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Ministry of Energy and Mineral Resources of the Republic of Indonesia

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION


MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

Presented by:
Maritje Hutapea
Director for Bioenergy

Presented at:
Indonesia EBTKE CONEX 2012
Renewable Energy and Energy Conservation Conference and Exhibition

Jakarta, 18th of July 2012


DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 1


Ministry of Energy and Mineral Resources of the Republic of Indonesia

OUTLINE

I. CONDITION OF ENERGY
II. INDONESIA ENERGY POLICY
III. DEVELOPMENT OF BIOENERGY :
POTENTIAL RESOURCES
IMPLEMENTATION TARGET
IV. POLICY AND REGULATION RELATED TO BIOENERGY
DEVELOPMENT
V. CHALLENGES AND OPPORTUNITIES
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 2


Ministry of Energy and Mineral Resources of the Republic of Indonesia

I. CONDITION OF ENERGY
National Energy Mix Total High dependence on fossil energy;
(2011)
2011)
1176 million BOE The utilization of renewable energy is still low;
NRE
5.03%
The average of growth rate of energy consumption is 7% per year ;

Coal Public access to energy (modern) is still limited:


23.91%
Natural
Gas
24.29% Electrification ratio of year 2011 is 72.95 % (27.05 % of households
not yet electrified);

Less of development of energy infrastructure particularly in rural /


Crude Oil
46.77%
remote areas and outer islands.

Linkage to environmental issues:

Elasticity of Energy = 1,65 Mitigation of climate change;


Share of Non Fossil Energy 5%
National commitment to reducing emissions 26% by 2020.

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 3


Ministry of Energy and Mineral Resources of the Republic of Indonesia

II. INDONESIA ENERGY POLICY

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 4


Ministry of Energy and Mineral Resources of the Republic of Indonesia

POLICY DIRECTION
PRESIDENTIAL
BAU REGULATION 5/2006 VISI 25/25
NRE
NRE Liquified
5.03%
3% Other RE
Coal Bioenergy 8,9%
Bioenergy 5%
3%
5%
Geothermal
Gas 5%
Coal 25% 23%
21% Oil
Natural 23.91% NRE Oil
Oil 20%
Gas
24.29% 42%
Gas Coal
30% 20%
Coal 33% 32%
Gas
34% Coal
Crude Oil
46.77%
Primary Energi
3298
Million BOE
Conservation
3200
Million BOE (15.6%)
2785
Million BOE
3,1%
2419
MBOE 34.6%
17%
25 %
NRE

Energy Diversification
1649
MBOE 33%
1176
MillionBOE 20,6% 32%
Coal
NRE
5,0 %
Coal 20%
24 % 30%
41.7% Gas
Gas 24,%
23%
Oil 47,% 20% Oil
2011 2015 2020
Note: 1 TOE = 7,33 SBM 2025 DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 5


Ministry of Energy and Mineral Resources of the Republic of Indonesia

ENERGY POLICIES
1. Energy Conservation to improve efficiency in energy utilization from up-
stream up to down-stream (Demand Side) i.e industrial, transportation,
household and commercial sector

2. Energy Diversification to increase new renewable energy share in


national energy mix (Supply Side). i.e

New Energy Renewable Energy


a. Liquefied Coal, a. Geothermal,
b. Coal Bed Methane, b. Bioenergy,
c. Gasified Coal, c. Hydro,
d. Nuclear, d. Solar,
e. Hydrogen, e. Wind,
f. Other Methanes. f. Ocean.

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 6


Ministry of Energy and Mineral Resources of the Republic of Indonesia

III. DEVELOPMENT OF BIOENERGY

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 7


Ministry of Energy and Mineral Resources of the Republic of Indonesia

WHY BIOENERGY ?
Bioenergy potential (agriculture waste, animal waste, municipal solid
waste, biomass) is a local available throught Indonesia that
prospective to be developed for both electricity and non electricity to
fulfill the peoples energy demand with simultaneously reducing the
use of fosil fuel particularly oil;
Many bioenergy technology have proven.
Bioenergy is a CLEAN ENERGY because in the provision and
utilization processes generate lower or no emissions;
Climate change has been a global issue the more use of bionergy,
the more emission reduction can be achieved.

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 8


Ministry of Energy and Mineral Resources of the Republic of Indonesia

BIOENERGY SUPPLY AND UTILIZATION SYSTEM


BIOENERGY CONVERSION INSTALLATION
Liquid
Biofuel
Bio-Refinery Distribution
Oil

Gas
Bio- Biofuel
Distribution
Gas
Gassification
Raw
Materials/
Solid
Feedstock Biofuel
Bio- Distribution
Solid
Briquettes

Integrated Bio- Electromagnetic


Bio-
Generator Electricity (Green
Cook Stove Electricity)

(1) Bioenergy products consist of: (2) Biofuels in point 1.1. consist of:
1. Bio Fuel (Green Fuels) 1. Liquid Biofuel / Green Gasoline
2. Bio-Electricity (Green Electricity) 2. Gas Biofuel, or Gas Plant / Green Gas
3. Solid Biofuel, or Bio-Briquette
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 9


Ministry of Energy and Mineral Resources of the Republic of Indonesia

POTENTIAL OF BIOENERGY
BIOFUELS
There are huge potential resources for biofuels from Palm Oil (annually production of
CPO is 23 million tons), Jatropha Curcas, Nyamplung, Molasses (Sugar Cane),
Cassava, Sorghum and Algae.

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-ELECTRICITY
High potential of biomass waste from agricultural waste and municipal solid waste as a
fuel stock for biomass based power generation. DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 10


Ministry of Energy and Mineral Resources of the Republic of Indonesia

POTENTIAL OF BIOENERGY/PALM OIL WASTE BASED POWER PLANT


92 POPL
25 POPL 3815 ton
980 ton 140
FFB/Hour 1 POPL
FFB/Hour POPL 40 ton
6660 ton FFB/Hour 29 POPL
FFB/Ho 1545 ton
ur FFB/Hour 4 POPL
7 POPL 360 ton
42 POPL 590 ton FFB/Hour
2245 ton 65 POPL
FFB/Hour
FFB/Hour 5475 ton
6 POPL
26 POPL FFB/Hour 3 POMs
260 ton
1645 ton 140 TPH
FFB/Hou
FFB/Hour
r
16
POPL
1235 ton
58FFB/Ho
POPL ur
19 POPL 3555 ton 3 POPL
990 ton FFB/Ho 260 ton
FFB/Hour
ur FFB/Hour
10 POPL
43 POPL 2 POPL
375 ton
3100 ton 150 ton
FFB/Hour
FFB/Hou FFB/Hour
1 POPL r
60 ton
FFB/Hour 1 POPL 15 POPL
30 ton 770 ton Sumber: BPS dan Kementerian Pertanian Tahun 2009
FFB/Hour FFB/Hour DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 11


Ministry of Energy and Mineral Resources of the Republic of Indonesia

POTENTIAL OF MUNICIPAL WASTE FOR ELECTRICITY GENERATION...(1)


Final Waste Disposal Site Potential Of City
No City Potential (MW)
Location Waste (ton/day)
1 DKI Jakarta Bandar Gebang, Sumur Batu 8.733 361,77
2 Batam Telaga Punggur 450 18,64
3 Kota Semarang Jatibarang 1.345 55,72
4 Kota Palembang Sukawinata, Karya Jaya 1.171 48,51
5 Kota Surabaya Benowo 2.562 106,13
6 Kota Padang Air Dingin 682 28,25
7 Kota Pontianak Batu Layang 340 14,09
8 Kota Medan Namo Bintang, Terjun 1.812 75,06
9 Kota Bogor Galuga 3.24 0,13

10 Kota Malang Supit Urang 761 31,53


11 Kota Depok Cipayung 1.217 50,42
12 Kota Jogya,Sleman,Bantul Ngablak-Piyung 2 0,08
13 Bali 445 18,43
14 Kota Madiun 612 25,35
15 Kota Jember 2112 87,49
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 12


Ministry of Energy and Mineral Resources of the Republic of Indonesia

POTENTIAL OF MUNICIPAL WASTE FOR ELECTRICITY GENERATION...(2)


Final Waste Disposal Site Potential Of City Waste
No City Potential (MW)
Location (ton/day)
16 Kota Cianjur 1762 72,99
17 Kab. Sidoarjo 1568 64,96
18 Kota Balikpapan 400 16,57
19 Kab. Banyuwangi 1503 62,26
20 Kota Bandung 2114 87,57
21 Kota & Kab. Tegal Sarimukti 3.519 145,78
22 Kota & Kab. Cirebon 2.012 83,35
23 Kota Tangerang Rawakucing 1.352 56,01
24 Surakarta, Klaten & Boyolali 2.447 101,37
25 Kota & Kab. Tegal 1.485 61,52
26 Kota & Kab. Pasuruan 1.215 50,33
27 Kota & Kab. Probolinggo 1,3 0,05
28 Kota & Kab. Kediri 1.224 50,71
29 Kota Pakanbaru 603 24,98
30 Kota Bandar Lampung 703 29,12
31 Kota Makasar 1029 42,63
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 13


Ministry of Energy and Mineral Resources of the Republic of Indonesia

IMPLEMENTATION TARGET FOR BIOENERGY UTILIZATION


Biofuel :
1. Transportation sector;
2. Industry;
3. Power generation.
Biogas : Conversion Oil/Kerosene or Fuel Wood to Biogas
1. Rural household;
2. Small industry : soybean cake industry, tapioca starch industry, tobacco;
3. Power generation.
Bio-Briquette :
1. Household;
2. Small industry.
Electricity :
1. Own use;
Palm oil estate;
Industry;
2. Interconnected to grid. DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 14


Ministry of Energy and Mineral Resources of the Republic of Indonesia

REALIZATION OF BIOENERGY UTILIZATION IN INDONESIA


1. BIOFUEL
There are 23 biodisel produser and 7 bioethanol producer that have commercial business
license to operate in Indonesia.
Installed capacity of biodiesel is 4.8 million KL/year and installed capacity of bioethanol is
365.000 KL/year.
Utilization of biofuel at :
transportation sector (with mix by 7,5% at PSO Fuel and 2% at Non PSO Fuel);
industry sector (specifically on coal and mineral mining industries); and
electricity generation.

2. BIOGAS FOR HOUSEHOLD


Implemented by government budget through Self Sufficient Energy Village Program (Non-
Commercial),
Semi commercial basis through Indonesia Domestic Biogas Programme. BIRU programme
(Cooperation between Government of Indonesia and the Government of Netherland). Status
until June 2012 the total biogas digester that have been built is 5.398 unit from total target is
8,000 unit at the end of 2012,
By private investment.

3. BIOENERGY BASED POWER PLANT


Own use (palm oil estate and wood industry) : 400 MW;
Interconnected to national grid (PT. PLN Persero) by February 2012 : 71 MW. DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 15


Ministry of Energy and Mineral Resources of the Republic of Indonesia

THE EXISTING CAPACITY OF BIOMASS, BIOGAS AND MUNICIPAL SOLID


WASTE POWER PLANT ON GRID CONNECTED (2012)
Capacity
Type of Buyer (Regional Type of
No Company Name COD Location Contract
Contract PLN Area) Biomass
(MW)
1 PT Riau Prima Energy 2001 Excess power Riau PLN Riau Region Palm waste 5

2 PT Listrindo Kencana 2006 IPP Bangka PLN Bangka Region Palm waste 5

3 PT Growth Sumatra 2006 Excess power Sumatera Utara PLN Sumut Region Palm waste 6

4 PT Indah Kiat Pulp & Paper 2006 Excess power Riau PLN Riau Region palm waste 2

7 PT Belitung Energy 2010 IPP Belitung PLN Babel Region Palm waste 7

8 PT Growth Sumatra 2010 Excess power Sumatera Utara PLN Sumut Region Palm waste 9

9 PT Pelita Agung 2010 Excess power Riau PLN Riau Region Palm waste 5

10 Permata Hijau Sawit 2010 Excess power Riau PLN Riau Region Palm waste 2

11 PT Navigat Organic 2011 IPP Bali PLN Dist Bali MSW 2

12 PT Navigat Organic 2011 IPP Bekasi PLN Dist Jabar MSW 8

13 PT Growth Asia 2012 Excess power Sumatera Utara PLN Sumut Region Palm waste 20

Total Capacity - On Grid (MW) 71


14 PTPN V 2011 Riau Own Use POME 1

Data Source : Updating Database Biomass/Biogas Power Plant PT. PLN (Persero) Divisi EBT DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 16


Ministry of Energy and Mineral Resources of the Republic of Indonesia

DEVELOPMENT PLAN OF BIOMASS, BIOGAS AND


MUNICIPAL SOLID WASTE - ON GRID CONNECTION (YEAR 2012)
Type of Type of Capacity
No Company Name COD Location PPA Contract Status
Contract Biomass (MW)
1 PT Growth Asia 2012 Excess Sumatera Utara PLN Region Palm waste 10 Construction
power Sumut
2 PTPN I 2012 Excess Aceh, PLN Region Aceh Palm waste 1,5 Construction
power Panangkalan
3 PT Gikoko 2012 Excess Cakung, Jakarta DISJAYA MSW 3 FS and
power (sampah) Construction
4 Navigat Organic 2012 IPP Bekasi PLN Dist Jabar MSW 4 Construction
(sampah)
5 PT Victorindo 2012 Excess Sumatera Utara PLN Region Palm waste 5 Construction
power Sumut
6 PT Nubika Jaya 2012 Excess Sumatera Utara PLN Region Palm waste 6 Construction
power Sumut
7 Growth Steel 2012 Excess Simalungun, PLN Region Palm waste 10 Construction
Group power Sumut Sumut
8 Growth Steel 2012 Excess Jambi PLN Region Palm waste 10 Construction
Group power Sumsel
9 Growth Steel 2012 Excess Pontianak PLN Region Palm waste 10 Planning
Group power Kalbar
10 Growth Steel 2012 Excess Cilegon PLN DisJabar rice husk 10 Construction
Group power
Total Capacity 2012 (MW) 69,5
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 17


Ministry of Energy and Mineral Resources of the Republic of Indonesia

DEVELOPMENT PLAN OF BIOMASS, BIOGAS AND


MUNICIPAL SOLID WASTE - ON GRID CONNECTED (YEAR 2013)
Type of Capacity
No Company Name COD Location PPA Contract Type of Biomass Status
Contract (MW)
1 PT PN III 2013 Excess Sumatera Utara PLN Region Sumut Palm waste 1,8 FS
power
2 PT PN IV 2013 Excess Sumatera Utara PLN Region Sumut Palm waste 1,6 FS
power
3 Private 2013 IPP Aceh, Langsa PLN Region Aceh Biogass POME 2 FS
4 Navigat Organic 2013 IPP Bantar Gebang, PLN Dist Jabar MSW (sampah) 2 FS
Bekasi
5 Private 2013 IPP Gorontalo PLN Region Gorontalo Corn Cob 10 Planning
6 PT Gikoko 2013 IPP Bekasi DISJBB MSW (sampah) 2 Planning
7 PT Gikoko 2013 IPP Palembang PLN Wil Sumsel Jambi MSW (sampah) 3 Planning
Bengkulu
8 PT Gikoko 2013 IPP Makassar PLN Region MSW (sampah) 3 Planning
Sulselrabar
9 Korindo Group 2013 Excess Kalteng PLN Region Kalselteng woodchip 4 FS
power
10 Growth Steel Group 2013 Excess Simalungun, Sumut PLN Region Sumut Palm waste 10 Commissioning
power
11 Growth Steel Group 2013 Excess Jambi PLN Region Sumsel Palm waste 10 Commissioning
power
12 Growth Steel Group 2013 Excess Pontianak PLN Region Kalbar Palm waste 10 Planning
power
13 Growth Steel Group 2013 Excess Cilegon PLN DisJabar rice husk 10 Commissioning
power
Total Capacity 2013 (MW) 69,4
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 18


Ministry of Energy and Mineral Resources of the Republic of Indonesia

IV. POLICY AND REGULATION RELATED TO


BIOENERGY DEVELOPMENT

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 19


Ministry of Energy and Mineral Resources of the Republic of Indonesia

POLICY AND REGULATION RELATED TO BIOENERGY DEVELOPMENT

LAW NO. 30 YEAR 2007 CONCERNING ON ENERGY.

PRESIDENTIAL REGULATION NO. 5 YEAR 2006 CONCERNING ON NATIONAL ENERGY POLICY.

PRESIDENTIAL INSTRUCTION NO. 1 YEAR 2006 INSTRUKSI PRESIDEN NO. 1 TAHUN 2006
CONCERNING ON PROVISION, UTILIZATION, AND PROCEDURES OF COMMERCE OF BIOFUEL AS
OTHER FUEL .

MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION NO. 32 YEAR 2008 CONCERNING ON
PROVISION, UTILIZATION, AND PROCEDURES OF COMMERCE OF BIOFUEL AS OTHER FUEL
(BIOFUELS MANDATORY).

MINISTRY OF FINANCE REGULATION NO. 21/PMK.011/2010 CONCERNING ON TAX AND CUSTOM


FACILITIES FOR RENEWABLE ENERGY UTILIZATION.

MINISTRY OF FINANCE REGULATION NO. 130/PMK.011/2011 CONCERNING ON PROVISION OF


EXEMPTION FACILITIES OR REDUCTION OF INCOME TAX.

MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION NO. 4 YEAR 2012 CONCERNING ON
ELECTRICITY PRICE PURCHASED BY PT. PLN FROM SMALL SCALE AND MEDIUM SCALE RENEWABLE
ENERGY ELECTRICITY GENERATION OR EXCESS POWER.
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 20


Ministry of Energy and Mineral Resources of the Republic of Indonesia

LAW NO. 30 YEAR 2007


Concerning On Energy

Regulates among others :


Prioritizes the provision and utilization of new and renewable
energy;
All people have right to acces to energy;
Central and Regional Government prioritize the utilization of new
renewable energy;
Central and Regional Government provide incentives for new and
renewable energy.

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 21


Ministry of Energy and Mineral Resources of the Republic of Indonesia

PRESIDENTIAL REGULATION NO. 5 YEAR 2006


concerning on National Energy Policy

Energy Mix (2025)


The Main Target :
Energy Elasticity less than 1 at 2025 Oil
Biofuel 5%
20%
Optimizing Primary Energy Sources : Gas 30%
Geothermal 5%
NRE,17%
Biomass, Nuclear, Hydro
Coal 33% Power, Solar, Wind Power 5%
Liquefaction Coal 2%

Energy Elasticity < 1


Non Fossil Energy/NRE: 17 %

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 22


Ministry of Energy and Mineral Resources of the Republic of Indonesia

PRESIDENTIAL INSTRUCTION NO. 1 YEAR 2006

Instructions to the related Ministers, and Regional


Government to take the measures to accelerate the
use of biofuel.

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 23


Ministry of Energy and Mineral Resources of the Republic of Indonesia

MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION NO. 32 YEAR 2008


Concerning On Provision, Utilization, And Procedures Of Commerce Of Biofuel As Other Fuel
BIOFUEL USAGE MANDATORY
BIODIESEL (Minimum)

Sektor 2008 2009 2010 2015 2020 2025

Transportation, 1% 1% 2.5% 5% 10% 20%


PSO (Existing)

Transportation, 1% 3% 7% 10% 20%


Non PSO

Industri 2.5% 2.5% 5% 10% 15% 20%

Electricity 0.1% 0.25% 1% 10% 15% 20%


Generation

BIOETHANOL (Minimum)
Sektor 2008 2009 2010 2015 2020 2025
Transportation, 3% 1% 3% 5% 10% 15%
PSO (Existing)
Transportation, 5% 5% 7% 10% 12% 15%
Non PSO (Existing)
Industry 5% 7% 10% 12% 15%
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 24


Ministry of Energy and Mineral Resources of the Republic of Indonesia

MINISTRY OF ENERGY AND MINERAL RESOURCES NUMBER 4 YEAR 2012


Concerning On Electricity Price Purchased by PT. PLN from Small Scale and Medium Scale Renewable Energy
Electricity Generation or Excess Power
No. Energy Capacity Electricity Tariff Note

Medium Voltage

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


Non Municipal Solid
2. Biogas until 10 MW Rp. 975,- / kWh X F
Waste
3. Municipal Solid Waste (MSW) until 10 MW Rp. 1050,- / kWh Zero waste *)

4. Municipal Solid Waste (MSW) until 10 MW Rp. 850,- / kWh Landfill *)

Low Voltage

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


Non Municipal Solid
2 Biogas until 10 MW Rp. 1.325,- / kWh X F
Waste
3 Municipal Solid Waste (MSW) until 10 MW Rp. 1.398,- / kWh Zero waste *)

4 Municipal Solid Waste (MSW) until 10 MW Rp. 1.198,- / kWh Landfill *)


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
Note : *) Based on Act No. 18 Year 2008 concerning to Waste Management. DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 25


Ministry of Energy and Mineral Resources of the Republic of Indonesia

MINISTRY OF FINANCE REGULATION NUMBER 21/PMK.011/2010


Regulation of tax and customs facility for renewable energy resources utilization activities

FINANCIAL INSTRUMENTS
SUPPORT

Value Added Tax Borne by


Income Tax Import Duty
Tax Government

Exemptions for Import Duty


Reduced net income for
of
30% of total investment Exemptions of VAT for Goods and Machinery
accelerated depreciation Regulated in State
Taxable Goods, for development and
Imposition Annual Budget
machinery and capital investment
of Income Tax on dividend p Law and its
equipment for RE Capital Goods Imports
aid implementing
utilization (not for construction and
to Foreign Taxable at 10% regulations
included spare parts) development of electricity
compensation for losses in
industry
certain circumstances

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 26


Ministry of Energy and Mineral Resources of the Republic of Indonesia

MINISTRY OF FINANCE REGULATION NUMBER 130/PMK.011/2011


Concerning on Provision of Exemption Facilities or Reduction of Income Tax

CORPORATE PIONEER INDUSTRIES


TAXPAYERS Having a new investment plan min.
IDR 1 trillion
Placing funds in the Indonesian
banking min 10% from the total
capital investment plan
can get facilities: Existed as ENTITY INDONESIA

EXEMPTION OR REDUCTION OF
CORPORATE INCOME TAX
EXEMPTION OF CORPORATE INCOME TAX
5 - 10 tax year

After the end of Corporate Income Tax exemption facility Industry of Basic Metals Manufacutre
Industry of Oil Refining and / or Basic Organic Chemicals
sourced from Oil and Natural Gas
Industry of Machinery
REDUCTION OF CORPORATE INCOME TAX INDUSTRY OF RENEWABLE
50% of Income Tax Payable for 2 tax yearh RESOURCES FIELD
Industry of Communications Equipment
Minister of Finance may provide facilities Corporate Income PIONEER INDUSTRIES
Tax exemption or reduction for a period EXCEED
predetermined period of time
*) The facility can be utilized if:
1. Had executed the entire capital investment
DJEBTKE KESDM - 2012
2. Has been produced commercially

Energy and Mineral Resources for the Peoples Welfare 27


Ministry of Energy and Mineral Resources of the Republic of Indonesia

V. CHALLENGES AND OPPORTUNITIES

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 28


Ministry of Energy and Mineral Resources of the Republic of Indonesia

CHALLENGES OF BIOENERGY DEVELOPMENT

The price of fuel and electricity rates still subsidized;

Relatively high production costs that can not compete with conventional energy that
are still subsidized;

Relatively less incentive policies;

Lack of political will

The public still enjoy using conventional energy;

DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 29


Ministry of Energy and Mineral Resources of the Republic of Indonesia

OPPORTUNITIES OF BIOENERGY DEVELOPMENT


Law No. 30/2007 on Energy mandated that the development of renewable
energy, particularly bioenergy a priority and the government provides incentives for
the development of new and renewable energy;

The potential of bioenergy is huge;

The high growth rate of energy demand;

International price of oil is very volatile and tends to increase;

The issue of climate change has become a global issue;

The Government is committed to reduce greenhouse gas emissions by 26% in 2020


with his own efforts;

Bioenergy is a part of clean energy, the more use of bioenergy the more of emission
reduction.
DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 30


Thank You Ministry of Energy and Mineral Resources of the Republic of Indonesia

Go Green Indonesia
green energy, future energy
!

MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA


DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION
Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950; Telp: 021-52904235; 5250575; Faks: 021-25529106; 25529212
Email: bahan@ebtke.esdm.go.id ; bahan_ebtke@yahoo.com

- www.esdm.go.id - www.ebtke.esdm.go.id -
DJEBTKE KESDM - 2012

E n e r g y a n d EMn e ir ng yea rn daMli nRe rea lsRoe suo urrcc ees sf o rf toh re Pte ho pel e Ps We eol fpa rl ee s31
Welfare 31
Ministry of Energy and Mineral Resources of the Republic of Indonesia

ELECTRIFICATION RATIO 2011 Category :


NAD
87,72% Kepri > 60 %
Sumut 91,52%
83,98% Kaltim 41 - 60 %
Kalteng 63,44%
Riau Sulut
78.17% 67,28% Gorontalo 20 - 40 %
73,21%
54,69% Malut
Kalbar 70,34%
65,37% Papua Barat
58,24%
Sumsel
Sumbar 72,71% Sulbar
77,72% 64,12% Sulteng
Babel 64,84%
Jambi 82,26%
76,54% Sultra
Jakarta 54,46%
Bengkulu Kalsel Maluku
99,99%
71,15% 75,65% 70,80%
Bali Sulsel Papua
Lampung 69,77% 74,18% 29,25%
70,40% Banten
68,18%
Jateng
DIY
77,31% NTB NTT
Jabar 75,19% Jatim
52,88% 39,92%
70,72% 72,05%
Year
1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011
Electrification
8% 16% 28% 43% 53% 62% 63% 64.34% 65.10% 65.79% 67.15% 72.95%
DJEBTKE KESDM - 2012

Ratio
Energy and Mineral Resources for the Peoples Welfare 32
Ministry of Energy and Mineral Resources of the Republic of Indonesia

NATIONAL COMMITMENT TO REDUCE GREENHOUSE GASSES

President Commitment in G-20 Pittsburgh and COP15 to reduce greenhouse


gasses emission by 2020
and
Presidential Regulation Number 61 Year 2011 concerning on National Action
Plan for Reducing Greenhouse Gas Emissions

Domestic Domestic efforts


efforts
26% 41% and international
(767 million Ton) support

Forestry and Peat 672 million Ton


Agriculture 8 million Ton
Through new renewable
Industry 1 million Ton energy development and
Energy 30 million Ton energy conservation
Transportation 8 million Ton implementation in all sector
Wastes 48 million Ton
33 DJEBTKE KESDM - 2012

Energy and Mineral Resources for the Peoples Welfare 33

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