Maritje Hutapea Director for Bioenergy

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1 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: Clean Energy Regulation: International Experience and Lesson Learned for Indonesia Institute for Essential Service Reform (IESR) and Electricity Governance Initiative (EGI) Hotel Akmani Jakarta, 14th September

2 CONDITION OF ENERGY 5.03% Natural 24.29% Crude Oil 46.77% 23.91% National Energy Mix Total ( ) 1176 million BOE Elasticity of Energy = 1,65 Share of Non Fossil Energy 5% 2

3 SUBSIDY ON ENERGY PRICES ARE INCREASED sidi (Triliun Ru Sub 200 upiah) Growth of Fossil Energy (trillion Rupiah) Subsidy of Electricity 2. Subsidy of Fossil Based Electricity*) it 3. Subsidy of Fossil Fuel 3,93 4,30 4,10 3,36 3,31 10,65 33,90 37,48 78,58 53,72 51,10 93, , ,89 40,33 4. Subsidy of LPG ,38 3,19 Total (2+3+4) ,92 43,52 *) Proportional to the role in the composition of fossil primary energy for electricity supply 3

4 TRANSFORMATION PARADIGM OF NATIONAL ENERGY MANAGEMENT ENERGY SUPPLY SIDE MANAGEMENT ENERGY DEMAND SIDE MANAGEMENT SUPPLY DEMAND DEMAND SUPPLY Supplied by Fossil Energy, at any cost (Subsidize) Renewable Energy as an alternative Inefficient Sectoral Energy Demand: Household Transport Industry Commercial Efficient Sectoral Energy Demand: Household Transport Industry Commercial (CONSERVATION) Maximize the supply and utilization of New Renewable Energy, with Avoided Fossil Energy Costs (DISVERSIFICATION Fossil ilenergy as balancing factor Current condition: 1. Energy needs has not been efficient 2. Energy needs are met with fossil energy at a cost of whatever and even subsidized 3. Renewable energy as an alternative only 4. Renewable energy sources that are not utilized is wasted God's gift Future Condition: 1. Minimize the energy requirements 2. Maximize the provision and utilization of renewable energy, at least with the price of fossil energy avoided cost, if necessary, subsidized 3. Fossil energy is used as a counterweight 4. Fossil energy sources are not utilized as a legacy for their children and grandchildren / exported 4

5 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 Emissions Domestic efforts 26% (767 million Ton) 41% Domestic efforts and international support Forestry and Peat 672 million Ton Agriculture 8 million Ton Industry 1 million Ton Energy 30 million Ton Transportation 8 million Ton Wastes 48 million Ton Through new renewable energy development and energy conservation implementation in all sector 5

6 PRESIDENTIAL REGULATION NO. 5 YEAR 2006 concerning on National Energy Policy The Main Target : Energy Elasticity less than 1 at 2025 Optimizing Primary Energy Sources : Energy Mix (2025) Oil 20% 30%,17% 33% Biofuel 5% Geothermal 5% Biomass, Nuclear, Hydro Power, Solar, Wind Power 5% Liquefaction 2% Energy Elasticity < 1 Non Fossil Energy/: 17 % 6

7 PRESIDENTIAL POLICY DIRECTION BAU REGULATION 5/2006 VISION 25/25 Natural 24.29% 5.03% 23.91% Crude Oil 46.77% 3% Liquified Other RE Bioenergy 5% 3% 5% Geothermal 5% 21% Oil 20% 34% 3298 Million BOE Oil 42% 3,1% 30% 3200 Million BOE 33% 25% 20% 2785 Million BOE 23% Oil 32% Primary Energi Conservation (15.6%) 2419 MBOE 34.6% 17% 25 % 1649 MBOE 33% 1176 MillionBOE 20,6% 32% 5,0 % 20% 24 % 30% 41.7% 24,% 23% Oil 47,% 20% Oil Energ gy Diversification Note: 1 TOE = 7,33 SBM

8 INDONESIA CLEAN ENERGY INITIATIVE REFF-Burn : Reducing Emissions from Fossil Fuel Burning A. Pre-Fossil Combustion to avoid using more fossil energy : 1. Efficient Energy Technologies (High Efficiency Light, Efficient Appliances, etc) 2. Renewable Energy Technologies (Geothermal, Hydro, Solar, Wind, etc) 3. Fossil Pre-Treatment ( Upgrading) B. During Fossil Combustion to reduce greenhouse gases emitted from fossil fuel burning: 1. Efficient Technologies (Co-generation) 2. Low Carbon Electricity Generation (High Efficiency Low Emission, IGCC, etc) 3. Clean Fuel Technology (Fuel Switching) C. Post Fossil Combustion to capture and store the greenhouse gases from fossil fuel burning : 1. Carbon Capture and Storage Technologies (CCS & Algae) 2. Utilization of CO2 8

9 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: ; ; Faks: ; ; E n e r g y a n d M i n e r a l R e s o u r c e s f o r t h e P e o p l e s 9 W e l f a r e 9

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