Regulation of the Minister of Energy and Mineral Resources of RI No. 10/2012 Implementing the Use of Renewable Energy

38 Business News 8395-8396/4-24-2013 ~ ~ Republic of Indonesia Year 2007 Number 96, Energy and Mineral Resource (State Gazette of Supplement to Statute Book of the Repubfic, of , the State of'the Republic of Indonesia Year 2010 Indonesia Number 4746); Number 552); 5. Government Regulation Number 6 Year 2006 con- 1 0. Regulation of Minister of Finance Number 101 / cerning Management of State/Regional-owned PMK.02/2011 concerning Budget Classification Property (Statute Book of the Republic of Indone- (State Gazette of the Republic of Indonesia Year sia Year 2006 Number 20, Supplement to Statute 2011 Number 397); Book of the Republic of Indonesia Number 4609) as amended by Government Regulation Number DECIDES:

38 Year 2008 (Statute Book of the Republic of To stipulate: Indonesia Year 2008 Number 78, Supplement to REGULATION OF MINISTER OF ENERGY AND MIN- Statute Book of the Republic o · Indonesia Number ERAL RESOURCE ON IMPLEMENTATION OF PHYSI- 4855); CAL ACTIVITY IN UTILIZATION OF NEW AND RE- NEWAL ENERGY. 6. Presidential Regulation Number 5 Year 2006 dat- ed January 25, 2006 concerning Policy of Na- tional Energy; CHAPTER I GENERAL PROVISION 7. Presidential Regulation Number 54 Year 201 0 Article 1 dated August 6, 2010 concerning Procurement What is meant in this Regulation of the Min- of Government Goods/Services as amended by , ister by: Presidential Regulation Number 35 Year 2011 1. Utilization of New or Renewable Energy shall be dated June 30, 2011; activity in utilizing energy, either directly or indi- rectly, of new or renewable energy. 8. Presidential Decree Number 59/P Year 2011 dat- ed October 18, 2011; 2. Proposal shall be plan containing general view of the location/area and objective to be achieved 9. Regulation of the Minister of Energy and Mineral that provides information on potentially available Resource Number 18 Year 2010 concerning Or- energy and the total volume of need for energy ganization and Work Procedure of the Ministry of utilization. Business News 8395-8396/4-14-2013 39 1■ 111111111111■1 rn::1•r■■ r cf•ki=MiMiihiiiiiiMl•il-, ?7■111117 llf■■IIZFlll'I- 3. Feasibility Study shall be document containing ' newal energy in support of continuous national devel- result of measuring and calculation of potential opment in upgrading defense of national energy. resource and the total volume of need for energy utilizing party and preparedness for management CHAPTER II of the environment. SCOPE AND OBJECTIVE Article 3 4. Detail Engineering Design shall be technical en- ( 1 ) The physical activities in monitoring new and re- gineering design document containing power or newable energy referred to in Article 2 are devel- energy estimate that may be utilized, selectio of opment, procurement and installation of: type and measurement of energy convering de- a. supply installation for electric power; vice, installation construction design as specified b. supply installation for vegetable oil fuel; and/ in technical drawing and cost budget program. or c. productive tools to support business activities 5. Installation for Centralized Supply of Electric Pow- of the people produced from new or renew- er shall be installation for supply of new and re- able energy. newable energy which operation is centralized in (21 The physical activity referred to in paragraph (1) one ( 1) installation for energy, further the energy i is meant to: produced will be distributed to the users/utilizers a. motivate development program of indepen- of energy. dant rural energy; b. motivate supply of energy originating from 6. Minister shall be Minister exercising administra- new or renewable source of energy; tion affairs on energy and mineral resource. c. encourage growth and equitable development in remote areas Infrastructure energy, left, 7. Director General shall be Director General of New, border, small islands and outermost, post- Renewable and Preserved Energy. disaster, and / or post-conflict, and d. pilot exploitation of new energy and renew- 8. Director General shall be Directorate General of able energy. New, Renewable, and Preserved Energy. CHAPTER Ill Article 2 RESPONSIBILITIES Physical activity on utilization of new ami te- Article 4

40 Business News 8395-839614-24-2013 (1) Minister responsible for policy, program, and im- e. process and proposal the result of physical utiliza- plementation of physical activity energy utiliza- tion of new and renewable energy as referred to tion and renewable energy. in Article 3 paragraph ( 1) as grant of the Ministry (2) Implementing physical activity energy utilization of Energy and Mineral Resource to the Regional of new and renewable energy as described in Government. paragraph ( 1) shall be conducted by the Direc- tor General through the New Energy Management CHAPTER IV Program, Renewable Energy and Energy Conser- IMPLEMENTATION OF ACTIVITIES vation. Part One (3) New Energy Management Program, Renewable General Energy and Energy Conservation as referred to Article 16 in paragraph (2) shall be implemented to support Physical utilization of new and renewable the accelerated development Jf new energy and energy referred to in Article 3 shall be exercised in renewable energy. phases as follows: a. application; Article 15 b. evaluation; The Directorate General is obliged to: c. decision; a. report accountability on the implementation of d. procurement; and physical utilization of new and renewable energy; e. hand-over. b. monitor and evaluate implementation of physical Part Two utilization of new and renewable energy; Application Phase Article 7 c. report accomplishment of the target and objective ( 1) The Governor or Regent/Mayor shall submit writ- of the physical utilization of new and renewable ten application for proposed physical utilization of energy to the Minister; new and renewable energy to the Minister c.q. the Director General. d. exercise monitoring, evaluation and fostering and ( 2) The application referred to in paragraph ( 1 ) must supervision of management of physical utilization be supported by at least the documents below: of new and renewable energy; and a. Proposal; b. Feasibility Study and/or Detail Engineering Business News 8395-8396l4·Z4·Z013 41 Design for Installation for Central Electric field and/or ask for written information pertaining Power Supply and installation for supply of to the Proposal, Feasibility Study and/or Detailed vegetable fuel oil with capacity greater than Engineering Design submitted.

400 (four hundred) liters for each process; c. statement letter on commitment to provide (21 The verification referred to in paragraph (1 I shall land for implementation of physical utilization be made on: of new and renewable energy; and a. statement letter of sole responsibility d. statement letter on commitment to receive on the authenticity and correctness of all sup- and manage the result of physical utilization porting documen submitted; of new and renewable energy. b. Proposal, Feasibility Study and/or De- tailed Engineering Design; (3) The Regent/Mayor's proposal must be copied to c. statement letter of commitment to the Governor. provide land and/or basic material, etc, as re- quired; and Part Three d. statement letter of commitment to ac- Evaluation Phase cept and manage as well as utilize the result Article 18 of physical utilization of new and renewable Based on the application for physical utili- energy. zation of new and renewable energy referred to in Article 7, the Directorate General shall evaluate all Part Four documents received, review and examine the com- Specification Phase pleteness thereof, including the authenticity, the sign- Article 10 ing and delivery of the copy of application letter to Based on the result of evaluation of the appli- the intended addressee. cation referred to in Article 8 and Article 9, the Direc- tor General may reject or grant approval to application Article 19 that complies with the terms and specification of the ( 1 I In the context of evaluation and clarification on region to receive the result of physical utilization of the application referred to in Article 7, the Direc- new and renewable energy based on available budget torate General may conduct verification in the of the Directorate General.

42 Business News 8395-839614-24-2013 Pait'Five result of activities referred to in paragraph (2). Procurement Phase Article 11 CHAPTERV Procurement of physical utilization of new MANAGEMENT and renewable energy shall be exercised by the Di- Article 13 rectorate General according to the provisions in the ( 1) The Governor or Regent/Mayor according to their statutory regulation. respective authority shall determine management of the result of physical utilization of new and Part Six renewable energy that have been handed-over as Phase of Handing Over referred to in Article 12 paragraph (2). Article 12 ( 1) The result of physical utilization of new and re- (2) Management of the result of physical utilization newable energy shall be recomed in management referred to in paragraph (1) shall involve: information system and accountancy of State- a. the people directly; or owned property of the Directorate General. b. management institution that may be in the form of joint business, cooperatives, associa- (2) The Directorate General through the Secretary of tion, society self-support institution, or cus- the Directorate General shall deliver the result of tomary group. physical utilization of new and renewable energy to the Government of Province of the Govern- Article 14 ment of Regency/Municipality receiving the result Management of the result of physical utiliza- of activities supported by Minutes of Hand-Over tion of new and renewable energy referred to in Ar- and Manuscript of Grant based on the provisions ticle 13 paragraph (2) is responsible for the operation in the statutory regulation. and maintenance of the result of physical utilization of new and renewable energy.to maximum. (3) Prior to or at the latest at handing-over of physical utilization of new and renewable energy referred Article 15 to in Article 11 must be trial tested or conducted The Governor and Regent/Mayor according to commissioning test, to be witnessed by the Direc- their respective authority shall foster and supervise torate General and the Provincial Government or the management of activities exercised by the man- ~egency)Municipality Government receiving the agement referred to in Article 13 paragraph (2). Business News 8395-8396/4-24-2013 43 ii]JPJl ■MIIIW PEI 7&1111■111 1 ¥M1iiJIMiil■iifi@N•t•if-l Z■IIIIHMRf llll■■■- ■111111 Article 16 CHAPTER VII The result of physical utilization of new and CLOSING PROVISION ; renewable energy referred to in Article 2 is not for Article 18 sale and purchase to other party. This Regulation of the Minister takes effect on the date it is enacted. CHAPTER VI REPORTING For public cognizance, this Regulation of the Article 17 Minister shall be announced by placing it in the State ( 1) The management of the result of physical utiliza- Gazette of the Republic of Indonesia . tion of new and renewable energy referred to in Article 13 paragraph (2) shall submit report peri- Stipulated di Jakarta odically once every six (6) months on the man- Dated May 10, 2012 agement of of the result of physical utilization of MINISTER OF ENERGY AND MINERAL RESOURCE new and renewable energy to the Governor or 1 REPUBLIC OF INDONESIA Regent/Mayor according to their respective au- sgd. thority with copy to the technical department in JERO WACIK charge of energy of provincial or regency/munici- pality level concerned .. Enacted di Jakarta Dated May 10, 2012 (2) The Governor shall submit report periodically once MINISTER OF LAW AND HUMAN RIGHTS every six (6) months on the management of the OF THE REPUBLIC OF INDONESIA , result of utilization of new and renewable energy sgd. to the Minister c.q. the Director General. AMIR SY AMSUDIN (3) The Regent/Mayor shall submit report periodically STATE GAZETTE OF THE REPUBLIC OF INDONESIA once every six (6) months on the management YEAR 2012 NUMBER 506 of the result from physical utilization of new and 1 renewable energy to the Minister c.q. the Director General with copy to the Governor. (MA)

44 Business News 8395-839614-24-2013