The experiences ofJCM scheme implementationin Indonesiafrom 2013-2018Dr. Rizal Edwin ManansangChair of Indonesia JCM Joint Committee

Sector

GHG Emission

level 2010*(MTonCO2e)

GHG Emission Level 2030 GHG Emission ReductionAnnual Avg. Growth BAU(2010-2030)

Annual Avg. Growth

2000-2012BaU CM1 CM2MTon CO2e %Total BAU

CM1 CM2 CM1 CM2

Energy* 453.2 1669 1355 1271 314 398 11% 14% 6.7% 4.5%

Waste 88 296 285 270 11 26 0.38% 1% 6.3% 4.00%

IPPU 36 69.6 66.85 66.35 2.75 3.25 0.10% 0.11% 3.4% 0.10%

Agriculture 110.5 119.6 110.4 115.9 9 4 0.32% 0.13% 0.4% 1.30%

Forestry** 647 714 217 64 497 650 17.2% 23% 0.5% 2.70%

TOTAL 1334 2869 2034 1787 834 1081 29% 38% 3.9% 3.20%

* Including Fugitive** Including Peat Fire

CM1 = Counter Measure (Unconditional Mitigation Scenarios)CM2 = Counter Measure (Conditional Mitigation Scenarios)

Energy demand growth in Indonesia is still very dependent on economic and population growth. Energy efficiency and renewable energy

implementation must be enhanced!

Indonesia NDC:The biggest opportunities is in forestry sector whilst the fastest growing emission is energy

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The JCM cooperation scheme in Indonesia

3

Indonesian Ministries &

Local GovCMEA, Nat. Planning

Agency, Min. Environment &

Forestry, Min. Energy, Industry, MOF, MoFA

City-to-CityBandung, Batam,

Surabaya, Semarang

Japanese Ministries

100 more

Japanese Private Companies

37Indonesian Private Companies

2Indonesian

SOEs11

Third Party Entities

Institutions related to JCM Implementation

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Surabaya & Kitakyushu

Bandung & Kawasaki

Semarang & Toyama

We also encourage city to city cooperation under the JCM scheme

•Energy management in buildings•Waste management

•Energy efficiency in airport•Energy efficiency in waste

water treatment•Biomasenergy

•Bus rapid transit•Mini hydro•Solar PV

•Energy management in buildings

•Waste management•Street lamps

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Batam & Yokohama

Total investment ofJCM implementation in Indonesia

Investment forproject implementation

31 projects(12 projects are accomplished)

US$132 million

Grant forfeasibility study

Study and Partnership with several institutions in

Japan and Indonesia

US$10 million

Japanese gov. subsidy

US$62 million

US$70 million

Participants’ investment

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Feasibility Study

1

1

1

1

2

2

1

1

6

7

4

7

3

5

6

7

10

4

4

1

3

1

2

8

8

3

1

2

1

2

1

2

2

1 2

1

1

0 5 10 15 20 25 30

2010

2011

2012

2013

2014

2015

2016

2017

Agriculture Carbon Capture & Storage LULUCF & REDD-plusEnergy Efficiency Fugitive Emission Large-scaleLow-Carbon City Renewable Energy TransportationWaste Handling and Disposal

115 Feasibility studies

conducted 2010-2017

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JCM infrastructurein Indonesia

Guidelines

1. Project Design Document

2. Proposed Methodology

3. Third Party Entity4. Validation and

Verification5. Sustainable

Development Implementation Plan and Report

Rules

1. Rules of Implementation

2. Rules of procedure for JC

Procedure

Project cycle procedure

Methodologies

15 methodologies of energy efficiency and renewable

energy have been developed

Registry System

ISO 14080*Methodology and guideline are the most important infrastructure

aspect for SD and emission reduction implementation*

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All projects must pass SDIP and SDIR procedures

Sustainable Development

Implementation Plan

Sustainable Development

Implementation Report

SDIP

SDIR

Sets out a plan of the JCM project to contribute to sustainable development based on ex-ante analysis

Sets out the achievement of SDIP implementation for a particular monitoring method

7 sustainable development items considered in JCM:

Environmental Impact

Assessment

Pollutioncontrol

Economy

Safety and health

Natural Environment and

Biodiversity

Social Environment and Community Participation Technology

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JCM may contribute to SDGs achievement

• Every project delivers transparent and measurable achievement

• Sustainable development criteria must be embedded in every activities

• Direct SDG criteria could be achieved through our projects

• It is not an easy task, but it ensures the sustainability of the scheme.

• JCM, particularly in Indonesia, has its own SD criteria which shows the scheme’s contribution to UN’s SDG

• With these set of criterias, we are confident that JCM will deliver positive impacts to Indonesia in sustainable manner.

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Lawson, Inc.

PT. Midi Utama Indonesia Tbk.

Energy Saving at Convenience Stores

Expected carbon emission reduction

28,5ton CO2/year per store

In this project, 12 Alfa Midi stores installed a highly efficient cooler installation, air conditioning, LED lamp. Through the implementation of the project, they are able

to reduce electricity consumption to up 25% of the total electricity demand.

12 AlfaMidiat Jakarta,Bekasi, Tangerang, Depok

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Energy Saving at Convenience Stores

12 AlfaMidiat Jakarta,Bekasi, Tangerang, Depok

12

Itochu Corporation

AEON Mall Indonesia

Installation of Solar Power System and Storage Battery to Commercial Facilities

Expected carbon emission reduction

549ton CO2/year

500 KW Installation of Solar Power System and Storage Battery to Commercial Factory. The recently-operated Rooftop Solar Power generates 500 KW electricity

for lighting system in shopping center.

Aeon Mall, Jakarta Garden City, Cakung, East Jakarta

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Installation of Solar Power System and Storage Battery to Commercial Facilities

Aeon Mall, Jakarta Garden City, Cakung, East Jakarta

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Reducing GHG Emission at Textile Factories by Upgrading to Air-saving Loom

Toray Industries, Inc.Toray International, Inc.

PT. EasterntexPT. Indonesia Synthetic Textile MillsPT. Century Textile Industry Tbk.

Expected carbon emission reduction

566ton CO2/year

“JAT 810” system used in the textile factory, is able to reduce air supply consumption up to 20% which directly reflect to the electricity consumption on the air-compressor system . This utility is installed in 3 textile factory at Banten,

Jakarta, and East Java

Banten, Jakarta, & East Java

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Reducing GHG Emission at Textile Factories by Upgrading to Air-saving Loom

Banten, Jakarta, & East Java

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Solar PV Power Plant Project in Jakabaring Sport City

This solar power installed in Jakabaring sport center is able to generate electricity of 2 MW. This project is prepared for the electricity supply in Asian Games 2018

and promotes green sport event in South Sumatera. The project is expected to be completed in end of February 2018.

JakabaringStadium, Palembang South Sumatera

Sharp Corporation

PDPDE Sumatera Selatan

Expected carbon emission reduction

1,303ton CO2/year

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Solar PV Power Plant Project in Jakabaring Sport City

JakabaringStadium, Palembang South Sumatera

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Power Generation by Waste-heat Recovery in Cement Factory

32 MW Waste Heat Recovery Power Generation at Cement Factory. 4 factory units at PT Semen Indonesia in Tuban are able to capture its flue gases emission which is a hot 400 degree celcius air to be used as boiler to generate

electricity. This system enables to reduce electricity consumption up to 25% of the total electricity required in the factory.

PT. Semen Indonesia at Tuban, East Java

JFE Engineering Corporation

PT. Semen Indonesia, Tbk.

Expected carbon emission reduction

122,000ton CO2/year

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Power Generation by Waste-heat Recovery in Cement Factory

PT. Semen Indonesia at Tuban, East Java

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City-to-City CooperationSurabaya and Kitakyushu

Nishihara: Waste Management Project• A collaboration between Nishihara Co. with Dinas Kebersihandan Pertamanan(DKP) Surabaya• In 2013, the FS is registered under the JCM scheme. In the subsequent year it has no longer

registered under the JCM however the collaboration is still continue until now.

Nishihara DepoHandling 20 tons of waste daily whereby 85% ofthe waste is selected for resale. Currently themanagementistransferredtoDKP

Nishihara Composting CenterStarted its operation in 2015 with support fromJICA. Handling 8 tons of waste from 4 traditionalmarket andparksinSurabayadaily

The sister-city scheme allows collaborations between cities in Indonesia and Japan even without involvement of JCM scheme

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City-to-City CooperationSurabaya and Kitakyushu

NTT Facilities dan PT. Pakuwon Jati Tbk, worked together to implement a highly efficient chiller (centrifugal chiller). This chiller is able to reduce electricity usage of

1.136 MW/year. This chiller is utilised for the shopping center air-conditioner operational usage.

Mall TunjunganPlaza, Surabaya, East Java

NTT Facilities, Inc.

PT. Pakuwon Jati, Tbk.

Expected carbon emission reduction

966ton CO2/year

Energy Saving for Air-Conditioning at Shopping Mall with High Efficiency Centrifugal Chiller

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Communication and JCM

Most of the challenges were caused by lack of communication between stakeholders and lack of capacity. In this regard, we developed communication strategy and implemented communication activities to solve the challenges and promote JCM scheme.Indonesia JCM scheme communication strategy was developed in 2014 to fulfill the communication gap and to do JCM promotion. Communication activities and materials were developed based on this strategy.

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Some challengeson Indonesia JCM implementation

(and other climate change mitigations)

Reliability of New TechnologyBecause of most of the technologies are new, it requires more analysis in risk management, feasibility and other impact of implementing the technology. A success story of the partneror a demo project is very helpful in this situation.

Environmental AwarenessThe awareness and attention to environmental issues have to be well developed in top management before the decision to do CDM, JCM or other “Environmental Friendly Initiatives”.

Relationship & Trust to PartnerIn many cases, the partner should have proven achievement to convinced the management, but that is not enough. The Partner should also convinced that the local company will also enjoy the result and benefit of the projects.

High Initial Capital CostsEnvironment friendly technology usually more pricey than conventional one. In some cases cash flow is more important than economic value.

Currency RiskIndonesia has experienced currency crisis in the past, this has actually createdaserious impact on some companies/project during that times. This situation forced the Top Management to be more cautious in the decision making.

Transparency and Accountability In some cases, Indonesia project participant candidates are very difficult to be transparant in their business processes and financial system.

Technical BarrierThe management has to assess the integration of new technology to their existing equipment & system.

Carbon Credit SharingThe management needs time to understand and analyze the utilization of carbon credit since this is new thing for them. Also possibility to claim the ownership of the credits could be an issue.

Communication and Understanding Among MinistriesIt is a fact that one of the most difficulty to develop a new initiative in Indonesia is the government acceptance. The scheme should be well understand among ministries and government stakeholders in order to enhance acceptance and ownership.

Clarity of future Cost & ResponsibilitiesThe Management has to ensure that the future liability, responsibilities, or other consequences doing the projects are identified and clearly states which will bear the cost/responsibility.

Procurement RiskIndonesia is still in the development stages of Procurement Practices especially in Government and State Owned Enterprises.

Regulatory BarrierBoth participant have to be sure that the implementation is comply with all related regulations & policies, including that related to the new national and international climate policies.

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Communication activities in JCM implementation

• We maximise our website, develop material communication, as well as using facebook, twitter, and youtube to disseminate the JCM scheme.

• We have been participated in many national and international events on climate change issues.

• JCM has several media converages and actively conduct press conferences to enhance JCM understanding among stakeholders.

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Lesson learn from JCM experiences in Indonesia

1. In JCM scheme, every type of technology must have one methodology.2. The JCM methodologies currently are being explored for the ISO 14080 examples that will be

implemented soon.3. JCM implementation from financing, methodology development, project implementation, to the

registry system can be good examples for the NDC implementation in Indonesia, particularly that used private sector participation.

Good financing scheme for

climate change mitigation

A methodology is a must

Transparent procedure is the

key

Communication strategy must

be good

Good and transparent

infrastructures and processes

Real emission reduction

program that can be duplicated and

registered

Sustainable development is

one of the evaluation criteria

Good cooperation

among stakeholders

MRV that based on international

standards

Based on good FS and actual

condition

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New challenges

1. ICAO CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).

2. ISO 14080 for climate change methodology development.

3. Implementation of article 6 (market and non market mechanism).

4.Domestic and international market based mechanism implementation in other countries.

5.Mainstreaming JCM experiences in national mitigation action plan.

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What we will do

1. Analysis of the adaptation and integration between JCM and ICAO CORSIA as well as ISO 14080

2. Conduct communication and cooperation among ministries to raise awareness of the development of market based mechanism, nationally and internationally

3. Integrating all of the JCM emission reduction achievement to the national registry system.

4. Disseminating JCM experiences and lesson learn to the Indonesia stakeholders, particularly private sectors.

5. Using JCM best practices to other Indonesia mitigation activities.

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Thank youArigatōgozaimashita