50/2017. The state-owned utility is obliged to purchase renewable electricity generated by private parties. The renewable electricity price in a region is determined based on the electricity generation cost of the utility company at that region. The renewable electricity is priced at 80% of the generation costs of the utility.
Regulation 12 sets the tariffs for solar, wind, hydro, biomass, biogas, city waste to energy, and geothermal power plants. It stipulates that a renewable tariff is capped at 85% of the electricity supply costs (BPP) for the region in question, and 100% of BPP for geothermal and city waste to energy plants, provided the regional BPP is higher than the national average. If the regional BPP is lower than the national average, then the tariff is capped at 100% of the BPP, unless otherwise agreed in the case of geothermal and city waste to energy plants. The purpose of this rule is to reduce the average BPP (i.e., the cost of generation) across Indonesia. Regulation 50 formally replaced Regulation 12.