JCM Implementation in Indonesia Dr. Rizal Edwin Manansang Assistant Deputy Minister for Multilateral Economic Cooperation and Financing Coordinating Ministry for Economic Affairs Co-chair of Indonesia JCM Joint Committee Semarang, 9 January 2019 COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

MRV methodologies will be developed by Joint Committee Basic Concept Japan Leading low carbon technologies, investment, capacity building and implementation of mitigation actions Indonesia JCM Projects MRV MRV methodologies will be developed by Joint Committee GHG emission reduction target GHG emission reduction/ removal Carbon credits

Structure

Engaged parties JCM 3 7 4 4 Cities in Japan 39 100 2 10 Indonesian Ministries 4 Cities in Indonesia 4 Cities in Japan 3 Japanese Ministries 39 Indonesian private companies 100 Japanese private companies 2 Indonesian SOE 10 Third party entities

Financing scheme Model Project Demonstration Project 50% 50% Participant projects Demonstration Project Subsidy from MOE Subsidi oleh METI 50% 50% more than 50% ADB Trust Fund – JFJCM MOEJ ADB JFJCM (Trust Fund) OCR/ADF* JCM Credits Grant Loan/ Grant etc. * OCR: Ordinary Capital Resources, ADF: Asian Development Fund Project Additional costs with adoption of advanced low-carbon technologies Mitigation through conventional technologies (Selection from pipeline projects) MRV Other financial institutions and funds Co- financing Contribution GHG Emission Reduction

JCM Cycle Monitoring Reporting Verification Can be conducted simultaneously by the same TPE Verification

Recent updates 32 $128 mio 6 14 $50 mio 18 17 $10 mio $78 mio 115 projects 6 Issued credits 115 Feasibility studies 17 Methodo-logies 18 In the pipeline 14 Registered Project implementations $50 mio Subsidies $10 mio $78 mio Type of industries: Automotive, Building, Chemical, Energy generation, Food, Forestry, Hospitality, Oil & gas, Paper, Plastic, Retail, Telecommunication, Textile Feasibility studies Project participants

PT. Semen Indonesia Tuban, East Java Total investment: USD 51 MIllion Project example #1 Power Generation by Waste Heat Recovery in Cement Factory PT. Semen Indonesia Tbk. JFE Engineering Corporation Expected carbon emission reduction 122.000 ton CO2/year PT. Semen Indonesia Tuban, East Java 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 Total investment: USD 51 MIllion

Project example #2 Energy Saving at Convenience Stores PT. MIDI UTAMA INDONESIA Tbk LAWSON, INC Expected carbon emission reduction 28.5 ton CO2/year per store 12 Alfa Midi in Jakarta, Bekasi, Tangerang, Depok 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. Total investment: USD 2.59 Million

Project example #3 Solar PV Power Plant Project in Jakabaring Sport City PDPDE Sumatera Selatan Sharp Corporation Expected carbon emission reduction 1.303 ton CO2/year Jakabaring Sport City, Palembang, South Sumatera This projects is used to supply electricity in the Jakabaring Sports Area, Palembang, South Sumatra. It is also prepared to support the 2018 Asian Games as a green games. Total investment: USD 2.6 Million

Tunjungan Plaza, Surabaya, East Java Total investment: USD 2.1 Million Project example #4 Energy Saving for Air-Conditioning at Shopping Mall with High Efficiency Centrifugal Chiller PT. Pakuwon Jati NTT Facilities Inc Expected carbon emission reduction 966 ton CO2/year Tunjungan Plaza, Surabaya, East Java 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. Total investment: USD 2.1 Million

Allocation of carbon credits Net emission reduction Baseline emission Reference emission JCM emission reduction Allocated among parties: Gov. of Indonesia Gov. of Japan Indonesian project participant Japanese project participant Emission Level Project emission Time

Existing City-to-city cooperations Surabaya & Kitakyushu Bandung & Kawasaki Energy management in buildings Waste management Energy management in buildings Waste management Street lamps Batam & Yokohama Semarang & Toyama Energy efficiency in airport Energy efficiency in waste water treatment Biomas energy Bus rapid transit Mini hydro Solar PV Jakarta & Kawasaki (in progress) Green building Green industry Pengolahan sampah di pasar PLTS di Kep. Seribu dan Banjir Kanal

Generic scheme of city-to-city cooperation Public Officers (City in Indonesia) Public Officers(City in Japan) Cooperation and Agreement Sharing experiences and best practices, including capacity building by Japanese experts and consultants Implementation of low carbon technology in public sector and facilitate such implementation by private sectors Monitoring and evaluation for all implementation activities Research and development for the development of low carbon communities in Indonesia Was Waste management Energy conservation Renewable energy Cooperation platform

Lesson learned Introduction of CNG-Diesel Hybrid Equipment to Public Bus in Semarang Letter of intent (LoI) which has been signed by Semarang City and Toyama City in 2017 is the legal basis for city-to-city cooperation Feasibility studies required for possible areas of cooperation have been done in 2017 Project proposal was submitted by BLU UPTD Semarang and Hokusan Co. Ltd. and presented during the 8th JCM Joint Committee meeting on July 10th 2018 Current status: installation has been finished, commissioning is on-going Transfer asset procedures must follow the Government of Indonesia’s regulation

Terima kasih Gedung Kemenko Perekonomian Lt. 4 Jl. Medan Merdeka Barat 7 Jakarta – Indonesia Tel : +(62)21-348-32-653 secretariat@jcmindonesia.com jcm.ekon.go.id