The prospects and limitations for wood fibre bioenergy development in Indonesia

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The prospects and challenges The prospects and challenges for wood fiber for wood fiber bioenergy bioenergy development in Indonesia development in Indonesia THINKING beyond the canopy Ahmad Dermawan and Krystof Obidzinski BIT’s 2 nd Annual World Congress of Bioenergy – 2012 Xi’an, 25-28 April 2012

description

In this presentation, CIFOR scientist Ahmad Dermawan discusses Indonesia’s plan for bioenergy development and the opportunities and challenges inherent in the recent interest in wood pellets from South Korea and China. In developing countries, he argues, the challenge is not (only) on technological issues or production of bioenergy, but also on social and governance issues.Ahmad gave this presentation as part of the ‘Feedstock from wood and forestry and conversion technology’ session at the second Annual World Congress of Bioenergy: Renewable Energy for Sustainability, held in Xi’an, China on 25–28 April 2012.

Transcript of The prospects and limitations for wood fibre bioenergy development in Indonesia

Page 1: The prospects and limitations for wood fibre bioenergy development in Indonesia

The prospects and challenges The prospects and challenges for wood fiber for wood fiber bioenergybioenergy

development in Indonesiadevelopment in Indonesia

THINKING beyond the canopy

Ahmad Dermawan and Krystof ObidzinskiBIT’s 2nd Annual World Congress of Bioenergy – 2012

Xi’an, 25-28 April 2012

Page 2: The prospects and limitations for wood fibre bioenergy development in Indonesia

StructureStructure

About CIFOR

Forest resources in Indonesia

Wood-based energy in Indonesia

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Wood-based energy in Indonesia

Opportunities

Challenges

Implications

Page 3: The prospects and limitations for wood fibre bioenergy development in Indonesia

Center for International Center for International Forestry ResearchForestry Research

� Established in 1993

� A “center without walls”: 200 staff globally, with extensive

network of partners

� Global mandate, with focus on tropical forests

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� Global mandate, with focus on tropical forests

� Headquartered in Bogor, Indonesia

� 2 Regional Offices, 7 Project offices, 37 country sites

Page 4: The prospects and limitations for wood fibre bioenergy development in Indonesia

Energy Mix in IndonesiaEnergy Mix in Indonesia

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Page 5: The prospects and limitations for wood fibre bioenergy development in Indonesia

Indonesia is a forestIndonesia is a forest--rich country…rich country…

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…but the forest is declining…but the forest is declining• About 134 million ha forest estate • Only 91 million ha forest cover• Papua is where much forest cover left

Page 6: The prospects and limitations for wood fibre bioenergy development in Indonesia

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Increasing demand Increasing demand for pulp and paperfor pulp and paper

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� Recent interests in wood pellets due to demand from abroad

� New investments coming in, notably from South Korea

� China is exploring the opportunities

� Land has been allocated for timber plantations for wood

WoodWood--based energy in Indonesiabased energy in Indonesia

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� Land has been allocated for timber plantations for wood pellets: Papua, Kalimantan, Central Java

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OpportunitiesOpportunities

� Potentially large areas available for new plantations

• Approximately 13 million ha of land for biofuels

� Government support, esp. in “food and energy zone”

• Lowered or exemption of taxes

• Fast tracked land acquisition

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• Fast tracked land acquisition

• Concession rights valid for 60 years, extendable to 90 years

• Visas and immigration assistance

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ChallengesChallenges

� Decentralization complicates licensing and dealing on administration matters

� Although available land is large, it is generally dispersed

� Land tenure system is complex

� Demand for pulp and paper is still high and more

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� Demand for pulp and paper is still high and more profitable

� Oil is still heavily subsidized in Indonesia

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ImplicationsImplications

� Social issues is as important as technical and economic issues.

� Getting government buy-in is important

� Get the processes for land acquisition and transfer of land compensation funds sorted out in a clear and

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land compensation funds sorted out in a clear and transparent manner

� Be prepared for negotiate legally binding acquisition agreements and employment guarantees with local communities

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