Indonesia - Biofuel Policy, Development And Outlook

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REPUBLIC OF INDONESIA

INDONESIA’S BIOFUEL POLICY, DEVELOPMENT & OUTLOOK PURNOMO YUSGIANTORO MINISTER OF ENERGY AND MINERAL RESOURCES

BIOFUELS AND FEEDSTOCKS INDONESIA 2007 Jakarta, 30 – 31 January 2007

OUTLINE 1.

Energy Development In Indonesia

2.

National Energy Policy (Presidential Decree No. 5 Year 2006)

3.

Energy Mix 2006 To 2010

4.

Energy Diversification Program

5.

Fast Track Biofuel Development

ENERGY DEVELOPMENT IN INDONESIA NO

SUBJECT

THE ERA OF ENERGY RESURGENCE IN INDONESIA I (1966)

II (2006)

1.

Momentum beginning

Oil dominant

Oil dependency

2.

Fiscal Influence (APBN)

50 – 75 %

25 – 35 %

3.

Primary Energy Production

Oil

Oil and energy alternative

4.

Accessibility to Energy

Oil and traditional energy

Oil and commercial energy

5.

Energy Demand Growth

Low

High

6.

Subsidy Reduction

Pricing policy

Substitution policy

7.

Sectoral Treatment

Lex Specialist

Lex Generalist

8.

Policy Priority

Supply Side Management (SSM)

Demand Side Management (DSM)

9.

Contribution to National Development

- Pro Growth - Pro Job - Pro Poor

- Pro Poor - Pro Job - Pro Growth

NATIONAL ENERGY POLICY

(PRESIDENTIAL DECREE NO. 5 YEAR 2006) CURRENT ENERGI MIX Hydro Power, 3.11%

National (Primary) Energy Mix

Geothermal, 1.32% Natural Gas, 28.57%

Oil 51.66%

National (Primary) Energy Mix of 2025 (BaU Scenario)

Coal, 15.34%

National Energy Mix 2025 (Presidential Decree No. 5/2006)

Power Pl ant, 1.9% Mini/micro Hydro Power Plant, 0.1% Geothermal, 1.1%

Oil, 20%

Gas, 20.6%

Gas, 30%

Biof uel, 5%

RE,17%

OPTIMIZING ENERGY MANAGEMENT

Oil, 41.7%

Coal 34.6%

Geothermal, 5% Biomass, Nuclear, Hy dro Solar Energy , Wind Power, 5%

Coal , 33%

Coal Liquef action 2%

ENERGY MIX 2006 to 2010 Household and Commercial 2006

Household and Commercial 2010 Oil 28.1%

Briquet Coal 0.1%

OIl 53.1%

Biofuel (Biooil) 0.0%

Briquet Coal 1.2%

CNG 1.5%

Biofuel (Biooil) 3.7%

NG 6.4%

Electricity 36.1%

CNG 0.0%

NG 0.1%

LPG 19.0% Electricity 40.1%

LPG 10.6%

Transportation 2006 Biofuel (BioDiesel) 0.0%

Biofuel (Bio-Oil) 0.0% NG 0.0%

Transportation 2010 Biofuel (Bio- Biofuel (BioDiesel) Ethanol) 0.4% 7.6% Biofuel (Bio-Oil) 1.9% Electricity 0.0%

Biofuel (BioEthanol) 0.0%

Electricity 0.0%

NG 1.4% Automotive Diesel Oil 45.9%

Automotive Diesel Oil 42.3% Gasoline 54.0% Gasoline 46.5%

ENERGY MIX 2006 to 2010 (continuation) Industry 2006 Gas 19.6%

Industry 2010

Electricity 13.1%

Gas 20.4%

Electricity 12.4%

Oil 30.9% Coal 22.5% Oil 43.8%

Coal 34.9%

LPG 1.1%

Power Plant 2006 Gas 14.3%

Power Plant 2010

Oil 23.7% Biof uel 0.9%

Coal-Hy brid 0.0%

LPG 1.4%

Coal 71.4%

Coal-Hybrid 2.2% Gas 8.3%

Geothermal 5.3%

Oil 2.7% Biofuel 0.8%

Hy dro 9.6% Coal 46.2%

Hydro 7.8%

Geothermal 6.8%

ENERGY DIVERSIFICATION PROGRAM Types of fuel

Household

Transportation

Industry

Power Plant

√ √

√ √

√ √

– √

√ √ √ –

– – √ √

√ √ √ √

√ – √ √

¾Bio-ethanol









¾Bio-diesel









¾Bio-oil

















√ – – √ – √

– – – √ – √

– – – – – √

√ √ √ √ √ √

¾Hydrogen / Fuel Cell









¾Oil Shale ¾Biogenic Gas

– √

√ –

√ –

√ √

• Gas ¾LPG ¾BBG • Coal ¾Coal ¾Briquette ¾Coal gasification ¾Coal liquefaction

• Biofuel

• Geothermal • Other Renewable Energy ¾Biomass ¾Nuclear ¾Water ¾Solar cell ¾Wind ¾CBM

FAST TRACK BIOFUEL DEVELOPMENT Energy Self Sufficient Village

SHORT RUN

Create Job

Each Region Developing its Bioenergy Potential

Fast Track

LONG RUN

Energy Poverty Alleviation

SPECIAL BIOFUEL ZONE

Explicit Investment Employment Ratio

On time Schedule

Demplot

Infrastructure

Energy and Mineral Resources Department

www.esdm.go.id www.mesdm.net

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