Indonesia's Perspectives on Renewable Energy Future Development

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MINISTRY
OF
ENERGY
AND
MINERAL
RESOURCES
REPUBLIC
OF
INDONESIA
INDONESIA’S PERSPECTIVES ON RENEWABLE ENERGY FUTURE DEVELOPMENT
THE FIRST RENEWABLE ENERGY MINISTERIAL FORUM
OF THE INDIAN OCEAN RIM ASSOCIATION
ABU DHABI, JANUARY 21ST
, 2013
I. Salutation and Greetings
• Excellency Ambassador KV Bhagirath, Secretary General of IORA
• Your Excellencies Ministers, Colleagues from the Indian Ocean Rim member
countries;
• Distinguished Ladies and gentlemen;
A very Good Morning to you all.
II. OPENING (Expression of Appreciation and Gratitude)
1. I am very much pleased and honoured to be invited and join this “First Renewable
Energy Ministerial Forum of the Indian Ocean Rim Association” which I acknowledge as
a strategic forum to boost the cooperation among the IORA countries, in particular for
the development of new and renewable energy in the region which leads to sustainable
economic growth and prosperity in the IORA member countries.
2. Let me preface my speech by first extending my gratitude and appreciation to IORA
and IRENA for organizing this Forum in cooperation with the Government of the United
Arab Emirates (UAE); and to the Government of UAE for the generous hospitality
accorded to the us, amid their busy schedule as the host of a series of forums and
international events of Abu Dhabi Sustainability Week.
III. POINTS OF STATEMENT
1. It is an honour for me to deliver this Statement of the Government of Indonesia,
especially on discussing of how to enhance the development of renewable energy in
our region, the Indian Ocean region.
2. As we realize together, fossil fuel based energy production have been declined while
energy demand is continuously growing due to the population and economic growth.
Fuels and oils continued to remain the major demand to the IORA member countries
That situation is a challenge for us to manage our energy supply and demand, whereas
the energy balance is an expectant result that reflects the energy sovereignty, energy
security and energy independence.

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3. I believe that IORA member countries are blessed with renewable energy potential
regardless the small or large potential in quantity and quality.
4. Drivers underlying the development of new and renewable development in Indonesia:
4.1 As a tropical country, Indonesia is endowed with diverse energy resources potential
both fossil and non-fossil energy. Similar to that in the most developing countries,
Indonesia’s energy mix is still dominated by fossil energy. oil at 46.7%, followed by gas
24.3%, coal 23.9%, and 6 % new and renewable energy.
4.2.The national target on primary energy mix has been set to 23% for new & renewable
energy in 2025.
4.3.The fact, the abundant source of new and renewable energy doesn’t lead Indonesia to
optimally utilize the new & renewable energy sources. However, Indonesia commits to
make development of new and renewable energy a top priority.
4.4.With economic growth at more than 5% per year, energy demand is foreasted to
increase 7% to 8% annually.
4.5 Efforts made by the Government to cope with the increasing energy demand which
include: among others:
- Establishment of four great responsibilities in the energy sector which includes:
expanding the exploration of gas and oil; reducing the utilization of fossil fuel on the
electricity generation; implementing massively renewable energy technology and
conserving energy.
- Developing the new & renewable energy among others:
-- by creating the market for renewable energy (mandatory for bio-fuel utilization
in transportation sector (PSO), electricity generation, and industry sectors;
-- implementing energy efficiency technologies and reducing subsidy on fossil
energy,
-- promoting utilization of renewable energy through regulation on “feed-in-tariff”
(electricity generated from solar energy and municipal waste, geothermal and
other NRE),
-- other incentives for new and renewable energy and energy efficiency
technologies, investment issues (to attract more invesment, Indonesia provides
a custom-tax-free policy for importing renewable energy technologies.
5. Potential of Indonesia’s NRW:
- hydro potential is estimated around 75 GW of energy with current implementation of
4.6% and growing.
- Located in the mountainous area, Indonesia’s energy potential on geothermal is
estimated 40% of the world potential, an approximately of 29 GW.
- Other renewable energy potential which is also high is bio-energy with the
estimation of potential of around 49 GW.

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- Indonesia also holds significant potentials of wind power, ocean and solar energy,
and yet the implementation needs to be developed further.
6. With that potential, Indonesia is expected to extend significant contribution to the
region, and also at global level, especially to mitigate the climate change through the
sustainable and clean use of energy.
7. We greatly hope that with those encouraging regulations that is to create investment
climate, more investors are motivated to invest in developing renewable energy in
Indonesia.
Excellencies, Distinguished Ladies and Gentlemen,
8. The development of new and renewable energy in Indonesia offers prosperity.
Indonesia’s high economic growth along with its stable political and national security
guarantees those who are investing their will and energy with us. We are looking
forward to working with fellows IORA nations, considering we have the same vision: to
ensure the renewable energy resources to be developed in the best ways, and that they
woulnd’t be left just as the ‘alternative’.
9. I am of the opinion that we are all share the same spirit, the same goal and the same
vision on developing renewable energy. And yet, in order to actualize the aspiration,
cooperation between us is absolutely substantial.
- The need for regional cooperation that includes NRE development and
infrastructure, the application of technology in both the supply side and demand side,
also to the renewable energy trading that is possible, such as biomass and biofuel.
- Investment, share of knowledge and technology, research and development, and the
demonstration of new and renewable energy are important steps we need to take
while driving the pattern of energy consumption into a more efficient and sustainable.
- Strong commitment and consistency from the Governments is needed to support long-
term development of renewable energy.
-
IV. Closing
Excellencies, Distinguished Ladies and Gentlemen,
10. In the spirit of IORA cooperation, I would like to state that Indonesia supports the
adoption of the Abu Dhabi Declaration of the First Renewable Energy Ministerial of the
Indian Ocean Rim Association. I believe that the declaration can be a platform for us to
base our work and assignment to make the Indian Ocean Rim a better region and a
better energy provider of the future.
11. Last but not least, Indonesia has the pleasure and honour to accept the invitation of
IRENA, to be the host of the World Conference taken place in August 2014 in Bali

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Thank you for your kind attention.
Abu Dhabi, January 21st
, 2013
Vice Minister of Energy and Mineral Resources
Of the Republic of Indonesia
Susilo Siswoutomo