1. BIOMASS ENERGY DEVELOPMENT IN INDONESIA
Ministry of Energy and Mineral Resources of Republic Indonesia
Directorate General of New Renewable Energy and Energy Conservation
BIOMASS ENERGY DEVELOPMENT
IN INDONESIA
Delivered by:
Unsaini Sabrina Taqfir, S.H.Int.
Analyst of Bioenergy Cooperation and Investment
Directorate of Bioenergy
Ninth ASEAN Plus Three (China, Japan and Republic of Korea) Forum on Biomass Energy 2016
Chengdu, 8th November 2016

2. OUTLINE NATIONAL ENERGY POLICY 3 BIOENERGY POLICY AND PROGRAMME 6
BIOFUEL MANDATORY PROGRAMME 9
POLICY AND IMPLEMENTATION OF BIOMASS
FOR ELECTRICITY 16
V. CLEAN STOVE INITIATIVE PROGRAMME 24
VI. GOVERNMENT EFFORT 24
Before I begin, I wanted to highlight exactly what we want you to take away from this presentation.
First – WHAT is the legal basis for NREEC Development and the strategic role on NREEC in providing solution to our energy needs
Second, WHAT are our NREEC targets
Third, WHAT are the potential breakthrough policies and WHAT kind of strategy and effort undertaken
Fourth, our existing and on-going program
Last but not least, about the need for cooperation and synergy

3. I. NATIONAL ENERGY POLICY

4. NREEC Development Policy
Improve the installed capacity of power generation /energy production;
Energy growth around 8% per year; require any additional capacity to meet energy demand; through geothermal and hydro.
Improve the access to modern energy for isolated area from PLN’s grid, particuarly the remote areas and small island;
On going program: electricity/rural energy with microhydro, solar, biomass, biogas.
Reduce Fuel/electricity subsidies (energy) Diesel  Solar, Microhydro, Biomass, Biodiesel;
Diesel substitution with renewable energy could reduce subsidies.
Reduce greenhouse gas emissions;
Efficiency improvement and utilization of new and renewable energy will minimize greenhouse gas emissions.
Energy saving
Saving 1 kWh is cheaper and easier than generate 1 kWh.

5. NRE Supply refer to National Energy Policy
68,4
MTOE
Electricity
41,8 GW
Year 2025
93,8
MTOE
Biodiesel, Bioetanol, Bioavtur
12,5 M kL
Biomass
11,8
M Ton
25,4
MTOE
400
MTOE

6. II. BIOENERGY POLICY AND PROGRAMME

7. Policies and Regulations
LAW NO. 30 YEAR 2007
concerning on Energy
Prioritize the supply and utilization of renewable energy, one of which is bioenergy.
GOVERNMENT REGULATION NO. 79 YEAR 2014 concerning on National Energy Policy
Biofuel target 10% by 2025 from the national energy mix.
PRESIDENTIAL INSTRUCTION NO. 1 YEAR 2006
concerning on
Provision and Utilization, of Biofuel as Other Fuel
Instructions related to the Minister, Governor and Mayor to take action in order to accelerate the provision and utilization of biofuel;
Priority of biofuel utilization,
Mandatory of biofuel utilization (biodiesel, bioethanol, and biooil) in transportation, industry, commercial, and electricity generation sector,
Standard and quality of biofuel,
Pricing policy,
Commercial activities of biofuel,
MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION NO. 32 YEAR 2008
concerning on Provision, Utilization, and Procedures of Commerce of Biofuel as Other Fuel
MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION NO. 25 YEAR 2013, No. 20 Year 2014 and No. 12 YEAR 2015
Acceleration for biofuel mandatory utilization
MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION No. 44 YEAR 2015 & No. 21 YEAR 2016
Feed-in Tariff for electricity generated from bioenergy power plant (biogas, biomass & municipal solid waste)
MINISTRY OF ENERGY AND MINERAL RESOURCES REGULATION No. 29 YEAR 2015
Funding from Indonesia Estate Crop Fund for Palm Oil for the provision and utilization of Biodiesel

8. III. BIOFUEL MANDATORY PROGRAMME

9. Policies and Regulations
Constitution No. 39/2014
Plantation
Government Regulation No. 24/2015
Plantation Fund Accumulation
President Regulation No. 61/2015
Accumulation and Usage of Palm Tree Plantation Fund Manager
Ministry of Energy and Mineral Resources
Ministry of Trage Regulation No. 54/2015
Verification of Palm Oil, CPO and processing results of CPO
Ministry of Trage Regulation No. 748/2015
Determination Verifier of CPO
Ministry of Trade
MEMR Regulation No. 29/2015
concerning on Provision and Utilization of Biofuel of Biodiesel with financial support by Indonesian Estate Crop Fund (IECF) for Palm Oil
Director General for New Energy, Renewable and Energy Conservation Decree No. 723K/10/DJE/2013
Spesification of Biodiesel
MEMR Regulation No. 12/2015
3rd amandement of MEMR Regulation No 32/2008 concerning on Provision, Utilization, and Procedures of Commerce of Biofuel as Other Fuel
MEMR Decree No. 3239/2015
Market Price Index of Biofuel
Constitution No. 30/2007
Energy
Government Regulation No. 79/2014
National Energy Policy
Upstream
Downstream
Ministry of Finance
Ministry of Finance Regulation No 133/PMK.01/2015 Year 2015
Tarif of Palm Tree Plantation
Ministry of Finance Regulation No 113/PMK.01/2015 Year 2015
Public Service Board of Palm Tree Plantation Fund Manager
Ministry of Finance Regulation No 136/PMK.010/2015 Year 2015
Determination of Export Goods

10. Biofuel Mandatory Roadmap
MEMR Regulation No.21 Year 2015

11. The Acceleration of Biofuel Mandaroty
Starting on 1st January 2016, The Government has implemented B20:
Performance test scheme, test drive and road show have been implemented.
Financing to support mandatory biodiesel B20 (from Indonesian Estate Crop Fund) is available.
Indonesia Estate Crop Fund for Palm Oil is a governmental unit under Ministry of Finance of which mandates are to collecting, administering, managing, saving and distributing The Palm Oil Estate Fund (The Fund).
The Fund is collected from levy on both processed and crude palm oil.
Standard quality (national standard for biodiesel) and regulatory sanctions have been applied.
Budget for monitoring the quality/quantity of blending, and verification mechanisms annually are provided.
Biodiesel producers with sufficient production capacity is prevailed.

12. Biodiesel Production and Distribution

13. Existing Biodiesel Plant

14. IV. POLICY AND IMPLEMENTATION OF BIOMASS FOR ELECTRICITY

15. Biomass Potential for Electricity

16. Potensi of Palm Oil for Energy

17. Biomass Potential for Electricity

18. FIT for Biomass Power Plant
MEMR Regulation No.21 Year 2016

19. FIT for Municipal Solid Waste Power Plant
MEMR Regulation No.44 Year 2015

20. The Development of Bioenergy Power Plant
Biomass in Indonesia can generate electricity up to 32 GW
Installed Capacity of Biomass and Biogas Power Plant
up to May 2016 is 128,6 MW, consist of:
Solid Palm Oil Waste: 102,4 MW
Liquid Palm Oil Waste/POME: 8,6 MW
MSW: 17,6 MW

21. V. CLEAN STOVE INITIATIVE PROGRAMME

22. CSI PROGRAMME Development
Clean Stove Initiative (CSI) Programme is a USD Programme funded by the World Bank. The programme established in 2014 and will end in November 2016.
OBJECTIVES
Increase the number clean stoves user in Indonesia
Develop a national test lab for clean stove and national certification
Promote knowledge and experience exchange as well as develop international cooperation on Clean Stove Initiative.
BENEFICIARIES
Ministry of Energy and Mineral Resources for the establishment of a national test lab and certification institution for national biomass stove;
Ministry of Energy and Mineral Resources in particular to support the national programme on the increase of access to clean cooking;
The Community in DI. Yogyakarta, Central Java and NTT whom expected to transfer from using tradiitional stove to using clean stove for healthy cooking which save fire wood.

23. VI. GOVERNMENT EFFORT

24. Government Effort 1. CREATING MARKET
Mandatory policy of the implementation of biofuel utilization;
Obligation of National Electric Company (PT PLN) to purchase electricity from bioenergy power plant;
2. PRICING & FEED-IN TARIFF
Declared through the Minister of Energy and Mineral Resources Regulation, regulates the selling price of electricity from renewable energy purchased by National Electric Company. The price is final and no negotiations;
Pricing for biofuel, including market price index for biofuel and provide funding mechanism from IECF Palm oil for Public Service Obligation (to cover the disparity between biodiesel price and diesel price)
3. PROVIDING INCENTIVES (FISCAL INCENTIVES)
Government Borne VAT (Value added Tax);
Income tax incentives for new investment in the biofuels industry;
Loan interest subsidy for the development of biofuel crops;
Reduction of taxes and customs duties;
4. SIMPLIFY IN LICENSING
5. IMPROVING RESEARCH AND DEVELOPMENT
R&D on advanced biofuel/second generation of biofuel, e.g. bioavtur
6. DEVELOP INTEGRATED BIOFUEL MANAGEMENT SYSTEM

25. THANK YOU
JALAN PEGANGSAAN TIMUR NO. 1, MENTENG, JAKARTA, INDONESIA 10320
Phone: Fax: - 25