0. GEOTHERMAL IN INDONESIA
(OVER VIEW)
Sigit Rahardjo
Operation Director
PT PERTAMINA GEOTHERMAL ENERGY
Jogjakarta , Mei 2013

1. 4. Environmentally friendly
Characteristic of geothermal business
Geothermal Business
1. Specific location
2. Non Quick Yielding
3. Sustainable energy
4. Environmentally friendly
5. On Site Utilization
6. Long Term Contract
Single buyer (PLN)

2. Indonesia has the highest potential for geothermal energy in the world
Conventional geothermal 2010 capacity and total potential capacity GW
Resource
Utilization % 4
Indonesia 27 28
In spite of its world’s largest potential of geothermal resource, the utilization only remains 4%
Geothermal resource in Indonesia is also high temperature resource which enable more economical geothermal development project
U.S. 20 23 13
Japan 1 19 20 3
Others1 18 20 10 4 6 33
Philippines 20
Mexico 5 6
Iceland 1 5 6 10 3 4 16
New Zealand 1
Total
102
113 10
Installed
Potential
1 Includes mostly South/South-East Asia and Africa
SOURCE: GEA; DOE; EER; World Geothermal Congress; Energy Information Administration (EIA); interviews

3. INDONESIA’S WORLD LEADING GEOTHERMAL PROSPECT
MAGMA
Semarang
Medan
Tanjung Karang
Bandung
Manado
Speculative : MW
Probable : MW
Bali & NTT
Speculative : MWe
Probable * : 871 MWe
Java
Speculative : MWe
Probable * : MWe
Sumatera
Speculative : MWe
Probable * : MWe
Sulawesi
Speculative : MWe
Probable * : 721 MWe
Borneo
Speculative : 45 MWe
Probable * : - MWe
Current Installed Capacity : 1,337 MW
Maluku
Speculative : 734 MWe
Probable * : 142 MWe
Papua
Speculative : 50 MWe
Probable * : - MWe
Geothermal location

4. GEOTHERMAL ROAD MAP 1.337 MW 5171 MW 2006 852 MW (Production) 2008
(Based on President Decree No. 5/2006 on National Energy Policy; Modified by MEMR.REG. No. 15/2010)
Current Condition
2006
852 MW
(Production)
2008
2012
2016
2020
2000 MW
3442 MW
5171 MW
7788 MW
12332 MW
(Target baru )
1148 MW
Existing WKP
1442 MW
3977 MW
Existing WKP + New WKP
2617 MW
New WKP
4544 MW
2025
1.337 MW
2014
Plus The second 10,000 MW fast track program
4600 MW *
9500 MW *
5171 MW
Ministry decree MEMR
No. 15/2010
Under the second 10,000 MW fast-track plan, 34% of energy development come from geothermal energy.
(GSDM, 2010, Update Jan 2013)
*) Road Map 2007

5. PERTAMINA AIMS TO BE A LEADER IN GEOTHERMAL DEVELOPMENT
Geothermal development by operator type
Capacity GW
Share of SOE %
SOE 1
Private 23
Indonesia
0.9
1.3 61
Philippines
0.8
2.0
100
Mexico
1.2 84
Iceland
0.1
0.6
New Zealand
0.7 54
0.3
State-owned Enterprise energy companies developed more than 50% of geothermal energy in respective markets
1 State Owned Enterprise
SOURCE: company websites 5

6. PGE’s WORKING AREA TOTAL PGE’S INSTALLED CAPACITY: 402 MW1 14 13 2 3 4 5 6
Ref. Ministerial Decree MEMR
No 2067K/30/MEM/2012 7 9 8 10 11 12
Sibayak-Sinabung
Sibual-buali
Sungai Penuh
Hululais
Lumut Balai & Margabayur
6. Gunung Waypanas
7. Cibeureum Parabakti
8. Pangalengan
9. Kamojang/Drajat
10. Karaha Cakrabuana
11. Gn. Iyang Argopuro
12. Tabanan
13. Kotamobago
14. Lahendong

7. GEOTHERMAL DEVELOPMENT CONCEPT
TO SUPPORT ACCELERATION OF GEOTHERMAL DEVELOPMENT
IN LINE WITH 10,000 MW POLICY STAGE II –
EBTKE’S VISION 25/25 (5 % ENERGY MIX / MW )
GGGR, OPERATIONAL,
TECHNICAL ASPECT
MAINTENANCE
LAW, REGULATION, PERMIT
LEGAL ASPECTS
BUSINESS PORTFOLIO
ECONOMIC APPROACH
PROJECT MANAGEMENT,
IMPLEMENTATION
RISK ASSESSMENT,
ENV MGT
GEOTHERMAL ENERGY DEVELOPMENT POLICY
(PRES DECREE No. 5 / 2006; GOV’T REGULATION No. 3/2005 – No. 70/2010 : PERMEN ESDM. No. 5 / 2009; No. 2/2011;
PERPRES No. 4/2010 : PERPRES No. 10/2011)
1000 MW :
BOEPD
6.1 JT TON CER”S/YEAR

8. IDEAL GEOTHERMAL BUSINESS PROCESS IN INDONESIA
COD US$
HEAD OF AGREEMENT
PRICE AND CONTRACT NEGOTIATION
Notice Of Resorces Confirmation
Notice Of Intend to Develop
AMDAL / UKL / UPL (EIA/Environment Management Effort/Environment Monitoring Effort)
Location Permit
Permit of Land usage for Exploration Activities – Forestry Minister
SIPPA (Surface Water Usage Permit)
IMB (Construction Permit)
EPC
FEED
EXPLOITATION
AMDAL (EIA)
Location Permit
Land Usage Permit
SIPPA (Surface Water Usage Permit)
IMB (Construction Permit)
EXPLORATION
2 Years
3 Years
INVENTORY WKP

9. Pertamina aspires to achieve by 2015MW
Steam Availability
2012 13 14 15 16 17
2018
K Boepd
Oil equivalent
2012
2013
2014
2015
2016
2017
2018 9 9

10. KEY BARRIERS TO GEOTHERMAL DEVELOPMENT IN INDONESIA
Description
Uncertain economics
High upfront capital requirement
Uncertainty on pricing
Higher capital expenditure compared with other power generation technologies
Cost of USD Mn for preliminary studies including exploration wells to prove the reserves without any external financing
Development and exploration costs are solely borne by geothermal company and are not reimbursed by government unlike the practice in oil & gas industry
All these together mean that under the current environment, geothermal development projects are potentially high risk, especially for smaller operators
Implementation of MEMR Decree on Feed In Tariff requires further negotiation with PLN as a single buyer
Uncertain environ-ment
Regulatory uncertainty
Other risks
Most of the geothermal reserves are located in protected forests and geothermal activities are not allowed to carry out in forest conservation areas
Overlapping jurisdictions increases lead time and complexity as local authorities often block the projects approved by the central government
Tariff agreement with PLN often comes back for the renegotiation, hence no guarantee on the price
PLN off take is not guaranteed by government

11. PGE PRODUCTION FIELD - OWN OPERATION11
PGE PRODUCTION FIELD - OWN OPERATION
POWER PLANT UNIT – 4 ( 60 MW )
POWER PLANT UNIT 1,2 & 3
(30; 2 x 55 MW)
KAMOJANG GEOTHERMAL FIELDS
SIBAYAK GEOTHERMAL FIELD
POWER PLANT UNIT-1
PRODUCTION
CLUSTER UNIT-2
POWER PLANT UNIT-4
LAHENDONG GEOTHERMAL FIELDS

12. PGE GEOTHERMAL FIELDS UNDER JOC SCHEME
WAYANG-WINDU GEOTHERMAL FIELDS (JOC-STAR ENERGY)
PLTP 1x110 MW & 1x117 MW
DARAJAT GEOTHERMAL FIELD (JOC-CHEVRON)
PLTP 1x55 MW, 1x95 MW & 1x121 MW
SALAK GEOTHERMAL FIELD (JOC-CHEVRON)
PLTP 3x60 MW & 3x65 MW

13. PGE’S GEOTHERMAL ONGOING PROJECTSNo
Project Name
Location
Capacity (MW)
Project Type 1
Lumutbalai Unit 1&2,
Sumatera Selatan
2 x 55 MW
Total Project 2
Lumutbalai Unit 3&4, 3
Ulubelu Unit 3&4,
Lampung 4
Kamojang Unit 5
Jawa Barat
30 MW 5
Lahendong Unit 5&6
Sulawesi Utara
2x20 MW 6
Kotamobagu Unit 1&2
2 x 20 MW
Steam Supply 7
Hululais Unit 1&2
Bengkulu 8
Sungai Penuh Unit 1
Jambi
55 MW 9
Karaha

14. Key Indicators: UPCOMING GREENFIELDS DEVELOPMENT PLAN
MAGMA
Semarang
Medan
Tanjung Karang
Bandung
Manado
Way Panas
Kotamobagu
Tambang Sawah
Bukit Daun
Margabayur
Ciharus
Iyang Argopuro
Masigit-Guntur
Sumurup
Sinabung
Name of Prospect Area
Ins. Capacity (MW)
Sumatera Island 1
WKP Sungai Penuh
1. Semurup 40 2
WKP Hululais – Tambang Sawah
Tambang Sawah
Bukit Daun 70
110 3
WKP Lumut Balai
1. Margabayur 75 4
WKP Ulubelu – Way Panas
1. Way Panas
120
Java Island 5
WKP Kamojang
G. Masigit Guntur
Ciharus 50 30 6
WKP Iyang Argopuro
1. Iyang Argopuro 55
Sulawesi Island 7
WKP Kotamobago
1. Kotamobago 60
Key Indicators:
New Geothermal Power Generation Capacity : ± 610 MW
Additional Power Generation (kWh per year) : ± 4800 million
Avoided CO2 : ± 4,5 million tonnes per Year

15. THANK YOU Bekerja dan ibadah adalah energi kami
Semoga semua upaya menghasilkan manfaat
Insya Allah! 15