In the development phase, the project developer investigates the project concept. Basic information and inputs must be
obtained to determine if the project should be further developed. Necessary licenses and permits must be obtained and
financial support has to be secured.
The development of biomass/biogas project development in Indonesia starts from the Site Selection. Potential sites are to
be identified, short-listed, and investigated in detail. At the end, one site has to be selected for further developement.
The developer must approach the local government in the respective region to acquire several permits/licenses. This is a
part of the Administrative Authorization step. At the same time, the developer might establish a Special Purpose Company
(SPC) to carry out project development and power plant operation, in addition a principle license for investment must be
acquired. Both is included in the Corporate Legal/Fiscal step. In parallel, some technical inputs are necessary for a
subsequent power purchase agreement (PPA) application. Therefore, the developer must approach an engineering firm for
a front-end engineering design (FEED) which is part of the Planning and Engineering step.
Once the agreement and support from local government is secured (by issuing permits and licenses), the developer must
approach: (i) the national power utility (PLN) – to secure a power purchase agreement; (ii) the Directorate General of
Electricity (DJK) – to obtain an electricity production license and (iii) a financial institution – to secure necessary financing.
The developer usually contract an engineering, procurement and construction (EPC) provider to perform detailed
engineering, equipment procurement, construction and installation. This is done in parallel to the early phase of plant