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
| No. | Term | Indonesian Term | Definition | Article Reference |
|---|---|---|---|---|
| 1 | Renewable Energy | Energi Terbarukan | Energy derived from renewable energy sources | Pasal 1(1) |
| 2 | PT PLN (Persero) | Perseroan Terbatas Perusahaan Listrik Negara | State-owned electricity company established under PP 23/1994 | Pasal 1(2) |
| 3 | Electricity Supply Business Plan | RUPTL (Rencana Usaha Penyediaan Tenaga Listrik) | Plan for electricity provision covering generation, transmission, distribution, and sales within business area | Pasal 1(5) |
| 4 | Geothermal Power Plant | PLTP (Pembangkit Listrik Tenaga Panas Bumi) | Power plant utilizing geothermal energy sources | Pasal 1(8) |
| 5 | Hydroelectric Power Plant | PLTA (Pembangkit Listrik Tenaga Air) | Power plant utilizing water flow/waterfall, reservoir/dam, or multi-purpose irrigation canal | Pasal 1(9) |
| 6 | Solar Photovoltaic Power Plant | PLTS Fotovoltaik | Power plant converting solar energy to electricity using photovoltaic modules interconnected to PLN grid | Pasal 1(10) |
| 7 | Wind Power Plant | PLTB (Pembangkit Listrik Tenaga Bayu) | Power plant utilizing wind (bayu) energy sources | Pasal 1(11) |
| 8 | Steam Power Plant (Coal) | PLTU (Pembangkit Listrik Tenaga Uap) | Power plant utilizing steam to drive turbines | Pasal 1(18) |
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
| Planning Element | Consideration Factors | Responsible Party | Approval Authority | Article Reference |
|---|---|---|---|---|
| RUPTL Development | - Renewable Energy development per national electricity plan targets - Supply-demand balance - Renewable generation economics |
PT PLN (Persero) | Minister of ESDM (after coordination with MOF and MOEBUMN) | Pasal 2(1), 2(2) |
| Minister Approval Considerations | - Supply-demand balance - Electricity system readiness - State financial capacity |
Minister of ESDM | - | Pasal 2(2) |
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
| Obligation Category | Specific Requirements | Implementation Mechanism | Article Reference |
|---|---|---|---|
| Procurement Priority | Prioritize electricity purchases from renewable energy power plants | Renewable-first procurement policy | Pasal 2(3)(a) |
| Operational Requirement | Operate renewable energy plants continuously (must-run operation) per plant characteristics and system readiness | Must-run dispatch protocol | Pasal 2(3)(b) |
| Local Content | Prioritize use of domestic products | Domestic content requirements | Pasal 2(3)(c) |
| Development Obligation | Develop renewable energy generation capacity | PT PLN renewable build-out | Pasal 2(3)(d) |
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
| Prohibition Element | Requirement | Exception Conditions | GRK Compliance | Article Reference |
|---|---|---|---|---|
| General Moratorium | New PLTU (coal plants) cannot be developed | Two exceptions apply | - | Pasal 3(3) |
| Exception 1 | PLTU already in pre-regulation RUPTL | Listed in RUPTL established before PERPRES 112/2022 promulgation | No additional GRK requirement | Pasal 3(3)(a) |
| Exception 2 | PLTU integrated with renewable energy or industry/National Strategic Project | Must meet two strict conditions | - Commit to 35% GRK emissions reduction in 10 years - Operate maximum until 2050 |
Pasal 3(3)(b)(1-2) |
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
| Retirement Element | Criteria | Responsible Party | Approval Process | Fiscal Support | Article Reference |
|---|---|---|---|---|---|
| Early Retirement Decision | - Capacity - Operational age - Utilization rate - GRK emissions intensity - Economic value - Funding and technology support availability |
PT PLN (Persero) | Minister of ESDM (after MOF and MOEBUMN approval) | Available through APBN and blended finance | Pasal 3(4), 3(5), 3(6) |
| Roadmap Development | Coal plant phase-out roadmap in sectoral planning document | Minister of ESDM | After coordination with MOF and MOEBUMN | - | Pasal 3(1), 3(2) |
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
| No. | Technology Type | Indonesian Abbreviation | Energy Source | Typical Applications | Article Reference |
|---|---|---|---|---|---|
| 1 | Geothermal Power | PLTP | Geothermal steam/heat | Baseload renewable generation | Pasal 4(2)(a) |
| 2 | Hydroelectric Power | PLTA | Water flow/waterfall, reservoirs, multipurpose irrigation | Baseload/peaking renewable generation | Pasal 4(2)(b) |
| 3 | Solar Photovoltaic | PLTS Fotovoltaik | Solar radiation | Rooftop, ground-mounted, floating solar | Pasal 4(2)(c) |
| 4 | Wind Power | PLTB | Wind (bayu) | Onshore and offshore wind farms | Pasal 4(2)(d) |
| 5 | Biomass Power | PLTBm | Biomass (organic materials) | Agricultural waste, forestry residues | Pasal 4(2)(e) |
| 6 | Biogas Power | PLTBg | Biogas from organic decomposition | Landfill gas, anaerobic digesters | Pasal 4(2)(f) |
| 7 | Ocean Energy | Pembangkit Listrik Tenaga Energi Laut | Tidal, wave, ocean thermal energy | Coastal/island applications | Pasal 4(2)(g) |
| 8 | Biofuel Power | Pembangkit Listrik Tenaga Bahan Bakar Nabati | Plant-based fuels (biodiesel, bioethanol) | Liquid biofuel combustion | Pasal 4(2)(h) |
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
| Policy Element | Pre-PERPRES 112/2022 | Post-PERPRES 112/2022 | Climate Impact |
|---|---|---|---|
| New Coal Development | Permitted with BPP ceiling price constraints | Moratorium (except pre-existing RUPTL or 35% GRK reduction + 2050 deadline) | Prevents new coal GRK emissions |
| Renewable Dispatch | Economic dispatch (fossil fuels often cheaper) | Must-run operation (renewable priority) | Maximizes renewable generation, reduces fossil dispatch |
| Coal Retirement | Limited early retirement | Systematic phase-out based on 6 criteria including GRK intensity | Accelerates elimination of high-emission assets |
| RUPTL Priority | Supply adequacy first | Renewable energy development first | Institutionalizes clean energy primacy |
| GRK Reduction Target | No explicit target | 35% reduction for new coal exceptions; sectoral GRK reduction objective | Quantified emissions reduction |
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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