REPUBLIC OF INDONESIA

INDONESIA’S EXPERIENCE ON
BIOFUELS DEVELOPMENT
PURNOMO YUSGIANTORO
MINISTER OF ENERGY AND MINERAL RESOURCES

INTERNATIONAL BIOFUELS CONFERENCE

Brussels, July 5th 2007

 OUTLINE

I. INDONESIA’S ENERGY POLICY

II. WHY BIOFUELS?
III. TARGET, BLUEPRINT, AND
ROADMAP OF BIOFUELS
DEVELOPMENT
IV. PROGRESS OF IMPLEMENTATION
ON BIOFUELS DEVELOPMENT
PROGRAM

Slide 2
INDONESIA’S ENERGY POLICY
EXPLORATION
EXPLORATION
PRODUCTION
PRODUCTION
SECURITY
SECURITYOF
OF
SUPPLY
SUPPLYSIDE
SIDE SUPPLY
SUPPLY
CONSERVATION
CONSERVATION
(PRODUCTION
(PRODUCTION
OPTIMATION)
OPTIMATION)

ENERGY
ENERGYPRICE
PRICE DIRECT
DIRECTSUBSIDY
SUBSIDY

DIVERSIFICATION
DIVERSIFICATION

COMMUNITY
COMMUNITY
DEMAND
DEMANDSIDE
SIDE AWARENESS
AWARENESS
CONSERVATION
CONSERVATION
(EFFICIENCY)
(EFFICIENCY)
Slide 3
 NATIONAL ENERGY POLICY
(PRESIDENTIAL DECREE NO. 5 YEAR 2006)
CURRENT ENERGY MIX (1 billion BOE)
Hydro Power,
National (Primary) Energy Mix
3.11%
Geothermal,
1.32%
Natural Gas,
28.57%

Oil
51.66%

National (Primary) Energy Mix of 2025 Coal, 15.34%

(BaU Scenario) (5 billion BOE) National Energy Mix 2025 (3 billion BOE)
Power Plant, 1.9% (Presidential Decree No. 5/2006)
Mini/micro Hydro Power Plant, 0.1%
Geothermal,
1.1%
Gas, 20.6% Oil,
20%

Gas, 30% BIOFUELS, 5%

Oil, OPTIMIZING RE,17% Geothermal, 5%
41.7%
ENERGY
Biomass, Nuclear, Hydro
MANAGEMENT Solar Energy, Wind
Power, 5%
Coal Liquefaction
Coal 34.6% 2%
Coal , 33%

Slide 4
 ENERGY MIX TARGET 2010
Transportation 2006 Transportation 2010
BIOFUELS (Bio- BIOFUELS (Bio-Oil) BIOFUELS (Bio- BIOFUELS (Bio-
Diesel) 0.0% NG BIOFUELS (Bio- Ethanol) Diesel)
0.0% 0.0% Ethanol) 7.6% 0.4% BIOFUELS (Bio-Oil)
0.0% 1.9%
Electricity Electricity
0.0% 0.0%
NG
1.4%
Automotive
Automotive Diesel Oil
Diesel Oil 42.3%
45.9%
Gasoline
54.0%

Gasoline
46.5%

Household and Commercial 2006 Household and Commercial 2010

Oil
Briquet Coal 28.1%
OIl 0.1%
Briquet Coal
53.1% BIOFUELS (Biooil) CNG 1.2%
0.0% 1.5%
BIOFUELS (Biooil)
NG 3.7%
6.4%

Electricity LPG
36.1% 19.0%
CNG
0.0%
Electricity
LPG 40.1%
NG 10.6%
0.1%
Slide 5
ENERGY MIX TARGET 2010 (continuation)
Industry 2006 Industry 2010
Electricity
Electricity Gas 12.4%
Gas 13.1% 20.4%
19.6%

Oil
30.9%
Coal
22.5%
Oil
Coal
43.8% 34.9%
LPG
LPG 1.4%
1.1%

Power Plant 2006 Power Plant 2010

Oil
Gas 23.7%
14.3%

BIOFUELS Coal Coal-Hybrid

Coal-Hybrid 71.4% 2.2%
0.9%
0.0%
Gas
8.3%
Geothermal
5.3% Oil
2.7%
BIOFUELS
Hydro 0.8%
9.6%
Coal Geothermal
46.2% Hydro 6.8%
7.8%

Slide 6
 WHY BIOFUELS ?
1. High potential for BIOFUELS feedstock supply and land
availability that suitable for BIOFUELS plantation
2. Proven BIOFUELS technology by local potential (Engineering,
Research and Development)
3. BIOFUELS industry allows community participations, including
farmer
4. High number of unemployment (40 million people - 10 million
is opened unemployment) and poverty (39.1 million people)
5. Opportunity of Regional Government’s to increase economic
development
6. Opportunity in exporting BIOFUELS products
7. BIOFUELS is a clean energy that can reduce CO2 emission
Slide 7
 BIOFUELS TARGET 2010
1. Job creation for 3.5 million unemployment
2. Increasing income for On-Farm and Off-Farm workers in
BIOFUELS sector up to the Regional Minimum Payment
3. Development of BIOFUELS plantation in 5.25 million ha
unused land
4. 1000 Energy Self Sufficient Villages and 12 Special
BIOFUELS Zone
5. Reducing Fossil Fuel for transportation up to 10%
6. Reducing fuel subsidy

Slide 8
 BIOFUELS FEEDSTOCK
MAIN FEEDSTOCK Palm Oil BIOOIL
BIODIESEL
Jatropha curcas

Cassava
BIOETHANOL
Sugar cane

Coconut
Seed of Hevea
UNDER DEVELOPMENT

braziliancis BIOOIL
BIODIESEL
Aleurites molucana

Micro algae

Sweet sorghum
Sugar palm BIOETHANOL
Sago
Corn
Slide 9
 FAST TRACK
BIOFUELS DEVELOPMENT

Energy Self Sufficient

Village SHORT RUN LONG RUN

Create Job
Each Region
Fast Track Developing its Bio-
Energy
energy Potential
Poverty
Alleviation
SPECIAL
BIOFUELS ZONE

• Infrastructure
• Demplot
• On time schedule
• Explicit investment
employment ratio

Slide 10
 ROADMAP FOR BIOFUELS DEVELOPMENT
Year 2005-2010 2011-2015 2016-2025

Biodiesel Utilization Biodiesel Utilization Biodiesel Utilization

10% of Diesel Fuel Consumption
Biodiesel 2.41 million kl
15% of Diesel Fuel Consumption
4.52 million kl
20% of Diesel Fuel Consumption
10.22 million kl

Bioethanol Utilization Bioethanol Utilization Bioethanol Utilization

Bioethanol 5% Gasoline Consumption 10% Gasoline Consumption 15% Gasoline Consumption
1.48 million kl 2.78 million kl 6.28 million kl

Bio-oil
Biokerosene Utilization Biokerosene Utilization Biokerosene Utilization
- Biokerosene 1 million kl 1.8 million kl 4.07 million kl

- Pure Plantation Oil

PPO Utilization PPO Utilization PPO Utilization
for Power Plant 0.4 million kl 0.74 million kl 1.69 million kl

BIOFUELS BIOFUELS Utilization

2% of energy mix
BIOFUELS Utilization
3% of energy mix
BIOFUELS Utilization
5% of energy mix
5.29 million kl 9.84 million kl 22.26 million kl

Slide 11
 BACKGROUND OF
ENERGY SELF SUFFICIENT VILLAGE (ESSV) DEVELOPMENT

1. Indonesia has more than 70,000 villages, 45% of which are under poverty
line.

2. Energy Self Sufficient Village is a program to fulfill the village’s needs on

energy, to create job and to alleviate poverty through optimizing local
community capability.

3. The target of this program is to release local community dependency on fossil

fuel.

4. Energy Self Sufficient Village is implemented gradually, starting from the

villages that have been prioritized by the Government.

Slide 12
ENERGY SELF SUFFICIENT VILLAGE (ESSV) FUNDING

State Budget

Department/
Institution

Small/Medium
Funding Sources
Enterprise

State Own
Company
Regional
Government

Private Sector ESSV

ESSV
ESSV
ESSV

Slide 13
DEVELOPMENT OF SPECIAL BIOFUELS ZONE

SEED

CULTIVATION CULTIVATION

BI
O BIOFUELS
FU
EL INDUSTRY
S
LA
N D

PLN (STATE OWNED PERTAMINA (STATE

INDUSTRY ELECTRICITY EXPORT OWNED OIL AND GAS TRANSPORTATION
COMPANY) COMPANY)

Slide 14
 BIOFUELS DEVELOPMENT PROGRESS
ƒ Availability of BIOFUELS Development Blue Print
ƒ Availability of BIOFUELS Development Regulations and Standards
ƒ Biodiesel (B-5), has been sold in 201 gas stations in Jakarta and 15 gas
stations in Surabaya
ƒ Bioethanol (E-5), which is known as Bio-Premium has been sold in
Malang. Started December 2006 Bio-Pertamax has been sold in 5 gas
station in Jakarta
ƒ Started of Energy Self Sufficient Village using BIOFUELS
ƒ Commitments of Investor to develop BIOFUELS
ƒ BIOFUELS Producers, among others :
- Eterindo, Ltd.
- Molindo Raya, Ltd.
- Energi Alternatif Indonesia, Ltd.
- Sumi Asih, Ltd.
- Platinum, Ltd.
- Lampung Destileri, Ltd.
Slide 15
PRODUCTION OF FUEL GRADE BIOETHANOL – April 2007: 82,500 kl

BPPT Lampung
2,500 kl/yr
(cassava)

SUGAR GROUP
Lampung
70,000 kl/yr
Molindo Raya
Malang, Jatim
10,000 kl/yr

Slide 16
 ADDITIONAL PRODUCTION OF FUEL GRADE BIOETHANOL:
2 million up to 2.7 million kl/year (1.1 million ha): 2007 – 2010
Sugar cane
Cassava
SALIM MEDCO EN3 Korea ANGEL SORINI Tbk
GROUP Lampung, Sulsel, PRODUCT Sultra,
Sumsel Jabar, 180,000 kl/yr Sultra 200,000 kl/yr
RNI, PTPN
70,000 kl/yr Kalimantan 45,000 ha 10,000 kl/yr 150,000 ha
2,8,8,9,10,11,14
70,000 ha 270,000 kl/yr 8,000 ha Sumut, Lampung,
50,000 ha Sulsel, Jawa, NTT
200,000 kl/yr
60,000 + 40,000 ha

SUNGAI BUDI
Lampung
120,000 kl/yr
25,000 ha

SUGAR GROUP
Lampung, MITSUI
Sumsel, SAMPURNA PETROBRAS
MOLINDO
Kalimantan Madiun, Papua,
WILMAR GROUP Lampung,
500,000 kl/yr Pawonsari Kalimantan,
Lampung, Sumsel Kediri, Pacitan
200,000 ha 375,000 kl/yr 500,000 kl/yr
70,000 kl/yr 100,000 kl/yr
25,000 ha 100,000 ha 200,000 ha
70,000 ha

Slide 17
 PRODUCTION OF BIODIESEL – April 2007: 520,000 kl/Year

PTPN 4 &
GANESHA
ENERGI Medan WILMAR
4,000 kl/yr GROUP Dumai
(CPO) 350,000 kl/yr
(CPO)

BPPT
Serpong
300,000 kl/yr
(CPO)

RAP
Bintaro
1,650 kl/yr
(CPO)
ETERINDO
EAI Jakarta SUMIASIH Gresik &
DHARMA
500 kl/yr Bekasi 4,000 kl/yr Tanggerang
(CPO) 40,000 kl/yr (CPO) 120,000 kl/yr
(CPO) (CPO)

Slide 18
 ADDITIONAL PRODUCTION OF BIODIESEL : 2 million kl/year (3.6 million ha): 2007 – 2011
Sawit
WILMAR Jatropha
GROUP TOLARAM ASIATIC GROUP
INDOMAL+PTPN Kalbar BUMN AGRO
Sumatra, Borneo Medan, Banten, Kalbar Riau, Jambi,
1,000,000 kl/yr 110,000 ha 80,000 ha
Pekanbaru Sumsel,
180,000 ha 1,500,000 kl/yr CLEAN Kalimantan, Papua
BIOFUEL Inti 220,000 ha
PERTAMINA Gorontalo Plasma 880,000 ha
Dumai, 50,000 ha
Balongan, MUTING GROUP
Balikpapan Merauke
500,000 kl/yr 290,000 ha

SINARMAS
Dumai
400,000 kl/yr

BAKRIE,
INDOFOOD,
ASIANAGRO
SUMIASIH
Sumatra, Jawa SINARMAS
600,000 kl/yr Kalbar, GENTING
Merauke GROUP
440,000 ha Merauke
SWEDEN 400,000 ha
APROBI BP INDOMAL 9 BADAN
GROUP NTT, Papua, BIOENERGY Sula & USAHA
Kalimantan Kalimantan NTT 350,000 kl/yr Merauke Merauke
100,000 ha 100,000 ha 100,000 ha 300,000 ha 340,000 ha
Slide 19
 POWER PLANTS USING BIOFUELS

No. Location Numbers of Total Capacity

Power Plant (MW)
1 North Sumatera 1 4.5
2 Maluku 7 4.0
3 Riau and The Islands of Riau 2 14.1
4 Lampung 1 11.0
5 Bali 1 1.5
6 South Kalimantan 5 19.8
7 East Kalimantan 7 16.0

Slide 20
Energy and Mineral Resources Department
www.esdm.go.id
www.mesdm.net