Foreword

During the last 28 years, installed capacity of national electricity system has only increased by 19,500 MW, from 500 MW in 1969 to 20,000 MW in 2007. But, since 1997 until 2005, practically there is no significant progress of national electricity infrastructure development.

With about 80% population is concentrated in Java Island and its surroundings, the condition of recent national electricity system consists of Java-Madura-Bali (Jamali) interconnected with Sumatera, while the others are isolated.

In 2007, Electrification Ratio (ER) was 60.8%, in 2008 ER is predicted to reach 64.3%, and electrified village ratio is 91.9%, in 2009, the government targeted ER of 66.3% with electrified village ratio 96.8%. Until 2008, total installed capacity of national generator reached only 29,885 MW, and in 2009, the capacity is projected to reach 33,352.37 MW.

Until now, the condition of providing electric power in some national electricity sub system, so blackout is often occurred, including in Jamali system, which is normal status, if one of its generators is obstructed by the primary energy supply, Java Island and its surroundings would suffer in turn blackout.
 
To secure Indonesia from electricity crisis attack, through Perpres No. 71/2006 and No. 72/2006, the government started to carry out strategic steps in developing national electricity infrastructure, such as issuing the policy of Acceleration of 10,000 MW PLTU development phase I (Crash Program I), which is expected to be finished in two years time, and the development of Coal PLTU with capacity of 35,000 MW gradually until 2015.

In the realization of crash program I, by the beginning of 2009, from ten projects located in Java, nine PLTU projects has been signed and entering construction phase, and it is expected that three PLTU would enter Jamali system and commercially operated in 2009, while the other one project is still in tender process.
 
Meanwhile, from 30 projects located outside Jamali, 22 projects has EPC, including two PLTU, which would be commercially operated by 2009, two projects in price negotiation process, one project is re-tendered, and five other projects were postponed.

In 2008, the government plans build 10,000 MW project phase II, which specification of the generator majority would utilize domestic geothermal resource as its primary energy.
  
Within the next ten years, PLN predicted the average national electricity need increases 9%, while the sales of electric energy would increase from 121 TWh in 2007 to 325 TWh, while electric supply is projected to increase 35 GW, so in 2018, the national generator capacity would reach 86 GW, beside that there should be additional Main Relay about 100,000 MVA and transmission network about 40,000 km.
 
By discussing the national electricity problem, including Crash Program phase I and II progress, primary energy source of coal and geothermal in Indonesia, and the realization progress and acceleration of energy diversification policy that was issued by the government, made this study book is very useful for the business players of electricity, including PLN, and financing institution.

This 450 pages study book is offered with the price of Rp 5,500,000 (Five million five hundred thousand rupiah) per copy for the Indonesian version, or US$ 800 (Eight hundred US Dollar) per copy for the English version. For those who is interested, please do not hesitate to contact PT Media Data Riset, Jakarta, by phone number (021) 809-3140, 809-6071, Fax number (021) 809-6071, mobile phone number 0852 1706 1945, and email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it / This e-mail address is being protected from spam bots, you need JavaScript enabled to view it . The order form is attached to this letter. For overseas or outside Jakarta order, additional delivery fee would be charged. Thank you for your kind attention.

Table of Content

I. Introduction

II. Performance of national electricity System
2.1. National electricity system portrait 1966-2008
2.1.1. ER per Province as of December 2008
2.1.2. National electricity Infrastructure development 2008
2.2. Chain link of national electricity supply
2.3. Management of Energy and national electricity crisis
2.3.1. Role of ESDM in National development
2.3.2. Basic Law and Policy of National Energy
2.3.3. General description of Energy in Indonesia
 2.3.4. Coal resource and Terminal
2.3.5. National Geothermal Potency
2.3.6. Indonesia's Energy needs

III. National electricity Infrastructure
3.1. Installed capacity of national generator 2006-2008
3.1.1. Installed capacity PLN Generator 2003-2008
3.1.2. Generator capacity Factor 2002-2007
3.2. Composition of generator based On primary energy 2007-2008
3.3. Utilization of Primary Energy for Generator 2007-2008
3.4. Target of primary energy utilization for generator 2007-2008

IV. National electricity performance
4.1. Production & consumption of national electric energy 2002-2007
4.1.1. Electric production per area 2002-2007
4.1.2. Electric production based on Generator 2002-2007
4.1.3. Production and Purchase of Electric energy 2003-2008
4.1.4. Sales of Electric energy (GWh) 2003-2008
4.1.5. Electric consumption based on Tariff group 2007
4.1.6. Electricity efficiency improvement Program 2003-2008
4.2. Electrification Ratio per Province 1980-2007
4.3. Electrified Village Ratio per Province 2006-2007
4.3.1. Rural Electricity Program 2008 (Financing source - APBN)
4.3.2. Rural Electricity Program Plan 2009 (Financing source – APBN)

V. National Electricity Policy
5.1. Tariff policy
5.2. Primary energy utilization policy
5.3. Rural and Social electricity treatment 5.4. Standardizes,Security, Safety, and Controlling
5.6. Electric power supply and demand Management
5.7. Integrated Resource Planning Program

VI. National electricity crisis
6.1. Condition of national electric energy supply
6.2. Cause of national electric supply crisis
6.3. Deficit of eight national electricity Sub System as of October 2008
6.4. Solution to overcome national electric crisis
6.4.1. Mega Project National electricity worth US$40 billion
6.4.2. RUPTL 2006-2015
6.4.3. PLN, Project Crash Program phase I & II
6.4.4. Providing IPP
6.5. Prospect and Strategy of PLN
6.5.1. Electric energy demand growth 2007-2018
6.5.2. Business opportunity improvement
6.5.3. Average electric basic Tariff 1996-2008
6.5.4. Fast Track Program
6.6. PLN financial performance
6.6.1. Company Balance Sheet 2003-1H2008
6.6.2. Company Profit and Loss 2003-1H2008
6.6.3. Company Income based on Customer 2003-1H2008
6.6.4. Subsidy Mechanism
6.6.5. Important Ratios
6.6.6. Issue and Bonds

VII. National Electricity Project
7.1. Crash Program I Project
7.1.1. Rationale and Ground Law
7.1.2. Progress of realization of Crash Program I project
7.1.3. Progress Status IPP project in Crash Program I 2007-2008
7.2. Progress of electricity project plan of 10.000 MW phase II (Crash Program II)
7.2.1. Crash Program II project plan
7.3. National electricity project financing
7.3.1. Investment mechanism of Electric power supply
7.3.2. National electricity fund need
7.3.3. Effort of Minimizing Risk of National electricity Investment
7.3.4. PLN and Bond issue worth Rp 3 Trillion
7.3.5. PLN trimmed the bonds to Rp 1.5 trillion
7.3.6. CEXIM ready to finance three Crash Program I Project
7.3.7. Foreign currency funding need for PLN project US$6 billion

VIII. Transmission and Distribution development of national electricity
8.1. Condition of Transmission and Distribution of national electricity
8.1.1. Electric energy distribution 2003-2008
8.1.2. Distribution of electric Energy 2003-2008
8.2. Development project of Transmission and Distribution 2009
8.2.1. Transmission project investment plan 2009
8.2.2. Transmission project Financing plan 2009

IX. Primary Energy for generator
9.1. Coal deposit spreading and prospect in Indonesia
9.2. Geothermal deposit spreading and prospect in Indonesia

X. Program and Projection of National Electricity Infrastructure Development
10.1. National electricity infrastructure development program 2009
10.2. Projection of additional generator 2009-2010
10.3. Projection of national electric need As of October 2008 (according to RUKN 2008-2027)
10.4. Projection of national electric energy need 2008-2027 (according to RUKN 2008-2027)

XI. Prospect and Conclusion

- Attachment

  UU No.30 year 2007 about Energy