RENEWABLE ENERGY POLICY IN

INDONESIA

Andi Novianto

Presented at APEC EGNRET Meeting

Honolulu, March 29-April 3, 2009
Energy Mix Situation:

Geothermal
Hydro Power 3,0% Other Renewable
3,7% Energy
0,2%
Coal
21,5%

Oil
52,5%

Natural Gas
19,0%

2
Industry is The Largest Consumption of Energy:

Commercial Others
4,0% 4,7% Transportation
Household 30,5%
12,8%

Industry
47,9%

3
PETROLEUM FUELS CONSUMPTION :

Electricity
Commercial 11,3%
1,7%
Household
15,0%

Industry
21,9% Transportation
50,0%

4
TARGET ENERGY MIX 2025 :

Other Renewable GeothermalCoal Liquefaction

Energy 5% 2%
5% Natural Gas
Biofuel
30%
5%

Oil
20%

Coal
33%

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 NATIONAL ENERGY PLANNING to 2025:

- - Population
PopulationIncrease:
Increase: EnvironmentalIssue:
Environmental Issue:
- -Energy
EnergyDemand
DemandIncrease
Increase
- -Global
GlobalWarming
Warming
- - Increase
Increasein
inEconomic
Economic
Growth:
Growth: - -Electricity
ElectricityDemand
Demand
- -Air
AirPollution
Pollution
Increase
Increase
- - Increase
Increasein
inLiving
LivingStandard
Standard - -Acid
AcidRain
Rain
- -Health
Health

TYPE OF ENERGY SELECTION

Environment INFRASTRUCTUR ENERGY RESOURCES SOCIAL-CULTURE GEOPOLITIC ECONOMY

NEW AND RENEWABLE

Fosil Energy
ENERGY

Hiydro, Solar, wind,

biofuel,
OIL COAL Gas Nuclear Microhydro geothermal,
hidrogen, FC

BASED ON NATURAL RESOURCES BASED ON TECHNOLOGY

6
 ENERGY POLICY FRAMEWORK:

PRODUCTION/
EXPLORATION

ENERGY SECURITY
SUPPLY
SUPPLY POLICY
GUARANTEE
ENERGY ROLE

PRODUCTION/
CONSERVATION
Economic
Economic
SHIFTING PARADIGM

Activity
Activity

National
National DIRECT
Security ENERGY PRICE
Security SUBSIDY

DIVERSIFICATION

PEOPLE’S
DEMAND POLICY
AWARENESS
CONSERVATION
(EFFICIENCY)

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RENEWABLE ENERGY POTENCY:

NON FOSSIL
RESOURCES UTILITY CAPACITY
ENERGY
Hydro Power 75,670 MW 4,200 MW
Geothermal 27,000 MW 1,042 MW
Mycro Hydro 450 MW 210 MW
Biomass 49,810 MW 445 MW
Solar Energy 4,80 kWh/m2/day 12 MW
Wind Energy 3-6 m/second 2 MW
New and Renewable Energy Development

TARGET:
 Short & Medium Term :
- Small scale for fulfilling basic energy need for rural area
- Intensification use of hydro, geothermal, solar
and win energy for electricity generation
- Development of Biofuel

 Long Term :
- Development of new energy (fuel cells, hydrogen)
- Development of Nuclear Energy
- Development of Unconventional energy sources
(tar/oil sand, biogenic gas, etc)

 In the year 2025 :

At least 15% of the energy mix should be based on renewable
energy (Presidential Decree 5/2006)

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RENEWABLE ENERGY
DEVELOPMENT
1. Electricity generation
◦ Generated from new renewable energy sources such as
microhydro, solar, wind, biomass;
◦ Priority for diesel fuel substitution for electricity generation
in rural area and for rural electrification
2. Fuel
◦ Currently, it is generated from biomass;
◦ Priority for petroleum-based fuel substitution in
transportation sector and kerosene substitution in household
sector
3. Thermal/mechanical energy uses
◦ Can be generated from mostly renewable energy sources;
◦ Current applications are for agricultural food processing,
water pumping;
◦ Technologies are suitable for rural implementation.

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 RENEWABLE ENERGY PROGRAM (1)

1. Program on Rural Electrification : to provide access on electrification

for rural communities; since 2005 the government has been decided not to
utilize diesel genset and only to implement locally available renewable
energy (if the extension of grid is impossible).
2. Program on Interconnention of Renewable Energy Power
Generation : as an innitiative for investor to develop small/medium scale
power generation from renewable energy to sell of electricity to PLN
(state electricity company) with standardized price following government
regulation.
3. Integrated Microhydro Development Program (IMIDAP) : a hibah from
GEF through UNDP for 2007-2012 to acclerate microhydro
implementation by removing existing barriers.
4. Micro Hydro Power Program (MHPP) : technical cooperation with
Germany through GTZ to develop capacities on technology and
sustainability of microhydro implementation.

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 Renewable Energy Program (2)

5. Program on Urban Solar : launched in 2003 to support solar

photovoltaic implementation in urban society. The results are not
significant yet
6. Program on Biogas : launched in January 2008 in cooperation
with Dutch government; consists of technical assistance and
financing mechanism development system.
7. Program on Energy Self-Sufficient Village : launched in 2007 to
improve energy security on village level by diversifying rural energy
mix; developing locally available renewable energy sources in the
form of fuel (biofuel) and electricity for household and also
productive end uses.
8. Program on regulation preparation : as mandated by Energy
Law.

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☼ Self-sufficient Energy Village (SSEV) Program

 SSEV is a village having capability to produce a

part/whole their energy demand for consumptive and
productive use.
 CRITERIA
− Utilization of locally available energy (renewable energy)
− Creation of productive activities
− Job creation

 PROGRAM:
– Utilization of locally available energy resources
– Development of productive activities
– Development of applicable technologies
– Development of institution and people participatory

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 ELECTRICITY OBJECTIVES:
INCREASE ELECTRIFICATION IN
HOUSEHOLD SECTORS (RURAL -
URBAN) AND INDUSTRY IN
EFFICIENT AND ENVIRONMENTAL
WAYS TO SUPPORT ECONOMIC
GROWTH AND PEOPLES’ WELFARE.
 NAD
72,65% ELECTRIFICATION RATIO Category :
> 60 %
Sumut
85.76%
41 - 60 %
Kaltim
20 - 40 %
Kalteng 66% Gorontalo
Riau + Kepri 49.87% 43.31% Sulut
63.15% 61.84%
Kalbar Malut
53.74 54.15%
%
Sumbar Sumsel
68.75% 50.75% Sulteng
51%
Babel
Jambi 69.27% Sulsel
47.03% 60.81%
Jakarta Sultra
Bengkulu 100% Kalsel 43.88%
67.38% Maluku
50.64% Bali 58.06%
Lampung 78.37%
49.23%

Banten Jabar
58.44% 63.40% Jateng Jatim
63.77% 63.67% NTB NTT
Jogya 26.35% Papua + Irjabar
30.48%
74.37% 35.35%

Year
Rasio Elektrifikasi : 63.9%
1980 1985 1990 1995 2000 2005 2006 2007 2008
Electrificatio
n Ratio 8% 16% 28% 43% 53% 62% 63% 64 % 64.5
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ELECTRICITY SOURCES:
ELECTRICITY UTILIZATION SHARE:
 ELECTRICITY SYSTEM :


   

Power Grid Users

Generator Transmission

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SALES TARGET BY PLN-2008 (TWh) :

6%

41%
36%

17%

House hold Com m e rcial Industry Public

ELECTRICITY BY REGION :

20%

80%

JAW A-MADU RA-BALI OU TSIDE Jawa-Madura-Bali

GOVERNMENT SUBSIDY :
160
140
120
100
Rp. Trillio n

80
60
40
20
0
2005 2006 2007 2008

Electricity Fue l/LPG

SUPPORT POLICY TO RENEWABLE ENERGI:

Non Fiscal Incentives through

Regulation.
Support Small-Medium Scale Power
Connection Program at Medium and Low
Grid.
Non Uniform Tariff, based on Region,
Peoples’ Capability, and Sources.