BIOFUEL - PROGRESS IN INDONESIA 2 nd INDONESIA INTERNATIONAL FUEL AND LUBES CONFERENCE AND EXHIBITION Jakarta, 19 November 2007 Dr.-Ing. Evita H. Legowo 1 st Secretary of National Team for Biofuel Development
Jan 21, 2015
BIOFUEL - PROGRESS IN INDONESIA
2nd INDONESIA INTERNATIONAL FUEL AND LUBESCONFERENCE AND EXHIBITION
Jakarta, 19 November 2007
Dr.-Ing. Evita H. Legowo1st Secretary of National Team for Biofuel Development
OUTLINEOUTLINE
Background Background Target Of Target Of BiofuelBiofuel Share In Share In 20102010BiofuelBiofuel ProgramProgramChallengesChallengesProgress of Progress of BiofuelBiofuelDevelopmentDevelopment
BACKGROUND
Natural Gas, 28.57%
Coal, 15.34%
Oil51.66%
Geothermal, 1.32%
Hydro Power, 3.11%
CURRENT ENERGI MIX (1 billion BOE)National (Primary) Energy Mix
Coal , 33%
Gas, 30%
Oil,
20%
Biofuel, 5%
Geothermal, 5%
Biomass, Nuclear, HydroSolar Energy, Wind Power, 5%
Coal Liquefaction
2%
RE,17%
National Energy Mix 2025 (3 billion BOE)(Presidential Decree No. 5/2006)
NATIONAL ENERGY POLICY(PRESIDENTIAL DECREE NO. 5 YEAR 2006)
LAW NO 30/2007 ON ENERGY
• Central and Regional Government have an obligation to increase supply and utilization of new energy and renewable energy, in their scope of authority.
• Energy supply from new energy and renewable energy resources that is carried out by corporate, and private may gain facilities and/or incentives from Central Government and/or Regional Government in their scope of authorizations for specific period of time until it meets its economical value.
ENER
GY
DIV
ERSI
VIC
ATI
ON
1. High bio-diversity in Indonesia, including biofuel feedstock
2. Land availability for biofuel development
3. Proven biofuel technology by local potential (Engineering, Research and Development)
4. Biofuel industry allows community participations, including farmer
5. High number of unemployment (40 million people) that could be employed in biofuel industry
6. Opportunity in exporting biofuel product
7. Biofuel is renewable energy.
BACKGROUND OF INDONESIAN BIOFUEL DEVELOPMENT
TARGET OF BIOFUEL SHARE IN 2010
Briquet Coal1.2%
BIOFUELS (Biooil)3.7%
Electricity40.1%
LPG19.0%
NG6.4%
CNG1.5%
Oil28.1%
Briquet Coal0.1%
BIOFUELS (Biooil)0.0%
Electricity36.1%
OIl53.1%
LPG10.6%NG
0.1%
CNG0.0%
TARGET OF BIOFUEL SHARE 2010
Household and Commercial 2010Household and Commercial 2006
Transportation 2006 Transportation 2010
Gasoline54.0%
Automotive Diesel Oil45.9%
BIOFUELS (Bio-Diesel)0.0%
NG0.0%
Electricity0.0%
BIOFUELS (Bio-Oil)0.0% BIOFUELS (Bio-
Ethanol)0.0%
Automotive
Gasoline46.5%
Diesel Oil42.3%
BIOFUELS (Bio-Ethanol)
7.6% BIOFUELS (Bio-Oil)1.9%
BIOFUELS (Bio-Diesel)0.4%
NG1.4%
Electricity0.0%
Electricity13.1%
Oil43.8%
LPG1.1%
Coal22.5%
Gas19.6%
TARGET OF BIOFUEL SHARE 2010 (continuation)
Power Plant 2006 Power Plant 2010
Industry 2010Industry 2006
Coal46.2%
Gas14.3%
Oil23.7%
Coal-Hybrid0.0%
BIOFUELS0.9%
Geothermal5.3%
Hydro9.6%
Coal71.4%
Oil2.7%
Gas8.3%
Coal-Hybrid2.2%
BIOFUELS0.8%
Geothermal6.8%Hydro
7.8%
Electricity12.4%
Oil27.8%
Biofuel3.1%
LPG1.4%
Coal34.9%
Gas20.4%
BIOFUEL PROGRAM
BIOFUEL DEVELOPMENT STRATEGY
Fast TrackEach Region
Developing its Biofuel Potential
SPECIAL BIOFUEL ZONE
Create Job
Poverty Alleviation
Energy
SHORT RUN LONG RUNEnergy Self Sufficient
Village
• Infrastructure• Demplot• On time schedule• Explicit investment
employment ratio
TARGET 2010
1. Job creation for 3.5 million unemployment
2. Increasing income for On-Farm and Off-Farm workers in biofuel sector up to the Regional Minimum Payment
3. Development of biofuel plantation in 5.25 million ha unused land
4. 1000 Energy Self Sufficient Villages and 12 Special biofuel Zone
5. Reducing Fossil Fuel for transportation up to 10%
BIOFUEL FEEDSTOCKPalm Oil
Jatropha curcas
Cassava
BIOOILBIODIESEL
BIOETHANOLSugar cane
MA
IN F
EED
STO
CK
BIOOILBIODIESEL
BIOETHANOL
UN
DER
DEV
ELO
PMEN
T
Coconut
Micro algae
Seed of Hevea braziliancis
Aleurites molucana
Waste
Sweet sorghumSugar palm
SagoCorn
Waste
BIOFUEL PRODUCT
Bioethanol
B I
O F
U E
L
Gasoline Substitute
Biodiesel Diesel Fuel Substitute
Bio-oil or Pure Plantation Oil Fuel Oil
SubstituteIDO
Substitute
ADOSubstitute
Kerosene Substitute
CHALLENGES
CHALLENGES 1. Land availability for Biofuel Development
Land availability inventory, synchronizing data
2. High price of biodiesel feedstock, especially CPOFeedstock diversification is needed
3. Improving quality of Biofuel commoditiesAgricultural research on biofuel commodities sector
4. Improving national technological capabilities on biofuel processingResearch and Development, technology transfer on biofuel processing with more experienced parties
5. The price of biofuel that has not yet competitive in compare with fossil fuelFeedstock diversification and effective technology will decrease the price of biofuel
6. Issues fuel versus food
PROGRESS OF BIOFUEL DEVELOPMENT
Availability of biofuel Development Blue Print and Road MapAvailability of biofuel Development Regulations and StandardsBiodiesel (B-2.5), has been sold in 202 gas stations in Jakarta, 11 gas stations in Surabaya, and 10 gas stations in Bali.Bioethanol (E-3), biopremium is available in 1 gas station in Malang. Bio-Pertamax has been sold in 14 gas stations in Jakarta, 7 gas stations in Surabaya, 4 gas stations in Malang, and 10 gas stations in Bali.Starting of Energy Self Sufficient Village (ESSV) using biofuel, this month will be launched 132 ESSV.Commitments of Investor to develop biofuel (17M US$)Biofuel production has been started in Indonesia
BIOFUEL DEVELOPMENT PROGRESS
REGULATIONS related to BIOFUEL DEVELOPMENT
1. Presidential Regulation No. 5/2006 on National Energy Policy
2. Presidential Instruction No. 1/2006 on Supply and Utilization of Biofuel as Alternative Fuel
3. Presidential Decree No. 10/2006 on The Establishment of National Team for Biofuel Development
4. Estate Crop Law No. 18/2004
5. Government Regulation No. 1/2007 on Income Tax Facilities for Investment Activities in Specific Industries and/or Particular Region
6. Government Regulation No. 8/2007 on The Government Investment
7. Law No. 22/2001 on Oil and Natural Gas
8. Presidential Regulation No. 36/2004 on Oil and Natural Gas Downstream Activities
9. Minister of Energy and Mineral Resources Decree No. 051/2006 on Guideline and Procedure for Biofuel Businesses
10. Minister of Finance Decree No. 117/PMK.06/2006 on Credit for the Development of Biofuel Energy and Plantation Revitalization
11. National Standard (SNI) for Biodiesel No. 04 – 7182 – 2006
12. National Standard (SNI) for Bioethanol No. DT27 – 0001 – 2006
13. Director General for Oil and Gas Decree No. 3674K/24/DJM/2006 on Gasoline Specification for Domestic Market
14. Director General for Oil and Gas Decree No. 3675K/24/DJM/2006 on Diesel Fuel Specification for Domestic Market
15. Director General for Oil and Gas Decree No. 13483K/24/DJM/2006 Biodiesel Specification for Domestic Market
REGULATIONS related to BIOFUEL DEVELOPMENT (continuation)
• Governmental Regulation No. 1 / 2007on Income Tax for Investment in Certain Businesses and/or Certain Area
Biofuel development is included in certain businesses which is given income tax facility in form of net income reduction, 30% from the total investment.
• Governmental Regulation No. 8 / 2007Set up of Indonesia Biofuel Fund
• Seed Capital for Indonesia Biofuel Fund: US$ 220 million.
FACILITIES AND INCENTIVES FOR BIOFUEL DEVELOPMENT
JatrophaJatropha NURSERY NURSERY
Center Center PakuwonPakuwon-- West JavaWest Java
• Minister of Finance Regulation No. 117/PMK.06/2006
on Credit for Bio-energy Development and Plantation Revitalization
Credit for bio-energy development and plantation revitalization is prepared in order to support funding for biofuel feedstock development program and plantation revitalization.
Plantation development that could be funded by credit for bio-energy development and plantation rehabilitation includes plantation expansion, rehabilitation and rejuvenation.
FACILITIES AND INCENTIVES FOR BIOFUEL DEVELOPMENT (Continuation)
Biofuel for Community Developments
Biofuel for Rural CommunitiesSmall-Scale Bio-Energy Project:
Bio-Briquette: Jatropha Seeds.PPO: a blend of Straight Jatropha Oil with
Diesel-Fuel for Rural Tractor, Water Pump & Transportation or Fishing Boat Engine.Bio-Fertilizer: from organic waste.Bio-kerosene for cookingBio-soap: from Jatropha Oil.
Government Grant for Superior seedling/ Nursery, Small-scale Plant, Pilot Projects, Irrigation
Energy Self Sufficient Village
PRODUCTION OF FUEL GRADE BIOETHANOL – April 2007: 82.500 KL
BPPT Lampung2,500 kl/yr(cassava)
SUGAR GROUPLampung
70,000 kl/yrMolindo RayaMalang, Jatim
10,000 kl/yr
ADDITIONAL PRODUCTION OF FG BIOETHANOL:2 million up to 2,7 million kL/year (1,1 million ha): 2007 – 2010
Sugar caneCassava
SALIMGROUPSumsel
70,000 kl/yr70,000 ha
MITSUIPETROBRAS
Papua, Kalimantan,500,000 kl/yr200,000 ha
ANGELPRODUCT
Sultra10,000 kl/yr
8,000 ha
WILMAR GROUPLampung, Sumsel
70,000 kl/yr70,000 ha
SUGAR GROUPLampung,
Sumsel,Kalimantan
500,000 kl/yr200,000 ha
SUNGAI BUDILampung
120,000 kl/yr25,000 ha
MOLINDOLampung,
Kediri, Pacitan100,000 kl/yr
25,000 ha
SAMPURNAMadiun,
Pawonsari375,000 kl/yr100,000 ha
SORINI TbkSultra,
200,000 kl/yr150,000 ha RNI, PTPN
2,8,8,9,10,11,14Sumut, Lampung, Sulsel, Jawa, NTT
200,000 kl/yr60,000 + 40,000 ha
MEDCOLampung,
Jabar,Kalimantan
270,000 kl/yr50,000 ha
EN3 KoreaSulsel,
180,000 kl/yr45,000 ha
PRODUCTION OF BIODIESEL – October 2007: 840.000 Ton/Year
WILMARGROUP Dumai350,000 ton/yr
(CPO)
ETERINDOGresik &
Tanggerang120,000 ton/yr
(CPO)
BPPTSerpong
300,000 ton/yr(CPO)
RAPBintaro
1,650 ton/yr(CPO)
PTPN 4 & GANESHA
ENERGI Medan4,000 ton/yr
(CPO)
SUMIASIHBekasi
40,000 ton/yr(CPO)
EAI Jakarta500 ton/yr
(CPO)
DHARMA4,000 ton/yr
(CPO)
PT. INDOBIOFUELSENERGY
20.000 ton/yr(CPO)
ADDITIONAL PRODUCTION OF BIODIESEL : 7 million kL/year (3,6 million ha): 2007 – 2011
SawitJatrophaWILMAR
GROUPSumatra, Borneo
1,000,000 kl/yr180,000 ha
SINARMASDumai
400,000 kl/yr
BAKRIE,INDOFOOD,ASIANAGRO
SUMIASIHSumatra, Jawa
600,000 kl/yr
TOLARAMKalbar
110,000 ha
BPNTT, Papua,Kalimantan100,000 ha
SWEDENBIOENERGY
NTT 350,000 kl/yr100,000 ha
APROBIGROUP
Kalimantan100,000 ha
INDOMALSula &
Merauke300,000 ha
GENTINGGROUPMerauke
400,000 ha9 BADANUSAHAMerauke
340,000 ha
SINARMASKalbar,
Merauke440,000 ha
MUTING GROUPMerauke
290,000 ha
CLEANBIOFUELGorontalo50,000 ha
ASIATIC GROUPKalbar
80,000 haBUMN AGRORiau, Jambi,
Sumsel,Kalimantan, Papua
Inti 220,000 haPlasma 880,000 ha
INDOMAL+PTPNMedan, Banten,
Pekanbaru1,500,000 kl/yr
PERTAMINADumai,
Balongan,Balikpapan500,000 kl/yr
LEMIGASJawa, 3000 kl/yr
PT. INDO BIOFUELS
ENERGYMerak,
160.000 kl/yr
BIOFUEL POWER GENERATOR 2007
No. Location Numbers of Power Generator
Total Capacity (MW)
1 North Sumatera 1 4.5
2 Maluku 7 4.0
3 Riau and The Islands of Riau 2 14.1
4 Lampung 1 11.0
5 Bali 1 1.5
6 South Kalimantan 5 19.8
7 East Kalimantan 7 16.0
TOTAL 24 70.9