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Directorate General of New Renewable Energy and Energy Conservation

Ministry of Energy and Mineral Resources

ENERGY CONSERVATION POLICY
AND PROGRAM IN INDONESIA
By:
Director for Energy Conservation
Indonesia EBTKE Conference and Exhibition 2012
Jakarta, 18 July 2012

Directorate General of New Renewable Energy and Energy Conservation
Ministry of Energy and Mineral Resources

OUTLINE

Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources 1 • Current Condition .

29 % Oil 46. 77 %` Gas 34.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources GROWTH OF NATIONAL ENERGY SUPPLY 1990 .2010 1177 (in Million BOE) 956 859 NRE 4.46 % 525 555 607 642 659 700 759 800 737 770 727 772 873 896 984 1023 899 800 NRE 5.03 % Gas 24.6 % Coal 23.91% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year National Energy Supply and Utilization System is heavily depend on fossil fuel (95%) (95%) Inefficient use of energy Energy Consumption is Increasing 7% per year .2 % Oil 56.6 % Coal 4.

Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources FINAL ENERGY DEMAND & POTENTIAL OF ENERGY CONSERVATION Final Energy Demand (2010) Transportation 31% Househol 10% Commercial 4% Industry 42% Others 13% Total 836 MBOE (2010) Energy Conservation Potential is High Sector Se ctor Potential of Energy Potential Conservation (%) Industrial 18 Transportation 35 Hosehold 30 Commercial 25 Source : RIKEN .

Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources ENERGY AND GHG EMISSION GHG Flared Gas Fugitive Emission CARBON SOURCE (GREEN HOUSE GASSES) Gas Flaring Power Industry Fosil Energy Resources Exploration Fossil Energy Reserve Exploitation Fossil Energy Production Fuel Household Transport CARBON MANAGEMENT Clean Mining Technology (Pencegahan) Flare Gas Reduction (Pencegahan) Clean Fossil Technology (Pengurangan) Efficient Energy Technology (Pengurangan) Renewable Energy Storage Carbon Capture & Storage (CCS) (Pengolahan) Useful Energy .

0 451.8 5.7 46.5 556.2005 (Million Ton CO2-eq) Sec Se ctor 2000 2001 2002 2003 2004 2005 Trend (% per year year)) Energy 280.8* Fluctuation Peat Fire1 172.2 1.0 440.0 246.8 77.1 165.287.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources PROFILE OF INDONESIA GHG EMISSIONS 2000 .5 1.5 3.721.2 Sources: Indonesia Second National Communication ENERGY & INDUSTRY GHG EMISSION 370 M Ton CO2--e CO2 Million Ton 400 300 200 100 0 2000 2001 2002 Energy 2003 Industry 2004 2005 .971 663.6 Agriculture 75.9 1.8 43.0 48.4 77.215.5 345.7 1. 5 594.8 663.377.5 623.8 49. 4 Fluctuation Total w/o LUCF 556.2 560.7 Industry 42. 2 1.8 327.2 1.2 LUCF 649.9 372.1 Waste 157.3 160.4 1.8 164.991.9 333.8 166.4 1.9 306.7 2.0 79.0 194.4 2.576.991.8 162.9 80. 8 665.0 678.1 369.0 Fluctuation Total with LUCF 1.8 1.9 611.5 77.4 674.349.721.1 48.5 617.

61 & 71 Year 2011 Own efforts 26% (767 mln Ton) Forestry.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources NATIONAL COMMITMENT TO REDUCE GHG EMISSION • President Commitment on GG-20 Pittsburgh and COP15 To reduce the GHG Emission in 2020 • Presidential Regulation No. Peat Land. Agriculture 680 million Ton Energy Sector 30 million Ton Waste 48 million Ton Industry and Transportation 9 million Ton 41% (26%+15%) Own efforts and international support Through the development of new renewable energy and implementing energy conservation by all sectors .

Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources 2 • EC Policy & Regulation .

9% 17% 20.7% Note: 1 TOE = 7.6%) 25 % NRE 32% Coal 30% 20% Gas 20% 23% Oil 41.6% 5% 26.33 BOE 32% Coal 2020 ENERGY DIVERSIFICATION 21. 5/2006 NRE 17% Gas 21% Oil 42% Oil 47% Gas 30% Coal 34% Coal 24% 3298 Million BOE Oil 20% Coal 33% 3200 Million BOE 34.1% 2419 MBOE VISION 25/25 10 .Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources ENERGY POLICY DIRECTION NRE 3% BAU Geother mal 1% Hydro 4% Gas 24% Presidential Regulation No.6% 1649 MBOE Oil 46.4 % Gas 20% Gas 23% Oil 33% 1177 MillionBOE NRE Coal 25% NRE 2785 Million BOE 3.9% 2010 Source: DGNREEC 2015 PRIMARY ENERGY CONSERVATION (15.

StateOwned Enterprises • Target: . 70/2009 on Energy Conservation • Mandatory on EC (Energy Management) • EE Standard and Label • Incentive/Disincentive Presidential Regulation/ Decree No. (1) Law No.. 30/2007 on Energy Article 25: Energy Conservation Government Regulation No.more efficient .Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources EXISTING POLICY AND REGULATION ON ENERGY CONCERVATION . 5/2006 on National Energy Policy • National RE and EE Target • Energy Elasticity < 1 in 2025 Presidential Instruction No. 13/2011 on Energy and Water Saving • Energy and Water Saving for Government.Fuel 10% ..Water 10% • Periodic reporting Ministerial Regulation No...Electricity 20% . 6/2011 on EE Label for Compact Fluorescent Light (CFL) • Implementation of Label for CFL • Mandatory for CFL manufacturer • Self Declaration of Conformity (SDOC) • More star ..

lighting. Reg. • Monitoring No.1 August 2012 (Jawa – Bali) • Vehicles used by plantation and mining companies (1 Sept 2012) • Fuel saving for electricy generation • Monitoring No.) • Monitoring of Energy Management Implementation • Incentive/Disincentive Ministerial Regulation .. etc..1 June 2012 (Jabodetabek) . Official and State-owned enterprises Vechicle .. 13 /2012 on Electricity Saving • Electricity saving 20% (Improvement of air system. (2) No. 321 & 323/ MEN/XII/2011 on Standard of Energy Manager Competence Competency of Energy Manager in Industrial and Commercial Building No..Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources EXISTING POLICY AND REGULATION ON ENERGY CONCERVATION .. Gov Office • State-owned enterprises • Street lighting. 14/2012 on Energy Management • Mandatory of Energy Management for large energy users (> 6.Gov. 12/2012 on Fuel Saving • The use non-subsidized fuel • Fuel saving 10% • Gov.000 TOE) • The distribution of Autority (Gov. & supporting equipment) • Government/Reg.

energy audit. enhancing capacity building. technical assistance. etc 2 Implementation of Energy Conservation  Energy Conservation should be implemented in all stages of activities :  Energy supply  Private sector : Conduct energy conservation measures  Energy business in all stage of  Energy utilization activities. energy efficiency dissemination. Incentive and Disincentive  Facilitation :  Providing information access on energy efficient technology  Consultative services on energy efficiency measures  Incentive  Disincentive 5 Direction and Supervision  Direction : Conduct training. 30 / 2007 ON ENERGY GOVERNMENT REGULATION No. Utilize energy  Conservation of efficient technology. program. and facilitating R&D on energy efficient technology  Supervision to industries and commercial sector on implementing energy manager.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources GOVERNMENT REGULATION 70/2009 ON ENERGY CONSERVATION LAW NO. etc . o. Produce energy resources service and production  Mandatory of Energy output efficiently Management for large  Public/Community : energy users (> 6.000 Conduct energy TOE) conservation program in all activities 3 Standard and Labeling Implementing energy efficiency standard and labeling 4 Facilitation.70 70//2009 ON ENERGY CONSERVATION 1 Responsibility  Government : Formulating policy.

Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources 3 • EC Program .

70/2009 Preparing policy on energy efficiency in industrial. ACE. Preparing policy on energy conservation of energy resources 2. Incentive and Disincensive As a follow up of Government Regulation No.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources ENERGY CONSERVATION PROGRAM …(1) Program 1. household. incentive for import duty of energy efficiency appliances. 70/2009 on Energy Conservation Preparing mechanism of fiscal incentive. To assess financing scheme for energy efficiency implementation To assess criteria for energy efficiency appliances and implementation of energy conservation which will receive incentive and disincentive 3. etc . Education and Training Training on energy efficiency and conservation by Centre for Training and Education – MEMR Participate in the training on energy conservation in abroad conducted by JICA. and transportation sector. Creating Policy and Regulation Description Preparing Ministerial Decrees as a follow up of Government Regulation No. etc. Creating Public Awareness Conduct seminar/workshop and public advertisement through printed and electronics media. and dissemination of brochure on energy efficiency Conduct National Energy Awards for building and industrial sector and participating in ASEAN Energy Awards 4.

Energy Manager & Auditor 7. Partnership Program on Energy Conservation 6. electronic ballast which is expected to be implemented in 2012. more efficient” (Maximum 4 stars). Energy efficiency label for CFL is a pioneer for electric home appliances. Labeling Description Providing free of charge energy audit for buildings an industries During 2003 . “More Star. and to encourage manufacturers to increase their quality of products especially in the field of energy efficiency.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources ENERGY CONSERVATION PROGRAM …(2) Program 5. air conditioners. . Followed by refrigerators. energy audit already done for 645 industries and buildings Preparing the Certification Institution for Energy Manager and Auditor Provide information to consumers about energy efficiency level of electric home appliances.2011.

info .info Energy Efficient : New large building are efficient Auditor Certification and review of incentive scheme Bilateral Indonesia-Netherland (NL Agency) : Energy efficiency improvement in industrial sector through implementation of Energy Potential Scan (EPS) Bilateral Indonesia-Japan (JICA) : Study on tariff mechanism and load management at peak load Labeling for energy equipment Funding mechanism for energy efficiency Methodology and emission factor baseline for energy efficient equipment International Copper Association (ICA): Conducting Minimum Energy Performance Standards (MEPS) for Electric Motor and Air-Conditioning www.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources ENERGY CONSERVATION PROGRAM …(3) Program 8.energyefficiencyindonesia. International Cooperation Description Bilateral Indonesia –Denmark (DANIDA) Cooperation with 3 (three) main outputs : Energy Efficiency and Conservation Clearing House (ECCHI) www.energyefficiencyindonesia.

Create energy conservation programs. . 6000 TOE is equivalent to 251. Implement the recomendation from energy audit.000 TOE* energy per year to implement energy management as follow: 1.780 mega watt hour (MWh). 4. but the total of energy consumption is 60% of total consumption in industry sector. Reporting energy conservation program to the Ministry The number of energy users is not so much. *) Appoint energy manager. Do energy audit periodically. 70/2009 ARTICLE 12) Mandate large enery users which consume > 6. 5. 3.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources ENERGY CONSERVATION IN DEMAND SIDE (GOVERNMENT REGULATION NO.400 giga joule (GJ) or 69. 2.

32 Kilo Ton CO2 40.2 Milyar = 12. 168. 40. 25 Milyar (APBN) Rp.3 Kilo Ton CO2 15 GWh = Rp.4 GWh = Rp. 8 GWh = Rp.6 Kilo Ton CO2 14. PLN) (PT. 2. 289 Milyar = 467.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources PARTNERSHIP PROGRAM ON ENERGY CONSERVATION RESULT YEAR 2003 2004 2006 2007 2009 2010 2011 2012 BUDGET (PT.6 Kilo Ton CO2 519 GWh = Rp. 50. 10. 20 Milyar (APBN) Rp. 8. 22 Milyar (APBN) Rp. 8 Milyar = 276.6 Kilo Ton CO2 175 GWh = Rp.1 Kilo Ton CO2 34 GWh = Rp. 23.9 Milyar = 27.1 GWh = Rp.1 Kilo Ton CO2 307 GWh = Rp.7 GWh = Rp.4 Milyar = 36.2 Milyar = 40 Kilo Ton CO2 14. 4 Milyar (APBN) Rp.8 Milyar = 30 Kilo Ton CO2 725 GWh = Rp. 110 Milyar = 157 Kilo Ton CO2 Energy savings are generally obtained from energy saving measures that recommendation is no cost and low cost (management) There are opportunities to achieve greater energy savings if recommendations medium cost and high cost are also implemented Some of recomendation is not yet implemented because of limited funding .4 GWh = Rp. 6. 450 Milyar = 645 Kilo Ton CO2 TOTAL OF ENERGY SAVING ACHIEVEMENT 34. 19.7 Milyar = 13. 18 Milyar (APBN) PARTICIPANTS 5 industry dan 6 building 3 industry dan 6 building 21 industry dan 11 building 138 industry dan 62 building 16 industry dan 24 building 105 industry dan 55 building 125 industry dan 70 building 115 industry dan 65 building TOTAL OF SAVING POTENTIAL 78.9 Milyar = 13.8 Milyar = 70.4 Milyar (APBN) Rp.7 Kilo Ton CO2 30. PLN) Rp.1 GWh = Rp. 22.

 To Introduce Energy-Saving Rate as a Guide for Consumers  Logo: “More Star. 70/2009 Article 16) 4 stage rating system LOGO EE level Product model Registration No. More Efficient” .Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources ENERGY EFFICIENCY LABEL: SNI 04-6958-2003 (Comparative Label) (PP No.

Fan.201 2015 5 Year 20111 201 CFL Refrigerator and Air Conditioner Electric Ballast.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources STANDARD & LABELING PLAN IN 201 2011 1 . and TV Rice Cooker and Electric Motor Electric Iron and Washing Machine 20122 201 20133 201 20144 201 20155 201 .

Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources 4 • GHG Mitigation Actions in Energy Conservation .

• The cheapest way to reduce emissions save energy = reduced emissions . etc. Household (Potential 30%) Commercial (Potential 25%) Source: Master Plan of Energy Conservation • Relatively easy to do • Improve the competitiveness of industrial products (reducing costs) • Save on fuel usage • The most "simple and inexpensive" plant investment delay. air conditioners. • • Use of energy efficient appliances (lighting. Biofuels Traffic Management Information system improvements Routine road maintenance. • • • Use of energy efficient appliances Increased efficiency in production processes Implementation of energy management. etc.) Energy saving behavior • • • • • • Repair of electrical system Repair / modification of the building envelope Repair system of the Air Lighting system improvements Pattern of operation Lift / Elevator Implementation of energy management. water heaters. TV.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources MITIGATION ACTION OF GHG EMISSION ON ENERGY DEMAND SECTOR Transportation (Potential 35%) Industry (Potential 18%) POTENTIAL OF MITIGATION ACTION • • • • • Provision of public transport Use of energy efficient vehicles The use of CNG. refrigerators. etc.. etc. reduce peak loads. etc.

3 3 . 61/2011) NO ACTION PLAN PERIOD EMISSION REDUCTION (Million Ton CO2e) 1 Implementation of energy management mandatory for energy intensive users 2010-2020 10.16 2 Implementation of Partnership Program on Energy Conservation 2010-2020 2. 2.11 3 Efficiency improvement for household appliances 2010-2020 10.02 TOTAL 22.Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources RAN GRK IN ENERGY EFFICIENCY (PRESIDENTIAL REGULATION NO.

Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES www.esdm.info .ebtke.go.id www.energyefficiencyindonesia.id www.go.esdm.