Investor Presentaiton

Energy Eastern Indonesia is made up of thousands of islands, small towns and isolated village communities - demand for electricity on increase, but PLN still using expensive diesel and coal-fired power growing use of gas - eg 135Mw in Sengkang (EWC - originally Australian company) some hydro- eg in Central Sulawesi now significant wind and solar opportunities: PLN's feed-in tariffs promising because of high cost (incl transport) of fossil-fuels 72Mw wind power project in Jeneponto (Equis Australian company) 75Mw wind power project in Sidrap (UPC Renewables) potential for geothermal SEPTEMBER 2017 Australian Consulate-General Makassar, Indonesia RENEWABLE ENERGY FIELD STUDY EASTERN INDONESIA The Australian Consulate-General in Makassar, in cooperation with the Australia-Indonesia Centre (AIC) Energy Cluster, will organise a Renewable Energy Field Study to Eastern Indonesia in Q1 of 2018. The field study will begin with a one- day seminar in Makassar with expert speakers from the AIC, from the state energy company PLN, from the Ministry of Energy and Mineral Resources, and from leading private sector renewable energy investors and experts in Indonesia. The second and third days will consist of field visits to a wind power project in development near Makassar, and an island off-grid PLN solar project in the Makassar Strait. Participants will then have the option of continuing on to a remote island energy study visit to Morotai, with the AIC BACKGROUND To meet Indonesia's national development needs, President Joko Widodo has declared the goal of adding 35Gw (gigawatts of power to the national network within the next few years. Most of this new energy will be supplied through private investment, mainly large-scale coal and gas power plants. A significant proportion however, will come from renewables: Indonesia has declared a renewable energy target of 23% by 2025 - twice current levels. There is potential for foreign investors to supply renewable energy into the national grid, run by state-owned enterprise PLN. For renewable energy projects over 10 Mw, up to 95% foreign ownership is permitted, between 1-10 Mw up to 4996 is allowed, with the exception of geothermal at 67%. Indonesia has made important strides towards universal access to power over the last decade, with an electrification rate of 84% (Asian Development Bank 2016). However, to provide electricity to the remaining 1696-some 42 milion people-will be costly and technically challenging. Many of these people live in remote mountainous or island communities in eastern Indonesia. Below is a map of electrification rates across Indonesia (PWC 2016): in many cases it may be less costly to use renewable off-grid technologies, than extend the national grid to isolated districts, as has been assessed for the island of Sumba, in East Nusa Tenggara (NTT). While there is not yet an over-arching policy framework for off-grid supply, there is recognition among national and provincial governments of the advantages of renewables and micro-grids in servicing remote communities, particularly in eastern Indonesia. Bectrification rates across Indonesi Australian Consulate-General Australian Consulate-General, Makassar @KonJenMakassar Makassar Category: >90% 70-90% @KonjenMakassar @KonJenMakassar

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