United States-Indonesia Commercial Dialogue Project/Activity Proposal
(2/8/2016 10:30 PM)
Project/Activity Title:
Proposing Country:
Benefits of Clean and Reliable Electric Power Solutions to Indonesia
USA
Proposing Organization:
General Electric
Co-sponsoring Organization(s):
PLN (proposed)
CD Pillar Supported:
This proposal aligns with the Clean Energy and Industrial Cooperation
Pillars of the Commercial Dialogue
Expected start date:
To Be Determined
Expected completion date:
To Be Determined
Source of funding (if applicable):
Project Manager:
USTDA (partial/proposed)
Name: (information removed from this section)
Title:
Organization:
Address:
Tel:
E-mail:
Project/Activity Description
1. Relevance: Why should the Commercial Dialogue support this project/activity? What problem
or opportunity will the project/activity address, and why is it important? How will the
project/activity benefit overall commercial growth between the United States and Indonesia
(not just one or two companies)?
Indonesia is among the fastest growing emerging markets in the world and is SE Asia’s largest
economy with a population of over 200 million, however, Indonesia is at a point where it must
accelerate the development of its electricity production infrastructure quickly in order to
maintain its recent high level of economic growth and penetration of electricity supply across the
nation. This rapid growth must be achieved with efficient use of scarce resources and capital and
without harming the environment or the communities that Indonesia seeks to serve.
Indonesia has enormous needs for reliable power to support its growth and to attract investment
that will create jobs and wealth for the country. The activity will address ways that Indonesia can
deliver electric power more efficiently and reliably to the underserved citizens and businesses
across Indonesia.
Private sector proposals should be submitted through a member of their country’s CD Steering Committee. Government
proposals should be submitted to ITA or MENKO. Proposals may be subject to full Interagency/ Ministerial approval.
2. Objectives: Describe the 2-3 key objectives of the project/activity.
1) Educate policy makers about the economic benefits to Indonesia of adopting a system for
maximizing the delivery of clean power during peak periods with the latest technology to
realize significant efficiencies resulting in fuel savings, lower emissions, flexibility and
attracting private investment.
2) Follow on projects could include a focus on off grid solutions to accelerate the growth of the
electrification of the country in rural areas and the benefits of adopting a special tariff to
encourage renewable energy distributed generation options for island grids and biomass
projects.
3) Contribute technical assistance to improve the decision-making processes for clean energy
projects.
3. Alignment: Describe how the project/activity supports one or more areas of focus (pillars) of
the Commercial Dialogue.
This proposal aligns with the Clean Energy Pillar as well as Industrial Cooperation Pillars of the
Commercial Dialogue as follows:
Utilization of technology and know-how will help to familiarize PLN with standards for noise and
air emissions that will prepare PLN to adapt to higher standards in the future. The clean energy
technology options allow for rapid expansion or adaptation to higher efficiency cycles and
different load profiles.
PLN will obtain support from reliable and experienced equipment manufacturers to meet
electrical energy demand goals in line with Indonesia's national economic growth plans and
provide electricity to a wider population. The proposed projects can be delivered in a relatively
short period of time, are designed to be replicated easily and are tailored to the unique
environment of Indonesia.
4. Methodology: How do you plan to implement the project/activity? Please address:

Timeline: Project/activity timelines and dates for key activities and deliverables

2012: In concert with PLN, compile a proposed series of projects with common performance,
finance, development and construction attributes. PLN could request a study through USTDA
that would help to optimize Indonesia’s power requirements during peak periods, and offer
best US technology and policy solutions and technical assistance. (6 month study for PLN)
USTDA could also plan and conduct a “reverse trade mission” to the U.S. to enable PLN
officials to better understand U.S. technology for peaking systems.

2012: Demonstrate value for money through market testing a pilot project in the program.

2013: Develop program finance, utilizing US EXIM Bank and local banks. US EXIM Bank could
sponsor a workshop to help US technology exporters and IPPs as well as PLN and local
Indonesian banks to understand how to structure project financing.

2013: Establish a Program Office to coordinate and streamline the procedures for the
partnership and transfer of technology and skills. Conduct a workshop with the National
Public Procurement Agency (LKPP) to focus on the overall procurement processes for energy
projects and coordinate the participation/involvement of other relevant agencies.
Private sector proposals should be submitted through a member of their country’s CD Steering Committee. Government
proposals should be submitted to ITA or MENKO. Proposals may be subject to full Interagency/ Ministerial approval.


2013/14: successful demonstration of the pilot project, and collaborate with PLN to expand
the scope to a series of projects, to gain economies through repetition and utilization of
common resources and capabilities.
For follow on projects focusing on rural electrification, GE could partner with PLN for a series
of pilot projects for a biomass gasification technology using efficient engines in distributed
power for remote areas.

Stakeholders: Beneficiaries and stakeholders and how they will be engaged
PLN, LKPP, USTDA, USEXIM (as noted above)

Previous projects/activities: If and how this proposal builds on the findings or lessons
learned from previous projects/activities, while avoiding duplication
Earlier this year, GE and PLN entered into a Memorandum of Understanding (MOU) to
collaborate on areas of mutual interest involving co-development of clean and renewable energy
projects including the development of peaker power plants. In addition, the MOU seeks to
jointly develop a service and repair capability in Indonesia, as well as a Technology State-of-theArt Training program. The proposed activities for the Commercial Dialogue are consistent with
the aims of the MOU, and demonstrate areas where PLN is very interested to work with GE.
Private sector proposals should be submitted through a member of their country’s CD Steering Committee. Government
proposals should be submitted to ITA or MENKO. Proposals may be subject to full Interagency/ Ministerial approval.