MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION

10th Palm Oil Conference and 2015 Price Outlook

Delivered by:
Dr. Dadan Kusdiana
Director BioEnergy

Bandung, 27 November 2014

Energy and Mineral Resources for People’s Welfare

I. INTRODUCTION 3
II. NATIONAL ENERGY POLICY AND ROADMAP 5
III. POLICY AND IMPLEMENTATION OF BIOFUEL MANDATORY PROGRAM 8
IV. POLICY AND IMPLEMENTATION OF BIOENERGY FOR ELECTRICITY 12
V. CONCLUDING REMARKS 20

Energy and Mineral Resources for People’s Welfare

Energy and Mineral Resources for People’s Welfare
 GLOBAL ENERGY TREND Source: IRENA, June 2014
1. Energy has been became a global issue, that
played as important role on national Doubling of share
of total renewable
development energy in 2030
including goal of
efficiency and
2. Energy is main capital for development as well modern energy
as main human needs access

Tripling of share of
modern RE in 2030
3. Energy based on fossil resources become on Global Total
limited and scarce, that caused the prices tend Final Energy
Consumption
to increase. Utilization of energy that are more
massive and constrained by limited resources
could trigger a war.
NATIONAL ENERGY POLICY ROADMAP
Source: Government Regulation No. 79/2014 concerning on National Energy Policy
4. Most of world energy sources produced from
fossil resources (In Indonesia almost 94% from
total primary energy supply came from fossil
resources).

5. Indonesia has high dependency on energy

import to full fill national energy demand.
Utilization of new and renewable energy
especially bioenergy can increase energy
sovereignty.

Energy and Mineral Resources for People’s Welfare

Energy and Mineral Resources for People’s Welfare
INDONESIA’S ENERGY MIX
Gas Gas
20,1 % 22.0% Coal
Coal 30.0%
Oil
24,5 % 25.0%
Oil
49,7 %
Bioenergy
9.8%
Geothermal
NRE Other NRE Hydro
7.3%
5,7% 3.3% 2.8%
CURRENT CONDITION 2025 TARGET (NEP DRAFT)
 ENERGY ELASTICITY < 1,
 NATIONAL ENERGY MIX: 1176 MIL BOE.
 OPTIMIZING AND INCREASING NRE SHARE ON NATIONAL ENERGY
 ENERGY CONSUMPTION GROWTH AVERAGE BY 7% PER YEAR MIX
 ENERGY ELASTICITY = 1,65.  ENERGY CONSERVATION, CLEAN AND EFFICIENT TECHNOLOGY
 NON FOSSIL ENERGY SHARE (NRE)  5%  REDUCING GHG EMISSION

MAIN OBJECTIVES:
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.

Energy and Mineral Resources for People’s Welfare

 YEAR 2015 2020 2025 2030 2040 2050
UNIT MTOE % MTOE % MTOE % MTOE % MTOE % MTOE %
Biomass Biofuel 6 2.8% 9 3.1% 19 4.7% 22 4.6% 44 5.9% 78 7.7%
Biomass Waste 4 1.9% 7 2.4% 20 5.0% 25 5.2% 52 7.0% 64 6.4%
Geothermal 9 4.2% 23 7.9% 28 7.1% 31 6.5% 36 4.9% 58 5.8%
Hydro 2 0.9% 5 1.7% 11 2.6% 12 2.5% 13 1.8% 20 2.0%
Ocean 0 0.0% 0 0.0% 0 0.0% 1 0.2% 2 0.3% 4 0.4%
Solar 0 0.0% 0 0.0% 0 0.0% 1 0.2% 11 1.5% 17 1.7%
Other RE (Wind) 0 0.0% 0 0.0% 0 0.0% 0 0.0% 1 0.1% 1 0.1%
NE (Nuclear, CBM, other) 0 0.0% 5 1.7% 13 3.2% 27 5.6% 48 6.5% 68 6.8%
Oil 84 39.3% 93 32.1% 100 25.0% 106 22.1% 155 20.9% 200 20.0%
Gas 47 22.0% 64 22.1% 88 22.0% 110 23.0% 178 24.1% 240 24.0%
Coal 62 29.0% 84 29.0% 120 30.0% 144 30.1% 200 27.0% 250 25.0%

TOTAL 215 100.0% 290 100.0% 400 100.0% 479 100.0% 740 100.0% 1000 100.0%

SUB TOTAL FOSSIL 193 90.2% 241 83.1% 308 77.0% 360 75.2% 533 72.0% 676 69.0%

SUB TOTAL NON FOSSIL (NRE) 21 9.8% 49 16.9% 92 23.0% 119 24.8% 207 28.0% 310 31.0%

Energy and Mineral Resources for People’s Welfare

Energy and Mineral Resources for People’s Welfare
 REGULATION POLICY ACHIEVEMENT

MEMR Regulation No. Mandatory policy of biofuel Biofuel utilization increased significantly from year to year.
25/2013 that has been utilization: 10% biodiesel blended Utilization of biodiesel for domestic consumption in 2013 amounted to
revised to MEMR (B-10) since 1st September 2013 1,05 million KL (an increase of 56,62% from the use of biodiesel in
Regulation No. 20/2014 2012).

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%
Electricity Generation 7,5% 20% 25% 30% 30% 30%

Increasing demand of biofuel since the

Biofuels domestic usage mandatory policy:
implementation of mandatory policy through MEMR
• Fossil fuel substitution/reduce oil import 30
Regulation 20/2014

Millions
• creating the market of biofuel  industrial development 25
• improvement of domestic economy shortages
20 of supply

Capacity (KL)
1. Utilization biodiesel B-10 and will increase to B-20 by 2016 and B-30 15
by 2020
10
2. Demand for biodiesel will increase significantly doubled by 2016 installed
(the implementation of B-20) and 1.5 times in 2020 (the 5 capacity
projection
implementation of B-30).
- (BaU)
3. With the current installed capacity of the existing biodiesel industry 
2013 2015 2017 2019 2025 2035 2045
new investment of biodiesel plant should be accelerated to meet great
the potential demand. Biodiesel Demand
opportunities
Biodiesel Installed Capacity
Energy and Mineral Resources for People’s Welfare
 BIOFUEL MANDATORY PROGRAMME
ACHIEVEMENT OF BIODIESEL PRODUCTION MAP OF BIODIESEL INDUSTIES
Until September 2013, consumption Biodiesel industry production capacity : 4,47 million KL/year
of biodiesel reach 1.2 million KL and
save about 1.08 million USD

Note: *) Up to September 2014

*) Production 2014 is a realization of domestic, export, and stock biofuel

NEXT STEP
1. SHORT TIME: Focus on utilization of biodiesel from economical 2. MIDDLE AND LONG TIME, focus on drop-in biofuel that will be
sources and producers: begun on bioavtur.
• For biodiesel, up to B20, applied to existing engine (with no 3. Creating good investment condition
engine modification). More than B20, applied with engine
4. Formulating attractive biofuels pricing mechanism and creating
modification and green diesel combined.
positive impact for economy.
• For bioethanol, up to E20, applied to existing engine. To
5. Finalize the B20 running test to prepare implementation of B20 in
encourage and to secure domestic supply, development of
2016.
bioethanol is focused in second generation and biogasoline.
6. Revising of Indonesia National Standard (SNI) for biofuels to meet
with international standard.
Energy and Mineral Resources for People’s Welfare
 ROAD TEST UTILIZATION OF B20
 Technical Review and Test Utilization of biofuel (B20) was performed to support the
implementation of B20 in 2016 as stated in the MEMR Regulation No. 25 of 2013.
Storing Vehicle  Road test was launched on July 17th, 2014 by Minister of MEMR.
Fueled B20  Progress update of the test until October 30th, 2014:
1.Initial tests of engine performance include ratings testing, emissions testing, and
Vehicle Test performance testing with B0 and B20 fuels.
Toyota – 2.Test road has reached the end of the target a distance of 40,000 KM. Currently under
Innova final test engine performance (test ratings, emissions testing, and performance testing).
3. Test result shows decreasing emission and increasing power in vehicles using B20.

Serpong Ja ka rta Oute r

Basecamp Ri ng Rd

Vehicle Test Ci ka mpe k

Hi ghwa y Pa ntura
Ja gora wi

Mitsubishi – Hi ghwa y Ge ne ra l Rd

Pajero 2

1 Lembang
Basecamp (ni ght)

Le mba ng
Cl i mbi ng

Punca k
Cl i mbi ng

Ba ndung

Vehicle Test Ci pa ta t
Ge ne ra l Rd
Ci ty Rd

Chevrolet - Rute Uji Jalan B20 Pa da l e unyi

Hi ghwa y

Spin Route Note

1 Serpong-JORR-Jagorawi-Puncak-Cianjur-Padalarang-Cileunyi Refueling in Serpong

2 Cileunyi-Padaleunyi-Pasteur-Lembang-Subang-Cikampek-Palimanan Resting in Lembang

3 Palimanan-Cikampek-Karawang-JORR-Serpong

One lap take approximately 500 km per day (24 hours)

Energy and Mineral Resources for People’s Welfare

Energy and Mineral Resources for People’s Welfare
 Potential Jawa-Bali- Nusa
No Unit Sumatera Kalimantan Sulawesi Maluku Papua Total
(MWe) Madura Tenggara
1 Palm oil MWe
8.812 3.384 60 - 323 - 75 12.654
2 Sugar cane MWe
399 - 854 - 42 - - 1.295
3 Rubber MWe
1.918 862 - - - - - 2.781
4 Coconut MWe
53 10 37 7 38 19 14 177
5 Rice husk MWe
2.255 642 5.353 405 1.111 22 20 9.808
6 Corn MWe
408 30 954 85 251 4 1 1.733
7 Cassava MWe
110 7 120 18 12 2 1 271
8 Wood MWe
1.212 44 14 19 21 4 21 1.335
9 Cow dung MWe
96 16 296 53 65 5 4 535
10 MSW MWe
326 66 1.527 48 74 11 14 2.066
Total potential MWe 15.588 5.062 9.215 636 1.937 67 151 32.654
1) Based on MEMR survey in 2011 – 2012
2) Biofuel resources are palm oil, molasses, cassava, etc

Energy and Mineral Resources for People’s Welfare

• The previous feed-in tariff can not accelerate the grow of bioenergy power plant
• Currently, the government already revised the feed in tariff for biomass and biogas
Region and Off-Grid • Current capacity of bioenergy based on-grid power plant in year 2014 is 91.9
Biomass Source Capacity(MW) MW (palm waste 77,4 MW ; municipal solid waste 14.5 MW) and based off-grid
Sumatera power plant is 1,626 MW.
Palm industry 335 • Biomass in Indonesia can be generated electricity to 32 GW
POME 9
Sugar industry 66 Installed Capacity (On-Grid)
Paper Industry 955
100
Kalimantan 90.5 91.9
Palm industry 91 80 75.5
60 59
Jawa-Bali

MW
Palm industry 2 41
40
Sugar industry 142 18 18
20
Sampah kota -
0
Sulawesi
2008 2009
Palm industry 11 2010 2011 2012
Sugar industry 11 *) up to October 2014
2013
2014*
Papua
Palm industry 4 reducing the use of fossil fuels as fuel for
Total 1,626
power plants and increasing national
security of supply of electricity

Energy and Mineral Resources for People’s Welfare

• Waste utilization for on-grid electricity
• Biomass utilization for mini grid and off-grid
electricity
• Energy crops and energy forest
• Iconic Island for new and renewable
energy in medium and small island

Energy and Mineral Resources for People’s Welfare

INCENTIVES FOR COMMERCIAL ON GRID IMPLEMENTATION
1. Giving priority for renewable energy resources that available locally (no
need for tender)
2. Mandatory for electricity company (PT. PLN) to purchase electricity
generated from renewable energy
3. Regulated Purchasing Price (Feed-in Tariff)
4. Tax investment credit for electricity generated from renewable energy
(currently applies for geothermal)
5. Reduced or exempted custom tax for renewable energy technologies
6. Simple permit procedure

Energy and Mineral Resources for People’s Welfare

A NEW POLICY ON FEED IN TARIFF FOR BIOMASS AND BIOGAS
FEED-IN TARIFF FOR BIOENERGY BASED POWER PLANT
(MEMR Regulation No. 27 Year 2014 and No. 19 Year 2013)
No Energy Capacity Electricity Tariff Note
• Applied only for
Medium Voltage
1. Biomass until 10 MW Rp. 1.150,- / kWh X F
biogas, biomass, and MSW power
Non Municipal plant with capacity up to 10 MW
2. Biogas until 10 MW Rp. 1.050,- / kWh X F
Solid Waste
Municipal Solid • Measurable procedure for permitting
3. until 10 MW Rp. 1.450,- / kWh Zero waste
Waste (MSW) process
Municipal Solid
4. until 10 MW Rp. 1.250,- / kWh Landfill
Waste (MSW) • Long term PPA (20 years)
Low Voltage
1. Biomass until 10 MW Rp. 1.500,- / kWh X F • Additional incentives based on
2 Biogas until 10 MW Rp. 1.400,- / kWh X F
Non Municipal regions
Solid Waste

3
Municipal Solid
until 10 MW Rp. 1.798,- / kWh Zero waste
• Supporting Indonesian Sustainable
Waste (MSW) Palm Oil (ISPO) which based on
Municipal Solid
4
Waste (MSW)
until 10 MW Rp. 1.598,- / kWh Landfill palm oil for electricity generation
F as an incentive factor based on the region where the power plant installed
• Short construction period (2 years)
Jawa Island F = 1,00 Sumatera Island F = 1,15
Sulawesi Island F = 1,25 Kalimantan Island F = 1,30
Bali, Bangka Belitung, F = 1,50 Riau archipelago, Papua and F = 1,60
Lombok the rest island

Energy and Mineral Resources for People’s Welfare

• Utilization of palm waste, reducing CH4
emissin (open lagoon cover lagoon),
substitute the diesel power supply within
the area, decreasing electricity production
cost, and power supply to the people.
• Teknologi Anaerob Buffle Reactor –
covered lagoon. Rokan Hulu, RIAU Biogas Power Plant from Palm Oil Mill Effluent (POME)
Biogas : 750 m3/hour (60% CH4)

• Theare are alot in the off-grid area such as

Utilization : 1 MW for 1.050 household

north sumatera and riau procinces.

• EPCC basicaly from local, we’re building 3
biogas power plant in 2013-2014.

PT AUSTINDO NUSANTARA JAYA

The First on-grid of biogas power plant

Energy and Mineral Resources for People’s Welfare


Palm Oil
Mills
Biomass Waste from Palm Oil Mill
Palm Kernel Shells (PKS)
Fiber
Empty Fruit Bunch (EFB)
Palm Oil Mill Effluent (POME)
Energy and Mineral Resources for People’s Welfare
Self Sufficient
fulfill their energy demand by themselves by utilizing palm
oil waste to generate electricity
From 30 ton/hours Fresh Fruit Bunch (FFB) can generate:
Typically • 4 – 5 MW electricity from biomass power plant
used in POM
or sold • 1 MW electricity from POME power plant
separately
Not utilized
yet
From around 700 unit of Palm Oil Mills nationally, with
average capacity 30-45 ton/hour FFB processed, it can
easily generate at least:
• 3500 MW electricity from biomass power plant
• 700 MW electricity from POME power plant
Energy and Mineral Resources for People’s Welfare
1. As part of national energy policy, the utilization of bioenergy will be continuously
implemented and improved in order to strengthen national energy security as well as
reducing national emission reduction.

2. The development of bioenergy mainly produced from palm oil resources will reduce the
use and reduce import of fossil fuel and give positive impact to economic condition.

3. There are big potential of palm oil resources (oil as main product and biomass waste) that
can be develop into bioenergy shortly.

4. Policy and regulations on bioenergy has been available and it will continuously to be
developed to increase business climates for investment on bioenergy in order to accelerate
the utilization of bioenergy.

5. The role of Palm Oil Industries is strategic and important in accelerating the bioenergy
development.

Energy and Mineral Resources for People’s Welfare

 MINISTRY OF ENERGY AND MINERA RESOURCES
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

JALAN PEGANGSAAN TIMUR NO. 1, MENTENG, JAKARTA 10320

Phone: +62 21 39830077 Fax: +62 21 31901087
www.esdm.go.id - www.ebtke.esdm.go.id

Energy and Mineral Resources for People’s Welfare