bioenergy indonesia

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Ministry of Energy and Mineral Resources of the Republic of Indonesia BIOENERGY INDONESIA: POLICY, INDUSTRY, AND DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e © DJEBTKE KESDM - 2012 1 POLICY, INDUSTRY, AND SUSTAINABILITY INNITIATIVES Maritje Hutapea Director for Bioenergy Global Bioenergy Partnership (GBEP) Regional Forum Hotel Salak The Heritage, Bogor, 6-7 November 2012

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Development of bioenergy in Indonesia,how the renewable energy can contribute to energy supply and energy resilience in Indonesia

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Ministry of Energy and Mineral Resources of the Republic of Indonesia

BIOENERGY INDONESIA:POLICY, INDUSTRY, AND

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION

MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

1

POLICY, INDUSTRY, AND

SUSTAINABILITY INNITIATIVES

Maritje Hutapea

Director for Bioenergy

Global Bioenergy Partnership (GBEP) Regional Forum

Hotel Salak The Heritage, Bogor, 6-7 November 2012

Ministry of Energy and Mineral Resources of the Republic of Indonesia

THIS PRESENTATION

1. Policy and Regulation

2. Bioenergy Development Program

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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3. Sustainability Innitiatives

4. Concluding Remarks : Future Steps

Ministry of Energy and Mineral Resources of the Republic of Indonesia

23%Oil

32%Coal

20%Gas

25%NREOil

42%

Coal34%

Gas21%

NRE3%

Oil20%

Coal33%

Gas30%

Geothermal5%

Bioenergy5%

Other RE5%

Liquified Coal3%

POLICY DIRECTION

Primary Energi

Conservation

BAU

PRESIDENTIAL REGULATION 5/2006

3200

3298 Million BOE

Coal23.91%

Crude Oil46.77%

Natural Gas

24.29%

NRE5.03%

VISION 25/25

Bioenergy 8,9%

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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NRE

Gas

Coal

Oil

24,%

24 %

47,%

5,0 %

NRE

Gas

Coal

Oil

2011 2015 20202025

Conservation

(15.6%)

Energ

y Diversificatio

n

Note: 1 TOE = 7,33 SBM

25 %

32%

23%

20%

2785Million BOE

1176MillionBOE

3200 Million BOE

20%

30%

33%

17%

2419 MBOE

1649 MBOE

20,6%

34.6%

41.7%

3,1%

Million BOE

Ministry of Energy and Mineral Resources of the Republic of Indonesia

MAIN POLICIES ON BIOENERGY

1. To increase provision and utilization of bioenergy for significant

contribution in national energy mix

2. To improve energy access thrugh sustainable bioenergy utilization,

in particular in rural area.

3. To promote bioenergy industry as one of significant economic

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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3. To promote bioenergy industry as one of significant economic

sector

4. To promote the utilization of bioenergy as part of green energy

under the national climate change program to reduce the green

house gases.

Ministry of Energy and Mineral Resources of the Republic of Indonesia

REGULATIONS RELATED WITH BIOENERGY

1. Law on Energy No 30 year 2007 putting new renewable

energy including bioenergy as important resources that

their utilisations have to be increased.

2. Presidential Regulation No 5 year 2005 targetting 5% of

bioenergy in primary energy mix in 2025.

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

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bioenergy in primary energy mix in 2025.

3. Ministerial Decree No 32 year 2008 gradually

mandatorizing the use of biofuel to be blended with

petroleum-based fuel.

4. Regulation of tax and customs facility for renewable

energy resources utilization activities .

Ministry of Energy and Mineral Resources of the Republic of Indonesia

THIS PRESENTATION

1. Policy and Regulation

2. Bioenergy Development Program

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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3. Sustainability Innitiatives

4. Concluding Remarks

Ministry of Energy and Mineral Resources of the Republic of Indonesia

Biofuel :

1. Transportation sector;

2. Industry;

3. Power generation.

Biogas : Conversion Oil/Kerosene or Fuel Wood to Biogas

1. Rural household;

2. Small industry : soybean cake industry, tapioca starch industry, tobacco;

3. Power generation.

BIOENERGY UTILIZATION

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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3. Power generation.

Bio-Briquette :

1. Household;

2. Small industry.

Electricity :

1. Own use;

• Palm oil estate;

• Sugar plantation;

• Industry;

2. Interconnected to grid.

Ministry of Energy and Mineral Resources of the Republic of Indonesia

PROGRAM OF BIOENERGY

1. Program on biofuel to substitute fossil fuel

2. Biogas for household

3. Biomass (solid) for fuel and electricty

4. Energy-self Sufficient Village Program

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

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4. Energy-self Sufficient Village Program

5. Improved cook stove for rural energy

6. SUMBA Iconic Islands on Renewable Energy

Ministry of Energy and Mineral Resources of the Republic of Indonesia

REALIZATION OF BIOENERGY UTILIZATION IN INDONESIA

1. BIOFUEL• There are 23 biodiesel producers and 7 bioethanol producers that have commercial business license to operate

in Indonesia.

• Installed capacity of biodiesel is 4.2 million KL/year and installed capacity of bioethanol is 156.000 KL/year.

• Utilization of biofuel at :

� transportation sector (with mix by 7,5% at PSO Fuel and 2% at Non PSO Fuel);

� industry sector (specifically on coal and mineral mining industries); and

� electricity generation.

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

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2. BIOGAS FOR HOUSEHOLD• Implemented by government budget through Self Sufficient Energy Village Program (Non-Commercial),

• Semi commercial basis through Indonesia Domestic Biogas Programme. BIRU programme (Cooperation

between Government of Indonesia and the Government of Netherland). Status until October 2012 the total biogas

digester that have been built is 6.700 unit from total target is 8,000 unit at the end of 2012,

• By other programms: up to 6000 units

3. BIOENERGY BASED POWER PLANT• Own use (agricultural industry) : 400 MW;

• Interconnected to national grid (PT. PLN Persero) by February 2012 : 71 MW.

Ministry of Energy and Mineral Resources of the Republic of Indonesia

BIODIESEL PRODUCTION CAPACITY

PT. DarmexBiofuels

150.000 MT/Y

PT. Pelita Agung AgriIndustries

200.000 MT/YPT. Musim Mas420.000 MT/Y

PT. SintongAbadi

35.000 Kl/Y

PT. Cemerlangenergi perkasa400.000 MTl/Y

PT. Petro Andalan

Nusantara150.000 Kl/Th

PT. BioenergyPratama Jaya66.000 MT/Y

PT. Wahana Abdi tirtatehnika

13.200 KL/Y

PT. Alia MadaPerkasa

11.000 KL/Y

PT. WilmarBioenergy Ind1.050.000 MT/Y

PT. sumi asih Oleo Chem.

100.000 MT/Y

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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PT. anugerah intigemanusa

40.000 MT/Y

PT. eterindoNusa Graha40.000 MT/Y

PT. Eternal BuanaChem, Ind

40.000 MT/Y

PT. Indo BiofuelsEnergy

60.000 MT/Y

PT. PrimanusaPalma Energi24.000 Kl/Y

PT. Multikimia IntiPelangi

14.000 Kl/Y

PT. Pasadena BiofuelsMandiri

Biodiesel:10.240 Kl/Y

PT. Damaisejahterasentosa

120.000MT/Y

PT. Energi alternatif7.000 MT/Y Non Asosiasi

Aprobi member

PT. Sinar AlamPermai

41.400 MT/Y

Total installed capacity: 4,8 million kL

PT. Ciliandra250.000 MT/Y

Ministry of Energy and Mineral Resources of the Republic of Indonesia

BIOETHANOL PRODUCTION CAPACITY

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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PT. Anugrah Kurnia

Abadi

55.000 KL/Th

PT. Indolampung

Distillery

50.000 MT/Th

PT. EN3 Green

Energy

180.000 Kl/Th

PT. Kawan sejati

prima

10.240Kl/Th

PT. Pasadena Biofuels

Mandiri

Ethanol:9.990 KL/th

Biodiesel:10.240 Kl/thPT. Berlian

Energy

10.000Kl/Th

PT. Molindo Raya

50.000Kl/Th

Ministry of Energy and Mineral Resources of the Republic of Indonesia

THIS PRESENTATION

1. Policy and Regulation

2. Bioenergy Development Program

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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3. Sustainability Innitiatives

4. Concluding Remarks : Future Steps

Ministry of Energy and Mineral Resources of the Republic of Indonesia

SUSTAINABILITY ASPECT OF BIOENERGY

• Provision of sustainable bioenergi feedstock in relation with

food uses. Currently, there are no dedicated feedstock for

bioenergy, and only use existing agricultural production.

• Sustainable operational and maintenance, in particular for

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

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• Sustainable operational and maintenance, in particular for

small scale application.

• Sosial and economic acceptance that can support local

social economic development.

Ministry of Energy and Mineral Resources of the Republic of Indonesia

BIOENERGY SUSTAINABILITY INITIATIVES

1. Indonesian Sustainable Palm Oil

2. ERIA Biomass Sustainability

3. Global BioEnergy Partnership (GBEP)

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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Ministry of Energy and Mineral Resources of the Republic of Indonesia

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

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

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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• 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 has been officially effective as of March 2012 and it is hoped all oil palm

plantation companies will have obtained the ISPO certificate by 2014

• In 2011, Indonesia has been appointed by GBEP as a Country Project to Pilot the

Global Bioenergy Partnership (GBEP) Sustainability Indicators for Bioenergy

Ministry of Energy and Mineral Resources of the Republic of Indonesia

Asia Biomass Energy Principles

Approved by Asian Energy Minister Meeting

@ Bangkok in Aug. 2008

1. Ensuring Quality

2. Respect for Natural Diversity

3. Compatibility with Food Supply

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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4. Compatibility with Environment

5. Stable Supply of Biomass Energy

6. Cost Efficiency

1

Discussion & Recommendations by ERIA WG provided Discussion & Recommendations by ERIA WG provided scientific supports for the principlesscientific supports for the principles

Ministry of Energy and Mineral Resources of the Republic of Indonesia

GBEP SUSTAINABILITY INDICATORi. Indonesia is one of pilot country to test the implementation of GBEP Bioenergy

sustainability inducators. This project is supported by FAO and funded by InternationalClimate Initiative (ICI) German.

ii. The objectives are to assess and enhance the capacity of Indonesia to evaluate bioenergy sustainability using the GBEP indicators and use them to inform bioenergy policymaking; and to learn lessons about how to apply the indicators as a tool for sustainable development and how to enhance the practicality of the tool.

iii. Scope of activities:

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

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iii. Scope of activities:

i. Indentifying existing national and international data sources and assessing what data are required for measuring the Indicators;

ii. Better understanding the Indonesian bioenergy system through collection of spatially discrete data on production, infrastructure, and distribution logistics;

iii. Facilitating multi-stakeholder dialogue within Indonesia on indicators, data, and methodologies;

iv. Producing maps providing a spatial evaluation of bioenergy impact and land suitability

Ministry of Energy and Mineral Resources of the Republic of Indonesia

CO2 REDUCTION OF

INDONESIAN BIODIESEL FROM PALM OIL

INSTITUTIONCO2 SAVING COMPARED WITH

OIL

Indonesian Palm Oil Council 56%

Ministry of Agriculture 56,7% - 59,8%

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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Note:Currently Indonesian biodiesel production from palm oil is being assessed

and validated by US EPA due to their finding that CO2 reduction from

biodiesel does not achieve the sustainability criteria of RFS 2.

Ministry of Energy and Mineral Resources of the Republic of Indonesia

THIS PRESENTATION

1. Policy and Regulation

2. Bioenergy Development Program

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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3. Sustainability Innitiatives

4. Concluding Remarks: Future Steps

Ministry of Energy and Mineral Resources of the Republic of Indonesia

FUTURE SUSTAINABLE BIOENERGY

DEVELOPMENT

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

• To optimize wastes as bioenergy feedstocks such as palm oil wastes, municipal solid waste, agroindustry wastes that are currently not used.

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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currently not used.

• 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 such as algae;

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

Ministry of Energy and Mineral Resources of the Republic of Indonesia

CONCLUDING REMARKS

• Policy and regulation has been available in accelerating bionergy

implemention and it will continuosly be developed.

• As part of national energy policy, the utilization of bioenergy will be

continuously implemented and improved in order to strengthen

national energy security as well as reducing national emission

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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national energy security as well as reducing national emission

reduction

• Indonesia will continue to work with other countries and international

community to develop sustainable bioenergy industry and also global

environmental issues.

Ministry of Energy and Mineral Resources of the Republic of Indonesia

Go Green Indonesia !

Thank You

E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r eE n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r e

© DJEBTKE KESDM - 2012

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Go Green Indonesia !green energy, future energy

- www.esdm.go.id - www.ebtke.esdm.go.id -

Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950; Phone: 021-52904235; 5250575; Fax: 021-25529106; 25529212

Email: [email protected] ; [email protected]

MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION

22E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e ’ s W e l f a r el f a r e