Energy Policy for Indonesia Sustainable Development

Zuhal
Rector of theUniversity of Al Azhar Indonesia Professor at the Engineering Faculty-University of Indonesia

Background
Worlds future economic growth is heavily depends on the energy and electricity use The depleting reserves and high price for oil had significant effect on the role of oil in the energy mix. The current centuryan era of environmental awareness (Kyoto Protocol in 1997)requires energy resources to satisfy the worlds future energy demands. Changes in the electricity sector, international concern over climate change, and domestic concerns about energy security provide opportunities for renewable energy sources to increase their market share. By 2030, the world is projected to consume two-thirds more energy than today, with developing countries replacing the industrialized world as the largest group of energy consumers.

Structure of Primary Energy Demand (%) (Business as usual)

Type of Primary energy Oil Gas Coal Hydro Nuclear, Geothermal & others 2000 World (%) 38 24 24 6 6 Indonesia (%) 53 29 15 2 1 2010 Indonesia (%) 49 23 21 5 2 2020 Indonesia (%) Decrease (- - ) Increase (++) Flat (=) Increase (+++) Increase (+++)

Indonesian Energy Dilemma

Domestic Needs Fuel Electricity Social Function

Hydro Carbon Resources

Commercial Function

Energy For Export

Foreign Exchange

Industrial Products For Export

The Indonesian government aims

To guarantee the energy availability through for domestic need To improve quality services To guarantee long term sustainability of energy supply To guarantee energy for export purposes To conserve and preserve the environment.

Government Policy Energy diversification Energy Conservation Energy Price Environment

Energy Diversification in Transportation Sector

1200000 1000000 . Thousand BOE 800000 600000 400000 200000 0 1995 2010 2020 Res Commercial Industry Transportation

CNG and LPG Electrification of train systems Using renewable energy sources (Castor Oil)

Energy diversification in Electricity Sector

(Reduce Petrol Used)
Crisis: -Increase sale -No additional Power plant -Covered by petrol based plant In 1993 Petrol used 54% for electricity 54%

Before 1980 Petrol ud 77% for electricity 77%

Before 1980: -Mostly using Petrol -Small Hydro -No Coal

In 1997 21% Petrol used for electricity 21%

In 2005 30% Petrol used for electricity 30%

5%

In 2010 Petrol used for electricity 5%

1980

1993

1998

2005

2010

Diversification initiatives 1980s: -Building coal power plant -Building big Hydro plant -Building Geothermal power plant in Kamojang Sources: Kompas Newspaper

Diversification initiatives 1990s: -Building coal power plant -Building natural gas power plant -Building more Geothermal power plant -Privatization of non petrol power plant

Diversification initiatives 2000s: -Building more coal power plant -Building more natural gas power plant -Building liquid natural gas power plant -Privatization of non petrol power plant -Conversion of petrol power plant into gas

Indonesia Energy Balance 2006-2015

160000 140000 120000 100000
GW h

80000 60000 40000 20000 0

Fuel Oil Gas Coal Geothermal Hydro

2006

2010

2015

Year Source: http://202.162.220.3/statistik/statistik.asp

Electricity production by each energy source

30000 25000 20000 GWh 15000 10000 5000 0 HSD IDO MFO Coal Gas Hydro Type of fuel
Source: http://202.162.220.3/statistik/statistik.asp

Outside Java Java

Concentration Map of NO2 (DNC)

Java ( 1991)

Java (2021)

Concentration Map of SO2 (DNC)

Java ( 1991)

Java (2021)

Environment
Java-Bali Island: New Approach
Use low sulfur coal-supply Apply high thermal efficiency process Use anti pollution equipments Electrostatic precipitator Fluidized bed boiler technology & other high tech Boilers The importance of nuclear option (need support for geo-technique study) Burn low quality coal in Sumatra (nine months) and use AC/DC cable to Java-Bali Island

Environment
Outside Java-Bali
The role of rural electrification Increase the use of new & renewable energy sources

Research and Development

Ocean wave energy Wind energy Bio-diesel energy Hybrids Biomass Energy garden (Castor oil plant) Hydrogen (but it is still far reach and very expensive)

Conclusion
The Indonesian energy sector is still heavily dependent on non-renewable fuel such as fossil fuels and natural gas as a source of energy These non-renewable fuels are finite and gradually depleting and also contribute to the emission of greenhouse gas. The implementation of various policies and programs by the government of Indonesia has increased the awareness of the importance of the role of renewable energy in a sustainable energy system For Indonesia archipelago the energy solution is really depend on its geographical position and natural resources

Thank You