TECHNICAL WORKGROUP V MEETING ENGINEERING FACULTY and ECN. Jakarta, December 3 rd 2009

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1 TECHNICAL WORKGROUP V MEETING ENGINEERING FACULTY and ECN Jakarta, December 3 rd 2009 Agenda Presentation by regional team of poverty reduction policies already in place in the region and at the national level and main components of pro poor strategy developed in the CAREPI project 1. What policies are already in place that address poverty alleviation, in particular related to better access to modern forms of energy 2. Summary of the pro poor strategy which was developed in the CAREPI project and can serve as the starting point for the CASINDO activity.

2 LAW AND POLICIES ALREADY IN PLACE There are some policies published related to energy: 1.Presidential Regulation on National Energy Policy no. 5/2006 dated 25 January Energy Law no 30/2007, issued in 10 August 2007 PURPOSES AND TARGETS OF NATIONAL ENERGY POLICY The goal of the National Energy Policy is to directefforts to the creation of sufficiency of domestic energy supply. Targets of the National Energy Policy are: 1. Achievement of energy elasticity of less than one(1) in2005; 2. Creation of mix (printer) energy optimally in 2020,namely the role of each type of energy in national energy consumption: a) Oil becomes less than twenty percent (20%); b) Gas becomes less than thirty percent (30%); c) Coal becomes less than thirty-three percent(33%); d) Biofuel becomes more than five percent (5%); e) Geothermal becomes more than five percent(5%); f) Other new energy and renewable energy, particularly biomass, nuclear, hydropower, solar power, and wind power becomes more than five percent. g) Liquified coal becomes more than two percent(2%).

3 ENERGY LAW NO 30 YEAR 2007 Energy Law is expected to be a conceptual, comprehensive and integrated law for energy utilization to achieve sustainable energy of supply THE OBJECTIVES OF ENERGY LAW 1. Self sufficiency in energy supply; 2. Reliability of domestic energy supply, either from domestic or abroad; 3. Ensuring an optimum, integrated, and sustainable management of energy resources; 4. Improved access of energy for underprivileged communities and/or communities in remote areas 5. Capability enhancement of energy services industries to be self sufficient, including Human Resource Development and Research and Development; 6. Creating job opportunities; and 7. Environment preservation.

4 REGIONAL ENERGY POLICY (1) According to regional autonomy, in Energy Law no. 30/2007, the regions have a very significant role. In this Law, the Regional Government have to arrange a General Plan for Regional Energy (RUED) which refers to General Plan for National Energy (RUEN) and stipulated in Regional Regulation. REGIONAL ENERGY POLICY (2) The arrangement, of course, should consider the availability of regional energy supply as well as the energy demand in a certain period. In relation with this arrangement, the regions should have an adequate capability in Regional Energy Plan (RUED) arrangement, including on methodology aspects and assumptions used for projecting the supply and demand on energy.

5 REGIONAL ENERGY POLICY (3) For arranging a realistic and sustainabilityviewed RUED, the regions need to have an adequate understanding on National Energy Policy as stated in Presidential Regulation no 5/2006 as well as in Blueprint of National Energy Management, therefore a synergy between RUED and National Energy Plan (RUEN) can be achieved. REGIONAL ENERGY POLICY (4) By an integrated energy planning between central and regional governments, it is expected that in future there are some points can be achieved: 1.Security of domestic energy supply, 2.Efficient energy utilization, 3.Optimal energy resource management, 4.Improving access of energy for underprivileged communities and/or communities in remote areas, as well as maintaining sustainability on life environment function in order to support the sustainable national development.

6 Government Hierarchy Pro Poor Strategy (1) Former activity:carepi (Contributing to poverty Alleviationthrough Regional Energy Planning in Indonesia) which aims to developinstitutional and technical capacity in selected regions in Indonesia for conducting energypolicy analysis and providing improved energy services to poor communities, in order to alleviatepoverty and contribute to sustainable development. In Central Java,Theproject was conducted by UMY (Muhammadiyah University of Yogyakarta)

7 CAREPI Project at Sokawera at a glance In Central Java, the selected target location is SokaweraVillage (Sub-district Cilongok, Banyumas). Sokawera village was selected because of the low average income and thelocal potential of renewable energy sources. Sokawera village comprises some 1770households with an average income of around Rp ( 1.7) per day. Agriculture isthe main economic sector (44% of GDP), followed by trade (16%), service(13%) and industry(8%). Why was Sokawera selected? based on the several considered aspect, as follows: Low income rural communities, form of energy which is currently used for domestic activities, community services and small business is concentrated in firewood and kerosene, there is renewable energy potentials and sources are available locally, and the social background and characteristics on selected communities are considered in order to implement the energy policies successfully and sustainably.

8 PRA in CAREPI The Participatory Rural Appraisal (PRA) method was selected as a research method for the energy need assessment in SokaweraVillage, CilongokSubdistrict, BanyumasDistrict. The PRA is well known technique which can be an effective method for analyzing the needs of energy in rural community. When the energy policy such as increasing energy access program for poor community will be implemented, the market or needs evaluation should be conducted in order to observe in which service are actually required from the various energy technologies. Proposed Energy Programs in Sokawera Three proposed energy programs have been resulted based on the study of the PRA result and the survey on the renewable energy potentials in Sokawera Village as follows: 1. Biogas Energy Package (BGEP) for cooking purposes. This program was proposed due to this energy service is high portion of energy used in Sokawera community. 2. Biodiesel Energy Package (BDEP) for household. 3. Micro-Hydro Power Plant (MHPP) for electricity supply in Dusun Kubangan.

9 Pro Poor Strategy (2) In CASINDO project, the time frame is arranged: 2009: Select and conduct energy needs assessment for poor communities 2010: Identify measures, develop pro-poor strategies 2011: Evaluate developed and implemented pro-poor strategies Poor Districts in Central Java From 199 poor districts (kabupaten tertinggal) in the country, there are 3 (three) districts located in Central Java Province: 1. Banjarnegara 2. Rembang 3. Wonogiri(expected will quit from list)

10 Self-Sufficient Energy Regions (Desa Mandiri Energi) Department of Energy and Mineral Resources (ESDM Department) has launched a program named Self Sufficient Energy Village (Desa Mandiri Energi/DME) DME is an energy supply program using local energy potentials utilization of Biofuel-based as well as nonbiofuel-based by such technology which can be operated by local community. DME in 2009 information from Dinas ESDM In 2009 (stipulated in 2008), there are 4 (four) districts selected which implement BIOGAS: Wonogiri, Sragen, Blora, and Boyolali. While, Banjarnegara(Pesangkalan Village, Pagedongan Subdistrict) implements MicrohydroPower Plan (MHPP) and at Sidengok Village, Pejawaran SubdistrictBiogenic Gas (swamp gas/shallow methan gas) is implemented.

11 DME in 2010 information from Dinas ESDM In 2010 (stipulated in 2009), Banyumas Districts (Sambirata and GunungLurahVillages, CilongokSub-districts) will implement MicrohydroPower Plan (MHPP). In KalisariVillage, Cilongokwill implement tahu /tofu (soybean curd) waste Meanwhile, from other 2 (two) districts, Groboganand Pati, the name of village or sub-districts have not been stipulated yet (ESDM Dept. of Central Java Province have not received the name list). DME in 2011 In 2011 realization, since the end of 2009, there are 12 districts and 1 municipality (total 13) have to be evaluated in order to select 3 (three) DME plots (stipulated in 2010). The 13 districts/municipal are: Klaten, Purworejo, Kendal, Kudus, Rembang, Sukoharjo, Tegal, Purbalingga, Magelang, Wonosobo, Temanggung, Jepara, and Salatiga(municipality)

12 Locations will be selected in CASINDO Project (1) poor districts From the previous mentioned, we prefer select the location target based on poverty level of the district. From 199 poor districts (kabupatentertinggal) in the country, there are 3 (three) districts located in Central Java Province: 1. Banjarnegara 2. Rembang 3. Wonogiri. Locations will be selected in CASINDO Project (2) Poor Subdistricts After the names of candidate locations stipulated, list of subdistrictsfrom these 3 district which is categorized as poor subdistricts can be shown herebelows. 1.Banjarnegara: PurworejoKlampok, Mandiraja, Purwanegara, Rakit, Punggelan, Karangkobar, and Kalibening Subdistricts State electricity has not reached about 35% of the region

13 Locations will be selected in CASINDO Project (3) 2. Rembang: Sumber, Gunem, Sedan, Kaliori, Pancur, and Kragan Subdistricts. 3. Wonogiri: Pracimantoro, Ngadirojo, and Jatiroto Subdistricts. Proposed Energy Program In Rembangand Wonogiri, it is most possible to implement Solar Cell Energy Program, while in Banjarnegara, it is most possible to develop Biogas (from animal waste, especially from cows)

14 SOLAR CELL POWER PLANT Reasonable price Never ending solar supply Easy to install and also independent 20 years of solar pannelwarranty *) WP = Watt Peak Other benefits of Solar Cell Basically that solar cell power plant is a multipurpose power plant which can be used for : Building/house illumination Water pump Communication Radio Television TV repeater, parabolic antenna, amateur radio Navigation : sea sign, light house, sea obstacle system Etc.

15 Development of Biogenic Gas Potential in Banjarnegara District Identifies of Biogenic gas potency amounts m 3, and if it used for about 40 family, so it will reduce kerosene consumption amounts KL (kilo liters) or ,92 kg LPG, estimate utilization time about 10 years. Has been done the socialization of biogenic gas use as fuel. What s next We will select 1 (one) village for the previous mentioned subdistricts from 3 (three) poor districts in Central Java and conduct energy needs assessment for poor communities based on CAREPI model. The location was selected based on the several considered aspect, as follows: 1. Low-income rural communities, 2. Form of energy which is currently used for domestic activities, community services and small business. 3. There are some renewable energy potentials and sources which are available locally, 4. The social background and characteristics on selected communities are considered (in order to implement the energy policies successfully and sustainable).

16 Steps to select location An overview of existing data/study/research/ policy in relationship with pro-poor Local Economic Development (LED) will be conducted. This stage is a pre-survey which was conducted in order to gather information for choosing some alternative locations for needs assessment work program. The intensive discussions with regional energy office of DinasEnergidanSumberDayaMineral Kabupaten/Kota and BPS (Biro PusatStatistik, Statistical Centre Bureau) of Kabupaten/Kota will be carried out. After that,. The outcome of this discussion is to give the global description regarding to view of region, economical aspect and current energy policies/programs which have been implemented in the region/kabupaten. The information of social and economical quantitative data used in the energy needs assessment analysis was also taken from BPS.

17 Methodology for Energy Need Assessment The participatory rural appraisal (PRA) method was selected as a research method for the energy need assessment PRA is well known technique which can be an effective method for analyzing the needs of energy in rural community Supporting Activity: KKN (SCS-CEL Program) KKN (Student Community Services Community Empowerment Learning (SCS-CEL KuliahKerjaNyata) is a mandatory object in DiponegoroUniversity. The program preparesstudents to work as a member of an interdisciplinary team in creatingsustainable projects in developing communities. For Engineering Faculty students, there are many area can be performed for creating programs related to energy problems, e.g. energy efficiency, empowering natural resources or its utilization. This program conducted by LPM (Institute for Community Services) of DiponegoroUniversity. In the program, students and/or LPM can look for some fund to support the project.

18 Supporting Activity: KKN (SCS-CEL Program) KKN (Student Community Services Community Empowerment Learning (SCS-CEL Kuliah Kerja Nyata) is a mandatory object in Diponegoro University. The program preparesstudents to work as a member of an interdisciplinary team in creatingsustainable projects in developing communities. KKN For Engineering Faculty students, there are many area can be performed for creating programs related to energy problems, e.g. energy efficiency, empowering natural resources or its utilization. This program conducted by LPM (Institute for Community Services) of DiponegoroUniversity. In the program, students and/or LPM can look for some fund to support the project.

19 Closing Any comments? Thank you Thank You

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