HUMAN CAPITAL DEVELOPMENT AGENCY

MINISTRY OF ENERGY AND MINERAL RESOURCES

HUMAN CAPITAL SUMMIT

A STRATEGY TOWARDS NZE 2060 IN
ENERGY SECTOR

Prahoro Nurtjahyo
Head of the Human Resources Development Agency - MEMR

Prepared for discussion with Internal BPSDM

Jakarta, March 17th, 2023

www.esdm.go.id kesdm www.esdm.go.id

CONDITION AND POTENTIAL OF NRE TO SUPPORT ENERGY TRANSITION
National Primary Energy Demand | MBOE NRE in The National Energy Mix
23% 500
24%
1734*) 22% 19.5%
1558 659.3
1465 1485 20% 17.9% 400
1438 214 522.9
1335 143 NRE utilization in 18% 15.7%
126 181 14.5% 448.6
89 162 2022 increased 16% 13.4
665 12.2% 366.4 300
483 581 by 18% (213.8 14% 11.6% 12.3%*)
408 554 559 12%
MBOE), from 12.2%
288 285 2021 10% 11.2% 200
286 289 250
251 8% 9.2% 214
consumption. 8.6%
6% 181
553 567 545 496 570 162 100
471 4% 143
126
2%
2017 2018 2019 2020 2021 2022 0% 0
2018 2019 2020 2021 2022 2023 2024 2025

Oil Gas Coal NRE Total *) Temporary Data Realization (MBOE) Target (MBOE) Realization (%) Target (%)

Electricity Consumption | kWh/capita National NRE Potential and Utilization

POTENTIAL UTILIZATION ▪ Hydro: all over Indonesia’s areas, particularly in
ENERGY North Kalimantan, NAD, North Sumatra and Papua.
(GW) (MW)
National electricity ▪ Solar: all over Indonesia’s areas, particularly in East
1173 SOLAR 3,295 272
Nusa Tenggara, West Kalimantan and Riau which
1123 consumption in 2022 HYDRO 95 6,689 has higher radiation.
1084 1089 amounted to 1,173
1064 kWh/capita, lower than
BIOENERGY 57 3,087 ▪ Wind (>6 m/s): particularly located in East Nusa
1021 the average electricity WIND 155 154 Tenggara, South Kalimantan, West Java, NAD and
Papua.
956 consumption in ASEAN of GEO
24 2,355 ▪ Ocean: all over Indonesia’s areas, particularly in
910 3,600 kWh/capita. THERMAL
Maluku, East Nusa Tenggara, West Nusa Tenggara
OCEAN 60 0 and Bali.
TOTAL 3,686 12,557 ▪ Geothermal: in ring of fire areas, including
Note: Sumatra, Java, Bali, Nusa Tenggara, Sulawesi, and
*) December 2022 Maluku.
2015 2016 2017 2018 2019 2020 2021 2022 www.esdm.go.id
Nuclear pot.: Uranium 89,483 tons - Thorium 143,234 tons
ENERGY TRANSITION ROADMAP TOWARDS CARBON NEUTRAL
1) Timeline of strategic actions to achieve net zero emission in the energy sector.
2) This Roadmap will be a form of joint commitment between the government and stakeholders to realize NZE in 2060 or sooner.

2025: Emision Reduction 231.2 Mio ton CO2e
Supply:
▪ NRE Development in accordance with RUPTL PT PLN
(Persero) 2021-2030
▪ Utilization of Rooftop PV
▪ Waste to energy development acceleration
▪ Development of small-scale biomass PP
▪ Cofiring for existing CFPP
Demand:
▪ Induction cooker used by 8.1 million HH
▪ 300 thousand electric cars and 1.3 million electric
motorcycles
▪ Gas network for 5.2 million HH
▪ Dimethyl ether to become substitute of LPG for HH
▪ Mandatory biodiesel 30% by 2025
2035: Emision Reduction 388 Mio ton CO2e
Supply:
▪ Green Hydrogen development starting 2031
▪ Massive Battery Energy Storage System (BESS) in 2034
▪ Installed capacity geothermal PP reach 11 GW in 2035
Demand:
▪ Induction cooker used by 28.2 million HH
▪ 9.3 million electric cars and 51 million electric
motorcycles
▪ Gas network for 15.2 million HH
▪ Biofuel use is maintained at 40%
▪ Expansion of application of Energy Management and
MEPS
2050: Emision Reduction 1,043.8 Mio ton CO2e
Supply :
▪ Green hydrogen to replace natural gas for high
temperature heating processes starting from 2041
▪ Primary energy utilization from NRE is higher than the
fossil
Demand:
▪ Induction cooker used by 46.6 million HH
▪ 50.2 million electric cars and 163 million electric
motorcycles
▪ Gas network for 22.7 million HH
▪ Biofuel use is maintained at 40%

2021 – 2025 2026 – 2030 2031– 2035 2036 – 2040 2041– 2050 2051 – 2060

Supply : Supply: Supply :

▪ NRE Development in accordance with RUPTL PT PLN
(Persero) 2021-2030
▪ Pump storage from 2025
Demand:
▪ Induction cooker used by 18.1 million HH
▪ 2 million electric cars and 13 million electric
motorcycles
▪ Gas network for 10.2 million HH
▪ Biofuels in the industrial and transportation sectors
reach 40%
▪ Energy Management and MEPS for 11 equipment
▪ Nuclear utilization for power generation starts from 2039
▪ The development of Variable Renewable Energy (VRE),
especially solar PV, is more massive, followed by wind
turbine PP on both onshore and offshore starting 2037.
Demand:
▪ Induction cooker used by 37.9 million HH
▪ 23 million electric cars and 101 million electric motorcycles
▪ Gas network for 20.2 million HH
▪ Biofuel use is maintained at 40%
▪ CCS for cement and steel industries from 2036
▪ Low carbon for shipping
▪ Zero emissions from power sector and 129 million tons of
carbon emission remains in the industrial and
transportation sectors
▪ All electricity is generated by NRE
Demand:
▪ Induction cooker used by 54.3 million HH
▪ 65 million electric cars and 175 million electric motorcycles
▪ Gas network for 22.7 million HH
▪ Utilization of CCS in industry up to 13 million ton CO2
▪ Projected demand for electricity consumption is 1,942
TWh or equal to 5,862 kWh/capita

2030: Emision Reduction 327.9 Mio ton CO2e 2040: Emision Reduction 629.4 Mio ton CO2e 2060: Emision Reduction 1,789 Mio ton CO2e

Innovative low emission technologies such as CCS/CCUS can be applied under certain conditions to existing *) PLTU pada Wilus PLN dan Non-PLN: Maksimal 30 tahun dan IPP 25-30 tahun (sesuai PPA)
fossil power plants to accelerate emission reductions in the transition towards cleaner and greener energy www.esdm.go.id
 ELECTRICITY SUPPLY PLAN
Electricity Demand by Sector | TWh Power Plant Capacity | GW
2.000
1.942
800 Coal Gas
Capacity: 708 GW Diesel Geothermal
Consist of: Bioenergy Hydro 708
700 • Solar 421 GW, Wind Solar
Nuclear Ocean 637
• Wind 94 GW,
1.500 Storage
600 • Hydro 72 GW,
• Bioenergy 60 GW, 509
• Nuclear 31 GW,
500
• Geothermal 22 GW,
421
1.000 • Ocean 8 GW. 389 382
400 • Pumped Storage 4.2 GW,
• BESS 56 GW. 278
283
300 193
199
500 152 125
200
100 68
82 32
100 4
0
Green Hydrogen
- -
2033

2046

2059
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032

2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045

2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058

2060

2022 2025 2030 2035 2040 2045 2050 2055 2060

Electricity Demand in 2060 will reach 1,942 TWh, dominated by industry and transportation sector. All electricity
demand around 708 GW supplied by 96% renewable energy-based power plant and 4% of Nuclear. The total capacity
of various renewable energy is 77% of total renewable energy capacity equipped by storage technology such as Hydro
pumped storage and BESS.

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INDUSTRY & TRANSPORTATION STRATEGIC STEPS
INDUSTRY
INDUSTRY SECTOR
SECTOR TRANSPORTATION SECTOR
TRANSPORTATION SECTOR
1. Fuel Switching: increasing electricity share; 1. Stop Importing fuel (other than Avtur) by 2030;
2. Energy efficiency: for equipment, reduce energy consumption about 50- 2. Biofuel utilization is projected to reach 40%;
60%; 3. The penetration of electric vehicles by accelerating sales penetration
3. Electrification strategy: industries that use low-temperature processes such 100% for 2wheelers by 2035 and 4wheelers by 2040;
as food &beverages, textiles and leather, electronic devices about 55% 4. The use of hydrogen for trucks. Sales penetration hydrogen trucks is 5%
coming from electricity; by 2040 and 20% by 2060;
4. Hydrogen as a gas substitution: Green hydrogen to replace natural gas for 5. Eco-fuels (Eco-friendly fuels/low-carbon fuels for aviation) started in
high-temperature heating processes in the industry starting from 2041; 2040 and will reach 45% by 2060;
5. Biomass substitution replaces fossil fuels for high-temperature heating 6. Low-carbon fuels for shipping begin in 2036 with a mixture of e-
processes, especially in the cement industry, but is also applied in other ammonia, hydrogen and biofuels;
subsectors with smaller amounts; 7. E-fuel (derived from biosyngas and green hydrogen) for vehicles.
6. Carbon Capture & Storage (CCS) for the cement, chemical and steel 8. Electrification at ports or electric vessels for shorter distances and/or
industry starting 2036. The emissions by using coal and gas can be reduced hybrid vessels.
through the application of CCS technology with the potential reduction of 9. Energy efficiency in transportation technology is projected to be 20-
13 million tons of CO2. 25% by 2060.

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HOUSEHOLD & COMMERCIAL STRATEGIC STEPS
HOUSEHOLD SECTOR Unit| Million Ton CO2 COMMERCIAL SECTOR Unit| Million Ton CO2
30,0 30,0
26
25,0 24 25,0
21
20,0 18 20,0
15 14
15,0 13 15,0
11
10
10,0 10,0
3,5 3,8 4,2 4,4
5,0 5,0 2,0 2,5 3,0
1,5 1,7
- -
2020 2025 2030 2035 2040 2045 2050 2055 2060 2020 2025 2030 2035 2040 2045 2050 2055 2060
Kerosene LPG Gas Bumi Biogas Dimethyl Ether Gasoil IDO Kerosene LPG Gas Bumi BioGasoil

1. Stop importing LPG;

2. Penetration on the use of Electric / Induction Stoves;
3. Gas Network/ City gas; and
4. Energy efficiency programs include optimizing energy management and using high energy efficient appliances (in
example of air conditioning and other equipment)
Note:
• There is a gradual phase-in potential of MEPS (AC), the stocks will reach the Best Available Technology (BAT) by 2060, estimated to be 40% from the current level;
• The equipment is assuming MEPS that leads to an average unit consumption at the current BAT level by 2060, estimated to be at 60% of the current level; and
• The Other sector is not specifically discussed in the modeling but is summed up with the Household and Commercial sector of around 3.3 million tons of CO2-e.
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OPTIMIZING NRE: SUPER GRID DEV, REBID, & MINERAL DOWNSTREAMING
Super Grid and RE Sharing Resources Indonesia's Mineral Potential to Support the Energy Transition
Power Generators
Ni Co REE U (Solar, Wind, & Nuclear)
Nickel Cobalt Rare earth Uranium
elements

Transmission
Cr Zr Mn CU Al & Distribution
Chromium Zirconium Manganese Copper Alumunium

Energy Storage (Machinery and EV Battery; Hydrogen)

Smelter Development Plan (2022: 5 Completed and 2 Construction)

▪ In order to optimize Indonesia’s unique circumstances as an archipelagic

country in which RE resources are widespread all over the country, a modern
and integrated super grid is required, to establish resilient and robust
transmission infrastructure in Indonesia.
▪ Objectives:
➢ Ramping up renewable energy development.
➢ Maintaining the transmission stability and security.
➢ Addressing mismatch between renewable energy resources and the location
of high electricity demand area.
➢ Providing and expanding energy access.
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THE ROLE OF MINING IN SUPPORTING THE ENERGY TRANSITION

Power Plants

Solar Mining plays an

Si REE U important role in
Wind
Silicon Rare earth Uranium supporting the global
Nuclear elements clean energy transition
Challenges and Innovation :
Transmission and Identification and
Distribution discovery
CU Al Metal extraction and
Transmission
Recovery
Copper Alumunium
If the mining industry Alloying
Distribution
does not rapidly scale up
Energy the discovery and
Storage Li Ni Co C Mn Zr delivery of essential
minerals, the prospects
Lithium Nickel Cobalt Graphite Manganese Zirconium
Engine and
for a large-scale energy
EV Battery transition will be
V Ti Pt REE Cr CU threatened.
Hydrogen
(electrolysers)
Vanadium Titanium Platinum Rare earth Chromium Copper
elements

Available in Indonesia
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 THE ROLE OF FOSSIL ENERGY IN THE ENERGY TRANSITION
Oil and Gas Coal and Minerals
1. Oil currently as the main energy in the 1. Fulfilling domestic needs (i.e. fuel for power plants,
transportation sector industry and households) before a cleaner
2. Natural gas used as energy transition before 100% alternative energy accessible.
Roles of NRE PP applied 2. Minerals such as nickel, cobalt, are the main material
3. Natural gas used as fuel for intermittent renewable sources for the manufacture of batteries.
energy
4. Fulfillment of domestic needs (i.e. fuel for
transportation, raw materials, industry and
households)

1. Increase in oil production by 1 million bopd and 1. Carbon emissions contributors

Issues natural gas by 12 bscfd by 2030. 2. Environmental issues – If not managed with good mining
2. Produce carbon emissions practices
3. Cell battery industry readiness
1. Increasing Reserves through: 1. Reducing the use of coal as a source of energy for PP or the use of coal
• Optimization of existing field production in Coal PP by using CCS/CCUS
• Transformation of Resources to Production 2. The use of coal in households through the development of Dimethyl
• Accelerate Chemical EOR Ether (DME).
Strategies • Massive exploration for big discoveries 3. Increasing the added value of minerals through processing and
2. Natural gas as energy transition before 100% of NRE refining for domestic metal mineral mining commodities.
PP applied 4. Integrated battery industry development
3. Application of CCS/CCUS
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THE ROLE OF ENTERPRISES TO SUPPORT THE NZE
Business entity can participate in supporting NZE through low carbon and sustainable energy programs

Oil & Gas Business Entity Mineral and Coal Business Entity

1. The development of NRE power plant (i.e. solar 1. Implementation of reclamation on ex-mining land
power plant, geothermal power plant, for energy plantations or solar power plant
Bioenergy power plant) development
2. Development of biofuels 2. Replacement of fuel with low emission fuel for
3. Energy efficiency and utilization of gas flares mine transportation (i.e. biodiesel)
4. Development of Green Refinery 3. Development of NRE power plant to supply
5. Utilization of CCUS electricity to smelter plant
6. Tree planting
Electricity Business Entity Industrial Business Entity
1. Utilization of Clean Coal Technology or 1. Rooftop solar power plant installation
CCS/CCUS 2. Utilization of NRE power plants as a supply of electricity
2. Co-firing biomass in coal power plant 3. Use of CCS
3. NRE power plant development 4. Application of thermal energy efficiency and electrical
4. Conversion of diesel power plant to NRE power energy efficiency
plant
5. Termination of coal power plant
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KEY MESSAGES FOR BUSINESS SECTOR
Increase contribution of business sector in accelerate energy transition
- Contribution to energy mix by using clean energy and renewable energy
- Energy efficiency implementation in business and operational 1
- Clean energy and industrial technology innovation

As drivers & agents in implementing a just energy transition

- A clean, sustainable, inclusive, affordable and just transition process
2 - Reskilling and upskilling jobs; and decent & sustainable jobs creation
- Mitigate other impacts of the energy transition in business sectors and supply chains

Leadership in energy transition and emission reduction in the business sector

- Reconfiguration of the relationship between the company and investors, financial institutions and
banking
- Reconfiguration of relationships with consumers
3
- Increased competitiveness and fulfillment of sustainable aspects requirements

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NRE DEVELOPMENT SYNERGY AND COLLABORATION
The support of all parties is needed in the development of NRE to be run optimally

NRE Development Challenges: Creating NRE innovations that can be

Carrying out business/business activities of
directly utilized by the community,
power plant and fuel, services, job creation,
1 Economy & Technology increasing quality human resources and
contribution to state revenues and economic
Technological innovation in the NRE encouraging technology transfer
activities
sector encourages the reliability of the
electric power system and creates more ACADEMY
SOE & PRIVATE
competitive prices. Pentahelix
2 Local Content
Consideration of technology
mastering, project implementation,
and the readiness of supporting
industries in both technical and
economic aspects.
3 Supply & Demand
The development of NRE power plants
and Non-Electricity takes into account MEDIA COMMUNITIES & NGOs
the balance of supply & demand GOVERNMENT NGOs act as counterweights and
Educating public concerning
growth at affordable prices. government partners, provide
the importance of NRE and Formulate policies, regulations,
disseminating Government national standards, guidance advocacy/assistance for the community,
4 Project Implementation carry out positive campaigns and take
programs to the community and supervision, as well as
Ease of licensing and land preparation facilitators in the development an active role in the development of
as well as de-bottlenecking in the of NRE NRE
implementation of NRE projects.
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Thank
You
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@kesdm Kementerian ESDM

@KementerianESDM KementerianESDM

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