REPUBLIC OF INDONESIA

INDONESIA’S BIOFUEL POLICY,

DEVELOPMENT & OUTLOOK

PURNOMO YUSGIANTORO
MINISTER OF ENERGY AND MINERAL RESOURCES

BIOFUELS AND FEEDSTOCKS INDONESIA 2007

Jakarta, 30 – 31 January 2007
 OUTLINE

1. Energy Development In Indonesia

2. National Energy Policy (Presidential Decree

No. 5 Year 2006)

3. Energy Mix 2006 To 2010

4. Energy Diversification Program

5. Fast Track Biofuel Development

 ENERGY DEVELOPMENT IN INDONESIA
NO SUBJECT THE ERA OF ENERGY RESURGENCE IN INDONESIA
I (1966) II (2006)
1. Momentum beginning Oil dominant Oil dependency
2. Fiscal Influence (APBN) 50 – 75 % 25 – 35 %
3. Primary Energy Production Oil Oil and energy alternative
4. Accessibility to Energy Oil and traditional energy Oil and commercial energy

5. Energy Demand Growth Low High

6. Subsidy Reduction Pricing policy Substitution policy

7. Sectoral Treatment Lex Specialist Lex Generalist
8. Policy Priority Supply Side Management Demand Side Management
(SSM) (DSM)
9. Contribution to National - Pro Growth - Pro Poor
Development - Pro Job - Pro Job
- Pro Poor - Pro Growth
 NATIONAL ENERGY POLICY
(PRESIDENTIAL DECREE NO. 5 YEAR 2006)

CURRENT ENERGI MIX

Hydro Power, National (Primary) Energy Mix
3.11%
Geothermal,
1.32%
Natural Gas,
28.57%

Oil
51.66%

National (Primary) Energy Mix of 2025 Coal, 15.34%

(BaU Scenario) National Energy Mix 2025

Power Pl ant, 1.9% (Presidential Decree No. 5/2006)
Mini/micro Hydro Power Plant, 0.1%
Geothermal,
1.1% Oil,
Gas, 20.6% 20%

Gas, 30% Biof uel, 5%

RE,17% Geothermal, 5%
Oil, OPTIMIZING
41.7%
ENERGY Biomass, Nuclear, Hy dro
Solar Energy , Wind
MANAGEMENT Power, 5%
Coal Liquef action
2%
Coal 34.6% Coal , 33%
 ENERGY MIX 2006 to 2010
Household and Commercial 2006 Household and Commercial 2010
Oil
Briquet Coal 28.1%
OIl 0.1% Briquet Coal
53.1% Biofuel (Biooil) CNG 1.2%
0.0% 1.5% Biofuel (Biooil)
NG 3.7%
6.4%

Electricity LPG
36.1% 19.0%
CNG
0.0%
Electricity
LPG 40.1%
NG 10.6%
0.1%

Transportation 2006 Transportation 2010

Biofuel (Bio- Biofuel (Bio-Oil) Biofuel (Bio- Biofuel (Bio-
Diesel) 0.0% NG Biofuel (Bio- Ethanol) Diesel)
0.0% 0.0% Ethanol) 7.6% 0.4% Biofuel (Bio-Oil)
0.0% 1.9%
Electricity Electricity
0.0% 0.0%
NG
1.4%
Automotive
Automotive Diesel Oil
Diesel Oil 42.3%
45.9% Gasoline
54.0%

Gasoline
46.5%
 ENERGY MIX 2006 to 2010 (continuation)
Industry 2006 Industry 2010
Electricity
Electricity Gas 12.4%
Gas 13.1% 20.4%
19.6%

Oil
30.9%
Coal
22.5%
Oil Coal
43.8% 34.9%
LPG
LPG 1.4%
1.1%

Power Plant 2006 Power Plant 2010

Oil
Gas 23.7%
14.3%

Biof uel Coal Coal-Hybrid

Coal-Hy brid 71.4% 2.2%
0.9%
0.0%
Gas
8.3%
Geothermal
5.3% Oil
2.7%
Biofuel
Hy dro 0.8%
9.6%
Coal Geothermal
46.2% Hydro 6.8%
7.8%
 ENERGY DIVERSIFICATION PROGRAM
Types of fuel Household Transportation Industry Power Plant
• Gas
¾LPG √ √ √ –
¾BBG √ √ √ √
• Coal
¾Coal √ – √ √
¾Briquette √ – √ –
¾Coal gasification √ √ √ √
¾Coal liquefaction – √ √ √
• Biofuel
¾Bio-ethanol – √ – –

¾Bio-diesel √ √ √ √

¾Bio-oil √ – √ √
• Geothermal √ – – √
• Other Renewable Energy
¾Biomass √ – – √
¾Nuclear – – – √
¾Water – – – √
¾Solar cell √ √ – √
¾Wind – – – √
¾CBM √ √ √ √
¾Hydrogen / Fuel Cell – √ – √
¾Oil Shale – √ √ √
¾Biogenic Gas √ – – √
 FAST TRACK
BIOFUEL DEVELOPMENT
Energy Self
Sufficient Village SHORT RUN LONG RUN

Create Job
Each Region
Fast Track Developing its Bio-
Energy
energy Potential
Poverty
Alleviation
SPECIAL BIOFUEL
ZONE
Infrastructure

Employment
Demplot

Schedule

Investment
On time

Explicit
Ratio
Energy and Mineral Resources Department
www.esdm.go.id
www.mesdm.net