DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATIONMINISTRY OF ENERGY AND MINERAL RESOURCES – REPUBLIC OF INDONESIA

DEVELOPMENT OF BIOENERGY UTILIZATIONDEVELOPMENT OF BIOENERGY UTILIZATIONDEVELOPMENT OF BIOENERGY UTILIZATIONDEVELOPMENT OF BIOENERGY UTILIZATIONIN INDONESIAIN INDONESIA

by:

DADAN KUSDIANADirectorate of Bioenergy

TOKYO, 27 MARCH 2013TOKYO, 27 MARCH 2013

• INTRODUCTION• POTENTIAL AND DEMAND• PRODUCTION AND UTILIZATION• POLICY/REGULATIONS AND INCENTIVES• CONCLUDING REMARKS

POTENTIAL OF BIOENERGYBIOFUELS

There are huge potential resources for biofuels from Palm Oil (annually production of CPO is 25 million tons), Jatropha Curcas, Nyamplung, Molasses (Sugar Cane), Cassava, Sorghumy g g gand Algae.

BIOGASRawmaterial biogas in Indonesia is mainly derived from cattle waste, industrian waste, municipal solid waste, and other organic materials.Indonesia has livestock as producers of raw material biogas in significant numbers include 13 million dairy cows and beef cattle, and approximately 15.6 million goats.This potential is equal with 1 million unit of biogas digester.

BIO BRIQUETTSAgriculture and forest waste

BIO‐ELECTRICITYHigh potential of biomass waste from agricultural waste and municipal solid waste as a fuel stock for biomass based power generation. Total potential capacity is 49,810 MW, of which MSW :1,870 MW, POME: 500 MW, bagasse 160 MW.

BIOENERGY PRODUCTION AND UTILIZATION IN INDONESIA

Biodiesel production in year 2012 was about 2 million kL,increasing 25% from year 2011. Its domestic utilization was about700 thousand kL, increasing twice from year 2011. Productioncapacity is 4.2 million KL.Until ear 2012 there ha e been b ilt more than 5 000 biogasUntil year 2012, there have been built more than 5.000 biogasdigesters.Capacity of bioenergy based on-grid power plant in year 2012Capacity of bioenergy based on grid power plant in year 2012was 75,5 MW (including additional capacity in 2012 as much as16,5 MW).Since February 2012, biodiesel percentage in subsidized oil fuelincreased from 5% to 7,5%, whereas its implementation in non-subsidized oil fuel started with 2% biodiesel in May 2012subsidized oil fuel started with 2% biodiesel in May 2012.

BIODIESEL INSTALLED CAPACITY

PT. sumi asih Oleo Chem.

100.000 MT/th

PT. Pelita Agung Agri Industries

200.000 MT/ThPT. Musim Mas420.000 MT/Th

PT. Cemerlang energi perkasa400.000 MTl/Th

PT. Petro Andalan 

PT. Bioenergy Pratama Jaya66.000 MT/Th

PT. Oil Tanking504.000 MT/Th

PT. Wilmar Bioenergy Ind

1.050.000 MT/Th

PT. Darmex Biofuels

150.000 MT/th

Nusantara150.000 Kl/Th

PT. Wahana Abdi tirta tehnika

13.200 KL/th

PT. Alia Mada Perkasa

PT. Sintong Abadi

35.000 Kl/Th

11.000 KL/th

PT. Pasadena Biofuels 

PT. Ciliandra250.000 MT/Th

PT. anugerah inti gemanusa

40.000 MT/ThPT. Eternal Buana Chem, Ind

 MT/Th

PT. Multikimia Inti Pelangi

MandiriBiodiesel:10.240 Kl/th

PT. Damai PT  Energi alternatif

Non Asosiasi

PT. eterindo Nusa Graha

40.000 MT/Th

40.000 MT/Th

PT. Indo Biofuels Energy

60.000 MT/Th

PT. Primanusa Palma Energi24.000 Kl/Th

Pelangi14.000 Kl/Th sejahtera sentosa

120.000MT/Th

PT. Energi alternatif7.000 MT/Th

Production capacity: 4,2 million KL

Asosiasi/Aprobi

2,500INDONESIA BIODIESEL PRODUCTION 2009 - 2013

1,812

2,211

2,000,

1,453 1,5421,500

ndkL

669

1,000Thou

san

191 243 317158120

223359

669

159

500 (*as of Jan’ 2013)

70 20158120 159

02009 2010 2011 2012 2013*

Production Eksport Domestic

CAPACITY OF BIOENERGY ON-GRID POWER PLANT IN INDONESIA

No Company COD Contract Location Connection region Biomass TypeConractedCapacity

(MW)1 PT Riau Prima Energy 2001 Excess power Riau PLN Wilayah Riau palm waste 5

2 PT Listrindo Kencana 2006 IPP Bangka PLN Wilayah Bangka Palm waste 5

3 PT Growth Sumatra 2006 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 6

4 PT Indah Kiat Pulp & 2006 Excess power Riau PLN Wilayah Riau palm waste 2Paper

7 PT Belitung Energy 2010 IPP Belitung PLN Wilayah Babel Palm waste 78 PT Growth Sumatra 2010 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 9

9 PT Pelita Agung 2010 Excess power Riau PLN Wilayah Riau Palm waste 59 PT Pelita Agung 2010 Excess power Riau PLN Wilayah Riau Palm waste 5

10 Permata Hijau Sawit 2010 Excess power Riau PLN Wilayah Riau Palm waste 2

11 PT Navigat Organic 2011 IPP Bali PLN Dist Bali MSW 212 PT Navigat Organic 2011 IPP Bekasi PLN Dist Jabar MSW 613 PT Growth Asia 2011 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 10

14 PT Growth Asia 2012 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 10

15 PT Navigat Organic 2012 IPP Bekasi PLN Dist Jabar MSW 6,5

TOTAL ON-GRID CAPACITY 75,5

INCENTIVES FOR COMMERCIAL ON GRID IMPLEMENTATION

1. Giving priority for locally available renewable energy resources (no d f t d )need for tender)

2. Mandatory for electric utility to purchase electricity generated from renewable energygy

3. Regulated Purchasing Price (Feed-in Tariff)4. Tax investment credit for electricity generated from renewable

energy (currently applies for geothermal)5. Reduced or exempted custom tax for renewable energy

technologiestechnologies6. Simple permit procedure7. Support from the government for selected FSpp g

BIOFUEL INCENTIVES

Staging of mandatory biofuel utilizationTax exemption on VATInvestment tax incentivesDirect subsidy on retail price for transportation sectorInterest rate subsidy for biofuel feedstock plantationSimplifying the license procedure on biofuel business

ELECTRICITY PRICE (FEED-IN TARIFF ) BASED ON ENERGY BIOMASS BIOGAS AND MUNICIPAL SOLID WASTE *)No. Energy Capacity Electricity Tariff Note

1 Biomass upto10 MW Rp 975 - / kWh X F

ENERGY BIOMASS, BIOGAS, AND MUNICIPAL SOLID WASTE *)

1. Biomass upto10 MW Rp. 975,- / kWh X F

2. Biogas upto 10 MW Rp. 975,- / kWh X F Non Municipal Solid Waste

3 Municipal Solid t 10 MW R 1050 / kWh Z t **)3. Municipal Solid Waste upto 10 MW Rp. 1050,- / kWh Zero waste **)

4. Municipal Solid Waste upto 10 MW Rp. 850,- / kWh Landfill **)

F is incentive factor based on the region where the power plant installed, as follows:Jawa, Bali, and Sumatera region : F = 1Kalimantan, Sulawesi , NTB and NTT region : F = 1,2Maluku and Papua region : F = 1,3

Note :  *) Connected to medium voltage system

(Ministerial Regulation of EMR No. 4/2012)**) B d L N 18 Y 2008 i t W t M t

Maluku and Papua region : F 1,3Feed in Tariff already issued in Ministerial Regulation of EMR No. 4/2012

**) - Based on Law No. 18 Year 2008 concerning to Waste Management.- For municipal solid waste, tipping fee applied at minimum Rp. 100.000, - / ton of waste (tipping fee is fee given by local

government to waste management institution).10

FINANCIAL INSTRUMENTS SUPPORT FOR BIOFUELSFINANCIAL INSTRUMENTS

SUPPORT *)

Income Tax Value Added Tax Import Duty Tax Borne by

Government

• Reduced net income for Exemptions of VAT for Regulated in State Exemptions for Import Duty f30% of total investment

• accelerated depreciation• Imposition

of Income Tax on dividend paid

Taxable Goods, machinery and equipment for RE utilization (not included spare parts)

Regulated in State Annual Budget Law and its implementing regulations

ofGoods and Machinery for development and capital investmentCapital Goods Imports aid

to Foreign Taxable at 10%• compensation for losses in

certain circumstances

spare parts) p pfor construction and development of electricity industry

*) MINISTRY OF FINANCE REGULATION NUMBER 21/PMK.011/2010Regulation of tax and customs facility for renewable energy resources utilization activities

STRATEGIS FOR FURTHER IMPLEMENTATION

1. Increasing the mandatory implementation of biofuel in i d t i l tindustrial sector

2. Utilisation of biomass on existing power generationR l ti t /bi f t 3. Regulating waste/biomassa for export purposes

4. Utilisation of biomass wastes in agroindustry, for example l ti l il ill ffl t i l il i d tregulation on palm oil mill effluent in palm oil industry

5. Allocating special fund for implementation by local government as energy access programgovernment as energy access program.

CONCLUDING REMARKSCONCLUDING REMARKS

Policy and regulation has been available in accelerating bi i l ti d it ill ti l b d l dbionergy implemention and it will continuosly be developed.Indonesia has large potentials for biodiesel production to fullfil demands domestic regional and globalfullfil demands domestic, regional and global.Indonesia will continue to work with other countries and international community to develop sustainable bioenergyinternational community to develop sustainable bioenergyindustry and also global environmental issues.

Thank YouThank You

Go Green Indonesia !More energy, Less carbon

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