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Peraturan Presiden 112/2022Regulation
Full titlePeraturan Presiden Nomor 112 Tahun 2022 tentang Percepatan Pengembangan Energi Terbarukan untuk Penyediaan Tenaga Listrik
CitationPerpres 112/2022
JurisdictionIndonesia
Enacted byPresident of Indonesia
Signed13 September 2022
Promulgated13 September 2022
Effective13 September 2022

Peraturan Presiden 112/2022 (Peraturan Presiden Nomor 112 Tahun 2022 tentang Percepatan Pengembangan Energi Terbarukan untuk Penyediaan Tenaga Listrik) is an Indonesian presidential regulation on accelerating the development of renewable energy for the supply of electricity. It was signed by President Joko Widodo and promulgated on 13 September 2022 in Lembaran Negara 2022 No. 181, and took effect on promulgation.[1][2] It belongs to the body of rules surveyed at mining and energy regulation in Indonesia.

The regulation binds the state electricity company, PT PLN (Persero), to give renewable energy priority in its electricity supply business plan, to buy renewable power first and to run renewable plants continuously. It prohibits the development of new coal-fired power plants, subject to two exceptions, and directs the Minister of Energy and Mineral Resources to prepare a roadmap for ending the operation of coal-fired plants early.[3][4]

Most of its forty-two articles and two annexes govern the purchase of renewable electricity by PLN: ceiling prices in United States cents per kilowatt-hour, adjusted by a regional location factor, the choice between direct appointment and direct selection of developers, deadlines for procurement, the power purchase agreement, fiscal and non-fiscal incentives, reporting to the minister and transitional rules for contracts already signed.[5][6][7] The minister later issued implementing regulations on the power purchase agreement and on the energy transition roadmap, and CRPG's regulatory tracker published an analysis of the regulation in November 2025.[8][9][10]

Background

The preamble states two aims: to increase investment and speed up the achievement of the renewable share of the national energy mix set by the national energy policy, and to reduce greenhouse gas emissions, for which it finds that the acceleration of power generation from renewable sources needs to be regulated.[11] Its legal basis, in the Mengingat clause, is Pasal 4 ayat (1) of the 1945 Constitution, Undang-Undang 30/2007 on energy, Peraturan Pemerintah 14/2012 on electricity supply business as amended in 2014, Peraturan Pemerintah 79/2014 on the national energy policy, and Peraturan Presiden 4/2016 on accelerating electricity infrastructure as amended in 2017.[11:1]

Pasal 1 defines renewable energy (energi terbarukan) as energy derived from renewable sources, and Pasal 4 ayat (1) lists those sources as geothermal heat, wind, bioenergy, sunlight, the flow and fall of water, and the movement and temperature differences of ocean layers.[12][13]

Planning and coal-fired power

The supply business plan

Under Pasal 2 ayat (1), PLN prepares its electricity supply business plan (Rencana Usaha Penyediaan Tenaga Listrik, RUPTL) with regard to renewable development in line with the renewable-mix target of the national general electricity plan, the balance between supply and demand, and the economics of renewable plants. The plan is adopted by the minister after coordination with the ministers for state-owned enterprises and for state finance, taking into account supply and demand, the readiness of the electricity system and the financial capacity of the state.[3:1] In carrying out the plan PLN must, under ayat (3), give priority to buying electricity from renewable plants, operate those plants continuously (must-run) according to the characteristics of the source or the readiness of the local system at times of low load, use domestic products, and develop renewable plants of its own.[3:2]

New coal-fired plants

Pasal 3 ayat (4) prohibits the development of new coal-fired steam power plants (Pembangkit Listrik Tenaga Uap Batu Bara, PLTU). The prohibition does not apply to plants already set out in the RUPTL before the regulation came into force, or to plants that meet three conditions together: they are integrated with an industry built to add value to natural resources, or form part of a National Strategic Project contributing substantially to jobs or economic growth; they commit to cutting greenhouse gas emissions by at least 35 per cent within ten years of starting operation, measured against the average emissions of Indonesian coal plants in 2021, through technology, carbon offsets or a renewable mix; and they operate no later than 2050.[4:1]

Early retirement

The minister must prepare a roadmap for the accelerated end of coal-plant operation, set out in a sectoral planning document after coordination with the ministers for finance and state-owned enterprises, covering at least emission reduction from coal plants, the strategy for early retirement and consistency with other policies.[4:2] PLN is to bring forward the end of operation of its own coal plants and of power purchase agreements with independent coal-plant developers, having regard to supply and demand, and may replace the lost output with renewable plants. The criteria include capacity, age, utilisation, greenhouse gas emissions, economic value added, and the availability of domestic and foreign funding and technology. Each early retirement is decided by the minister with the written approval of the ministers for finance and state-owned enterprises and must be entered in the RUPTL. The government may provide fiscal support through a funding and financing framework, including blended finance, from the state budget or other lawful sources, under a regulation of the finance minister.[4:3]

Purchase prices

Pasal 4 ayat (2) confines PLN's renewable purchases to eight kinds of plant: geothermal, hydro, solar photovoltaic (including floating solar), wind, biomass, biogas, ocean energy and liquid biofuel. The plants may be built wholly by a business entity, or wholly or partly by the central or a regional government, including through grants, and purchases must follow the RUPTL.[13:1]

The purchase price is either the ceiling price (harga patokan tertinggi) in Lampiran I or an agreed price (harga kesepakatan), with or without a location factor (F) set in Lampiran II; it applies from the commercial operation date, and the minister evaluates the ceiling prices every year in coordination with the ministers for finance and state-owned enterprises.[5:1] A price negotiated under the ceiling carries no escalation for the life of the agreement and counts as the minister's price approval; geothermal prices act as a base price and may escalate; an agreed price needs the minister's approval.[14] Prices are set at the plant busbar; grid connection facilities may add up to 30 per cent and battery or other storage up to 60 per cent without separate approval, and payment is made in rupiah at the Jakarta Interbank Spot Dollar Rate.[15] Ceiling prices apply to hydro, geothermal, solar, wind, biomass and biogas plants and their expansions, and agreed prices to peaking hydro, biofuel and ocean-energy plants.[16]

Lampiran I sets most ceiling prices in two stages: a higher price for years one to ten, multiplied by the location factor, and a lower flat price for the remaining years of the agreement.[6:1]

Plant (capacity) Years 1 to 10 (US cents/kWh) Later years (US cents/kWh)
Solar photovoltaic, above 20 MW 6.95 × F 4.17 (to year 30)
Wind, above 20 MW 9.54 × F 5.73 (to year 30)
Hydro, above 100 MW 6.74 × F 4.21 (to year 30)
Geothermal, up to 10 MW 9.76 × F 8.30 (to year 30)
Biomass, above 10 MW 9.29 × F 7.43 (to year 25)
Biogas, above 10 MW 7.44 × F 4.46 (to year 20)

Lampiran II sets the location factor at 1.00 for Java, Madura and Bali, rising through 1.10 for Sumatra, Kalimantan and Sulawesi and 1.20 to 1.25 for Nusa Tenggara and Maluku, to 1.50 for Papua and Papua Barat, with higher values for small islands.[17]

Procurement and contracts

PLN buys renewable electricity either by direct appointment (penunjukan langsung) or by direct selection (pemilihan langsung). Direct appointment is used for hydro plants on multipurpose dams and irrigation works owned by the water resources ministry, geothermal plants of permit and contract holders, expansions and excess power; direct selection is used for other hydro, solar and wind plants with or without storage, biomass and biogas, and peaking hydro, biofuel and ocean plants. Where a direct selection and its repetition draw a single bidder, the purchase proceeds by direct appointment.[7:1] Direct appointment must run from submission to signature within 90 calendar days, and direct selection, awarded to the lowest bid under the ceiling, within 180 days; PLN pre-qualifies developers and publishes a list of selected providers every three months.[18] For solar, wind and some other plants, purchases follow capacity quotas set by the minister.[19] Plants built by the central or a regional government are bought under an assignment from the minister to PLN.[20] The winning developer signs a power purchase agreement (Perjanjian Jual Beli Tenaga Listrik, PJBL) with PLN, following guidelines issued by the minister.[21]

Government support and supervision

Business entities developing renewable plants receive fiscal incentives, which may include income tax, import duty and land and building tax facilities, support for geothermal development and financing or guarantees through a state-owned enterprise, and non-fiscal incentives from the central and regional governments.[22] Pasal 23 assigns support to named ministries, among them priority in spatial planning and easier land permits, easier permits in forest areas, a renewable-energy target in PLN's performance indicators set by the minister for state-owned enterprises, and domestic-content measures by the minister of industry.[23] If renewable purchases raise PLN's cost of generation, PLN is to be compensated within the state's financial capacity.[24] Geothermal development may receive assigned data collection, preliminary survey and exploration, derisking and financing.[25]

PLN must report each renewable power purchase agreement to the minister within five working days of signature, with the developer's business identification number and the cost structure and financial model of the price, and must report construction progress and domestic content every six months until commercial operation.[26]

Transitional provisions

Power purchase and geothermal steam agreements signed before the regulation came into force remain valid until they expire. Pending geothermal price renegotiations had six months to reach agreement, and purchases from hydro developers designated before that date were to be carried out by direct appointment within twelve months. Existing implementing regulations on renewable electricity remained in force so far as they did not conflict with the new regulation.[27]

Implementation

Two ministerial regulations of 2025 state in their preambles that they implement Peraturan Presiden 112/2022: Peraturan Menteri Energi dan Sumber Daya Mineral 5/2025, signed on 27 February 2025, on guidelines for renewable power purchase agreements, implementing Pasal 21 ayat (4), and Peraturan Menteri Energi dan Sumber Daya Mineral 10/2025, signed on 10 April 2025, on the roadmap for the energy transition in the electricity sector, implementing Pasal 3 ayat (1).[8:1][9:1]

CRPG's regulatory tracker analysed the regulation on 26 November 2025, treating it as a measure of climate mitigation in the electricity sector.[10:1]

See also

Identifiers Know ID K217 · Work URI /akn/id/act/perpres/2022/112 · RegVault PERPRES_112_2022
What links here (9)

References


  1. [P] Perpres 112/2022, Pasal 42 and closing formula (Ditetapkan di Jakarta pada tanggal 13 September 2022; Diundangkan di Jakarta pada tanggal 13 September 2022; Lembaran Negara 2022 No. 181). regulation_id PERPRES_112_2022. ↩︎

  2. [P] Perpres No. 112 Tahun 2022, JDIH BPK: enacted, promulgated and in force 13 September 2022, LN 2022 No. 181. https://peraturan.bpk.go.id/Details/225308/perpres-no-112-tahun-2022 ↩︎

  3. [P] Perpres 112/2022, Pasal 2 ayat (1) to (3). regulation_id PERPRES_112_2022. ↩︎ ↩︎ ↩︎

  4. [P] Perpres 112/2022, Pasal 3 ayat (1) to (11); the prohibition on new coal plants and its exceptions are in ayat (4). regulation_id PERPRES_112_2022. ↩︎ ↩︎ ↩︎ ↩︎

  5. [P] Perpres 112/2022, Pasal 5 ayat (1) to (6). regulation_id PERPRES_112_2022. ↩︎ ↩︎

  6. [P] Perpres 112/2022, Lampiran I (Harga Pembelian Tenaga Listrik Energi Terbarukan), tables for run-of-river hydro, solar photovoltaic, wind, biomass, biogas and geothermal plants. regulation_id PERPRES_112_2022. ↩︎ ↩︎

  7. [P] Perpres 112/2022, Pasal 14 ayat (1) to (6). regulation_id PERPRES_112_2022. ↩︎ ↩︎

  8. [P] Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 5 Tahun 2025 tentang Pedoman Perjanjian Jual Beli Tenaga Listrik dari Pembangkit Tenaga Listrik yang Memanfaatkan Sumber Energi Terbarukan, Menimbang huruf c and closing formula (Ditetapkan di Jakarta pada tanggal 27 Februari 2025). regulation_id ESDM_2025pmesdm5. ↩︎ ↩︎

  9. [P] Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 10 Tahun 2025 tentang Peta Jalan (Road Map) Transisi Energi Sektor Ketenagalistrikan, Menimbang huruf c and closing formula (Ditetapkan di Jakarta pada tanggal 10 April 2025). regulation_id PERMENESDM_10_2025. ↩︎ ↩︎

  10. [E] "What Renewable Energy Framework Was Established Under PERPRES 112/2022?", CRPG regulatory tracker, crpg.id, 26 November 2025. https://crpg.id/what-renewable-energy-framework-was-established-under-perpres-112-2022/ (free sign-in required on crpg.id) The post carries a notice that it is AI-generated; it is cited for the record of the development, not for its legal content. ↩︎ ↩︎

  11. [P] Perpres 112/2022, preamble, Menimbang huruf a and b and Mengingat angka 1 to 5. regulation_id PERPRES_112_2022. ↩︎ ↩︎

  12. [P] Perpres 112/2022, Pasal 1 angka 1. regulation_id PERPRES_112_2022. ↩︎

  13. [P] Perpres 112/2022, Pasal 4 ayat (1) to (6). regulation_id PERPRES_112_2022. ↩︎ ↩︎

  14. [P] Perpres 112/2022, Pasal 6 ayat (1) to (3). regulation_id PERPRES_112_2022. ↩︎

  15. [P] Perpres 112/2022, Pasal 7, Pasal 8 ayat (1) to (3), Pasal 10 ayat (1) to (3) and Pasal 13. regulation_id PERPRES_112_2022. ↩︎

  16. [P] Perpres 112/2022, Pasal 9 ayat (1) and (2). regulation_id PERPRES_112_2022. ↩︎

  17. [P] Perpres 112/2022, Lampiran II (Besaran Angka Faktor Lokasi (F)). regulation_id PERPRES_112_2022. ↩︎

  18. [P] Perpres 112/2022, Pasal 15 ayat (1), Pasal 16 ayat (1) and (2) and Pasal 17 ayat (1) to (3). regulation_id PERPRES_112_2022. ↩︎

  19. [P] Perpres 112/2022, Pasal 19 ayat (1) huruf a and ayat (2). regulation_id PERPRES_112_2022. ↩︎

  20. [P] Perpres 112/2022, Pasal 20 ayat (1) to (3). regulation_id PERPRES_112_2022. ↩︎

  21. [P] Perpres 112/2022, Pasal 21 ayat (1) to (4). regulation_id PERPRES_112_2022. ↩︎

  22. [P] Perpres 112/2022, Pasal 22 ayat (1) to (3). regulation_id PERPRES_112_2022. ↩︎

  23. [P] Perpres 112/2022, Pasal 23 ayat (4), (5), (8) and (9). regulation_id PERPRES_112_2022. ↩︎

  24. [P] Perpres 112/2022, Pasal 24. regulation_id PERPRES_112_2022. ↩︎

  25. [P] Perpres 112/2022, Pasal 27 ayat (1). regulation_id PERPRES_112_2022. ↩︎

  26. [P] Perpres 112/2022, Pasal 29 ayat (1) and (2). regulation_id PERPRES_112_2022. ↩︎

  27. [P] Perpres 112/2022, Pasal 30, Pasal 33 ayat (3), Pasal 34 ayat (2) and Pasal 41. regulation_id PERPRES_112_2022. ↩︎