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Indonesia

Official Name:
Republic of Indonesia

National Designated Entity

Type of organisation:
Government/Ministry
Name:
Dr. Ruandha Agung Sugardiman
Position:
Director General of Climate Change
Phone:
+62 21 573 0144
Emails:
ndectcn.idn@gmail.com

Energy profile

Indonesia (2012)

Type: 
Energy profile
Energy profile
Extent of network

The Indonesian interconnected system integrates the systems in the islands of Java, Bali and Madura; in addition, there are several isolated and partially-interconnected power systems in the other islands. These systems have been developed around major load centres, but electricity is often delivered through 20 kV rural electrification systems. In 2006, the state-owned electricity company (PLN) served 54% of Indonesia’s households. PLN expects that 93% of households will be connected to grid electricity by 2020. The Ministry of Energy and Mineral Resources reported that Indonesia’s electrification ratio had increased to 65% in 2009. Transmission is via a 500 kV network, with distribution voltages of 150 kV and 20 kV. The islands of Java and Sumatra are linked by a 39 km submarine cable to cover Sumatra’s shortages in electricity supply.   The electricity sector is expected to expand coal-fired generation, and to eliminate most use of oil. The share of electricity generated by oil will reduce from 31% in 2005 to 4% in 2015, and to 1% by 2030. Electricity generated by coal-fired power plants is expected to increase to 64% of all electricity generated in 2015; the final figure for 2030 is 67%. Indonesia’s gas distribution utility Perusahaan Gas Negara (PGN) currently operates more than 3,500 miles of natural gas transmission and distribution pipelines. However, domestic distribution infrastructure is almost non-existent outside of PGN’s Java and North Sumatra strategic business units. According to PGN, in 2009 there was over 400 Bcf of unmet demand for gas among domestic industrial and electric power customers. 

Renewable energy potential

In Indonesia, renewables output from hydro remained fairly stable. Geothermal grew by 5.8% per annum since 2000 and now contributes roughly one‐third to renewables. The rest of renewables is hydro power. Thanks to the increase in geothermal generation, the share of renewables went down only mildly from 15.9% in 2000 to 13.3% in 2009, although the total electricity generation grew at a fast rate.Biomass energy / BiofuelsIndonesia has a large potential for biomass energy. Rice residues, sugar, rubber and palm oil all provide biomass electricity, but the most promising commercial application for biomass is likely to be cogeneration in agribusiness. The current installed capacity is 445MW, whilst the whole potential of biomass from forestry, agriculture and estates is equivalent to 50,000MW.Palm oil is the main biodiesel feedstock in Indonesia. In 2008, the economy produced 20 Mt, making Indonesia a leading producer and the second-largest exporter of palm oil. It was the world’s 11th largest producer of biofuels (fuel ethanol and biodiesel) in 2010. Palm oil, however, is rarely used in local biofuel development. The international price for palm oil and the higher value placed on food has meant that most palm oil is expected or used in food production. Additional restrictions to development include a lack of incentives and subsidies for fossil fuels; incomplete data on land ownership; and a lack of biofuel processing ability. As a result, biofuel development in Indonesia remains sluggish compared to that of other countries in the region. But several companies have begun using fast-growing crops, such as cassava, jatropha, or sweet sorghum, for biofuel production. The Ministry of Agriculture is preparing additional land for growing these high-yield feedstocks to meet the country’s biofuel production goals of 5.57 million kiloliters of biodiesel and 3.77 million kiloliters of bioethanol. The introduction of these crops will likely to accelerate the production of biofuels. New areas planted with Jatropha are expected to total 1.69 million hectares in 2010. Indonesia’s biodiesel blend production capacity in 2009 was 2,865 million litres (ML) and was estimated to be 4,680 ML in 2010, far exceeding the volumes needed to fulfil the mandates in those years.Solar energyCurrent installed capacity of solar PV is estimated to be about 12.1 MW, which is mostly from roof-mounted solar PV cells, in urban areas. Average daily insolation ranges from 4.5 to 5.1 kWh/m2 across the country, with a monthly deviation of 9%, indicating a good potential for the widespread use of solar energy. Indonesia is utilizing PV systems to increase its electrification ratio target, which was 66.2% in 2009. During the same year, the government allocated about USD 65 million toprovide new and renewable energy–based power generation for Indonesia’s distributed power systems. The program provided electricity to around 94,000 households, particularly households in 18 of the outermost islands of Indonesia.Wind energyThe potential for wind energy is limited because of the lack of wind along the equator. Average wind speeds across the country range from 3-6 m/s, indicating the potential capacity for wind energy of 9,190 MW mainly from the higher wind-speed regions. However, the windiest regions tend to be the less populated, eastern islands, which lack a transmission infrastructure capable of sustaining large wind farms. Wind power opportunities are thus limited to small or medium-sized projects requiring lower wind speeds. Government plans therefore include the development of small- and medium-scale wind energy systems, with a view to having a total installed wind capacity of 970 MW by 2025. To date, only a few small-scale wind farms have been attempted, and they account for only 1.1 MW of installed capacity. In the future, offshore wind is more likely to provide investment opportunities due to the lengthy coastlines and consistent ocean breezes.HydropowerIn 2008, Indonesia had an estimated hydropower potential of 75,670 MW. However, roughly 35,000 MW of Indonesia’s hydropower potential is located in the province of Papua, which is located far from demand centres. The country has not built a large hydropower facility; and the current installed capacity is 4,264.0 MW, with an additional 500 MW of mini-hydro potential having been identified. Currently, only 6% of Indonesian hydropower potential has been utilised, indicating the possibility for considerable development in the sector for the future.Geothermal energyIndonesia is home to 40% of the world’s known geothermal resource, which is the largest geothermal potential in the world. 2010 estimates report that the total geothermal potential of the country is roughly 28,100 MW. Current installed geothermal capacity is roughly 1,189 MW. As of end-2010, Indonesia was the third largest geothermal generator in the world, producing 1.2 GW. The further development of the country's substantial geothermal capacity has slowed since 2000, and currently, only 4.2% of the country's total geothermal potential is being exploited. Government plans for the development of the energy sector include expanding the installed geothermal capacity of the country to 5,000 MW by 2014, rising to 9,500 MW (5% of the national electricity) by 2025, according to the 2005-2025 National Energy Blueprint. The second phase of the Fast Track Programme includes additional geothermal capacity of nearly 4 GW by 2014, most of which will be operated by independent power producers.Ocean energyWith thousands of miles of coastline, the potential for ocean energy is significant at an estimated 10-35 MW per kilometre of coastline. The potential capacity is estimated to be 35 MW, while the current installed capacity stands at 0.0 MW. Presently, only one demonstration project has been developed – an ocean current system in the Lombok Strait. But future growth in the industry is also likely as technologies become further commercialised, and some ocean energy projects are underway. 

Energy framework

Until the time the National Energy Council (DEN) establishes a new National Energy Policy (KEN), the National Energy Policy of 2006 applies. The aim of this policy is to:Achieve energy elasticity to GDP of less than one by year 2025Realize an optimum primary energy consumption mix in 2025, with shares as follows:   oil - to become less than 20%   natural gas - to become more than 30%   coal - to become more than 33%   biofuels - to become more than 5%   renewable energy and other energy including nuclear - to become more than 10%   liquefied coal - to become more than 2%.The details of the energy programs and targets of the National Energy Policy are elaborated in the Blue Print - National Energy Management 2005 to 2025. Indonesia’s 2006 Energy Policy expects the combined share of renewable energy and nuclear in the overall energy mix in 2025 to have exceeded 17%. The policy has special emphasis on enhancing the share of biofuels. Renewable energy and other energy including nuclear (as in the list above) is expected to be made up of at least a 5% geothermal share and a combined share of biomass, hydropower, solar, wind and nuclear power to make up the remainder to 10% by 2025.National Energy Conservation Master Plan (RIKEN) (2005) aims to achieve Indonesia’s energy saving potential through energy efficiency and conservation (EE&C) measures, and so avoid wasteful energy use in the country. It also aims to reduce energy intensity by around 1%/year, on average, until 2025. Fiscal incentives (tax reductions and soft loans) together with other instruments such as training and educational programmes as well as energy audits are used to implement the plan.National Biofuel Roadmap (Presidential Decree 10/2006) for 2006-2025, following the 2005 National Energy Blueprint, is to accelerate the use of biofuel as a replacement fossil-based fuel. It sets specific targets for production as well as utilization between 2006 and 2025, gradually increasing the utilization of biofuel from 2% to 5% of energy mix.  Government’s ‘25/25 Vision’ plans to have renewable energies fulfil 25% of the country’s energy needs by 2025.On 10 August 2007, Indonesia enacted the Energy Law (Law No. 30/2007). The Law elucidates principles for the utilisation of energy resources and final energy use, security of supply, energy conservation and protection of the environment with regard to energy use, pricing of energy, and international cooperation. The Energy Law sets out the content of the National Energy Policy (KEN, Kebijakan Energi Nasional) (2006); the roles and responsibilities of the central government and regional governments in planning, policy and regulation; development priorities for energy research and development, and the role of enterprises.The Energy Law mandates the creation of a National Energy Council (DEN, Dewan Energi Nasional), the tasks of which are:draft the National Energy Policy, to be endorsed and promulgated by the government, with due consent of parliament (the DPR),draft the National Energy Master Plan (RUEN, Rencana Umum Energi Nasional),declare measures to resolve the conditions of energy crisis and energy emergency,provide guidance and management on the implementation of cross-sectoral policies on energy.It is a national, independent, and permanent body and its members include 7 government officials and 8 stakeholders.Under the Energy Law, the 2006 National Energy Policy will address the availability of energy, energy development, the utilization of domestic energy resources, and energy supply reserves. It states that Indonesia’s goal is to achieve energy elasticity (the ratio of change of total primary energy supply over the rate of change of GDP) of less than 1 in 2025.Until the new National Energy Policy is enacted, the Presidential Regulation No. 5/2006 on the National Energy Policy regulates the development of renewable energy. It mandates an increase in renewable energy production from 7% to 15% of generating capacity by 2025. It states that the contribution of new and renewable energy in the 2025 national primary energy mix is estimated at 17%, consisting of 5% biofuel, 5% geothermal power, biomass, nuclear, hydro and wind, and also liquefied coal at 2%. The government will take measures to add the capacity of micro hydro power plants to 2,846 MW by 2025, biomass of 180 MW by 2020, wind power of 0.97 GW by 2025, solar of 0.87 GW by 2024, and nuclear power of 4.2 GW by 2024. The total investment needed for this development of new and renewable energy sources up to the year 2025 is projected at $13,197 million.The Green Energy Policy (2004): includes guidelines for the development of renewable energy, including regulatory instruments.Biofuel Decree (Ministry of Energy and Mineral Resources Regulation No. 32/2008) settles a mandatory utilization framework in the transportation, industrial, commercial and power generation sectors for biodiesel, bioethanol and bio-oil from 2009 to 2025.Biofuels subsidy: In February 2009, the Indonesian government announced that it would establish a biofuels subsidy to encourage investment in, and use of, biofuels made from palm oil and other feedstocks. The subsidy would only be paid if biofuel prices are higher than crude oil-based fuels.The Geothermal Law (No. 27/2003): gives powers to regional governments to develop geothermal energy, in particular in respect of licensing, allowing investors to deal directly with regional governments and requiring projects to be competitively tendered. It also provides incentives for investment by establishing long-term licenses for land use (more than 30 years) and a regulated price for geothermal energy.Tax incentives for geothermal exploration (Regulation 22/PMK011/2011).Ministerial Regulation No.002/2006: on the commercialisation of middle scale renewable energy power plants.Law No. 25/2007: concerning investment. Since 2008, the government has offered tax incentives for foreign investment including investors in renewable energy. Incentives include a 30% net income tax reduction for 6 years, free repatriation of investments and profits, and dispute settlement.The Electricity Law (Law No. 30/2009): secures sustainable energy supplies, promotes conservation and use of renewable energy resources. The regulation was issued by the Ministry of Energy and Mineral Resources (ESDM) and referred to as "Purchasing Price by PT PLN (Persero) of Generated Electricity from Small and Medium Scale Renewable Energy Power Plant or Excess Power”. The aim of this ministerial regulation is to enhance the electricity generated by small and medium scale of renewable energy power plant or excess power to be purchased by state owned company, regional owned company, cooperatives. The law does not make provisions for a feed-in tariff, but does provide for differing tariffs in different regions, more accurately reflecting the cost of supply. For rural development, the government set a bold electrification target of 90% by 2020.Purchase of electricity from geothermal plants (Regulation 02/2011) of the Ministry of Energy and Mineral Resources regulates the power purchase tariff of electricity from geothermal sources. It assigns the PLN to purchase electricity from geothermal plants inside at a maximum price of 0.97/kWh.Clean Technology Fund (CTF), a multilateral fund, aims to accelerate the country’s initiatives to promote energy efficiency and renewable energy, and to help achieve the objective of increasing the electrification rate from 65% to 90% in 2020 as well as the long-term goal of reducing greenhouse gas emission by 26% by 2020. Under a new $400 million climate investment plan, endorsed by the CTF, Indonesia’s geothermal power capacity is set to nearly double. The plan will use co-financing from the CTF to expand large-scale geothermal power plants and to facilitate energy efficiency and renewable energy by creating risk-sharing facilities and addressing financing barriers to small- and medium-scale investments. The CTF is slated to mobilise an additional $2.7 billion from a range of other sources.  Indonesia ratified the UN Framework Convention on Climate Change (UNFCCC) on 23 August 1994 and the Kyoto Protocol on 3 December 2004. As a non-Annex 1 party in the Kyoto Protocol, Indonesia has no obligation to reduce GHG emissions. However, the government is committed to participating in, and cooperating with, the global effort to combat climate change as Indonesia is the third largest emitter of greenhouse gases, mostly because of deforestation. It is also vulnerable to climate change as an island nation whose capital city, Jakarta, sits below sea level. This position was expressed by the Indonesian President in the G20 Finance Ministers and Central Bank Governors Summit held in September 2009 in the United States. The government has pledged to reduce GHG emissions from forestry and the energy sector by 26% through domestic effort by 2030, and by up to 41% through cooperation with other economies. To meet the goal, Indonesia will heavily invest in renewable energy and recommit to stopping deforestation. 

Source
Static Source:
  • Communicating Extreme Weather Event Attribution: Research from Kenya and India

    Type: 
    Publication
    Publication date:
    Objective:

    Climate change attribution analysis assesses the likelihood that a particular extreme weather event has been made more or less likely as a result of anthropogenic climate change. Communication of extreme event attribution information in the immediate aftermath of an extreme event provides a window of opportunity to inform, educate, and affect a change in attitude or behaviour in order to mitigate or prepare for climate change.

  • Hydrological Zoning

    Type: 
    Publication
    Publication date:
    Objective:
    Sectors:

    Hydrological zoning (or simply zoning) is an approach to divide land into different zones based on their hydrological properties. Typically, each type of zone has different land use and development regulations linked to it. This land and water management method aims to protect local water sources from risks of over-abstraction, land salinization, groundwater pollution and waterlogging by managing land use activities based on the assigned hydrological zones.  For example, zones with a high groundwater table, large amounts of surface water (e.g.

  • Pöyry Austria GmbH

    Type: 
    Organisation
    Country of registration:
    Austria
    Relation to CTCN:
    Network Member

    Pöyry Austria GmbH, a member of the global Pöyry Group, is a consulting and engineering company with deep expertise with extensive local knowledge to deliver sustainable project investments. For instance, its Hydro Consulting department delivers services in the fields of hydrological and hydraulic modellingand forecasting. Its experts have significant experience in the fields of hydro-meteorology, climate change and climate sensitivity. They also contribute to assess climate risk and ctimate adaptation measures for hydropower and all other sectors of water management.

  • Tambourine Innovation Ventures Inc.

    Type: 
    Organisation
    Country of registration:
    United States
    Relation to CTCN:
    Network Member

    Incorporated in 2015, Tambourine Innovation Ventures (TIV) is an innovation advisory and venture development firm that provides a full suite of services and solutions to the challenges and needs generated by the increasing interest and activity globally in the areas of climate change adaptation/mitigation, innovation, technology transfer and venture finance. TIV founders and consultants bring more than three decades of experience in assisting the developing countries access innovative technologies from the industrialized countries and grow technology ventures.

  • Energy Efficiency (Policies and Measures Database)

    Type: 
    Publication
    Objective:

    The Energy Efficiency Policies and Measures database provides information on policies and measures taken or planned to improve energy efficiency. The database further supports the IEA G8 Gleneagles Plan of Action mandate to “share best practice between participating governments”, and the agreement by IEA Energy Ministers in 2009 to promote energy efficiency and close policy gaps.

  • Green Resources & Energy Analysis Tool (GREAT)

    Type: 
    Publication
    Objective:

    The GREAT Tool for Cities is an integrated bottom-up, energy end-use based modelling and accounting tool for tracking energy consumption, production and resource extraction in all economic sectors on a city, provincial or regional level. The model uses the Long-range Energy Alternatives Planning System (LEAP) software developed by the Stockholm Environmental Institute and includes a national average dataset on energy input parameters for residential, commercial, transport, industry and agriculture end-use sectors.

  • Commercial Building Analysis Tool for Energy-Efficient Retrofits (COMBAT)

    Type: 
    Publication
    Objective:

    The Commercial Building Analysis Tool for Energy-Efficiency Retrofit (COMBAT) is created to facilitate policy makers, facility managers, and building retrofit practitioners to estimate commercial (public) buildings retrofit energy saving, cost and payback period. Common commercial building models area created, and the retrofit measures and their effects are pre-computed by EnergyPlus by taking different building types and measures interactions into account.