| Full title | Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 12 Tahun 2017 tentang Pemanfaatan Sumber Energi Terbarukan untuk Penyediaan Tenaga Listrik |
|---|---|
| Citation | Permen ESDM 12/2017 |
| Jurisdiction | Indonesia |
| Enacted by | Minister of Energy and Mineral Resources |
| Signed | 27 January 2017 |
| Promulgated | 30 January 2017 |
| Effective | 30 January 2017 |
| Amended by | Permen ESDM 43/2017 |
| Replaced by | Permen ESDM 50/2017 |
Peraturan Menteri Energi dan Sumber Daya Mineral 12/2017 (Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 12 Tahun 2017 tentang Pemanfaatan Sumber Energi Terbarukan untuk Penyediaan Tenaga Listrik) was an Indonesian ministerial regulation on the purchase of electricity generated from renewable energy sources by the state electricity company, PT PLN (Persero). It was signed by the Minister of Energy and Mineral Resources, Ignasius Jonan, on 27 January 2017 and took effect on its promulgation on 30 January 2017.[1][2] It was amended later in 2017 by Permen ESDM 43/2017 and revoked by Permen ESDM 50/2017, which bears the same title; JDIH BPK records it as no longer in force.[2:1]
The regulation obliged PLN to buy electricity from renewable power plants and set out how it was to do so for seven sources: solar photovoltaic, wind, hydro, biomass, biogas, municipal waste and geothermal. Solar and wind power were to be bought through capacity-quota auctions, and the other sources at benchmark prices or through direct selection.[3] Purchase prices were tied to PLN's cost of generation (Biaya Pokok Penyediaan Pembangkitan, BPP) in the local system: where local generation cost was above the national average, the price for most sources was capped at 85 per cent of it.[4]
The regulation required renewable power to follow the national energy policy of PP 79/2014 and the national electricity plan, and belongs to the field described at mining and energy regulation in Indonesia.[3:1] CRPG's regulatory tracker published an analysis of it in November 2025, after it had been revoked.[5]
Before 2017, PLN's purchases from each type of renewable plant were governed by separate ministerial regulations: on geothermal power (Permen ESDM 17/2014), hydro plants up to 10 megawatts (Permen ESDM 19/2015), municipal-waste plants (Permen ESDM 44/2015), solar photovoltaic plants (Permen ESDM 19/2016), and biomass and biogas plants (Permen ESDM 21/2016). Permen ESDM 12/2017 did not revoke those regulations; Pasal 23 kept their purchase provisions in force as far as they did not conflict with it, and revoked only the maximum benchmark prices for hydro power in the annex of Permen ESDM 3/2015.[6] The held text of the regulation does not include its preamble.[1:1]
Pasal 2 required PLN, for the sake of sustainable electricity supply, to buy electricity from plants using renewable energy sources, and required their use to refer to the national energy policy and the national general electricity plan. Pasal 3 made the regulation PLN's guideline for such purchases and listed the seven sources covered.[3:2]
Under Pasal 4, electricity from technology-intensive sources whose output depends on local radiation or weather, such as solar and wind, was bought by auction on the basis of capacity quotas, while the other sources were bought at benchmark prices (harga patokan) or by direct selection (pemilihan langsung). PLN had to run renewable plants of up to 10 megawatts continuously as must-run plants.[3:3] Solar and wind purchases were allowed where the local system could accept them, where they would lower local generation cost, or where no other primary energy source was available, and were auctioned in packages of at least 15 megawatts, which could be spread across several locations.[4:1]
The regulation linked every price to the BPP of the local system in the previous year, as set by the minister on PLN's proposal.[4:2]
| Source | Local BPP above national average | Local BPP at or below national average |
|---|---|---|
| Solar photovoltaic, wind, hydro, biomass, biogas | at most 85 per cent of local BPP | equal to local BPP |
| Municipal waste, geothermal | at most local BPP | agreed by the parties |
Hydro plants of up to 10 megawatts had to operate at a capacity factor of at least 65 per cent. Biomass and biogas purchases were limited to developers with enough feedstock for the life of the power purchase agreement, with benchmark prices up to 10 megawatts and direct selection above.[4:3] Purchases from waste-to-energy plants were mandatory, to help governments deal with municipal waste, and their developers could receive incentives. Geothermal purchases were limited to developers holding a working area with proven reserves after exploration, and hydro and geothermal purchases used a build, own, operate and transfer (BOOT) scheme.[4:4]
PLN had to carry out due diligence on developers' technical and financial capacity, give priority to developers using domestic components, publish information on which local systems could accept renewable plants, report that information to the minister every three months, and publish standard procurement documents and standard power purchase agreements for each type of plant.[7] Developers that missed the commercial operation date agreed in their power purchase agreement were subject to sanctions or penalties set out in the agreement.[7:1] Transitional provisions preserved the terms of agreements already signed and, for developers already selected but without a signed agreement, applied the earlier procedures with the new pricing rules.[8]
JDIH BPK records two later instruments: Permen ESDM 43/2017, which amended the regulation, and Permen ESDM 50/2017 on the same subject, which revoked it.[2:2] The regulation comprised 24 articles in ten chapters and was published in Berita Negara 2017 No. 189.[2:3][1:2]
K185 · Work URI /akn/id/act/permen-esdm/2017/12 · RegVault PERMEN_ESDM_12_2017[P] Permen ESDM 12/2017, Pasal 24 and closing formula (Ditetapkan di Jakarta pada tanggal 27 Januari 2017; Diundangkan di Jakarta pada tanggal 30 Januari 2017). The held copy, from pasal.id, begins at Pasal 1. regulation_id PERMEN_ESDM_12_2017. ↩︎ ↩︎ ↩︎
[P] Permen ESDM No. 12 Tahun 2017, JDIH BPK: enacted 27 January 2017, promulgated and in force 30 January 2017, BN 2017 No. 189; status Tidak Berlaku; amended by Permen ESDM No. 43 Tahun 2017; revoked by Permen ESDM No. 50 Tahun 2017. https://peraturan.bpk.go.id/Details/142143/permen-esdm-no-12-tahun-2017 ↩︎ ↩︎ ↩︎ ↩︎
[P] Permen ESDM 12/2017, Pasal 2, 3 and 4. regulation_id PERMEN_ESDM_12_2017. ↩︎ ↩︎ ↩︎ ↩︎
[P] Permen ESDM 12/2017, Pasal 5 to 11. regulation_id PERMEN_ESDM_12_2017. ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
[E] "What Renewable Energy Requirements Exist Under PERMENESDM 12/2017?", CRPG regulatory tracker, crpg.id, 26 November 2025. https://crpg.id/what-renewable-energy-requirements-exist-under-permenesdm-12-2017/ (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. ↩︎
[P] Permen ESDM 12/2017, Pasal 23 ayat (1) and (2). regulation_id PERMEN_ESDM_12_2017. ↩︎
[P] Permen ESDM 12/2017, Pasal 12 to 16. regulation_id PERMEN_ESDM_12_2017. ↩︎ ↩︎
[P] Permen ESDM 12/2017, Pasal 17 to 22. regulation_id PERMEN_ESDM_12_2017. ↩︎