The development and operation of Hybrid Power Plants (Pembangkit Tenaga Listrik Hibrida - ?PLT Hibrida?) involves the integration of renewable sources of energy with new energy technologies, Battery Energy Storage Systems (BESS) and existing non-renewable sources of energy, subject to prescribed system reliability standards. Electrical power that is generated by PLT Hibrida will be procured through direct selection processes that are conducted by PT Perusahaan Listrik Negara (Persero) (?PLN?) and will be open to business entities that have registered for a place on PT PLN?s pre-qualified provider list. Purchase prices will be negotiated within the bounds of ceiling and floor prices, will be fixed in Indonesian rupiah and will become effective from the relevant Commercial Operation Dates (COD).

The Minister of Energy and Mineral Resources (Minister) has issued an Implementing Regulation to Regulation No. 39 of 2025 on the Second Amendment to Regulation No. 96 of 2021. This new Implementing Regulation states that parties entitled to secure Mining Business Licenses (Izin Usaha Pertambangan - IUP) and Special IUP (IUP Khusus/IUPK) and their respective areas based on priority schemes are required to employ certified mining or geology experts and submit detailed exploration work and funding plans. Specifically, religious social organization-owned businesses are required to maintain at least 67% ownership and are prohibited from transferring or pledging their licenses or associated commodities. Additionally, state-owned enterprises (Badan Usaha Milik Negara/BUMN) and private entities that receive priority status for downstreaming or value-added development must submit comprehensive development plans to the Minister.

If this Draft Regulation ultimately comes into force, then it will bring the current carbon trading mechanism for the forestry sector into line with that stipulated under Regulation of the President No. 110 of 2025, meaning that such trading can only be implemented via the offsetting of greenhouse gas emissions. In addition to redefining the parties eligible to participate in trading, as well as the official list of carbon sources, this Draft Regulation also features Non-SPE GRK carbon units, which are now available for trading in line with international standards.

This Draft Regulation specifies that the management of radioactive waste (Waste Management) comprises the following phases: 1) Pre-storage (e.g. pre-treatment, treatment, temporary storage and/or reuse and recycling); 2) Final storage; and 3) Sustainable storage (penyimpanan lestari). In addition to entities that generate radioactive waste as a result of their activities, Waste Management should also be carried out by managers of radioactive waste, specifically nuclear energy implementing agencies or business entities that are working in cooperation with or that are appointed by such agencies.

A new set of guidelines that address Reclamations and Post-Mining work after the completion of mineral and coal mining business activities is outlined comprehensively under the Appendices to this Decree and addresses four areas that cover the following specific aspects: 1) Overall management and activities, including in land and marine areas; 2) Reclamation cost standards; 3) Reopening of areas that undergo Reclamations; and 4) The appointment of third parties as executors and/or assessors of the achievement of Reclamation and/or Post-Mining work. Moreover, Reclamation and/or Post-Mining plans must now be submitted in order to secure approvals within 45 business days of the relevant mining permits being secured.

In addition to incorporating Carbon Allocation (i.e. allocations of amounts of carbon dioxide equivalent [CO2e] emissions permitted during a specific period) as a Carbon Economic Value (Nilai Ekonomi Karbon/NEK) instrument, this Regulation now recognizes Non-SPE GRK Carbon Units as a part of domestic Carbon Units trading, as derived from GHG emissions offsetting that adheres to relevant international standards. Any businesses that wish to secure Carbon Units derived from emissions offsetting are now required to prepare and submit climate change mitigation action plan documents (Dokumen Rancangan Aksi Mitigasi Perubahan Iklim/DRAM) for SPE GRK Carbon Units or project planning documents (Dokumen Perencanaan Proyek/DPP) for Non-SPE GRK Carbon Units.

This new framework now categorizes Waste-to-Renewable-Energy Processing Based on Environmentally Friendly Technologies (Pengolahan Sampah Menjadi Energi Terbarukan Berbasis Teknologi Ramah Lingkungan - PSE) into four distinct classifications. One of these new classifications is Environmentally Friendly Technology-Based Waste-to-Energy Processing (Pengolah Sampah Berbasis Teknologi Ramah Lingkungan Menjadi Energi Listrik - PSEL). PSEL facilities have now become mandatory for cities/regencies that meet certain criteria, including daily waste generation of at least 1,000 tons. The organization of PSEL comprises planning and implementation phases, while PSEL facilities should be constructed by specific Business Entities for the Development and Management of PSEL (Badan Usaha Pengembang dan Pengelola PSEL - BUPP PSEL), as selected by BPI Danantara, BUMN and/or BUMN subsidiaries. Moreover, Power-Purchase Agreements (Perjanjian Jual Beli Tenaga Listrik/PJBL) that are drawn up between PT PLN (Persero) and BUPP PSEL should set an electrical power purchase price of US$ 0.20 per kilowatt-hour (kWh) for all capacities.

This Second Amendment updates and refines several provisions on the granting of Mining Business License Areas (Wilayah Izin Usaha Pertambangan WIUP) and Special WIUP (WIUP Khusus WIUPK), as well as the obligations that have to be met by holders of Rock Mining Permits (Surat Izin Penambangan Batuan SIPB) and the overall scope of mining services business. The amendments set out under this framework include the introduction of a WIUP and WIUPK priority mechanism, an additional requirement for SIPB holders to submit mining plans for ministerial approval and the expansion of mining service business activities to also include processing.

In addition to revising various targets that were previously set as a part of Indonesias National Energy Policy (Kebijakan Energi Nasional KEN) regarding the use and provisioning of energy, the framework of Regulation 40/2025 has also revised the scope of the general targets for achieving Net Zero Emissions (NZE) by 2060. In this regard, one notable supporting policy that has been newly featured involves the decarbonization of the energy sector.

The Minister of Energy and Mineral Resources has now revised the framework for renewable energy Power-Purchase Agreements (Perjanjian Jual Beli Tenaga Listrik/PJBL) through Regulation No. 5 of 2025 on Guidelines for Power-Purchase Agreements with Power Plants That Utilize Renewable Energy Sources (Regulation 5/2025). This new framework introduces more detailed contractual terms, updated risk-sharing between PT PLN (Persero) and Power Plant Developers (Pengembang Pembangkit Listrik/PPL), as well as new obligations that apply to intermittent Power Plants.