PENYELENGGARAAN KEWENANGAN DAERAH DAN PENGELOLAAN IRIGASI

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BIODIESEL PILOT PLANT PROJECT
PRESENTED TO JOINT TASK FORCE MEETING INDONESIA
- KOREA ECONOMIC COOPERATION FORUM
JAKARTA, MAY 1ST, 2007
THE GOVERNMENT OF SOUTH SUMATERA PROVINCE
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STRATEGIC DEVELOPMENT PLANNING SOUTH SUMATERA
PROVINCE SELATAN, 2003 - 2008
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Development Agenda
SOUTH SUMATERA PROVINCE
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IMPLEMENTATION OF SOUTH SUMATERA AS NATIONAL
ENERGY CENTRE
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IMPLEMENTATION OF SOUTH SUMATERA AS FOOD BARN
Agenda Pembangunan
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IMPLEMENTATION OF PUBLIC WEALTH DEVELOPMENT
IMPLEMENTATION OF SOUTH SUMATERA "BERSATU TEGUH"
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AGENDA
Implementation South Sumatera as
NATIONAL ENERGY CENTRE
DEVELOPMENT PRIORITY

1. Increasing Coal Production and Utilization
2. Increasing Natuiral Gas Production and
   Utilization
3. Reneweable Energy Utilization
4. New Power Plant and Transmission Development
5. Rural Electrician Development
6. Human Resource Development

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The Importance of Renewable Energy

• Total capacity Hidrocarbon Train 1 milion
  K.Litre per Day
• Fuel Production 44.5 milion K. Litre (KL),
  Consumption 62.3 milion K.Litre (KL)
  defisit 17.8 juta KL (impor)
• Diesel Oil demand (IDO and ADO) 70.000 KL/Day
  or 26 milion KL/annum
• Domestic Diesel Oil supplay too tight
• Increasing Crude Oil Price

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OBJECTIVE OF ENERGI MIX 2025(PERPRES NOMOR 5
TAHUN 2006)
Primer Energy Energy Mix Recent Energy Mix at 2025
1. Crude Oil 51,66 20,0
2. Natural Gas 28,57 30,0
3. Coal 15,34 33,0
4. Renewable Energy - Geothermal - Hidro Power - Biofuel - Coal Liquefaction - Biomass, Nuclear, Solar and Wind Blows 1,32 3,11 - - - 5,0 - 5,0 2,0 gt 5,0
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RAW MATERIAL BIODIESELPROSPECTIVE IN SOUTH
SUMATERA
STRAIGHT JATROPHA OIL (SJO) CRUDE PALM OIL
(CPO) COCONUT OIL NUT OIL
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RAW MATERIAL BIOFUEL POTENSTIAL IN SOUTH SUMATERA

• Jatropha 520 ha (50.000 ha potential area,
  developed on critical forest)
• CPO production, 2006 1.6 milion ton/annum
  (plantation area 620.000 ha)
• Coconut, 2006 70.000 ton (plantation area
  60.000 ha)

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RAW MATERIAL BIOFUEL RESOURCES

• Biodiesel utilization at 2010 720.000
  K.Litre/annum (approx. 2 of total demand).
• Biodiesel design implementation

2006 2007 2008 2009 2010
Target a. Biodiesel (K.Litre) b. Crude Palm Oil (Ton) 50.000 50.000 100.000 100,000 300.000 300.000 500.000 500.000 720.000 720.000
2. Design a. Biodiesel Plant (K/Litre) - South Sumatera - Other Province b. Crude Palm Oil (Ton) - South Sumatera - Other province - 50.000 - 50.000 - 100.000 - 100.000 60.000 240.000 60.000 240.000 70.000 430.000 70.000 430.000 90.000 630.000 90.000 630.000
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BIODIESEL DEVELOPMENT PROGRAM SOUTH SUMATERA
Perpres no. 5 tahun 2006 AND Inpres No.1 tahun
2006
JATROPHA OIL
BIO DIESEL
CPO
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PLANTATION DEVELOPMENT
Area Utilization Master Plan 3,2 milion ha
Existing Area 2,2 milion ha (Year2005)
Development Area 1 Juta ha
Alocation area
Alocation area
Rubber 944.000 ha
Rubber 250.000 ha
Palm Plantation 561.000 ha (CPO product.
1.5 milion ton)
Palm 600.000 ha
Sugarcane 75.000 ha
Coffe 272.000 ha
Horticulture 250.000 ha
Jatropha 50.000 ha
Other comodity 173.000 ha
Other 25 ribu ha
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PROSPECT FOR BIODIESEL INVESTMENT IN SOUTH
SUMATERA

• Policy South Sumatera as National Energy Centre
• Raw Material CPO is already exist, Jatropha
  development on going.
• Supporting system 42 unit CPO plant existing,
  capacity 2.020 ton/hr.
• Supporting organization Local Government
  Enterprise (PD PDE)
• Human Resource University (UNSRI) as a part of
  National Energy Research, Indonesian Plantation
  Research Institute, Plantation Research and
  Development Centre- Ministery of Horticuluture.
• Accesibility transportation, telecomunication
  and port.
• Area, plant and technology already exist.
• Fun Local government already for sharing
  budget.

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BIODIESEL POTENTIAL MARKET IN SOUTH SUMATERA
Consumption Diesel Oil Biodiesel
Consumption (000. k.litre) (000. k.litre)
Total 446 76
Crumb Rubber 30 30
Automotive 408 41
Farming Machine and Equipment 8 5
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BIODIESEL PILOT PROJECT PLAN IN SOUTH SUMATERA

• LOCATION SEMBAWA RESEARCH CENTRE, BANYUASIN
• SUPPORTING CONDITION
• Palm Plantation, owner by Sembawa Research
  Centre, Palm tree 15 years old (TM 11), area
  1.200 Ha
• Area for Site Location CPO Bio Diesel Plant 2
  Ha
• CPO Production 1.6 milion Ton/Annum

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Site Location Biodiesel Plant, Sembawa Research
Centre
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BIODISEL UTILIZATION RESEARCHFOR MACHINERY AND
EQUIPMENT FARMING IN SOUTH SUMTERA

• Total Biodiesel consumption for machinery and
  equipment farming in South Sumatera Selatan 4.372
  ton litre per annum
• Decreasing fuel consumption
• Long lifetime machinery and equipment
• Biodegradability

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BIODIESEL MARKET (50 eksisting machinery and
farming equipment , year 2005)
No Machine and Equipment Total unit Biodiesel Type Consumption (ton ltr/thn)
1 Hand tractor 1.750 B20 270
2 Power thresher 819 B20 59
3 Rice milling Unit 2.750 B100 4.043
Total Total 5.319 4.372
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BIODIESEL ECONOMIC SCALE
CPO PRICE ASSUMPTION PRICE (Rp/Litre) PRICE (Rp/Litre)
CPO PRICE ASSUMPTION BIODIESEL DIESEL OIL (IDO)
3.500 (2006) 4.500 5.700
4.000 5.000 5.700
5.000 6.000 5.700
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BUDGET SCHEME
CPO Plant 5 Ton/Hr 9 Bilion Rupiah ? budget Local Government Enterprice (PD PDE) (Owner budget or bank sindicate)
BIODIESEL Plant Ministry of Industry (investment capital), if necessary could be joint between The Government of South Sumatera Province (represent by PD PDE) and The Government Banyuasin (represent by PD Banyuasin Resource)
Raw Material CPO Palm Plantation Sembawa Research Centre
Raw Material BIODIESEL CPO Plant
Operational Finance Local Government Enterprise (PD PDE) Operational Finance Local Government Enterprise (PD PDE) Operational Finance Local Government Enterprise (PD PDE)
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BIODIESEL RETAILOFF TAKERS

• Conducted by PD PDE South Sumatera
• Fuel Pump Station (SPBU)
• Stationary Plant B100
• Machinery and Farming Equipment B20
• River transportation vehicle

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TERIMAKASIH
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PRODUCTION COST
CAPACITY BIAYA PER LITER )
lt 6.000 Ton/Annum Rp 1.000
30.000 Ton/Annum Rp 800
60.000 Ton/Annum Rp 700
100.000 Ton/Annum Rp 600
) Raw material cost not included, asumption 1
Rp 10.000
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Biodiesel Raw Material Resource in South
Selatan.

• Crude Palm Oil (CPO)
• Palm Plantation area (at 2006) 620 ribu Ha
• CPO Production (at 2006) 1.6 milion ton/annum
• Land Productivity 3.4 ton CPO/ha
• CPO Plant 42 unit, capacity 2.020 ton/hour
• Existing area for development 600.000 ha
• Jatropha Oil (J. curcas)
• Plantation area 1.5 milion trees in Lahat and
  100 ha in OKU Timur
• Productivity data not available, aproximately 3
  4 ton/ha.

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Potential area in South Sumatera Sembawa
Plantation Research Institute (LRPI)

• Total area Plantation Research 3250 haa
• Palm Palnatation area Luas kebun 1000 ha
• Production at 2006 20-90 ton TBS/day
• Area for site location Bio Diesel Plant already
  exist
• The plantation neigbour PBN, PBS PR
• CPO plant development 5 ton TBS/hr, dua shifts.
• CPO stock ex the neigbour CPO Plant 20 ton
  CPO/day, not fulfill for bio diesel plant demand
  wich capacity 20 ton/day or 6.000 ton/annum.
• Prospect for Community Development

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Site Location CPO Pilot Plant
500 m
500 m
1000 m
S. MUSI
Site Location CPO Plant
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Integrated Biodiesel Pilot Plant Designin South
Sumatera
Biodiesel Plant (20 ton CPO/hari)
CPO Mini Plant (5 ton TBS/jam, 2 Shift)
2006
9 Billion Rupiah LRPI PEMDA
12-15 Bilion Rupiah INVESTMENT
South Sumatera Province (4 B) Banyuasin County (2
B)
6 B
Palm Plantation CPO (already)
Straight Jatropha Oil SJO (on going
development)