Following the Government’s program to accelerate the adoption of battery based electric vehicle in Indonesia under President Regulation No. 55 of 2019 on the Acceleration of Battery Electric Vehicle (“BEV”) Program for Road Transportation issued last year, the Minister of Energy and Mineral Resources (the “MEMR”) issues the MEMR Regulation No. 13 of 2020 on the Provision of Electric Charging Infrastructure for Battery Electric Vehicle (“MEMR Regulation 13/2020”) in August 7, 2020.
The MEMR Regulation 13/2020 complements the already existing MEMR Regulations which regulates other aspects of BEV charging in Indonesia, such as the MEMR Regulation No. 35 of 2013 as lastly amended by MEMR Regulation No. 12 of 2016 which regulates the relevant permits in electricity supply and electricity supporting services business.
Notably, the MEMR Regulation 13/2020 serves as the ground rule for the provision of BEV charging infrastructure, stipulating the various types of charging infrastructure, the necessary licensing requirements and safety standards, as well as determining the tariff to be imposed for BEV charging.
- Types of Infrastructure
The MEMR Regulation 13/2020 divides BEV charging infrastructure in two types, namely: (i) battery charging facilities (also known as fasilitas pengisian ulang) and (ii) battery exchange facilities (also known as fasilitas penukaran baterai).
Battery charging facilities may take place at (i) Private Electric Installations and/or (ii) Public Electric Vehicle Charging Stations (Stasiun Pengisian Kendaraan Listrik Umum or “SPKLU”), while battery exchange facilities will take place at Public Electric Vehicle Battery Exchange Stations (Stasiun Penukaran Baterai Kendaraan Listrik Umum or “SPBKLU”).
Private Electric Installations are facilities at electricity utilization installations used for BEV charging specifically for captive use which shall not be used for commercial activities. Private Electric Installations may be located at government offices or at residential area.
Meanwhile, SPKLU and SPBKLU are BEV charging facilities and BEV battery exchange facilities used for public interest.
SPKLU and SPBKLUs shall be located at locations that are easily reachable by BEV owners, that would not disturb the security, safety, and order of traffic. Specifically for SPKLUs, the location shall be complimented with a specific designated parking area.
To accelerate the adoption of BEV, the MEMR Regulation 13/2020 also suggests SPKLU and SPBKLUs to be provided in pre-existing facilities, such as at public gas stations, shopping malls, government offices, and public parking spaces, without eliminating other potential locations for as long as the meet the accessibility and safety requirements.
MEMR Regulation 13/2020 provides a more detailed technical requirement for SPKLU(s), which includes standards of its power supply equipment, current/voltage/communication control system, also [protection] and safety system.
Meanwhile, SPBKLU(s) appear to have a less stringent requirement, focusing primarily on the guarantee of the battery being [leased], the online application provided by the operator on the battery swapping facilities and other information, and the ownership of the battery [exchanger].
Every charging and battery exchange infrastructure shall meet the stipulated electricity safety, including utilizing only certified products meeting the Indonesian national safety standards (SNI), employing certified technicians, and obtaining operation-worthiness certification in the form of Operational Feasibility Certificate (Sertifikat Laik Operasi or “SLO”).
- Licensing Requirements and Safety Standards
Depending on whether the SPKLU sources its own electricity or simply purchasing the electricity, the entity developing SPKLU will be required to obtain either an integrated Electric Provision Business License (Izin Usaha Penyediaan Tenaga Listrik Terintegrasi or “Integrated IUPTL”) or a sale IUPTL (Izin Usaha Penyediaan Tenaga Penjualan or “Sale IUPTL”), respectively.
In addition to the IUPTL, all SPKLUs developer shall also obtain determination of Business Area (Wilayah Usaha) from the MEMR and approval of their Electric Provision Business Plan (Rencana Usaha Penyediaan Tenaga Listrik or “RUPTL”). A holder of integrated IUPTL is also required to own several SPKLUs located in more than 1 (one) province nationwide.
Since at the moment, PT PLN Persero (PLN) is the only Integrated IUPTL holder, we refer the Integrated IUPTL holder as PLN in this Newsflash.
Meanwhile, Private Installation and SPBKLU operator are not required to obtain IUPTL (nor the relevant Business Area or RUPTL) to run its business.
Based on MEMR Regulation 13/2020, SPBKLU developer shall have a license in accordance with the prevailing laws and regulations.
Both SPKLU and SPBKLU must obtain SPKLU or SPBKLU Identity Number by submitting an application to the MEMR. Once issued, a SPKLU or SPBKLU shall put its Identity Number in a clearly visible location.
Any change to the SPKLU or SPBKLU’s scheme data or location shall be reported in writing to the MEMR within 5 (five) business days upon the change.
- Business Model
The MEMR Regulation 13/2020 provides possible business models in which SPKLU and SPBKLU may be run. Some business models of SPKLU involve the role of holders of Electricity Supporting Services Business License specifically for Operations (Izin Usaha Jasa Penunjang Tenaga Listrik untuk Pengoperasian or “IUJPTL”) as the operator.
There are 5 (five) possible business models in which SPKLU may be run by the holder of an Integrated IUPTL or PLN:
(i) provide/sell electricity, own, self-operated by IUPTL holder (“POSO”);
(ii) provide/sell electricity and own by IUPTL holder, but operated by the IUJPTL holder (“POPO”);
(iii) provide/sell by IUPTL holder, but owned and operated by IUJPTL holder (“PPOO”);
(iv) provide/sell and self-operated by IUPTL holder, but lease the facilities from partner (“PLSO”);
(v) provide/sell by the IUPTL holder, lease the facilities from a partner, and operated by IUJPTL holder (“PLPO”).
Meanwhile, there are other 5 (give) possible business models in which SPKLU may be run by the holder of a Sales IUJPTL:
(i) by buying electricity from IUPTL holder, sell and self-operate (also known as retail, own, self-operated or “ROSO”);
(ii) by buying electricity from Integrated IUPTL holder, sell yet privately operated by IUJPTL holder (also known as retail, own, privately-operated or “ROPO”);
(iii) by buying electricity from Integrated IUPTL holder, sell, yet owned and operated by IUJPTL holder (also known as retail, privately owned and operated or “RPOO”);
(iv) by buying electricity from Integrated IUPTL holder, sell, lease from partner yet still self operate (also known as retail, lease, self-operated or “RLSO”); and/or
(v) by buying electricity from Integrated IUPTL holder, sell, yet lease from partner and operated by IUJPTL holder (also known as retail, lease, privately operated or “RLPO”).
SPBKLUs business models are classified based on whether the SPBKLU developer owns the battery swapping cabinet. There are two possible business models in which SPBKLU may be run:
(i) battery provider, battery swapping cabinet owner (“BPCO”), and
(ii) battery provider, battery swapping cabinet lessee (“BPCL”).
- Appointment of PLN and Tariff
Same as the approach implemented under President Regulation No. 55 of 2019, as a pioneer project, the MEMR Regulation 13/2020 appoints PT PLN (Persero) (“PLN”) to implement the provision of charging infrastructure. However, PLN may also collaborate with other entities.
PLN shall also create a roadmap of SPKLU and SPBKLU installations (by coordinating with the SPKLU and SPBKLU developers) to be submitted to the MEMR within 6 (six) months from the issuance of the MEMR Regulation 13/2020 (i.e., January 2021), including the location, capacity, and the chosen business model for each SPKLU and SPBKLU.
The imposed tariff for electricity provided by PLN varies between:
(i) retail tariff imposed by Integrated IUPTL holder for Private Electric Installation for public transportation charging, SPKLU, or SPBKLU;
(ii) retail tariff imposed by Integrated IUPLT holder for Private Electric Installation for non-public transportation use; and
(iii) tariff imposed for special services being tariff for charging imposed by SPKLU developers to BEV owners.
Despite so, MEMR Regulation 13/2020 provides an additional criteria for determining electricity retail tariff being a Q factor at a minimum amount of 0.8 (point zero eight) and a maximum amount of 2 (two).
Whereas, SPKLU developer as Integrated IUPTL or Sales IUPTL holder shall use an N factor at the highest amount of 1.5 (one point five) in determining tariff to BEV owners.
On the other hand, tariff of battery exchange/battery swapping imposed by SPBKLU developer shall be based on the commercial considerations of such developer and agreement between the SPBKLU developer and the BEV owner.
- Guidance, Monitoring, and Sanctions
The MEMR will continuously provide guidance on the provision of charging infrastructure and regulation of electric power tariff for BEVs, including through socialization, dialogue, and/or focus group discussions; technical education and training; assistance in troubleshooting; and monitoring and evaluation of the provision of charging infrastructure.
The MEMR will also monitor the criteria and facilities installed , the implementation of tariff, the quality of operational services provided, and the safety standard of each charging infrastructure.
Failure to obtain and display valid SPKLU or SPBKLU Identity Number visibly and failure to report any change of data scheme or location of SPKLU or SPBKLU may result in administrative sanction. The MEMR may issue up to three written warning to such SPKLU or SPBKLU.
Failure to observe with the written warnings may result in temporary suspension of business activities for 3 (three) months. Subsequently, the MEMR may revoke the relevant business licenses of the SPKLU and SPBKLU operators if they fail to comply with the stipulated provision after the temporary suspension.
The MEMR will also impose sanction pursuant to the prevailing laws and regulations on electric power for failure to meet the stipulated safety standards.
Owners of Private Installations, SPKLU and SPBKLU that have operated before the enactment of MEMR Regulation 12/2020 shall comply and adjust its operations in accordance with the regulation. Specifically, for existing SPKLU(s) developer, adjustment shall be made at the latest 6 (six) months as of the enactment of the regulation.