What Renewable Energy Framework Was Established Under PERPRES 112/2022?
1.0 Regulatory Foundation: Renewable Energy Acceleration and GRK Reduction
PERPRES 112/2022 ("Percepatan Pengembangan Energi Terbarukan untuk Penyediaan Tenaga Listrik") establishes Indonesia's comprehensive renewable energy acceleration framework aimed at achieving national renewable energy targets while reducing greenhouse gas (GRK) emissions from the electricity sector. The regulation creates a structural shift from fossil fuel dependence to clean energy through four core mechanisms: renewable energy prioritization in electricity planning (RUPTL), coal plant moratorium, must-run operation for renewable generation, and fiscal support for energy transition.
Matrix 1.1: Core Renewable Energy Definitions Under PERPRES 112/2022
The preamble's Menimbang section explicitly states the regulation's climate objective: "untuk meningkatkan investasi dan mempercepat pencapaian target bauran Energi Terbarukan nasional, serta menurunkan emisi gas rumah kaca sektor ketenagalistrikan" (to increase investment and accelerate achievement of national Renewable Energy mix targets, and reduce greenhouse gas emissions from the electricity sector). This dual focus on renewable energy expansion and GRK reduction distinguishes PERPRES 112/2022 as Indonesia's primary climate mitigation tool for the power sector.
2.0 RUPTL Planning Requirements: Renewable Energy Prioritization
Pasal 2 establishes mandatory requirements for PT PLN (Persero) in preparing and implementing the national Electricity Supply Business Plan (RUPTL).
Matrix 2.1: RUPTL Preparation and Approval Requirements
- Supply-demand balance
- Renewable generation economics
- Electricity system readiness
- State financial capacity
According to Pasal 2(1), "PT PLN (Persero) menyusun RUPTL dengan memperhatikan: a. pengembangan Energi Terbarukan sesuai dengan target bauran Energi Terbarukan berdasarkan rencana umum ketenagalistrikan nasional; b. keseimbangan antara penyediaan (supply) dan permintaan (demand); dan c. keekonomian pembangkit Energi Terbarukan" (PT PLN prepares RUPTL considering: renewable energy development per national renewable mix targets, supply-demand balance, and renewable generation economics).
Matrix 2.2: Mandatory RUPTL Implementation Obligations
Pasal 2(3) mandates: "Pelaksanaan RUPTL oleh PT PLN (Persero) wajib: a. mengutamakan pembelian Tenaga Listrik dari pembangkit Tenaga Listrik yang memanfaatkan sumber Energi Terbarukan; b. mengoperasikan pembangkit Energi Terbarukan secara terus-menerus (must-run operation) sesuai dengan karakteristik pembangkit Energi Terbarukan dan kesiapan sistem; c. mengutamakan penggunaan produk dalam negeri; dan d. melakukan pengembangan pembangkit Energi Terbarukan." The must-run requirement in huruf (b) ensures renewable plants receive dispatch priority over fossil fuel facilities, maximizing clean energy generation and GRK emissions reductions.
3.0 Coal Plant Moratorium and Phase-Out Framework
Pasal 3 establishes Indonesia's coal plant moratorium and early retirement framework, representing the regulation's most significant climate mitigation provision.
Matrix 3.1: New Coal Plant Prohibition and Exceptions
- Operate maximum until 2050
Pasal 3(3) states: "PLTU baru tidak dapat lagi dikembangkan, kecuali: a. telah tercantum dalam RUPTL yang telah ditetapkan sebelum Peraturan Presiden ini diundangkan; atau b. terintegrasi dengan pembangkit Energi Terbarukan atau industri/Proyek Strategis Nasional dengan ketentuan: 1) berkomitmen menurunkan emisi gas rumah kaca minimal 35% (tiga puluh lima persen) dalam 10 (sepuluh) tahun; dan 2) beroperasi paling lama sampai dengan tahun 2050."
The 35% GRK reduction requirement in Pasal 3(3)(b)(1) and 2050 operational deadline in 3(3)(b)(2) create stringent conditions that effectively prohibit new unabated coal power plants, aligning with Indonesia's net-zero commitments.
Matrix 3.2: Coal Plant Early Retirement Framework
- Operational age
- Utilization rate
- GRK emissions intensity
- Economic value
- Funding and technology support availability
According to Pasal 3(4), "PT PLN (Persero) dapat melakukan percepatan pengakhiran masa operasional PLTU yang sudah beroperasi berdasarkan kriteria: a. kapasitas; b. usia operasi; c. tingkat utilisasi; d. intensitas emisi gas rumah kaca; e. nilai ekonomi; dan/atau f. ketersediaan dukungan pendanaan dan teknologi" (PT PLN may accelerate early retirement of operating coal plants based on: capacity, operational age, utilization rate, GRK emissions intensity, economic value, and/or funding and technology support availability). The inclusion of "intensitas emisi gas rumah kaca" (GRK emissions intensity) as criterion (d) prioritizes retirement of the most carbon-intensive coal facilities.
Pasal 3(6) ensures financial viability: "Pemerintah dapat menyediakan dukungan fiskal melalui Anggaran Pendapatan dan Belanja Negara dan sumber lain yang sah sesuai dengan ketentuan peraturan perundang-undangan, termasuk melalui mekanisme blended finance" (Government may provide fiscal support through State Budget and other legitimate sources per prevailing legislation, including through blended finance mechanisms). This addresses the significant capital costs of early coal retirement, potentially involving international climate finance.
4.0 Eight Renewable Energy Categories and Technology Coverage
Matrix 4.1: Renewable Energy Technologies for PT PLN Procurement
Pasal 4(1) defines renewable energy sources: "Sumber Energi Terbarukan merupakan sumber energi yang dihasilkan dari sumber daya energi yang berkelanjutan jika dikelola dengan baik berupa panas bumi, angin, bioenergi, sinar matahari, aliran dan terjunan air, serta gerakan dan perbedaan suhu lapisan laut" (Renewable Energy Sources are energy sources produced from sustainable energy resources when managed properly, including geothermal, wind, bioenergy, solar, water flow and waterfalls, and ocean currents and thermal layers).
This comprehensive eight-technology framework under Pasal 4(2) ensures PT PLN can procure from diverse renewable sources, reducing dependence on any single technology and maximizing Indonesia's renewable energy potential across different geographic regions.
5.0 Forward-Looking Implications: Energy Transition Impact and Climate Commitments
Matrix 5.1: Comparative Framework - Pre and Post PERPRES 112/2022
The regulation's preamble establishes explicit climate objectives: "menurunkan emisi gas rumah kaca sektor ketenagalistrikan" (reduce greenhouse gas emissions from the electricity sector). This positions PERPRES 112/2022 as Indonesia's primary sectoral GRK mitigation regulation, complementing the broader NEK framework under PERPRES 110/2025.
Stakeholder Implications:
- PT PLN (Persero): Must fundamentally restructure power procurement and operations to prioritize renewables, implement must-run dispatch, and potentially retire coal plants ahead of technical lifetime
- Coal Plant Developers: Face effective moratorium on new projects unless integrated with PSN/industry and committed to 35% GRK reduction within 10 years
- Renewable Energy Developers: Gain priority procurement status, must-run operational guarantees, and long-term policy certainty for investment
- Industrial Consumers: May benefit from long-term price stability as renewable costs decline, avoiding fossil fuel price volatility
- International Climate Finance: Can access early coal retirement opportunities through blended finance mechanisms under Pasal 3(6)
The 2050 operational deadline in Pasal 3(3)(b)(2) aligns Indonesia's coal phase-out with global net-zero timelines, while the must-run operation requirement ensures renewable plants displace fossil generation whenever technically feasible. Together with PERPRES 110/2025's NEK instruments, these provisions create a comprehensive legal framework for Indonesia's electricity sector decarbonization.
GRK Emissions Trajectory: By combining coal moratorium, must-run renewable operation, and early retirement of high-emission facilities, PERPRES 112/2022 establishes the regulatory foundation for Indonesia to achieve its Enhanced NDC commitment of 31.89% unconditional GRK emissions reduction (43.20% with international support) by 2030, with electricity sector emissions as a primary target.
Official Source
Peraturan Presiden Nomor 112 Tahun 2022 tentang Percepatan Pengembangan Energi Terbarukan untuk Penyediaan Tenaga Listrik
Enacted: September 13, 2022
Promulgated: December 30, 2022
https://peraturan.bpk.go.id/Details/225308/perpres-no-112-tahun-2022
Related Climate Regulations:
- PERPRES 110/2025 (Carbon Economic Value and National GRK Control)
- UU 30/2007 (Energy Law)
- PP 79/2014 (National Energy Policy)
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Law Database
Access PERPRES 112/2022 in the CRPG Law Database: PERPRES 112/2022