meant in paragraph (1) must create an optimal effect on energy diversification.
Energy Supply and Infrastructure
Energy supply priorities: 
The goal of the National Energy Policy is to direct efforts to the creation of sufficiency of domestic energy supply. --- (2) The main policy as meant in paragraph (1) consists of: a. Energy supply, by: 1) Assurance of availability of domestic energy supply; 2) Optimization of energy production; 3) Realization of energy conversion. b. Energy exploitation, by: 1) Energy exploitation efficiency; 2) Energy diversification.
Energy mix: 
(2) Targets of the National Energy Policy are: --- b. Creation of mix (printer) energy optimally in 2020, namely the role of each type of energy in national energy consumption: l) Oil becomes less than twenty percent (20%); 2) Gas becomes less than thirty percent (30%); 3) Coal becomes less than thirty-three percent (33%); 4) Biofuel becomes more than five percent (5%); 5) Geothermal becomes more than five percent (5%); 6) Other new energy and renewable energy, particularly biomass, nuclear, hydropower, solar power, and wind power becomes more than five percent (5%); 7) Liquified coal becomes more than two percent (2%).
Infrastructure development priorities: 
(3) The supporting policy as meant in paragraph (1) consists of: a. Development of energy infrastructure including increase of consumers access to energy;
Governance
Energy management principles: 
The Minister of Energy and Minerat Resources shall decide certain alternative energy sources. The government may give facilities and incentives to operators of energy conservation and developers of certain alternative energy sources as meant in paragraph (1). --- The Minister of Energy and Mineral Resources shall stipulate National Energy Management Blueprint after being discussed in the National Energy Coordinating Board.