Building Local Community Support

in Bioenergy
Parlindungan Purba
parlin_senat@yahoo.co.id
Chairman of Committee II, House of
Regional Representative
Bali Clean Energy Forum, 12 February 2016

Outline
The State of Renewable Energy in the World
The State of Renewable Energy in Indonesia
Prospect and Solutions for Bioenergy
Development in Indonesia

THE STATE OF RENEWABLE ENERGY

IN THE WORLD

The State of The World Energy Supply

1973
1.8%
0.9%

2013

0.1%

1.2%
Coal

10.5%
24.5%

Oil

2.4%
4.8%

28.9%

Natural Gas

16.0%

Coal

10.2%

Nuclear
Hydro
46.2%

Biofuels
Others

Oil
Natural Gas
Nuclear

21.4%

Hydro
31.1%

Biofuels
Others

Over the last 40 years, there has been a changes in the state of energy supply in
the world as the role of oil as on the world energy supply has been shrinking
Meanwhile, the contribution of coal, natural gas, and nuclear have been growing

Global New Investment in Renewable

Energy (1)
300

279

270

256
237

250
200

182

178

2008

2009

232

154
150
112
100
50

73
45

0
2004

2005

2006

2007

2010

2011

2012

2013

2014

However, the global investment in Renewable Energy has been growing massively
This shows the trend of the world energy in the future will move to more
renewable energy

Global New Investment in Renewable

Energy (2)
190

200
180

162
149

160

135

140

121

120

108

100

83

40
20

53
36
9

20

107
89

80
60

113

61

66

2008

2009

139
131

97

Developed

75

Developing

46
29

0
2004

2005

2006

2007

2010

2011

2012

2013

2014

New investment in renewable energy in developing countries has been constantly

increasing
While new investment in developed countries in the last five years has been
decreasing
This shows investment in renewable energy is happening not only in developed
countries but also in developing countries

The Reason for Changes

Five factors that lead to the growth of new
investment in renewable energy (ICED, 2013):
Uncertainties in supply of fossil energy create high
cost economy
Economies of scale and falling capital equipment
costs for alternative technologies improving both
yield and efficiency
Legislative action by governments worldwide
Greater public awareness of environmental
concerns
The Kyoto Protocol

The Reasons to Discuss

There are for reasons why renewable energy will be a subject to
discuss in the future (ICED, 2013)
Continued global economic growth
Energy supply will be necessary to support sustained economic growth

Continued population growth

The worlds population continues to grow and more people will be
living in urban areas -> creating unprecedented energy and land use
concerns

Energy security
Political instability in oil producer regions leads to uncertainty in
energy supply -> it needs to find alternative energy supply

Climate change
Threats posed by climate change is raising important question about
how to achieve sustainable growth

THE STATE OF RENEWABLE ENERGY

IN INDONESIA

Comparison of Energy Consumption

100%
90%

80%

7.9
0.5

0
0.5
2.1

0.3

0.5
2.3

0.3
1.4

0
0.5
14.5

14.2

4.6
29

22.5

42.3

7.2

25.8

51.7

70%

Nucl ear
67.3

60%

Geothermal, Solar, Wind

32.1
50%

22

40%

1.6

7.2

24.7
20

29.8

30%

10%

Oi l

9
16.8

15.9

39.2

37.1

Tha iland

USA

23.6

0%
Indonesia Ba ngladesh

Bra zil

Chi na

Na tural Gas

Bi oenergy

3.3
40.2

39

Hydro
Coa l

3.9

24.5

20%

0.7
1.1

India

Potential Development of Renewable Energy

NO

ENERGY

RESOURCES

INSTALLED CAPACITY (IC)

RATIO (%)

5 = 4/3

Hydro

75.000 MW

7.572,00 MW

10,1 %

Geothermal

28.910 MW

1.403,50 MW

4,9 %

Biomass

32.654 MW

1.717,90 MW

5,4 %

Solar

4,80 kWh/m2 /day

48,05 MW

Wind

3 6 m/s

1,87 MW

Marine

49 GW ***)

0,01 MW ****)

Nuclear

3.000 MW *)

NO

SECTOR

30,00 MW **)

ENERGY CONSUMPTION PER

ENERGY SAVING TARGET
SECTOR YEAR 2012 (JUTA POTENTIAL ENERGY SAVING
BY SECTOR (2025)
SBM) *)

Industry

305 (39,7% )

10 30%

17%

Transportation

311 (40,4% )

15 35%

20%

Household

92 (12% )

15 30%

15%

Commercial

34 (4,4% )

10 30%

15%

Others

26 (3,4% )

25%

Sumber: ESDM (2014)

Projection on Renewable Energy

Diversification
1,200

1,000

JUTA TOE

800

600

400

200

2015

2016

2017

2018

2019

2020

2025

2050

EBT

22

27

32

38

43

49

92

310

Batubara

62

65

69

72

76

84

120

250

Gas

47

51

55

58

62

64

88

240

BBM

84

86

88

89

91

93

100

200

Projection on Renewable Energy Diversification

PP NO. 79/2014 On National Energy Policy

Energy
Diversification

2015

2016

2017

2018

2019

2020

2025

2045

Oil

39%

37%

36%

35%

34%

32%

25%

21%

Gas

22%

22%

23%

23%

23%

22%

22%

24%

Coal

29%

29%

28%

28%

28%

29%

30%

26%

RE

10%

12%

13%

15%

16%

17%

23%

29%

100%

100%

100%

100%

100%

100%

100%

100%

TOTAL

Projection on Renewable Energy

Diversification
RE

2015

2016

2017

2018

2019

2020

2025

2045

Geothermal

43%

46%

48%

50%

51%

52%

24%

18%

Bio. Biofuel

29%

26%

24%

22%

21%

20%

26%

23%

Bio. Waste

19%

18%

17%

17%

16%

16%

36%

23%

Hydro

10%

10%

11%

11%

11%

11%

14%

6%

Marine

0%

0%

0%

0%

0%

0%

0%

1%

Solar

0%

0%

0%

0%

0%

0%

0%

6%

Wind

0%

0%

0%

0%

0%

0%

0%

0%

New Energy

0%

4%

7%

9%

10%

11%

16%

23%

100%

100%

100%

100%

100%

100%

100%

100%

TOTAL

PROSPECT AND SOLUTIONS FOR

BIOENERGY DEVELOPMENT IN
INDONESIA

Policy on Bioenergy
1.

2.
3.

4.

5.

Law No 30 Year 2007 on Energy -> Priority supply and use of renewable
energy, one of them is bioenergy.
Presidential Regulation No 5 Year 2006 -> Biofuel target 25% by 2025
Presidential Instruction No 1 Year 2006 -> Instructions related to the
Minister, Governor and Mayor to take action in order to accelerate the
provision and utilization of biofuel;
Ministry of Energy And Mineral Resources Regulation No.4 Year 2012 and
No. 19 Year 2013 -> Electricity Price (Feed-in Tariff ) for Bioenergy Based
Power Plant (Biomass, Biogas, and Municipal Solid Waste)
Ministry of Energy And Mineral Resources Regulation No. 25 Year 2013 ->
Biofuel usage mandatory for fossil fuel substitutions on transportation,
industry, and electricity generation as a percentage to fossil fuel
consumption (domestic market creation for biofuel)

Potential Bioenergy Development

Bioenergy Mandatory and Projections

1. Regional Governments will strive to develop local renewable energy

to replace conventional energy (fossil). Development of renewable
energy should become part of local energy policy.
2. Regional Government must develop local energy policy (RUED) with
the aim to meet local energy needs in a sustainable, equitable, and
optimal manners.
3. Local Energy policy is aimed at ensuring security in the supply and
use of renewable energy for local population.
4. Regional Government needs to develop competent human
resources and the development of research (Research and
Technology) of renewable energy.
5. Setting up the infrastructure and local government regulations to
encourage investment in renewable energy
6. Implementation of local energy policy is directed to improve social
welfare and community development.

MAPEBHI has recommended the Regional

Governments and Ministry of Forestry to develop the
following forest species for local bioenergy source

1. Akor (Acacia auriculiformis)

2. Mangium (Acacia mangium)
3. Akasia hibrid (Acacia sp.)
4. Kaliandra (Calliandra calothyrsus)
5. Lamtorogung (Leucaena leucocyphalus)
6. Gamal (Gliricydia maculata)
7. Pilang (Acacia leucophloea)
8. Weru (Albizia procera)
9. Turi (Sesbania grandiflora)
10. Bamboo : Ater, apus, duri/ori dan petung

1. Rural Household source of cooking fuel, which can

be modernized to biomass stove (biomass)
2. Electricity generation from various types of biomass
(woodchips, briquettes, pellets)
3. Transportation fuel (Bio methanol, bio-diesel, biohydrogen)
4. Industrial catalysts Bio Fuel (Bio Methanol)
5. Power Plant and Industrial Base Metal Metallurgy:
Wood Torrefaction (pellets charcoal)
6. Logistics support for the defense industry/Military/
Police (Bio Diesel / Bio Solar)

Electricity will have to be prioritized in

least developed regions

If the least developed regions can achieve economic growth of more

than 20%/year, Indonesias national economic growth can
reach8%/year World Bank

Determinants of Success in Bioenergy

Development underdeveloped regions
Local government commitment to improve
electrification for the local people.
Professional involvement in designing the best
system of biomass supply and the selection of
technology.
The commitment of community leaders in
mobilizing communities to develop local forest
for energy sources.

Some Policy Recommendations

Green banking -> the involvement of financial institutions
services to support bioenergy development
Since the production some bioenergy needs land, the
government has to ensure the availability of land to produce
bioenergy -> could create tension with land for food
Incentives for local renewable energy technology
manufacturers and R&D institutions
Speed up the procurement process and the permit process for
renewable energy investment
Revision on Renewable Energy Law to strengthen Government
Commitment to diversify fuel mix with renewable energy
sources.
Independent Agency will help monitor and evaluate the
development of Renewable Energy Industry in the country

A Lesson Learnt from Sweden

A Lesson Learnt from Sweden

Energy Supply for Electricity
4.0% 1.2%

0.8%

0.5%

0.4%

Hidro

8.5%

Nuklir
44.1%

Biofuel dan Sampah

Angin

Gas
Batubara
40.5%

Minyak
Lainnya

A Lesson Learnt from Sweden

A Lesson Learnt from Sweden

The involvement of companies and industry to support bioenergy
development
Central Government is actively involved in providing incentives for
bioenergy development
Local governments are responsible to supply electricity for their
regions
Every local government established local state-owned enterprise to
supply electricity based on bioenergy especially from waste
In Indonesia, we already have Indonesia regulation framework (Law
No 30 2009 on Electricity)

What has been done by Sweden is not happening overnight, but it

has been initiated since 40 years ago.
Indonesia needs to start implementing soon so we can secure
energy security in the future

THANK YOU