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SEMINAR ON SUSTAINABLE AND RENEWABLE ENERGY

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ministry of energy and mineral resources national team for biofuel development seminar on sustainable and renewable energy umy, 8 desember 2007 outline why biofuels? – PowerPoint PPT presentation

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Title: SEMINAR ON SUSTAINABLE AND RENEWABLE ENERGY


1
MINISTRY OF ENERGY AND MINERAL RESOURCES NATIONAL
TEAM FOR BIOFUEL DEVELOPMENT
BIOFUELS POLICY AND DEVELOPMENT IN INDONESIA
SEMINAR ON SUSTAINABLE AND RENEWABLE ENERGY UMY,
8 Desember 2007
2
OUTLINE
  • Why Biofuels?
  • Target of Biofuel Development
  • Biofuel Program
  • Opportunity and Challenges
  • Implementation of Biofuel Development
  • Opportunity of Cooperation

3
WHY BIOFUELS?
4
WHY BIOFUELS ?
  1. High potential for BIOFUELS feedstock supply and
    land availability that suitable for BIOFUELS
    plantation
  2. Proven BIOFUELS technology by local potential
    (Engineering, Research and Development)
  3. BIOFUELS industry allows community
    participations, including farmer
  4. High number of unemployment (40 million people -
    10 million is opened unemployment)
  5. Opportunity of Regional Governments to increase
    economic development
  6. Opportunity in exporting BIOFUELS products
  7. BIOFUELS is a clean energy that can reduce CO2
    emission.

Slide 7
5
BIOFUELS ACCELERATING PROGRAM
NATIONAL ENERGY POLICY
National Energy Mix 2025 (Presidential Decree No.
5/2006)
Presidential Instruction No. 1/ 2006 to 13 Govt
Institutions Regional Govt on BIOFUELS Supply
and Utilization as an Alternative Energy
Presidential Decree No. 10/ 2006 on National
Team on BIOFUELS Development
BLUEPRINT, ROADMAP, RECOMMENDATION
IMPLEMENTATION
Slide 10
6
LAW NO 30/2007 ON ENERGY
  • Central and Regional Government have an
    obligation to increase supply and utilization of
    new energy and renewable energy, in their scope
    of authority.
  • Energy supply from new energy and renewable
    energy resources that is carried out by
    corporate, and private may gain facilities and/or
    incentives from Central Government and/or
    Regional Government in their scope of
    authorizations for specific period of time until
    it meets its economical value.

ENERGY DIVERSIVICATION
7
BIOFUEL PROGRAM
8
FAST TRACK BIOFUELS DEVELOPMENT
  • Infrastructure
  • Demplot
  • On time schedule
  • Explicit investment
  • employment ratio

Slide 11
9
ENERGY SELF SUFFICIENT VILLAGE (ESSV) FUNDING
State Budget
Funding Sources
State Own Company
Regional Government
ESSV
Private Sector
Small/Medium Enterprise
Slide 14
10
DEVELOPMENT OF SPECIAL BIOFUELS ZONE
SEED

CULTIVATION
CULTIVATION
BIOFUELS INDUSTRY
BIOFUELS LAND
TRANSPORTATION
INDUSTRY
ELECTRICITY
EXPORT
PERTAMINA
Slide 15
11
BIOFUELS FEEDSTOCK
Coconut
BIOOIL BIODIESEL
Seed of Hevea braziliancis
Aleurites molucana
Micro algae
UNDER DEVELOPMENT
Sweet sorghum
BIOETHANOL
Sugar palm
Sago
Corn
Slide 9
12
BIOFUEL PRODUCT
13
TARGET OF BIOFUEL DEVELOPMENT
14
ROADMAP FOR BIOFUELS DEVELOPMENT
Year
2005-2010 2011-2015
2016-2025
Biodiesel Utilization 15 of Diesel Fuel
Consumption 4.52 million kL
Biodiesel Utilization 10 of Diesel Fuel
Consumption 2.41 million kL
Biodiesel Utilization 20 of Diesel Fuel
Consumption 10.22 million kL
Biodiesel
Bioethanol Utilization 5 Gasoline
Consumption 1.48 million kL
Bioethanol Utilization 10 Gasoline
Consumption 2.78 million kL
Bioethanol Utilization 15 Gasoline
Consumption 6.28 million kL
Bioethanol
Bio-oil
Biokerosene Utilization 1 million kL
Biokerosene Utilization 1.8 million kL
Biokerosene Utilization 4.07 million kL
- Biokerosene
PPO Utilization 0.4 million kL
PPO Utilization 0.74 million kL
PPO Utilization 1.69 million kL
  • Pure Plantation Oil
  • for Power Plant

BIOFUELS
BIOFUELS Utilization 2 of energy mix 5.29
million kL
BIOFUELS Utilization 3 of energy mix 9.84
million kL
BIOFUELS Utilization 5 of energy mix 22.26
million kL
Slide 12
15
TARGET 2010
  1. Job creation for 3.5 million unemployment
  2. Increasing income for On-Farm and Off-Farm
    workers in BIOFUELS sector up to the Regional
    Minimum Payment
  3. Development of BIOFUELS plantation in 5.25
    million ha unused land
  4. 1000 Energy Self Sufficient Villages and 12
    Special BIOFUELS Zone
  5. Reducing Fossil Fuel for transportation up to 10

Slide 8
16
OPPORTUNITY AND CHALLENGES
17
OPPORTUNITY AND CHALLENGES IN DEVELOPING BIOFUEL
  • High oil price
  • High energy consumption in Indonesia (7-8 per
    year)
  • Biofuel is environmental friendly and renewable
    fuel
  • Current energy price structure does not support
    efforts in energy diversification
  • Need higher technology to achieve renewable
    energy in reasonable and affordable price
  • High price of biofuel feedstock
  • Issues of competition between food and energy

18
IMPLEMENTATION OF BIOFUEL DEVELOPMENT
19
Incentives Support
  • Tax allowance (Governmental Regulation No. 1 /
    2007 on Income Tax for Investment in Certain
    Businesses and/or Certain Area) in form of
    taxable income reduction up to 30 of realized
    Investment spread in 6 years.
  • Accelerated depreciation amortization
  • Loss carried forward for 10 years
  • A 10 tax on dividends
  • Import duty for 2 years period
  • Interest rate subsidy for farmers Rp 1 trillion
    ( 110 million)/year.
  • Governmental Regulation No. 8 / 2007
  • Set up of Indonesia Biofuel Fund
  • Seed Capital for Indonesia BioFuel Fund US 220
    million.
  • Infrastructure

20
Minister of Finance Regulation No.
117/PMK.06/2006 on Credit for Bio-energy
Development and Plantation Revitalization
  • Credit for bio-energy development and plantation
    revitalization is prepared in order to support
    funding for biofuel feedstock development program
    and plantation revitalization.
  • Plantation development that could be funded by
    credit for bio-energy development and plantation
    rehabilitation includes plantation expansion,
    rehabilitation and rejuvenation.

21
Biofuel for Community Developments
  • Biofuel for Rural Communities
  • Small-Scale Bio-Energy Project
  • Bio-Briquette Jatropha Seeds.
  • PPO a blend of Straight Jatropha Oil with
    Diesel-Fuel for Rural Tractor, Water Pump
    Transportation or Fishing Boat Engine.
  • Bio-Fertilizer from organic waste.
  • Bio-soap from Jatropha Oil.
  • Bio-kerosene for cooking
  • Corn, Rice, Cassava Livestock Food
  • Government Grant for Superior seedling/Nursery,
    Small-scale Plant, Pilot Projects, Irrigation
  • Energy Self Sufficient Village
  • Jatropha plantation by farmers is around 50.000
    hectars

22
BIOFUEL DEVELOPMENT PROGRESS
  • Availability of biofuel Development Blue Print
    and Road Map
  • Availability of biofuel Development Regulations
    and Standards
  • Biodiesel (B-2.5), has been sold in 202 gas
    stations in Jakarta, 11 gas stations in Surabaya,
    and 10 gas stations in Bali.
  • Bioethanol (E-3), biopremium is available in 1
    gas station in Malang. Bio-Pertamax has been sold
    in 14 gas stations in Jakarta, 7 gas stations in
    Surabaya, 4 gas stations in Malang, and 10 gas
    stations in Bali.
  • Starting of Energy Self Sufficient Village (ESSV)
    using biofuel. In 2007 there are 113 biofuel
    based ESSV.
  • Commitments of Investors to develop biofuel (17M
    US)
  • Biofuel production has been started in Indonesia

23
PRODUCTION OF FUEL GRADE BIOETHANOL April 2007
82.500 KL
24
ADDITIONAL PRODUCTION OF FG BIOETHANOL 2 million
up to 2,7 million kL/year (1,1 million ha) 2007
2010
25
PRODUCTION OF BIODIESEL October 2007 840.000
Ton/Year
PT. INDO BIOFUELS ENERGY 20.000 ton/yr (CPO)
26
ADDITIONAL PRODUCTION OF BIODIESEL 7 million
kL/year (3,6 million ha) 2007 2011
Sawit
WILMAR GROUP Sumatra, Borneo 1,000,000
kl/yr 180,000 ha
Jatropha
ASIATIC GROUP Kalbar 80,000 ha
TOLARAM Kalbar 110,000 ha
INDOMALPTPN Medan, Banten, Pekanbaru 1,500,000
kl/yr
BUMN AGRO Riau, Jambi, Sumsel, Kalimantan,
Papua Inti 220,000 ha Plasma 880,000 ha
CLEAN BIOFUEL Gorontalo 50,000 ha
PERTAMINA Dumai, Balongan, Balikpapan 500,000
kl/yr
MUTING GROUP Merauke 290,000 ha
SINARMAS Dumai 400,000 kl/yr
BAKRIE, INDOFOOD, ASIANAGRO SUMIASIH Sumatra,
Jawa 600,000 kl/yr
PT. INDO BIOFUELS ENERGY Merak, 160.000 kl/yr
SINARMAS Kalbar, Merauke 440,000 ha
LEMIGAS Jawa, 3000 kl/yr
GENTING GROUP Merauke 400,000 ha
SWEDEN BIOENERGY NTT 350,000 kl/yr 100,000 ha
9 BADAN USAHA Merauke 340,000 ha
BP NTT, Papua, Kalimantan 100,000 ha
INDOMAL Sula Merauke 300,000 ha
APROBI GROUP Kalimantan 100,000 ha
27
BIOFUEL POWER GENERATOR 2007
No. Location Numbers of Power Generator Total Capacity (MW)
1 North Sumatera 1 4.5
2 Maluku 7 4.0
3 Riau and The Islands of Riau 2 14.1
4 Lampung 1 11.0
5 Bali 1 1.5
6 South Kalimantan 5 19.8
7 East Kalimantan 7 16.0
TOTAL 24 70.9
28
THANK YOU
29
  • OPPORTUNITY OF COOPERATION

30
OPPORTUNITY OF COOPERATION
  • Exchange of information on Biofuels policies and
    regulations
  • Research and Development on Biofuels Commodities
  • Research and Development on processing
    technologies of Biofuels

31
TARGET OF BIOFUEL SHARE 2010
Transportation 2006
Transportation 2010
Automotive
Household and Commercial 2010
Household and Commercial 2006
32
TARGET OF BIOFUEL SHARE 2010 (continuation)
Industry 2010
Industry 2006
Power Plant 2006
Power Plant 2010
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