Until the time the National Energy Council (DEN) establishes a new National Energy Policy (KEN), the National Energy Policy of 2006 applies. The aim of this policy is to:Achieve energy elasticity to GDP of less than one by year 2025Realize an optimum primary energy consumption mix in 2025, with shares as follows: oil - to become less than 20% natural gas - to become more than 30% coal - to become more than 33% biofuels - to become more than 5% renewable energy and other energy including nuclear - to become more than 10% liquefied coal - to become more than 2%.The details of the energy programs and targets of the National Energy Policy are elaborated in the Blue Print - National Energy Management 2005 to 2025. Indonesia’s 2006 Energy Policy expects the combined share of renewable energy and nuclear in the overall energy mix in 2025 to have exceeded 17%. The policy has special emphasis on enhancing the share of biofuels. Renewable energy and other energy including nuclear (as in the list above) is expected to be made up of at least a 5% geothermal share and a combined share of biomass, hydropower, solar, wind and nuclear power to make up the remainder to 10% by 2025.National Energy Conservation Master Plan (RIKEN) (2005) aims to achieve Indonesia’s energy saving potential through energy efficiency and conservation (EE&C) measures, and so avoid wasteful energy use in the country. It also aims to reduce energy intensity by around 1%/year, on average, until 2025. Fiscal incentives (tax reductions and soft loans) together with other instruments such as training and educational programmes as well as energy audits are used to implement the plan.National Biofuel Roadmap (Presidential Decree 10/2006) for 2006-2025, following the 2005 National Energy Blueprint, is to accelerate the use of biofuel as a replacement fossil-based fuel. It sets specific targets for production as well as utilization between 2006 and 2025, gradually increasing the utilization of biofuel from 2% to 5% of energy mix. Government’s ‘25/25 Vision’ plans to have renewable energies fulfil 25% of the country’s energy needs by 2025.On 10 August 2007, Indonesia enacted the Energy Law (Law No. 30/2007). The Law elucidates principles for the utilisation of energy resources and final energy use, security of supply, energy conservation and protection of the environment with regard to energy use, pricing of energy, and international cooperation. The Energy Law sets out the content of the National Energy Policy (KEN, Kebijakan Energi Nasional) (2006); the roles and responsibilities of the central government and regional governments in planning, policy and regulation; development priorities for energy research and development, and the role of enterprises.The Energy Law mandates the creation of a National Energy Council (DEN, Dewan Energi Nasional), the tasks of which are:draft the National Energy Policy, to be endorsed and promulgated by the government, with due consent of parliament (the DPR),draft the National Energy Master Plan (RUEN, Rencana Umum Energi Nasional),declare measures to resolve the conditions of energy crisis and energy emergency,provide guidance and management on the implementation of cross-sectoral policies on energy.It is a national, independent, and permanent body and its members include 7 government officials and 8 stakeholders.Under the Energy Law, the 2006 National Energy Policy will address the availability of energy, energy development, the utilization of domestic energy resources, and energy supply reserves. It states that Indonesia’s goal is to achieve energy elasticity (the ratio of change of total primary energy supply over the rate of change of GDP) of less than 1 in 2025.Until the new National Energy Policy is enacted, the Presidential Regulation No. 5/2006 on the National Energy Policy regulates the development of renewable energy. It mandates an increase in renewable energy production from 7% to 15% of generating capacity by 2025. It states that the contribution of new and renewable energy in the 2025 national primary energy mix is estimated at 17%, consisting of 5% biofuel, 5% geothermal power, biomass, nuclear, hydro and wind, and also liquefied coal at 2%. The government will take measures to add the capacity of micro hydro power plants to 2,846 MW by 2025, biomass of 180 MW by 2020, wind power of 0.97 GW by 2025, solar of 0.87 GW by 2024, and nuclear power of 4.2 GW by 2024. The total investment needed for this development of new and renewable energy sources up to the year 2025 is projected at $13,197 million.The Green Energy Policy (2004): includes guidelines for the development of renewable energy, including regulatory instruments.Biofuel Decree (Ministry of Energy and Mineral Resources Regulation No. 32/2008) settles a mandatory utilization framework in the transportation, industrial, commercial and power generation sectors for biodiesel, bioethanol and bio-oil from 2009 to 2025.Biofuels subsidy: In February 2009, the Indonesian government announced that it would establish a biofuels subsidy to encourage investment in, and use of, biofuels made from palm oil and other feedstocks. The subsidy would only be paid if biofuel prices are higher than crude oil-based fuels.The Geothermal Law (No. 27/2003): gives powers to regional governments to develop geothermal energy, in particular in respect of licensing, allowing investors to deal directly with regional governments and requiring projects to be competitively tendered. It also provides incentives for investment by establishing long-term licenses for land use (more than 30 years) and a regulated price for geothermal energy.Tax incentives for geothermal exploration (Regulation 22/PMK011/2011).Ministerial Regulation No.002/2006: on the commercialisation of middle scale renewable energy power plants.Law No. 25/2007: concerning investment. Since 2008, the government has offered tax incentives for foreign investment including investors in renewable energy. Incentives include a 30% net income tax reduction for 6 years, free repatriation of investments and profits, and dispute settlement.The Electricity Law (Law No. 30/2009): secures sustainable energy supplies, promotes conservation and use of renewable energy resources. The regulation was issued by the Ministry of Energy and Mineral Resources (ESDM) and referred to as "Purchasing Price by PT PLN (Persero) of Generated Electricity from Small and Medium Scale Renewable Energy Power Plant or Excess Power”. The aim of this ministerial regulation is to enhance the electricity generated by small and medium scale of renewable energy power plant or excess power to be purchased by state owned company, regional owned company, cooperatives. The law does not make provisions for a feed-in tariff, but does provide for differing tariffs in different regions, more accurately reflecting the cost of supply. For rural development, the government set a bold electrification target of 90% by 2020.Purchase of electricity from geothermal plants (Regulation 02/2011) of the Ministry of Energy and Mineral Resources regulates the power purchase tariff of electricity from geothermal sources. It assigns the PLN to purchase electricity from geothermal plants inside at a maximum price of 0.97/kWh.Clean Technology Fund (CTF), a multilateral fund, aims to accelerate the country’s initiatives to promote energy efficiency and renewable energy, and to help achieve the objective of increasing the electrification rate from 65% to 90% in 2020 as well as the long-term goal of reducing greenhouse gas emission by 26% by 2020. Under a new $400 million climate investment plan, endorsed by the CTF, Indonesia’s geothermal power capacity is set to nearly double. The plan will use co-financing from the CTF to expand large-scale geothermal power plants and to facilitate energy efficiency and renewable energy by creating risk-sharing facilities and addressing financing barriers to small- and medium-scale investments. The CTF is slated to mobilise an additional $2.7 billion from a range of other sources. Indonesia ratified the UN Framework Convention on Climate Change (UNFCCC) on 23 August 1994 and the Kyoto Protocol on 3 December 2004. As a non-Annex 1 party in the Kyoto Protocol, Indonesia has no obligation to reduce GHG emissions. However, the government is committed to participating in, and cooperating with, the global effort to combat climate change as Indonesia is the third largest emitter of greenhouse gases, mostly because of deforestation. It is also vulnerable to climate change as an island nation whose capital city, Jakarta, sits below sea level. This position was expressed by the Indonesian President in the G20 Finance Ministers and Central Bank Governors Summit held in September 2009 in the United States. The government has pledged to reduce GHG emissions from forestry and the energy sector by 26% through domestic effort by 2030, and by up to 41% through cooperation with other economies. To meet the goal, Indonesia will heavily invest in renewable energy and recommit to stopping deforestation.