STATUS AND FUTURE OF BIOENERGY IN INDONESIA...status and future of bioenergy in indonesia ministry of energy and mineral resources indonesia tokyo, 17 november 2011 by liana bratasida

Directorate General of New Renewable Energy and Energy Conservation

Ministry of Energy and Mineral Resources

STATUS AND FUTURE OF BIOENERGY IN INDONESIA

MINISTRY OF ENERGY AND MINERAL RESOURCES INDONESIA

Tokyo, 17 November 2011

IN INDONESIA

BY

LIANA BRATASIDA, MINISTRY OF ENVIRONMENT

DADAN KUSDIANA, MIISTRY OF ENERGY AND MINERAL RESOUTCES



CONTENT� Biofuel Policy Updates

� Implementation Progress

� Commercial Approach

� Rural Development Approach� Rural Development Approach

� View of Sustainability Aspects

� Future Challenges

� Concluding Remarks



2.1 People access to energy is still limited :

a. Electrification ratio in 2010 is 67,2% (32,8% of

household is not yet have access to electricity);

b. Development of the infrastructure (rural area and

outer island commonly is not yet have access to

energy);

2.2 Energy consumption growth is 7% per year, not yet

balance with the energy suppy;

2.3 The depence to fossil energy is high, besides the

I. CURRENT ENERGY CONDITION

National Energy MixNational Energy Mix 20102010

1.066 1.066 millonmillon BOEBOE

Oil

46.93%

Coal

26.38%

Geothermal

1.5%

Hydro

3.29%

2.3 The depence to fossil energy is high, besides the

energy reserve is limited;

2.4 Fossil subsidy is increasing;

2.5 Renewable energy utilization and energy conservation

implementation is not yet optimized;

2.6 Link with environmental issue:

a. Climate change mitigation;

b. Clean energy initiative: national commitment to

reduce emission by 26% in 2020;

2.7 Funding for energy development is limited

Energy Elasticity = 1,60

Non Fossil Energy Share < 5%

46.93%

Gas

21.9%

26.38%

4



NO NON FOSSIL ENERGYRESOURCES

(SD)

INSTALLED

CAPACITY (KT)

RATIO KT/SD(%)

1 2 3 4 5 = 4/3

1 Hydro 75,670 MW 5,705.29 MW 7.54

2 Geothermal 29,038 MW 1,189 MW 4.10

3 Mini/Micro Hydro 1,013.5 MW 462.0 MW 46.0

4 Biomass 49,810 MW 1,618.40 MW 3.25

5 Solar Energy 4.80 kWh/m2/day 13.5 MW -

6 Wind Energy 3 – 6 m/s 1.87 MW -

3.000 MW 30 MW

ENERGY RESERVES AND PRODUCTION

7 Uranium3.000 MW

(e.q. 24,112 ton) for 11 years*)

30 MW

(Thermal)1.00

*) only in Kalan – West Kalimantan

NO FOSSIL ENERGYRESOURCES

(SD)

RESERVES

(CAD)

RATIO SD/CAD

(%)

PRODUCTION

(PROD)

RASIO CAD/PROD

(YEAR)*)

1 2 3 4 5 = 4/3 6 7 = 4/6

1 Oil (billion barrel) 56.6 7.99 **) 14 0.346 23

2 Gas (TSCF) 334.5 159.64 51 2.9 55

3 Coal (billion ton) 104.8 20.98 18 0.254 83

4 Coal Bed Methane/CBM (TSCF) 453 - - - -

*) with assumption there is no new found

**) Cepu Block is included



Oil42%

Coal34%

Gas21%

NRE3%

Oil20%

Coal33%

Gas30%

NRE17%

Oil30%

Coal22%

Gas23%

NRE25%

Coal,

30.7%

Gas,

21.0%

Oii,

43.9%

NRE,

4.4%

POLICY DIRECTION

BAU** PERPRES 5/2006 VISION 25/25

3,1%

4300

Mil. BOE

NRE

Gas

Coal

Oil

21 %

30,7 %

43,9%

4,4 %

NRE

Gas

Coal

Oil

2010* 2015 2020

2025

ENERGY

CONSERVATION

(33,85%)

ENERGY

DIVERSIFICATION

Source: *Projection 2010, DEN 2010-2025, **BAU Ditjen EBTKE

25 %

22 %

30 %

23 %

41.7%

20,6%

34.6%

3,1%

2852

Mil.BOE

1131,3

Mil.BOE

3200

Mil.BOE

20%

30%

33%

17%



MAIN POLICIES

1. Energy Conservation to improve efficiency in energy utilization

from up-stream up to down-stream (Demand Side) i.e industrial,

transportation, household and commercial sector

2. Energy Diversification to increase new renewable energy share2. Energy Diversification to increase new renewable energy share

in national energy mix (Supply Side). i.e

New Energy

a. Liquefied Coal,

b. Coal Bed Methane,

c. Gasified Coal,

d. Nuclear,

e. Hydrogen,

f. Other Methane.

Renewable Energy

a. Geothermal,

b. Bioenergy,

c. Hydro,

d. Solar,

e. Wind,

f. Ocean.

6



NRE-EC DEVELOPMENT STRATEGY

STRATEGY IN THE ENERGY (SUPPLY SIDE) :

• Applying the mandatory provision of NRE.

• Increasing the use of NRE.

• Use of cleaner fuels (fuel switching) in providing energy.

STRATEGY IN THE SIDE OF ENERGY UTILIZATION (DEMAND SIDE) :STRATEGY IN THE SIDE OF ENERGY UTILIZATION (DEMAND SIDE) :

• Applying the energy utilization efficiency commitment.

• Use of cleaner fuels (fuel switching) in energy utilization.

• Applying the principles of energy saving.

• Use of clean and efficient energy technologies.

• Develop the attitude of life-saving energy.

7



BIOFUEL IMPLEMENTATION APPROACHES

• Aimed to develop the national bioenergy industries and markets

• The independent fuel producers can sell their products to the companies which hold the commercial license on fuel (such as PT Pertamina Persero)

• The independent fuel producers can sell their products to the companies which hold the license to generate and sell the electricity for public needs (such as PT PLN Persero).

Independent Producers (Independent Fuel

Producers or Independent Power Producer)

Approach (On-Grid Like)

• Aimed to fulfill the need of local energy demand

• The bioenergy entrepreneur convert the raw material into the bioenergy and can sell the energy in their own business areas.

Conversion and Distribution Approach

(Off-grid like)

• Aimed to increase the access of electricity and increase the welfare of society

• The project is fully financed by the Government/Local Government/Stated Owned Enterprise.

• The asset of the project is then bestowed to the business entity with a legal license.

Social/Pilot Project

8



1. Program on Interconnention of Renewable Energy Power Generation: as aninnitiative for investor to develop small/medium scale power generation fromrenewable energy to sell of electricity to PLN (state electricity company) withstandardized price following government regulation.

2. National Biofuel Program : energy diversification program to substitute fossil fuelthrough sustainable biofuel

3. National Biogas Program : energy diversification program to substitute fossil fuel

BIOBIOENERGY PROGRAMENERGY PROGRAM

3. National Biogas Program : energy diversification program to substitute fossil fuelthrough biogas

4. Rural Energy Program: to accelerate in providing the acccess of rural people toelectricity. Conducted by central government and local government

5. Energy-Self Sufficient Program: rural enegy diversification program with focussto improve economic activty in the villlage



Biofuel Incentives

• Staging of mandatory biofuel utilization

• Tax exemption on VAT

• Investment tax incentives

• Direct subsidy on retail price for transportation • Direct subsidy on retail price for transportation

sector

• Interest rate subsidy for biofuel feedstock plantation

• Simplifying the license procedure on biofuel

business



BIOFUEL MANDATORYAS ENERGY AND MINERAL RESOURCES MINISTER REGULATION NO 32, 2008

BIOETHANOL (Minimum)

Sector 2008 2009 2010 2015 2020 2025

Transportation,

PSO

3%

(Existing)

1% 3% 5% 10% 15%

Transportation,

Non PSO

5%

(Existing)

5% 7% 10% 12% 15%

Industry 5% 7% 10% 12% 15%

BIODIESEL (Minimum)

Sector 2008 2009 2010 2015 2020 2025

Transportation,

PSO

1%

(Existing)

1% 2.5% 5% 10% 20%

Transportation,

Non PSO

1% 3% 7% 10% 20%

Industry 2.5% 2.5% 5% 10% 15% 20%

Electricity 0.1% 0.25% 1% 10% 15% 20%



Incentives for commercial on-grid electricity

from bioenergy

1. Giving priority for locally available renewable energy resources

including bioenergy (no need for tender)

2. Mandatory for electric utility to purchase electricity generated from

renewable energy

3. Regulated Purchasing Price (Feed-in-Tariff), specific for bionergy3. Regulated Purchasing Price (Feed-in-Tariff), specific for bionergy

4. Tax investment credit for electricity generated from renewable

energy (currently applies for geothermal)

5. Reduced or exempted custom tax for renewable energy

technologies

6. Simple permit procedure

7. Support from the government for selected FS

12



No. FEEDSTOCK CAPACITY TARIFF NOTE

1. Biomassa s.d 10 MW Rp. 975,- / kWh X F

2. Biogas s.d 10 MW Rp. 975,- / kWh X F Non MSW

3. Municipal City Waste s.d 10 MW Rp. 1050,- / kWh Zero waste *)

4. Municipal City Waste s.d 10 MW Rp. 850,- / kWh Landfill *)

A NEW A NEW BIOMASSA BASED BIOMASSA BASED FEED IN TARIFFFEED IN TARIFF

4. Municipal City Waste s.d 10 MW Rp. 850,- / kWh Landfill *)

Note : *)

1. Act no. 18 Tahun 2008 on waste management to prioritize Zero Waste Technology.

2. For MSW, not included Tipping Fee

� F factor as an incentive for specific areas:

Region Jawa, Bali, Sumatera : F = 1

Region Kalimantan, Sulawesi , NTB dan NTT : F = 1,2

Region Maluku dan Papua : F = 1,3

� Feed in Tariff will be formalised by Ministerial Decree



Integrated Small Scale Bioethanol Plant

CASAVA PLANTATION WITH HIGH PRODUCTIVITY CASSAVA 5-100 HA

BIOETHANOL

Leaf

Liquid fertilizer,

Cassava

Ethanol 90- 95%

Additional fertilizer

LPLANT

COW MEAT25 – 500 heads

waste

Limbah padat

LAGOON

Liquid fertilizer,Organic fertilizer

Ethanol 90- 95%200 – 4.000 L/day

Additional feed

MEAT25-500 head/4 months

BIOGAS



BIOETHANOL FEEDSTOCK

Source : APROBI



BIODIESEL FEEDSTOCK

Source : APROBI



NATIONAL BIOFUEL INDUSTRY

I. BIOFUEL PRODUCTION CAPACITY

Biofuel 2006 2007 2008 2009 2010

Biodiesel (kL) 214,943 1,709,195 3,137,931 4,277,440 3,900,000

Bioetanol (kL) 10,000 12,500 102,000 153,000 153,000

II. BIOFUEL PRODUCTION

17

Bioetanol (kL) 10,000 12,500 102,000 153,000 153,000

Total (kL) 224,943 1,721,695 3,239,931 4,431,440 4,053,000

Biofuel 2006 2007 2008 2009 2010

Prod. Exported

Local Consum

ption

Biodiesel (kL) 24,000 35,000 119,348 350,000 455,000 235,000 220,000

Bioetanol (kL) 300 1,000 1,058 1,722 - - -

Total (kL) 24,300 36,000 111,200 351,722 455,000 235,000 220,000



R & D on Bioenergy in Indonesia

FEEDSTOCK

• Agronomic researches on Jatropha curcas L has been carried carried out since 2005 by

the Pakuwon Jatropha Nursery and Experimental Plantation, Indonesian Center for

Estate-crops Research and Development (ICERD), Ministry of Agriculture. The activities

include developing Jatropha breed with higher seed productivity, simultaneously

maturing fruits for efficient harvesting, genetic, pest , and disease controls, certification of

distributed seed and inter-crop selection.

• Among others, they have succeded to develop the third improved population (IP-3) of • Among others, they have succeded to develop the third improved population (IP-3) of

Jatropha curcas, expected to yield 8 – 9 ton/ha/yr seeds (on the 4th year and afterward).

• Agronomic researches on Pongamia pinnata, a fast growing tree that yields non edible

oil as well as potentially high value-added chemicals, are being carried out by the R & D

Center of the Ministry of Forestry (Bogor, West Java) and the Department of Agronomy,

University of Sebelas Maret (Surakarta, Central Java).

• Agronomic researches on Calophyllum inophyllum, a tree that is useful for coastal area

conservation and productively yield oil containing potential medicinal chemicals, is being

carried out by the R & D Center of the Ministry of Forestry (Bogor, West Java).



� Culturing strains

� Cultivating microalgae using photobioreactor and small outdoor facilities

� Harvesting the biomass and extracting oil

� Analyzing biochemical content of some potential strains

CURRRENT ACTIVITIES ON ALGAE DEVELOPMENT



Indonesia Sustainable Palm Oil

• Indonesian Sustainable Palm Oil/ISPO) was issued in 29 March 2011 as a

reference to promote sustainable palm oil plantation in accordance to the market

and global requirements

• The content of the ISPO is anot different very much from Europe's Roundtable

Sustainable Palm Oil (RSPO) that has earlier been implemented

• the ISPO provisions have partially been implemented for many years because in • the ISPO provisions have partially been implemented for many years because in

Indonesia no company may operate without a license

• companies that have possessed RSPO certificates must also have ISPO

• Challenges to make it become a competitive power or a national palm oil power

namely assuring that its process would be easy and appropriate, auditing and

auditors, certificates for farmers and acceptance of buyers and international

community

• The ISPO will be officially effective as of March 2012 and it is hoped all oil palm

plantation companies will have obtained the ISPO certificate by 2014

20



Future sustainable biofuel development

• Not to cut tropical rain forest, but to optimize currently not utilized land (5.066 million ha available of non utilized arable land).

• Development of non-edible feedstock and dedicated feedstock for biofuel;feedstock for biofuel;

• Improving productivity of main feedstocks such as palm oil, jatropha, cassava and sugar cane;

• Development of second generation of biofuel that will create sustainable and low cost biofuel industry;

• To seek cooperation on R&D on lignocellulosic based orwoody-biomass bioethanol.



Concluding Remarks

• As part of national energy policy, the utilization of

biofuel will be continuously implemented and improved;

• The biofuel can be produced environmentally

sustainable in synergy with food and feed production;sustainable in synergy with food and feed production;

• Integrated productions in recycle system will give more

benefit for community and environment;

• Indonesia will continue to work with other countries and

international community to develop sustainable biofuel

industry and also global environmental issues.



Thank You

Go Green Indonesia !More energy, Less carbon

www.ebtke.esdm.go.id www.energiterbarukan.net www.konservasienergi.net

Documents

STATUS AND FUTURE OF BIOENERGY IN INDONESIA...status and future of bioenergy in indonesia ministry of energy and mineral resources indonesia tokyo, 17 november 2011 by liana bratasida