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BIOENERGY DEVELOPMENT
IN INDONESIA
Director of Energy Resources, Mineral, and Mining
Ministry of National Development Planning/
National Development Planning Agency (Bappenas)
Luxembourg, 30th November 2019
Indonesia is currently initiating Low Carbon Development (LCDI) as a new development
framework that aims to maintain economic and social growth through low GHG emission
development activities and minimize natural resource exploitation.
RPJMN 2020-2024
(Green Economy &
Low Carbon)
LCDI is a new framework
for Indonesia
development in the
future. The objective is to
maintain economic and
social development
through activities that is
low emissions, and
minimize natural
resources exploitation
LCDI will be main-
streamed to the
Medium Term National
Development Plan
(RPJMN) 2020-2024.
Bappenas is currently
finalizing the RPJMN.
Policy Intervention For Energy Transition:
Indonesia’s Transition Towards Low Carbon Economy
LCDI Policy
The Scenarios for Energy
1
2
Increase Share of Renewable
Energy
Desired additional Share of RE
Generation in Electricity increase slowly
to 30% at 2040 start from 2018Increase Energy Efficiency
2019 2030
3.5%
per year
4.5%
per year
Increase energy efficiency 3.5% per year during 2019-2030 and
4.5% per year post 2030
Increase the amount of Biofuel
use in Transport
Substitute oil demand with 29.78
million kiloliters of Biofuel in
transport at 2025
30% share of
petroleum demand in
transport
3
WIND
SEA
BIOENERGY
POTENTIAL
DEVELOPED
60.6
GW
1.1
GW
POTENTIAL
17.9
GW
32.6
GW
1.8
GW
POTENTIAL
DEVELOPED
HYDRO
SOLAR
GEOTHERMAL
POTENTIAL
DEVELOPED
POTENTIAL
DEVELOPED
POTENTIAL
DEVELOPED
75
GW
5.3
GW
207.8
GWp
0.09
GWp
25.4
GW
1.9
GW
POTENTIAL
419.3 GW
INSTALLED CAPACITY
10.2 GW
Energy consumption is projected to
increase averagely 7 percent per annum
Unfortunately, Indonesia’s dependence on
fossil fuel especially oil-based
energy, until now, is still very high
2 billion BOE
7 billion BOE
2024
2050
Renewable Energy in Indonesia:
Opportunity
Developing bioenergy power
plants (Biomass, Biogas)
Increasing the supply of
raw materials for
sustainable bioenergy
through the development
of energy forests
Increasing the share of biofuel as a
substitute for fossil fuels
Utilizing organic waste as
an energy source
Increasing contribution to the
national economy through the
development of the bioenergy
industry
Mission of Bioenergy Development
in Indonesia
• The certainty of availability
and utilization of raw
materials
• Price certainty for raw
materials
• Industrial Plantation Forest
Guarantee
• Cooperation scheme for
buying and selling raw
materials
• Collaboration and coordination
between relevant stakeholders
(MoU between MEMR, Min. of
Environment and Forestry, Min. of
Agriculture, and Min. of
Disadvantaged Regions)
• Preparation of business models
(meet upstream and downstream
sides)
• Determination of business area,
price and infrastructure
• Certainty and sustainability of
electricity demand
• Technical specifications, trade
system
• Investment value trends in the
isolation area
• Provision of technology and
guarantees
Challenges of Bioenergy Development - Forest Based
The MoU between the Ministry of Energy and
Mineral Resources and the Ministry of
Environment and Forestry in April 2019,
concerns the improvement of coordination in
environment, forestry, energy, and the mineral
resources sector covers:
1. Implementation of forest reclamation and
planting of watershed rehabilitation
2. Synchronization the use of Production Forest
and Protection Forest Areas for energy
activities
3. Renewable energy development (inside and
outside forest areas)
4. Exchange of data and information on the
environment, forestry, energy, and the
mineral resources sector.
Development of biomass power
plants based on local potential
Development of pellet co-firing
biomass
Development of compressed biogas
Bioenergy Development Strategy - Forest Based
THANK YOU!

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Bioenergy Development in Indonesia

  • 1. BIOENERGY DEVELOPMENT IN INDONESIA Director of Energy Resources, Mineral, and Mining Ministry of National Development Planning/ National Development Planning Agency (Bappenas) Luxembourg, 30th November 2019
  • 2. Indonesia is currently initiating Low Carbon Development (LCDI) as a new development framework that aims to maintain economic and social growth through low GHG emission development activities and minimize natural resource exploitation. RPJMN 2020-2024 (Green Economy & Low Carbon) LCDI is a new framework for Indonesia development in the future. The objective is to maintain economic and social development through activities that is low emissions, and minimize natural resources exploitation LCDI will be main- streamed to the Medium Term National Development Plan (RPJMN) 2020-2024. Bappenas is currently finalizing the RPJMN. Policy Intervention For Energy Transition: Indonesia’s Transition Towards Low Carbon Economy
  • 3. LCDI Policy The Scenarios for Energy 1 2 Increase Share of Renewable Energy Desired additional Share of RE Generation in Electricity increase slowly to 30% at 2040 start from 2018Increase Energy Efficiency 2019 2030 3.5% per year 4.5% per year Increase energy efficiency 3.5% per year during 2019-2030 and 4.5% per year post 2030 Increase the amount of Biofuel use in Transport Substitute oil demand with 29.78 million kiloliters of Biofuel in transport at 2025 30% share of petroleum demand in transport 3
  • 4. WIND SEA BIOENERGY POTENTIAL DEVELOPED 60.6 GW 1.1 GW POTENTIAL 17.9 GW 32.6 GW 1.8 GW POTENTIAL DEVELOPED HYDRO SOLAR GEOTHERMAL POTENTIAL DEVELOPED POTENTIAL DEVELOPED POTENTIAL DEVELOPED 75 GW 5.3 GW 207.8 GWp 0.09 GWp 25.4 GW 1.9 GW POTENTIAL 419.3 GW INSTALLED CAPACITY 10.2 GW Energy consumption is projected to increase averagely 7 percent per annum Unfortunately, Indonesia’s dependence on fossil fuel especially oil-based energy, until now, is still very high 2 billion BOE 7 billion BOE 2024 2050 Renewable Energy in Indonesia: Opportunity
  • 5. Developing bioenergy power plants (Biomass, Biogas) Increasing the supply of raw materials for sustainable bioenergy through the development of energy forests Increasing the share of biofuel as a substitute for fossil fuels Utilizing organic waste as an energy source Increasing contribution to the national economy through the development of the bioenergy industry Mission of Bioenergy Development in Indonesia
  • 6. • The certainty of availability and utilization of raw materials • Price certainty for raw materials • Industrial Plantation Forest Guarantee • Cooperation scheme for buying and selling raw materials • Collaboration and coordination between relevant stakeholders (MoU between MEMR, Min. of Environment and Forestry, Min. of Agriculture, and Min. of Disadvantaged Regions) • Preparation of business models (meet upstream and downstream sides) • Determination of business area, price and infrastructure • Certainty and sustainability of electricity demand • Technical specifications, trade system • Investment value trends in the isolation area • Provision of technology and guarantees Challenges of Bioenergy Development - Forest Based
  • 7. The MoU between the Ministry of Energy and Mineral Resources and the Ministry of Environment and Forestry in April 2019, concerns the improvement of coordination in environment, forestry, energy, and the mineral resources sector covers: 1. Implementation of forest reclamation and planting of watershed rehabilitation 2. Synchronization the use of Production Forest and Protection Forest Areas for energy activities 3. Renewable energy development (inside and outside forest areas) 4. Exchange of data and information on the environment, forestry, energy, and the mineral resources sector. Development of biomass power plants based on local potential Development of pellet co-firing biomass Development of compressed biogas Bioenergy Development Strategy - Forest Based