Joint Crediting Mechanism atau JCM adalah skema kerjasama bilateral Indonesia-Jepang untuk kegiatan rendah karbon. JCM sebagai kerjasama bilateral telah diimplementasikan sejak tahun 2013. Saat ini JCM telah diimplementasikan untuk 37 proyek di sub sektor energi terbarukan, industri, infrastruktur, efisiensi energi dan pembangkitan energi. Ke depan, JCM diharapkan akan lebih berperan di dalam kegiatan penurunan emisi dan pencapaian target pengurangan emisi di Indonesia. Joint Crediting Mechanism or JCM is an Indonesia-Japan bilateral cooperation scheme for low carbon activities. JCM as a bilateral cooperation has been implemented since 2013. Currently JCM has been implemented for 37 projects in the renewable energy, industrial, infrastructure, energy efficiency and energy generation sub-sectors. In the near future, the JCM is expected to have a greater role in reducing emissions activities and achieving emission reduction targets in Indonesia.

1. Recent Updates on the Joint
Crediting Mechanism (JCM)
13Desember2019

2. Slide | 2
Background
• JCMencouragescooperationbetween
Japanese
andIndonesian
institutionsto
promoteimplementation
oflowcarbondevelopment
activitiesinIndonesia
• Thebilateralagreement
hasbeensignedon
August2013
Mexico
Costa Rica
Ethiopia
Kenya
Saudi Arabia
Maldives
Bangladesh
Myanmar
Thailand
Laos
Vietnam
Philipines
Camboja Palau
Indonesia
Mongolia
Chile

3. Slide | 3
Japan Leading low carbon
technologies, etc., and
implementation of mitigation
actions
Indonesia
JCM Projects
MRV methodologies will be
developed by the Joint
Committee
Used to achieve
Japan’s emission
reduction target
GHG emission
reductions. Used to
achieve Indonesia’s
emission reduction
target
MRV
Carbon credits
Basic concept

4. Slide | 4
Japan IndonesiaJoint Committee
Japanese
Secretariat
Indonesian
Secretariat
• Develop/revise the rules,
guidelines and methodologies
• Register project
• Discuss the implementation of
JCM
Government
Issuance of credits
Project participants
Implementation and
monitoring projects
Government
Issuance of credits
Project participants
Implementation and
monitoring projects
Notifies
registration of
projects
Report issuance
of credits
Report issuance
of credits
Request
registration of
projects
Request
issuance of
credits
Request
issuance of
credits
Request
registration of
projects
Conduct policy consultations
Third Party Entity
• Validate projects
• Verify the amount of GHG
emission reductions or removals
Submit
PDD/monitoring
report
Inform results of
validation/
verification
Cooperationscheme
Notifies
registration of
projects
Submit
PDD/monitoring
report
Inform results of
validation/
verification

5. Slide | 5
10
TPEs
2
SOEs
more than
100
Japanese
companies
41
Indonesian
companies
8
Indonesian
ministries
4
Japanese
ministries
CMEA
MOEF
MEMR
Min. of Industry
Bappenas
MOF
MOFA
MOFA & Japan Embassy @ Jakarta
MOEJ
METI
Forestry Agency
Stakeholders

6. Slide | 6
Model Project
by MOEJ
Demonstration Project
by METI/NEDO
up to
50%
Subsidy
Participant
projects’
investment
more than
50%
Subsidy
Participant
projects’
investment
Japan Fund for JCM
Managed byADB
• Grant for incremental cost, max.
10 % of project cost or USD 10
mio (sovereign)
• Interest subsidy for ADB’s loan,
max. 10% or USD 10 mio (non-
sovereign loan)
10%
Financingschemes

7. Slide | 7
Submission of
methodology
Approval of
methodology
Develop-
ment of
PDDa)
Validationb)
Registration Monitoring Verificationb) Credit
issuance
Project
participants
Joint
committee
Project
participants
Third
party entity
Joint
committee
Project
participants
Third
party entity
Joint
committee
a) Project Design Document
b) Can be done simultaneously
Can be done by the same entity
Measurement (M) Reporting (R) Verification (V)
Project cycles

8. Slide | 8
12
issued
credits
20
registered
17
in the pipeline
115
feasibility
studies
22
methodologies
37projects
$128mio
Total investment
$10mio
Feasibility
studies
$50mio
Subsidy
$78 mio
Private sector
investment
Sub-sectors
automotif, property, power
generation, renewable energy,
chemical, food, tourisme, oil and
gas, paper, plastic molding, retail,
telecommunication
JCM Projects Status

9. Slide | 9
Startof
project
Time
EmissionLevel
NetEmissionReduction
= Baseline emission – Reference emission
ProjectEmissionReduction/JCM’s credits
= Reference emission – Project emission
Basic concept for crediting

10. Slide | 10
ISO500001
pilotprojects, UNIDO
Streetlighting,
ADB
EnergyEfficiency in
building,Private
Buildingand
industrial, JCM
Streetlighting,
MEMR
10,3
2,4
30,1
1377,6
117,6
Energy EfficiencyInitiatives
(inIDR million)PT. Semen Indonesia, Tuban factory, received the
SubrotoAward 2018 for the category of Energy
Management for Industrialand Building
Source:
Data & Informasi Konservasi Energi 2018, Directorate of Energy Conservation, MEMR
ICERIndonesia Certified
Emission Reduction
JCM serves as role model for the
establishment of the first voluntary
carbon market in Indonesia which is
initiated by MOEF
Recognitionof JCM

11. Slide | 11
• Surabaya & Kitakyushu
– Energy management in buildings
– Waste management
• Bandung & Kawasaki
– Energy management in buildings
– Waste management
– Street lamps
• Batam & Yokohama
– Energy efficiency in airport
– Energy efficiency in waste water treatment
– Biomass energy
• Semarang & Toyama
– Bus rapid transit
– Mini hydro
– Solar PV
• Jakarta & Kawasaki
– Green building & green industry
– Solid waste
– Solar PV in remote areas
City-to-city cooperation

12. Slide | 12
Power generation by waste heat recovery
• The waste heat recovery (WHR) system utilizes
unused waste heat currently emitted from 4 kiln plant
at the cement factory.
• System will generate steam using the waste heat
exhausted from the cement plant, and the steam is fed
to the steam turbine generator to generate electricity.
JCM project example #1
PT. Semen Indonesia, Tuban Factory
PT. Semen Indonesia & JFE Engineering Co.
119,063 tCO2/year

13. Slide | 13
• This project aims to achieve 10% electricity usage
reduction per ton produced by introducing highefficient
system for the old corrugated carton (OCC) proces,
thereby contributing to CO2 reduction.
• This OCC process is a process to prepare clean raw
materials containing dissolved paper fibers by mixing
used corrugated board into water for defiberization and
removing foreign substances.
• Since a large amount of material (water) is used in this
process, the electricity is significantly consumed to the
power motors.
JCM project example #2
Energy-Efficient Waste Paper Processing
System
PT. Fajar Surya Wisesa Factory, Bekasi
PT. Fajar Surya Wisesa & Kanematsu Corp.
14,884 tCO2/year

14. Slide | 14
Energy Saving by Optimum Operation
at Oil Refinery
PT. Pertamina, Refinery Unit V Balikpapan
• This project utilizes the Advanced Process Control
(APC) system equipped with multivariable model
predictive control (MMPC).
• PT. Pertamina RU V consists of multiple hydrogen
production units (HPU) and hydro cracking units
(HCU), which are equipped with conventional control
systems operated by Distributed Control System
(DCS). The APC system that equipped with MMPC
connected to the DCS, will achieve higher energy
efficiency by minimizing variability in key process
variables leading to the optimization of production,
resulting in a greater energy saving and sustainable
CO2 emission reduction by fossil fuel reduction.
PT. Pertamina & Yokogawa Electric Co.
680 tCO2/year
JCM project example #3

15. Slide | 15
• The implementation project applied in utility facility at
• RU IV consists of 10 boilers, which supply high
pressure steam to the steam turbine generators.
“RENKEI Control”, or the utility facility operation
optimization technology through application of
software algorithm using linear programming method
and advanced process control (APC).
• A remote monitoring system to monitor the
performance of the system is also installed.As a
result, a great saving in fuel consumption for the
utility facility is achieved.
JCM project example #4
GHG emission reductions through
utility facility operation optimization
system for refineries
PT. Pertamina, Refinery Unit IV Cilacap
PT. Pertamina & Azbil Corp.
20,000 tCO2/year

16. Slide | 16
• Tribrid System at mobile communication’s Base
Transceiver Stations (BTS) are installed at 20
location in off-grid and poor-grid area in Republic of
Indonesia.
• Tribrid System is defined as a combined system of
solar PV, batteries, and electric power control
system.
• Tribrid System controls charge-discharge of
battery, and also improves the operational
efficiency of diesel generators with its electric
power control system. Therefore, it enables BTS to
reduce CO2 emissions from electricity and fossil
fuel
JCM project example #5
Installation of Tribrid System to mobile
communication’s Base Transceiver
Stations
20 locations in Sumatera, Java & Kalimantan
PT. XL Axiata & KDDI Corp.
363 tCO2/tahun

17. Slide | 17
JCM project example #6
• This project aims to reduce CO2 emissions by
introducing a 2 MW solar power plant in the
Jakabaring Sport City complex of South Sumatra
Province. The solar power plant enables to supply
electricity to the sport city and surplus power is
provided to the grid as renewable energy.
• The power plant uses polycrystalline PV modules,
315W, module efficiency 15.5%.About 5,243 of these
modules and peripheral systems installed on an
expansive area of about 2.5 ha.
Solar PV Power Plant Project in
Jakabaring Sport City
Jakabaring Sport City, Palembang
PDPDE Sumsel & Sharp Corp.
1,303 tCO2/tahun

18. Slide | 18
• Toyama City has concluded a cooperation agreement
between Semarang City to realize low carbon society
under city to city cooperation.
• Based on the cooperation agreement, this project aims
to reduce GHG emissions through fuel switch from
diesel to CNG.
• In the project, 72 diesel buses owned by Trans
Semarang, including 25 large-sized buses and 47 mid-
sized buses, are retrofitted from diesel engine to hybrid
engine with CNG system available. These buses are
considered more cost-effective through fuel switching.
JCM project example #7
Introduction of CNG-Diesel Hybrid
Equipment to Public Bus
Semarang
BLU UPTD Semarang & Hokusan Co., Ltd.
1,870 tCO2/tahun

19. Slide | 19
• The purpose of this project is to reduce energy
consumption and CO2 emission by installing a gas
co-generation system.
• This system adopts a high efficiency gas-engine and
heat recovery system to generate steam 7,8 MW and
hot water.
• This project contributes to the reduction of energy
consumption at coal fired power generation prevailed
in Indonesia, and to the reduction of GHG and air
pollutant emissions.
JCM project example #8
Installation of Gas Co-generation System
for Automobile Manufacturing Plant
TMMIN factory, Karawang
PT. Toyota Motor Manufacturing Industry
(TMMIN) & Toyota Tsusho
20,310 tCO2/tahun

20. Thank you
Indonesia JCM Secretariat
www.jcm.ekon.go.id
secretariat@jcmindonesia.com