INDONESIA:CURRENT ENERGY SITUATION

and IT’s 2050 VISION

CURRENT CONDITIONSAt present, energy conditions in Indonesia are as follows:• There are great potential energy sources • Society's access to energy is still limited • Oil fuel consumption is 63% of total energy consumption• Gas and coal prices are higher on the export market than on

the domestic market, Domestic consumers have low purchasing power.

• The energy industry is not optimal – Limited energy infrastructure (Appendixes G1 s/d G4,

pages 33-36)– Energy prices (such as for fuel, gas for fertilizer factories

and new/ renewable energies) that are not commensurate with their economic value (Appendix H, page 40)

– Inefficient energy utilization (Appendix I, page 41)

EXPECTED CONDITIONS

• Rational Energy prices• Society’s access to energy• Better economic conditions will increase

society’s purchasing power• Security of energy supply (Balanced

Energy Mix)

Listrik11%

BBM42%

LPG1%

Gas Kota19%

Batubara27%

Listrik0%

BBM100%

LPG0% Gas Kota

0%

Batubara0%

Industri41%

Rumah Tangga dan Komersial

24%

Transportasi35%

FINAL ENERGY CONSUMPTION 2005

Listrik12%

BBM67%

LPG2% Gas Kota

8%

Batubara11%

Listrik31%

BBM63%

LPG6%

Gas Kota0%

Batubara0%

Household&Comercial

Transport

Industry

26 Juta KL

12 Juta KL

By Fuel Type

by Sector

100 TWh

54 Juta KL

500 BSCF

13 Juta Ton

1,1 Juta Ton

Trend of Indonesia Primary Energy Mix

0%

20%

40%

60%

80%

100%

1990 1991 1992 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Pers

en

PLTA Biofuel Batubara EBT Lainnya Gas Bumi Minyak Bumi Panas Bumi

Oil

Geothermal

Natural Gas

Coal

Hydropower

Renewable

CO2 Emission from Energy Utilization

0

50

100

150

200

250

300

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Mill

ion

Ton

Other SectorTransportHouseholdIndustryPowerPlant

2005 CO2 Emission by Sources

PowerPlant26%

Industry37%

Household10%

Other Sector4%

Transport23%

NATIONAL ENERGY POTENTIALS 2004

147130 million barrels

19.3 billion tons57 billion tonsCoal

613.0 TSCF182 TSCF384.7 TSCFGas

18500 million barrels

9 billion barrels86.9 billion barrels

Oil

CAD/PROD RATIO(without

exploration)Years

PRODUCTION(per annum)

RESERVES(Proven + Possible)RESOURCES

TYPES OF FOSSIL-BASED ENERGY

24.112 Tons* e.q. 3 GW for 11

yearsUranium (Nuclear)

8.00 MW4.80 kWh/m2/ daySolar energy

302.40 MW49.81 GWBiomass

4,200.00 MW6,851.00 GWh75.67 GW845.00 million BOE

Hydroelectric power

800.00 MW2,593.50 GWh27.00 GW219.00 million BOE

Geothermal power

84.00 MW458.75 MW458.75 MWMini/Micro hydro

INSTALLED CAPACITYUSAGE EQUAL TORESOURCESNON-FOSSIL

ENERGY

0.50 MW9.29 GWWind power

* Only in the Kalan region – West Kalimantan

Grissik Palembang

Semarang

RESERVES AND NETWORKS OF GAS PIPELINES

Pacific Ocean

AUSTRALIA

Indian Ocean

Bangkok

Phnom Penh

Ban Mabtapud

Ho Chi Minh City

CAMBODIA

VIETNAM

THAILAND LAOS

Khanon

Songkhla

Erawan

Bangkot

LawitJerneh

WESTMALAYSIA

Penang

Kerteh

Kuala Lumpur

Manila

Philipines

South

China

SeaS

inga

pore

G

as

Trun

klin

e

NatunaAlpha

Kota KinibaluBRUNEI

Bandara Seri Begawan

BintuluEAST

MALAYSIA

Kuching

Banda Aceh

Lhokseumawe

Medan

Duri

Padang

S U M A T R A Jambi

BintanSINGAPORE

Samarinda

Balikpapan

Bontang LNG Plant& Export Terminal Attaka

TunuBekapai

KALIMANTAN

Banjarmasin

Manado

SULAWESI

UjungPandang

BURU SERAM

Ternate HALMAHERA

Sorong

IRIAN JAYA

JakartaJ A V A Surabaya

Bangkalan

BALI SUMBAWA

Pagerungan

LOMBOK

Cirebon

FLORES

SUMBATIMOR

I N D O N E S I A

DuyongWest Natuna

Port Dickson

Port Klang

Mogpu

Dumai

Batam

Guntong

51,627

3,756

0,720

11,516

5,855

5,529

34,021

3,894

18,520

GAS RESERVE 2P (BSCF)

TOTAL RESERVES2P : 142.462 BSCF0,11

3,00Massela

ArdjunaFields

MADURA3,854

Existing Pipeline

Planned Pipeline

Jayapura

Merauke

Grissik Palembang

Semarang

Pacific Ocean

AUSTRALIA

Indian Ocean

Bangkok

Phnom Penh

Ban Mabtapud

Ho Chi Minh City

CAMBODIA

VIETNAM

THAILAND LAOS

Khanon

Songkhla

Erawan

Bangkot

LawitJerneh

WESTMALAYSIA

Penang

Kerteh

Kuala Lumpur

Manila

Philipines

South

China

Sea

NatunaAlpha

Kota KinibaluBRUNEI

Bandara Seri Begawan

BintuluEAST

MALAYSIA

Kuching

Banda Aceh

Lhokseumawe

Medan

Duri

S U M A T R A Jambi

BintanSINGAPORE

Samarinda

Balikpapan

Bontang

AttakaTunu

BekapaiKALIMANTAN

Banjarmasin

Manado

SULAWESI

BURU SERAM

Ternate

Sorong

IRIAN JAYA

JakartaJ A V A

SurabayaBangkalan

BALISUMBAWA

LOMBOK

FLORES

SUMBATIMOR

DuyongWest Natuna

Mogpu

Dumai

Batam

Guntong

MADURA

REFINERIES AND Fuel TRANSPORTATION MODE

Bandung

Yogyakarta

Transit Terminal

Pipeline Distribution

Tanker

Oil Refinery

P. Brandan: 5 MBOPD

Balongan : 125 MBOPD

Kasim : 10 MBOPD

Musi 135.20 MBOPD

Balikpapan : 260 MBOPD

UjungPandang

Pagerungan

HALMAHERA

TOTAL REFINERY CAPACITY1,057,000 BOPD

Jayapura

Merauke

Cepu : 3.80 MBOPD

S.Pakning : 50 MBOPD

Cilacap: 348 MBOPD

Dumai : 120 MBOPD

Padang

Port KlangPort Dickson

I N D O N E S I A

TARGETS:1.Per-capita energy consumption of a minimum of 10 BOE

(RIKEN) and 95% electrification ratio 95% (RUKN) in the year 2025

2.To achieve the security of domestic energy supply, through: • Energy elasticity less than 1 in the year 2025• An optimal (primary) energy mix in 2025 :

– The role of oil decreases to 26.2%– The role of natural gas increases to 30.6%– The role of coal increases to 32.7%– The role of geothermal power increases to 3.8%– The role of new and renewable sources of energy

increases to 4.4%• The fulfillment of fossil-based domestic energy supply

through the gradual reduction of exports

NATIONAL ENERGI MIX TARGET FOR THE YEAR 2025(GR No. 5 / 2006)

OIL 20 %

Gas 30 %

COAL 33 %

NRE 17 %

Bio-fuel 5 %

Geothermal 5 %

Biomass, Nuclear, Hydropower,Solar, Wind 5 %

Coal Liquefaction 2 %

Projected Trends of Indonesia Primary Energy Mix

0%

20%

40%

60%

80%

100%

199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022202320242025

Perc

ent

Oil

Geothermal

Natural Gas

Coal

HydropowerBio Fuel

Renewable

Energy Snap-Shot

Energy Snap-Shot Industrial Sector- 50 100 150 200 250

2000

2050 A (CM)

2050 B (CM)

COL OIL GAS BMS S/W Heat H2 ELE

Energy consumption in industrial sector (Mtoe) CO2 emission in industrial sector with allocated emission from heat, H2, electricity (MtC)

Skenario A BEconomic (VA) increase 4% p.a increase 4% p.a.

Energy Mix Oil Reduction (50%) Oil Reduction (60%) + New Technology

Efficiency Increase Fuel 10%, Ele 25% Fuel 25%, Ele 50%

- 20 40 60 80 100 120 140 160

2000

2050 A (CM)

2050 B (CM)

COL OIL GAS BMS S/W Heat H2 ELE

Energy Snap-Shot Residential Sector- 10 20 30 40 50 60

2000

2050 A (CM)

2050 B (CM)

COL OIL GAS BMS S/W Heat H2 ELE

Energy consumption in Residential sector (Mtoe) CO2 emission in Residential sector with allocated emission from heat, H2, electricity (MtC)

Skenario A BGrowth Rate Cooling 1.5%, Cook(S) 1%, Hot Wtr 0.5%, Cook(E) 1.5%,

Lighting (2%), Appliance (2.5%)Energy Mix Oil Reduction; Changed of

Non Commersial FA + Advanced Tech. Hot Water, Cooking, etc

Efficiency Increase 20% 25%

- 5 10 15 20

2000

2050 A (CM)

2050 B (CM)

COL OIL GAS BMS S/W Heat H2 ELE

Energy Snap-Shot Transport Sector

- 50 100 150 200 250 300 350

2000

2050 A (CM)

2050 B (CM)

COL OIL GAS BMS S/W Heat H2 ELE

Energy consumption in Transport sector (Mtoe) CO2 emission in transport sector with allocated emission from heat, H2, electricity (MtC)

Skenario A BGrowth Rate Private car 1%, Commercial 5%, Bus 2.5%, Train 10%,

Ship 2.5%, Air 2.5%Energy Mix Introducing Bio Fuel Introducing BioFuel +

Hydrogen

Efficiency Increase Reguler 300%, Hydrogen 400%, Electric 500%

- 20 40 60 80 100

2000

2050 A (CM)

2050 B (CM)

COL OIL GAS BMS S/W Heat H2 ELE

Energy Snap-Shot Power Generation- 10 20 30 40 50 60 70

2000

2050 A (CM)

2050 B (CM)

COL OIL GAS NUC HYD HYD(P) GEO BMS S/W

Energy consumption in Transport sector (Mtoe) CO2 emission in transport sector with allocated emission from heat, H2, electricity (MtC)

Skenario A BGrowth Rate Private car 1%, Commercial 5%, Bus 2.5%, Train 10%,

Ship 2.5%, Air 2.5%Energy Mix Introducing Bio Fuel Introducing BioFuel +

Hydrogen

Efficiency Increase Reguler 300%, Hydrogen 400%, Electric 500%

0% 20% 40% 60% 80% 100%

2000

2050 A (CM)

2050 B (CM)

COL GAS OIL NUC HYD HYD(P) GEO BMS S/W

Energy Demand Projection- 100 200 300 400 500

2000

2050 A (CM)

2050 B (CM)

COL OIL GAS BMS NUC HYD S/W

Primary Energy (Mtoe) Final Energy (Mtoe)

- 100 200 300 400 500 600

2000

2050 A (CM)

2050 B (CM)

Industrial Residential Commercial Trans. Prv. Trans. Frg.

Factor Analysis Total

402%

-103%-139%

-22%

138%

365%

-86%

-166%

-34%

79%

-200%

-100%

0%

100%

200%

300%

400%

500%D E/

D

C/E

C'/C

Tota

l

vs 2

000'

s

2050 A 2050 B

AIM/End-use

Oil Subsidy Reduction for Residential Oil Used

Residential Energy Service RequirementCooking -> devices Kerosene Stove

Gas StoveBiomass StoveElectric Stove

Lighting -> devices Incandescent BulbCompact Fluorescent LampKerosene Lamp

Electric Appliances