The document discusses Indonesia's energy policy and targets for 2025. It aims to shift the energy mix towards more sustainable sources like gas, renewables, and biofuels which would account for 30%, 17%, and 5% respectively by 2025. Indonesia is also working to reduce CO2 emissions through promoting renewable energy, energy efficiency, carbon capture technologies, reducing gas flaring, and conserving forests. The country's fuel policy focuses on meeting domestic demand, developing infrastructure, establishing reserves, diversifying fuels, conserving usage, and encouraging cleaner alternative fuels.

1. MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
FUEL AND LUBRICANTS INDUSTRY
POLICY IN INDONESIA:
TOWARDS BETTER AND CLEANER ENVIRONMENT
Purnomo Yusgiantoro
Minister of Energy and Mineral Resources
INTERNATIONAL FUEL AND LUBES CONFERENCE AND EXHIBITION 2007
Jakarta, November 20th 2007

2. PRIMARY ENERGY UTILIZATION
PROJECTION
6,000.0
5,000.0
BOE
4,000.0
Without conservation
MillionSBM
3,000.0
Juta
2,000.0
With conservation
1,000.0
-
03
04
06
07
09
10
13
14
16
17
19
20
22
23
02
05
08
11
12
15
18
21
24
25
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Without conservation scenario With conservation scenario
Source: National Energy Management Blue Print
Growth avarage 2002-2025:
- Without conservation = 8,4%
- With conservation = 5,6%
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3. BASIC CONCEPT OF LAW No. 30/2007
BASIC CONCEPT ON ENERGY
Foundation for energy policy
ENERGY
DIVERSIFICATION
Shifting Paradigm :
SSM DSM
ENERGY
CONSERVATION
Security of Energy Supply
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4. TARGET OF ENERGY MIX, 2006
ENERGI MIX, 2006 (1 million BOE) National Energy Mix 2025 (3 million BOE)
Hydro Power, (Presidential Decree No. 5/2006)
National (Primary) Energy Mix
3.11%
Geothermal, Oil,
1.32% 20%
Natural Gas,
28.57%
Biofuel, 5%
Gas, 30%
Geothermal, 5%
RE,17%
Biomass, Nuclear, Hydro
Oil Solar Energy,
51.66% Wind Power, 5%
Coal, 15.34%
Coal Liquefaction
2%
Coal , 33%
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5. INDONESIA’S EFFORT
IN REDUCING CO2 EMISSIONS
• Promoting renewable energy sources
• Encouraging energy efficiency improvement measures
• Applying Carbon Capture and Storage (CCS) and
sequestration technology
• Reducing gas flare
• Conserving forestry reserves
• Encouraging the conclusion of Adaptation Fund in
encountering climate change
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6. OIL PRODUCTION IN INDONESIA
Million barrels/year
Other PSC’s
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7. FUEL INDUSTRY POLICY
• Meeting domestic fuel demand
• Encouraging infrastructure development
• Establishing national fuel strategic reserves
• Fuel diversification
• Fuel conservation
• Encouraging environmental friendly fuel : un-
leaded fuel, alternative fuel, i.e gas fuel (CNG
& LPG) and biofuel which form is liquid and
favorable in handling and maintenance
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8. TARGET OF ENERGY MIX, 2010
Transportation 2006 Transportation 2010
BIOFUELS (Bio- BIOFUELS (Bio-Oil) BIOFUELS BIOFUELS (Bio-
Diesel) 0.0% NG BIOFUELS (Bio- (bioethanol) Diesel)
0.0% 0.0% Ethanol) 7.6% 0.4% BIOFUELS (Bio-Oil)
0.0%
1.9%
Electricity Electricity
0.0% 0.0%
NG
1.4%
Automotive
Automotive Diesel Oil
Diesel Oil 42.3%
45.9% Gasoline
54.0%
Gasoline
46.5%
Household and Commercial 2006 Household and Commercial 2010
Oil
Briquet Coal 28.1%
OIl 0.1%
Briquet Coal
53.1% BIOFUELS (Biooil) CNG 1.2%
0.0% 1.5%
BIOFUELS (Biooil)
NG 3.7%
6.4%
Electricity LPG
36.1% 19.0%
CNG
0.0%
Electricity
LPG 40.1%
NG 10.6%
0.1%
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9. TARGET OF ENERGY MIX, 2010 (continuation)
Industry 2006 Industry 2010
Electricity
Electricity
Gas Gas 12.4%
13.1%
20.4%
19.6%
Oil
27.8%
Coal
22.5%
Oil
Coal Biofuel
43.8%
34.9% 3.1%
LPG
1.1% LPG
1.4%
Power Plant 2006 Power Plant 2010
Oil
Gas 23.7%
14.3%
Coal Coal-Hybrid
BIOFUELS 71.4% 2.2%
Coal-Hybrid
0.9%
0.0%
Gas
8.3%
Geothermal
5.3% Oil
2.7%
BIOFUELS
Hydro 0.8%
9.6%
Coal Geothermal
46.2% Hydro 6.8%
7.8%
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10. CHALLENGES IN FUEL INDUSTRY
• Transportation has become the biggest
challenge for fuel industry in Indonesia since
now almost 100% of fuel for transportation
comes from oil.
• In addressing such situation to environment
and oil conservation, government is
encouraging fuel diversification.
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11. World Situation – Climate Change
Greenhouse gas concentrate from year 900 to 2000
CH4 [ppbv] CO2 [ppmv] N2O [ppbv]
1900 420
1700 400
1500 380
CH4
1300 CO2 360
N20
1100 340
900 320
700 300
500 280
300 260
1800
1850
1900
1950
2000
1750
900
950
1700
1350
1400
1450
1500
1550
1600
1000
1050
1100
1150
1200
1250
1300
1650
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12. 11

13. LUBRICANTS INDUSTRY POLICY
• Lubricants industry policy in Indonesia
is already open and lead by market
mechanism
• Government encourages lubricants
producers and consumers to :
• Maintain marketed lubricants quality
• Produce environmental friendly lubricants
• Manage lubricants, yet still concerning
environment
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14. Ministry of Energy and Mineral Resources
www.esdm.go.id
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