Indonesia Offers 3 Business Schemes for EV Charging Infrastructure

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 335.Pers/04/SJI/2021

Date: 21 September 2021

Indonesia Offers 3 Business Schemes for EV Charging Infrastructure

The Indonesian Ministry of Energy and Mineral Resources (EMR) offers three business schemes for Public EV Charging Stations (SPKLU) and Public EV Battery Swapping Stations (SPBKLU), i.e. provider, retailer, and cooperation schemes, Director General of Electricity of the Ministry of EMR, Rida Mulyana, has said on Tuesday (21/9) during a webinar titled 'Business Licensing Mechanism for Battery Electric Vehicle Infrastructure'. This is in line with Regulation of Minister of EMR Number 13 of 2020 on the Provision of Charging Infrastructure for Battery Electric Vehicles, Rida continued.

According to Rida, the regulation was issued to encourage business entities to participate in creating a good ecosystem for EVs.

"In general, there are three business schemes and licensing types for charging stations (SPKLU), that is, provider, retailer, and cooperation schemes. For battery swapping stations (SPBKLU), they are only required to have a SPBKLU identity number," said Rida.

Rida went on to elaborate that a provider scheme refers to a facility that generates electricity on its own and later sells the electrical power to EV consumers. To run this scheme, a business needs to have permits and licenses such as Determination of Business Area, Integrated IUPTL (electricity provision business license for public interest), and SPKLU Identity Number.

A retailer scheme means a business that purchases electrical power from state electricity company PT PLN (Persero) or other Business Area Holders, then sells the electrical power in the name of the retailer. A business needs to have Determination of Business Area, Sales IUPTL, and SPKLU Identity Number.

Finally, a cooperation scheme requires a business to partner with PT PLN (Persero) or other Business Area Holders and have an SPKLU Identity Number. The business can use the license of PT PLN (Persero) or that of other Business Area Holders.

To speed up the development of EV charging infrastructure, the government offers various incentives, for example a bulk tariff incentive of Rp714 per kWh for SPKLU, while the sales tariff cap is Rp2,467 per kWh, a discount on installation cost and/or electricity subscription guarantee as well as exemption on minimum billing for the first two years for an SPKLU which has a cooperation agreement with PT PLN (Persero).

Ease of EV Infrastructure Licensing

The Ministry of EMR has also simplified the business licensing for EV charging infrastructure. Previously, recommendation by the regional governments was needed to apply for business area determination. However, Regulation of Minister of EMR Number 5 of 2021 sets out that the recommendation can be replaced with the land title of the SPKLU or a cooperation agreement with the owner of the SPKLU site.

According to the provision of Article 94 section (2) of Regulation of Minister of EMR Number 11 of 2021 on the Implementation of Electricity Business, the IUPTLU holders including the SPKLU businesses must report their activities through an information system which is integrated with that of the Directorate General of Electricity.

To accelerate the licensing process, the government has adopted a platform called the Online Single Submission for Risk-Based Business Licensing (OSS-PBBR). The OSS-PBBR application is still continuously improved. As a result, several licenses that are Non-KBLI (Indonesian Standard Business Lines Classification), particularly Business Area Determination and SPKLU and SPBKLU Identity Numbers, are granted without the OSS-PBBR. These licenses are issued via the EMR Business Licensing and Operational Application.

"Next, we hope the OSS-PBBR will be integrated with the EMR Licensing Application, so it will be easier to apply for business licenses," said Rida.

On the same occasion, PT PLN (Persero) Executive Vice President of Marketing and Products Development, Hikmat Drajat, said that PLN had been ready to support EV infrastructure. Hikmat said that PT PLN (Persero) had been assigned earlier by the government to build the EV infrastructure so as to build the EV ecosystem.

The Ministry of EMR is collaborating with the Agency for the Assessment and Application of Technology (BPPT), PT PLN (Persero), and state electronic company PT Len Industri (Persero) to prepare an SPKLU roadmap policy until 2024. This collaboration is vital so that the era of electric vehicles in Indonesia will soon materialize.

"The technologies for EV and battery charging are still developing, and these include battery development, charging systems, and management, most of which are online," said Director of Electricity Business Fostering, Ida Nuryatin Finahari, who was also present in the webinar.

The Ministry of EMR is preparing an information system integrator for SPKLU and SPBKLU. This way, the SPKLU and SPBKLU businesses can easily access information and licensing process, while the relevant state ministries/agencies can smoothly monitor SPKLU and SPBKLU activities.

"We appreciate the serious support that various parties have shown to accelerate the EV ecosystem. Besides government agencies, numerous businesses have also shown their seriousness in supporting the EV acceleration program by producing electric vehicles and battery, and constructing charging infrastructure such as Public Charging Stations (SPKLU) and Public Battery Swap Stations (SPBKLU)," Rida concluded.

For the record, the webinar was held to disseminate the derivative regulations of the Job Creation Law, namely Government Regulations Number 5 of 2021 and Number 25 of 2021 as well as EMR Ministerial Regulations Number 5 of 2021 and Number 11 of 2021. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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