MINISTRY OF ENERGY AND MINERAL RESOURCES …energy-indonesia.com/03dge/0140317policy.pdf · ENERGY...

Energy and Mineral Resources for People’s Welfare

Tokyo, March 6th 2014

MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Presented by:

Arief Heru Kuncoro - Agung Prasetyo

At:

The Senior Officer Visit in Japan


1. ENERGY CONSERVATION: to increase energy efficiency on

supply and demand side, e.g industrial sector, transportation,

household and commercial.

2. ENERGY DIVERSIFICATION: to increase the share of new

renewable energy use in the primary energy mix. e.g:RENEWABLE ENERGY

a. Geothermal,

b. Hidro,

c. Bioenergy,

d. Solar,

e. Wind,

f. Ocean wave and current.

NEW ENERGY

a. Liqiufied Coal

b. Coal Bed Methane

c. Gasified Coal

d. Nuclear

e. Hidrogen

f. Others methane


In the year of 2011, energy

production (fossil) reach 6,5

Million BOE per day, while on

the other side energy needs

(fossil) 3,3 Million BOE per day

On the year of 2019, if energy

managed by business as usual

without apllying energy

conservation, Indonesia is

predicted to be a net-energy

importir,.


Oil46.77%

Coal23.91%

Natural Gas24.29%

NRE5.03%

CURRENT CONDITION

2011

ENERGY ELASTICITY= 1,65

NON FOSSIL ENERGY SHARE 5%

2025 TARGET

National Energy Policy DRAFT

ENERGY ELASTICITY LESS THAN 1 IN 2025

OPTIMIZING NEW RENEWABLE ENERGY SOURCES

Oil25%

Gas 22%

Coal30%

NRE23%


NO NEW RENEWABLE ENERGY RESOURCES INSTALLED CAPACITY (IC)RATIO OF

IC/RESOURCES (%)

1 2 3 4 5 = 4/3

1 Hydro 75.000 MW 7.572 MW 10,1 %

2 Geothermal 28.617 MW 1.343,5 MW 4.7 %

3 Biomass 49.810 MW 1.716,5 MW 5,26 %

4 Solar 4,80 kWh/m2/day 42,77 MW -

5 Wind 3 – 6 m/s 1.87 MW -

6 Ocean 49 GW ***) 0.01 MW ****) -

7 Uranium 3.000 MW *) 30 MW **) -

*) Only in Kalan – West Borneo

**) As a center of research, non-energy

***) Source: National Energy Council

****) BPPT’s Prototype

NO FOSSIL ENERGY RESOURCESPROVEN RESERVES

(PR)

RATIO OF PR/RESOURCES

(%)

PRODUCTION

(PROD)

RATIO OF PR/PROD(YEAR)*)

1 2 3 4 5 = 4/3 6 7 = 4/6

1 Oil (billion barel) 7.408,24 3.741,33 0,505 0,314 12

2 Gas (TSCF) 150,70 103,35 0,685 2,98 35

3 Coal (billion ton) 161,3 31,35 17 0,317 89

4 Coal Bed Methane (TSCF) 453,3 - - - -

5 Shale Gas (TSCF) 574 - - - -


1. Improvement of the national electricity supply through the development of

Geothermal and Hydro Power Plant;

2. Improvement of the electricity access in remote areas, small islands and border

areas with Micro Hydro and Solar Power Plant;

3. Development of Bioenergy Power Plant including agricultural waste and

municipal solid waste to provide electricity as well as to improve the

environmental;

4. Development of wind power and ocean energy plant pilot project in order to

prepare the stage of commercialization;

5. Utilization of Biofuel (solid, gas and liquid) for substitution of fuel oil;

6. Development of new energy (CBM and shale gas) commercially and use of the

conventional energy bussiness regulation and practice;


NO RESOURCE RESERVE PRODUCTION FUTURE NREEC UTILIZATION PLAN

1 Electricity from Geothermal 16.502 MW Until May 2013:

• Installed capacity is

1.341 MW

• Geothermal steam is

31.041.463 ton

• In 2013 there were additional planned installed capacity of 5

MW from Ulumbu Geothermal Power Plant (2.5 MW) and

Mataloko Geothermal Power Plant (2.5 MW)

• Determination of 7 Geothermal Working Area (GWA) in 2013

• Based on the roadmap that had been developed, geothermal

power plants development plan up to 2025 amounted to 6,638

MW

2 Electricity from Biomass*) 13.662 MWe 1.364 MWe

• On Grid: 75,5 MWe

• Utilization of Solid Waste Palm Oil for co-firing biomass-coal

power plant.

• Utilization of palm oil effluent (POME) for the generate

electricity from biogas

• Utilization of industrial solid waste sugar cane (bagasse) on

the boiler for the production process.

• Utilization of municipal solid waste to generate Municipal

Waste Power Plant.

3 Biofuel:

• Biodiesel

CPO production

until end of 2013

estimated at 28

million ton.

Until June 2013 at 349.000

KL

• Biodiesel Utilization planned for transportation sector is 10%

by 2013 (currently 7.5%)

• Biodiesel utilization in industrial and mining sector is 2%

• Biodiesel utilization to reduce the use of diesel fuel power

plant at PLN.

Note:

*) Based on identification study for Biomass, Biogas and Municipal Waste Utilization and Potency for Electricity Supply on Sumatera and Kalimantan Region.

Biomass potency include palm oil, sugar cane, coconut, paddy, corn, wood (pulp & paper) and municipal waste.



4 Biogas Ministry of

Agriculture data (28

June 2013)

Cattle: 14.824.373

Milch Cow:

597.213

Buffalo: 13.050.078

Up to June 2013

reached12.359 m3

(Biogas

production year 2012

reach 9.305 m3)

Biogas utilization of animal waste used as fuel for household

and communal

5 Electricity from Large Scale

Hydro Power

Electricity potency

from large scale

hydro power

amounted at 75.000

MW

Current installed capacity

is 7.059 MW

Improve coordination with authority in supervising the

business district water flow and waterfall (WATA);Harmonization of regulations in the field of hydro;Provide outreach and workshops to improve the quality of

human resources10,000 MW Fast Track Program Phase II

6 Electricity from Mini/Micro

Hydro

Electricity potency

from mini/micro

hydro amounted at

769,69 MW

Current installed capacity

is 512 MW

In addition to the development of Micro Hydro Power Plant

through Directorate General of NREEC budget, in 2013 with the

Special Allocation Fund Rural Energy mechanism there is

additional planned installed capacity of 1.8 MWEncourage the use of electricity from hydro power through

investment form cooperatives/private. To attract private sector

(IPP), incentives for the utilization of hydropower with

mechanism feed in tariff (FIT) system for on-grid is being

discussed



7 Electricity from solar power Electricity potency from

solar power is 4,80

kWh/m2/day

Current solar power

plant installed capacity

is 42,779 MW

In 2013, it was planned to develop Solar Power Plant with a

total capacity of 4.4 MW through DG NREEC budget, prioritized

for areas that are still not get electricity from PT PLN, for

example the outer islands and border areasThrough the mechanism of Special Allocation Fund Rural

Energy, DG NREEC also encourage the development of Solar

Power PlantTo increase investment from the private sector (IPP) in the

development of Solar Power Plant, the Government has issued

Minister of Energy and Mineral Resources Decree No. 17 Year

2013 on the Purchase of Electricity by PT PLN (Persero) from

Solar Power Plant which regulate power purchase prices of

solar power plant with ceiling prices mechanism, and also

provide incentives to encourage the use of local contentsUnder review a policy requiring the use of solar energy in

buildings - office buildings or shopping centers

8 Electricity from Wind Power Areas with wind speeds

above 5 m/s that has the

potential to be used as a

wind power plant is in

the area of Yogyakarta,

Central Java, NTB, NTT,

Sulawesi, North

Sulawesi and Southeast

Sulawesi

Current installed

capacity is 1,331 MW

To encourage the development of wind power plant from

private sector, the Government is currently formulating

regulations for power purchase price (on-grid) with feed in

tariff mechanism


PROGRAM DESCRIPTION

1. Creating Policy and Regulation Drafting policy on energy conservation of energy resources

2. 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

Energy Efficiency Guidelines (for Building)

3. Partnership Program on Energy

Conservation

Free energy audit incentive for buildings and industries that commit to reduce energy consumption

by increasing the energy efficiency level.

During 2003 - 2012, energy audit already done for 806 industries and buildings

During year 2013, 50 buildings and 108 industries are audited

4. Energy Manager & Auditor Development of standards for energy manager and auditor

Preparing the Certification Institution HAKE (Expert Association on EC)

Conducting Energy Manager Certification : 77

Conducting Energy Auditor Certification: 12

5. Standard and Labeling Energy Efficiency Labeling; provide information for consumers about energy efficiency level of

electric home appliances. “More Star, more efficient” (Maximum 4 stars).

To encourage manufacturers to increase their quality of products especially in the field of EE.

Energy efficiency label for CFL is a pioneer for electric home appliances.

Followed by refrigerator and air conditioner.

Minimum Energy Performance Standard (MEPS) will be Implemented soon

6. Incentive and Disincensive Preparing mechanism of fiscal incentive, incentive for import duty of EE appliances, etc.

To assess financing scheme for energy efficiency implementation such as revolving fund

To assess criteria for energy efficiency appliances and implementation of energy conservation which

will receive incentive and disincentive


PROGRAM DESCRIPTION

7. Education and Training Training on energy efficiency and conservation by Centre for Training and Education – MEMR

Participating in the overseas training on energy conservation in abroad

8. International Cooperation ASEAN Energy Efficiency and Conservation Sub Sector Network (EE&C - SSN)

Bilateral Indonesia –Denmark (DANIDA) Cooperation with 3 (three) main outputs :

Energy Efficiency and Conservation Clearing House

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) : Energy Efficiency Promotion Project in Indonesia

Bilateral Indonesia-Japan (NEDO) : Implementation of Smart Grid in Industrial Park

International Copper Association (ICA) :

Conducting Minimum Energy Performance Standards (MEPS) for Electric Motor and Air-Conditioning

Barrier Removal to the Cost-effective Development and Implementation of Energy Standards and Labeling

Efficiency (BRESL) :

Cooperative project among six Asian countries (Bangladesh, China, Indonesia, Pakistan, Thailand, and

Vietnam) which together make harmonization of standards and labels of the seven household products (air

conditioners, fan, refrigerator, electric ballasts, electric motors, CFL and a rice cooker), also pilot project

on replacing the existing lamp with LED in local governent building in Makasar.

United Nations Industrial Development Organization (UNIDO)

Supporting deveopment process for International Standard for Energy Management System ISO 5001

USAID for project development Indonesia Clean Energy Development (ICED)

9. Pilot Project on Energy Efficient of

Street Lighting

Developing standard for SL system

Promoting energy efficient technology in SL

Developing guidelines for implementing energy efficient technology SL

10. Clearing House Development Information Centre for energy efficiency and energy conservation


1. IMPROVING POLICY AND REGULATION

Some sub-sectors of renewable energy still has not been set. Therefore, the Government

continues to improve the regulation of development and utilization of renewable

energy, including the preparation of draft government regulations of new renewable energy;

2. CREATING MARKET

through the supply and utilization of biofuel, obligating National Electric Company (PT PLN)

to buy electricity, the application of Indonesian National Standard (SNI), etc;

3. SUBSIDY

Subsidy for biofuel has been running since 2009. Subsidies are provided on the difference

in fuel prices with biofuel prices, distributed through Pertamina;

4. FEED-IN TARIFF

Declared through the Minister of Energy and Mineral Resources Regulation, that regulate

the selling price of electricity from renewable energy purchased by National Electric

Company. There should be no negotiations;

5. PROVIDING INCENTIVES AND FACILITIES

Reduction of taxes and customs duties, licensing procedures more simple;

For power plants up to 10 MW will be sold to PLN, no need to go through a tender process


6. THE FUNDING AND OTHER SUPPORTING

Providing fund to improve energy acess in remote and isolated area

7. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES

Education and training in the field of renewable energy

Socialization;

Improving NRE networks, supporting the establishment of organization/association

(IKABI, METI);

8. INCREASING RESEARCH IN THE FIELD OF NEW RENEWABLE ENERGY

Increase research cooperation;

Increase kind of research;

9. INCREASING COOPERATION WITH OTHER COUNTRY AND INTERNATIONAL ORGANIZATION

Cooperation for capacity building

Cooperation for technology transfer

Lessons learned for the implementation of new renewable energy policies and programs

Increase new renewable energy market (biofuel), and technology for NRE component

(small-scale turbine) abroad.


To accelerate the development of new renewable energy and energy

conservation, there is some incentives that have been issued such as fiscal

incentives, incentives on financing, market support incentives:

Minister of Finance Decree No.3/2012 on Geothermal Facilities Fund (GFF).

GFF is given to the Local Government, holder of the Geothermal Mining

Business Permit and also PT Pertamina Geothermal Energy (PGE).

Minister of Finance Decree No. 21/PMK.011/2011 on Taxation and Customs

Incentives for Utilization of New Renewable Energy Sources Activities

Minister of Finance Decree No. 139/PMK.011/2011 on Procedures for PT PLN

(Persero) Feasibility Guarantee for the Development of Power Plant Using

Renewable Energy, Coal and Gas through Partnership with the Private Power

Developer

Formulating the Legislation and Regulation in the field of Renewable Energy

and Regulation for Mandatory of Renewable Energy


Formulating Feed in Tariff or the Ceiling Price for Renewable Energy price such as:

Feed-in Tariff for biomass through the Minister of Energy and Mineral Resources Decree No.

04 Year 2012 on the Purchase Price of Electricity by PT PLN (Persero) From Small and

Medium Scale Power Plants Using Renewable Energy Or Excess Power;

Feed-in Tariff for electricity from geothermal through the Minister of Energy and Mineral

Resources Decree No. 22 Year 2012 on Assignment to PT PLN (Persero) To Purchase Power

from Geothermal Power Plant and Benchmark Prices of Power Purchase from Geothermal

Power Plants by PT PLN (Persero);

Ceiling price for electricity from solar power through Minister of Energy and Mineral Resources

Decree No. 17 of 2013 on Power Purchase by PT PLN (Persero) from Solar Power Plant;

Feed-in Tariff for electricity from Municipal Waste Power Plant trough Minister of Energy and

Mineral Resources Decree No. 19 of 2013 on Power Purchase by PT PLN (Persero) from

Municipal Solid Waste Power Plant;

Feed-in Tariff for electricity from hydroelectric and wind (still in discuss).

In the development of biofuel, the Government has allocated subsidies. For the year 2013,

according to the state budget subsidies for biodiesel are budgeted at Rp 3.000/liter and for

bioethanol Rp 3.500/liter. The subsidy is the difference between the biodiesel price and fuel oil

MOPS (biodiesel prices higher than fuel oil MOPS).


- Development of 4,965 MW electricity from Geothermal in 10,000 MW Crash Program Stage II

is required more than US$ 15,000 millions for the investment.

- To achieve the targets, international supports are needed in terms of

finance, technology, human resources and Technical Assistance.

- Foreign ownership in Geothermal Business is allowed up to 95 %.

- Other business opportunities in geothermal sector:

• Geothermal direct use;

• Low temperature geothermal potential;

• Small scale power plant;

• Services company to support the core business of geothermal

- Access to Potential Geothermal Resources for Investors:• Preliminary Survey Assignment • Participate in the geothermal business through GWAs tendering mechanism


Pricing policies which previously set by the government does not provide a significant

impact on geothermal development. The inability of the policies to encourage the use of

geothermal is considered because they are not taking into account some crucial aspects

such as location, generation capacity, transmission, escalation, assignment mechanisms

and reservoir quality .

Therefore, the government is currently developing a comprehensive pricing structure

which includes upstream and downstream sides in order to provide legal certainty and

overcome constraints that have caused many geothermal projects been delayed.

No. Generation Capacity

Ceiling Price for Geothermal Power (sen US$/kWh)

Conventional Generation

TechnologyBinary Generation Technology

1. > 55 MW 11.5 17.0

2. > 20 MW - 55 MW 13.0 18.0

3. > 10 MW - 20 MW 15.0 19.0

4. ≤ 10 MW 19.5 22.0

PROPOSED CEILING PRICES FOR GEOTHERMAL POWER


21

ACEH 2 WKP

Jaboi: 70 MW

Seulawah Agam: 130 MW

NORTH SUMATERA 5 WKP

Sibayak – Sinabung: 130 MW

Sibual – Buali: 750 MW

Sipaholon Ria-ria: 75 MW

Sorik Marapi: 200 MW

Simbolon Samosir : 155 MW

JAMBI 1 WKP

Sungai Penuh: 70 MW

SOUTH SUMATERA 2 WKP

Lumut Balai: 250 MW

Rantau Dedap: 106 MW

BANTEN 2 WKP

Kaldera Danau Banten: 115 MW

G. Endut: 80 MW

WEST SUMATERA 4 WKP

Bukit Kili: 83 MW

Gn Talang: 35 MW

Liki Pinangawan: 400 MW

Bonjol: 200 MW

LAMPUNG 4 WKP

Gn.Rajabasa: 91 MW

Suoh Sekincau: 230 MW

Waypanas – Ulubelu: 556 MW

Way Ratai :105 MW

WEST JAVA 10 WKP

Ciater - Tgkban Perahu: 60 MW

Cibeureum–Parabakti: 485 MW

Cibuni: 140 MW

Cisolok Cisukarame: 45 MW

Gn. Tampomas: 50 MW

Gn. Tgkuban Perahu: 100 MW

Kamojang-Darajat: 1465 MW

Karaha Cakrabuana: 725 MW

Pangalengan: 1106 MW

G. Ciremai: 150 MW

CENTRAL JAVA 5 WKP

Baturaden: 175 MW

Dataran Tinggi Dieng: 780 MW

Guci: 79 MW

Gn. Ungaran: 100 MW

Umbul Telomoyo : 72 MW EAST JAVA 3 WKP

Blawan – Ijen: 270 MW

Gn. Iyang Argopuro: 295 MW

Telaga Ngebel: 120 MW

BALI 1 WKP

Tabanan: 276 MW

WEST NUSA

TENGGARA 2 WKP

Hu'u Daha: 65 MW

Sembalun : 100 MW

EAST NUSA TENGGARA 5 WKP

Atadei: 40 MW

Sokoria: 30 MW

Ulumbu: 199 MW

Mataloko: 63 MW

Oka Ile Ange : 40 MW

MALUKU 1 WKP

Tulehu: 100 MW

NORTH MALUKU 2 WKP

Jailolo: 75 MW

Songa Wayaua: 140 MW

NORTH SULAWESI 2 WKP

Kotamobagu: 410 MW

Lahendong-Tompaso: 358 MW

GORONTALO 1 WKP

Suwawa: 110 MW

CENTRAL SULAWESI 2 WKP

Marana: 35 MW

Bora Pulu : 152 MW

Total : 58 GWA

BENGKULU 2 WKP

Tmbg Sawah-Hululais: 873 MW

Kepahiyang : 180 MW

CENTRAL JAVA & EAST JAVA 1 WKP

Gunung Lawu : 195 MW

SOUTH SUMATERA & LAMPUNG 1 WKP

Danau Ranau: 210 MW

Lisence – Issued : 38 GWAs

Tender on Progress : 2 GWAs

Tender Preparation : 13 GWAs

Tender – Failed : 5 GWAs


BIOFUELS There are huge potential resources for biofuels from Palm Oil (annually production of CPO is 25 million tons), Jatropha

Curcas (suitable in the tropics are), Nyamplung (foreshore area), Molasses/ Sugar Cane (sugar industry), Cassava,

Sorghum and Algae (a lot of sources in Indonesia water).

The Government has set mandatory for the utilization of biofuels in Indonesia (Ministerial Regulation No.25 Year 2013)

BIOGAS Raw material biogas in Indonesia is mainly derived from cattle waste, industrian waste, municipal solid waste,

and other organic materials.

Indonesia has livestock as producers of raw material biogas in significant numbers include 13 million dairy cows

and beef cattle, and approximately 15.6 million goats. This potential is equal with 1 million unit of biogas digester.

BIO BRIQUETTS

Agriculture and forest waste.

The government is setting a policy on the mandatory use of bio-briquetts at power plant.

BIO-ELECTRICITY High potential of biomass waste from agricultural waste and municipal solid waste as a fuel stock for biomass based

power generation.

Total potential capacity is 49,810 MW, of which MSW :1,870 MW, POME: 500 MW, bagasse 160 MW.

The Government has set Feed in Tariff for power plant based bioenergy (Ministerial Regulation No.4 Year 2012 and

No.19 Year 2013)


BIODIESEL (Minimum)

Sector September 2013 January 2014 January 2015 January 2016 January 2020 January 2025

Transportation, PSO 10% 10% 10% 20% 20% 25%

Transportation, Non PSO 3% 10% 10% 20% 20% 25%

Industry 5% 10% 10% 20% 20% 25%

Power Plant 7,5% 20% 25% 30% 30% 30%

BIOETHANOL (Minimum)

Sector September 2013 January 2014 January 2015 January 2016 January 2020 January 2025

Transportation, PSO - 0,5% 1% 2% 5% 20%

Transportation, Non PSO 1% 1% 2% 5% 10% 20%

Industry - 1% 2% 5% 10% 20%

Power Plant - - - - - -

PURE VEGETABLE OIL (Minimum)

Sector September 2013 January

2014

January

2015

January

2016

January 2020 January 2025 Sector

Industry and

Transportation

(Low and Medium

Speed Engine)

Industry 1% 5% 10% 20% 20% 20%

Sea Transportation - 5% 10% 20% 20% 20%

Air Transportation - - - 2% 3% 5%

Power Plant 1% 6% 15% 20% 20% 20%


Note : *) Based on Act No. 18 Year 2008 concerning to Waste Management.

F as an incentive factor based on the region where the power plant installed, as follows:

Jawa, Bali, and Sumatera region : F = 1

Kalimantan, Sulawesi , NTB and NTT region : F = 1,2

Maluku and Papua region : F = 1,3

No. Energy Capacity Electricity Tariff Note

Medium Voltage

1. Biomassa until 10 MW Rp. 975,- / kWh X F

2. Biogas until 10 MW Rp. 975,- / kWh X FNon Municipal Solid Waste

3. Municipal Solid Waste (MSW) until 10 MW Rp. 1.450,- / kWh Zero waste *)

4. Municipal Solid Waste (MSW) until 10 MW Rp. 1.250,- / kWh Landfill *)

Low Voltage

1. Biomassa until 10 MW Rp. 1.325,- / kWh X F

2 Biogas until 10 MW Rp. 1.325,- / kWh X FNon Municipal Solid Waste

3 Municipal Solid Waste (MSW) until 10 MW Rp. 1.798,- / kWh Zero waste *)

4 Municipal Solid Waste (MSW) until 10 MW Rp. 1.598,- / kWh Landfill *)


State owned company (PT. PLN) has the obligation to purchase electricity from

small-medium scale RE power plant which is developed by cooperatives,

community or business entities;

The price of electricity :

Rp. 656 /kWh x F if connected to medium voltage

Rp. 1.004 /kWh x F if connected to low voltage

F = Factor depends on power plant location

• F = 1.0 for Jawa and Bali

• F = 1.2 for Sumatera and Sulawesi

• F = 1.3 for Kalimantan, NTB & NTT

• F = 1.5 for Maluku and Papua

PT. PLN is allowed to purchase electricity higher than the above mentioned price

based on PLN’s Own Estimation (OE) price and has to be approved by the Minister

of Energy and Mineral Resources


The tariff levels will be based on ceiling price of 25 cent/kWh (using

imported modules) and 30 cent/kWh (using modules with local

content ≥ 40%)

Tax facility for renewable energy in the form of Income Tax,

VAT, Import Duty and Tax Holiday, Tax Exemption etc.


• Indonesia has potential on Hydro energy more than 75.000 MW, yet only

less than 7,54% have been utilized. Total installed capacity of hydro

power is 5,750 MW.

• Total installed capacity of power plant is almost 30,000 MW (mid 2011).

Average growth of energy consumption is 9,2% per year.

• Presidential Decree No. 5 / 2006 on National Energy Policy (KEN) has

targeted in 2025 electricity from hydro energy will reach 10,940 MW or

contribute 4.4 % of national energy consumption.

• The program need at least US $ 580 million/year. In order to support the

program, some policies and regulations has been issued.

• Development plan up to 2019:

Large scale hydro power plant (> 10 MW) = 5,150 MW

Mini-hydro power plant (1-10 MW)= 323 MW, 193 locations (by PLN)

Mini-hydro power (1-10 MW)= 614 MW, 153 locations (by Private Co)


source: Draft National Energy Conservation Master Plan (RIKEN) 2011

• Low energy efficiency

• High primary energy intensity: 502 BOE/Billion IDR

Sector Potential of ECTarget of Energy

Conservation Sectoral(2025)

Industry 10 – 30% 17%

Commercial 10 – 30% 15%

Transportation 15 – 35% 20%

Houshold 15 – 30% 15%

Others (ACM) 25% -


The big potential for energy efficiency investments in Indonesia, especially for building and industrial sectors.

• Based on the Energy Policy Direction, the target of energy conservation is about 15.6% in 2025.

• 800 + energy audit reports, based on the energy audit program partnership (MEMR, 2003-2012), EINCOPS (DANIDA, 2011-2012), and EPS (NL Agency, 2010/2012).

• The big potential for energy efficiency investments in Indonesia: US$1.4 - 9.7 billions (Re-Ex Capital, 2009), US$ 3-4 billions (ADB, 2010)


Indonesia is the second largest energy market efficiency in ASEAN;

Investment potential is about U.S. $ 1.4 billion - U.S. $ 9.7 billion if industrial co-generation is

included (Potential Investment Co-gen is about U.S. $ 8.3 billion)

Energy consumption of street lighting (PJU) approximately 3,000 GWh per year, with the cost of

electricity paid by PLN 2.19 trillion per year.

Most of the lights do not use a meter, which it has a budget saving potential.

Energy saving potential of PJU is about 70%.

Commercial Sector (EE potential’s about 10 – 30%):

EE Technology : high efficient transformer, air conditioning with inverter, fan & pump with inverter, fluorecent

lamps, LED (light emission diode), high efficiency chiller, elevator & escalator with inverter, building management

system, etc.

Total retrofitting Chillers in the building sector are 104 units with an estimated cost per unit Rp. 5 billion, therefore

the total cost is about Rp. 520 M.

Industrial Sector (EE potential’s about 10 – 30%):

EE Technology : middle voltage inverter, compressor with inverter, utility optimization system,

distributed control system, high efficiency steam boiler & hot water supplier, cogeneration,

regenerative burner, thermal insulation cover, etc.

Transportation Sector (EE potential’s about 15-35 %)

EE Technology : Intellegent Transport System (ITS), Mass Rapid Transit (bus, monorel,

train, subway, etc.), gas convertion development, etc.

Energy and Mineral Resources for People’s Welfarewww.ebtke.esdm.go.id

Pegangsaan Timur Street No. 1A Menteng, Jakarta 10320; Phone/Fax : +6221-31924540

e-mail: [email protected]

MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

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