DEVELOPMENT OF ALTERNATIVE ENERGY IN INDONESIA

Dr.-Ing. Evita H. Legowo FUEL QUALITY IMPROVEMENT & TECHNOLOGY DEVELOPMENT

5th ASIAN PETROLEUM TECHNOLOGY SYMPOSIUM Jakarta, 23 25 January 2007
1

OUTLINE
ENERGY POLICY ENERGY RESOURCES ENERGY MIX DEVELOPMENT OF ALTERNATIVE ENERGY CONCLUSION

ENERGY RESURGENCE IN INDONESIA

NO SUBJECT THE ERA OF ENERGY RESURGENCE IN INDONESIA I (1966) 1. 2. 3. Momentum beginning Fiscal Influence (APBN) Primary Energy Production Oil expansion 70 80 % (Peak) 460 thousand BOPD (Peak year 1977 1,6 million BOPD) Low (0,07) Low Closed Price subsidy Lex Specialist Supply Side Management (SSM) - Pro Growth - Pro Job - Pro Poor II (2006) Alternative Energy expansion 25 30 % (Today) 1,050 million BOPD (2006 3,5 million BOPD equivalent from oil, gas and coal Relatively increasing (0,467) High Open Direct subsidy Lex Generalist Demand Side Management (DSM) - Pro Poor - Pro Job - Pro Growth

4. 5. 6. 7. 8. 9. 10.

Energy Consumption (TOE per capita) Energy Consumption Growth Energy Reserves Data Subsidy Paradigm Maintenance Priority Contribution to National Development

PRESIDENTIAL DECREE NO. 5 YEAR 2006 NATIONAL ENERGY POLICY

ENERGI MIX GOAL 2025
Hydro Power, 3.11% Geothermal, 1.32% Natural Gas, 28.57%

National (Primary) Energy Mix

Oil 51.66%

National (Primary) Energy Mix of 2025 (BaU Scenario)

Power Plant, 1.9% Mini/micro Hydro Power Plant, 0.1% Geothermal, 1.1%

Coal, 15.34%

Energy Mix Year 2025 2025 National Energy Mix (Perpres No. 5/2006) (Presidential Decree Scenario)
Oil, 20% Gas, 30%
Biofuel, 5%

Gas, 20.6%

Oil, 41.7%

OPTIMIZING ENERGY MANAGEMENT

Coal , 33%

RE,17%

Geothermal, 5% Biomass, Nuclear, Hydro Solar Energy, Wind Power, 5% Coal Liquefaction 2%

Coal 34.6%

ENERGY RESOURCES
(January 2006)
TYPE OF FOSSIL ENERGY Oil Gas Coal NON FOSSIL ENERGY Hydro Geothermal Mini/Micro hydro Biomass Solar Wind Uranium 24.112 Tons* RESOURCES 86.9 billion bbl 384.7 TSCF 57.8 billion Ton RESERVES 9.1 185.8 19,3 PRODUCTION 387 million bbl 2.95 TSCF 132 Million Ton R/P (YEARS) 23 62 146 INSTALLED CAPACITY 4,200 MW 807 MW 54 MW 302.4 MW 5 MW 0.5 MW

RESOURCES 845 Million BOE 219 Million BOE 458.75 MW

EQUIVALENT 75,670 MW 27,000 MW 458.75 MW 49,810 MW 4.8 kWh/m2/day 9,287 MW 3 GW

UTILIZATION 6,851,000 MWh 2,593,500 MWh

*) only in Kalan region, West Kalimantan

ENERGY DIVERSIFICATION PROGRAM

Types of fuel Gas LPG BBG Coal Coal Briquet Coal gasification Coal liquefaction Biofuel Bio-ethanol Bio-diesel Bio-oil Geothermal Other Renewable Energy Biomass Nuclearr Water Solar cell Wind CBM Hidrogen / Fuel Cell Oil Shale Biogenic Gas Household Transportation Industry Power Plant

ENERGY MIX 2006 to 2010

Household and Commercial 2006
OIl 53.1% Briquet Coal 0.1% Biofuel (Biooil) 0.0% CNG 1.5% NG 6.4%

Household and Commercial 2010

Oil 28.1% Briquet Coal 1.2% Biofuel (Biooil) 3.7%

CNG 0.0% LPG 10.6%

Electricity 36.1%

LPG 19.0% Electricity 40.1%

NG 0.1%

Transportation 2006
Biofuel (BioDiesel) 0.0% Electricity 0.0% Biofuel (Bio-Oil) 0.0% NG 0.0% Biofuel (BioEthanol) 0.0%

Transportation 2010
Biofuel (Bio- Biofuel (BioEthanol) Diesel) 7.6% 0.4% Biofuel (Bio-Oil) 1.9% Electricity 0.0% NG 1.4% Automotive Diesel Oil 42.3% Gasoline 54.0% Gasoline 46.5%

Automotive Diesel Oil 45.9%

ENERGY MIX 2006 to 2010 (continuation)

Industry 2006
Gas 19.6% Electricity 13.1%

Industry 2010
Gas 20.4% Electricity 12.4%

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

LPG 1.4%

Power Plant 2006

Gas 14.3% Coal-Hybrid 0.0% Oil 23.7% Biofuel 0.9%
Coal 71.4%

Power Plant 2010

Coal-Hybrid 2.2% Gas 8.3% Oil 2.7% Biofuel 0.8% Geothermal 6.8%

Geothermal 5.3%

Hydro 9.6% Coal 46.2%

Hydro 7.8%

DEVELOPMENT OF ALTERNATIVE ENERGY

Natural Gas Coal Biofuel Geothermal CBM Nuclear

CONCLUSION
The Government of Indonesia has set policy on alternative energy development to decrease Indonesias dependency on oil Indonesia has a promising prospect on alternative energy development:
Great potential for alternative energy Increasing energy demand Numbers of citizens that have no access to energy (electricity and non electricity) Proven technologies for alternative energy

GAS RESERVES IN INDONESIA

THAILAND LAOS

Manila

Bangkok
Ban Mabtapud

CAMBODIA

Philipines
VIETNAM

Phnom Penh

South China Sea

Ho Chi Minh City

Khanon Songkhla Erawan

Bangkot Lawit

120.1
Banda Aceh Lhokseumawe Penang

Jerneh Guntong Kota Kinibalu

WEST Kerteh Duyong Mogpu MALAYSIA Port Klang

West Natuna
Singapore Gas Trunkline

Natuna

Alpha

BRUNEI

Bandara Seri Begawan

Bintul u EAST MALAYSIA
Kuchin g Bontang LNG Plant & Export Terminal

1.529

Medan

Kuala Lumpur

51.601

Port Dickson Dumai Duri

27.779
Manado Ternate

Pacific Ocean
HALMAHERA

SINGAPORE
Batam Bintan

18.508

10.480 Padang

KALIMANTAN Samarinda
Balikpapan

Attaka Tunu Bekapai

S U M

4.405
SULAWESI

Sorong Jayapura

4.960
Ardjuna Fields Cirebon Semarang Ujung Pandang

A T R A
Grissik Jambi Palembang

Banjarmasin

BURU

SERAM

IRIAN JAYA

Jakarta

5.819

563 A JAV

MADURA
Bangkalan Surabaya

I Pagerungan O N E S I A N D
SUMBAWA FLORES
LOMBOK TIMOR

4.660
Maluku Selatan
Merauke

3.263 Indian Ocean

BALI

SUMBA
AUSTRALIA

REGULATIONS ON NATURAL GAS UTILIZATION

National Law No. 22 Year 2001 for Oil and Gas Government Regulation No. 36 Year 2004 for Downstream Activities in Oil and Gas Ministry of Energy and Mineral Resources Decree No. 2950 Year 2006 for National Gas Transmission and Distribution Network Plan

UTILIZATION OF NATURAL GAS

Development of Gas Utilization in Transportation :
Preparation for CNG 10 MMSCFD in Jakarta and 5 MMSCFD in Surabaya Revitalization of 6 units Gas Station in Jakarta Development of SPBG Gas Station in Trans Jakarta Station Standardization and certification for CNG products and facilities Converter kit supply Personal education and training program for CNG utilization National Integrated Gas Pipeline

UTILIZATION OF NATURAL GAS (continuation) Natural Gas For Household

LPG utilization to substitute kerosene for household LPG utilization model for Household by Pertamina Setting up Policy and Regulation for LPG utilization in household sector Providing raw material and infrastructures for LPG utilization in household sector Natural Gas utilization Model for marginal household

COAL RESERVES AND RESOURCES IN INDONESIA

THAILAND LAOS

Manila

Bangkok
CAMBODIA
Ban Mabtapud

Coal Resources (%) Resources: 61.3 billion ton Reserves : 6.7 billion ton

Philipines
VIETNAM

Phnom Penh

South China Sea

Ho Chi Minh City

Khanon Songkhla Erawan

Bangkot Lawit

Jerneh Guntong Kota Kinibalu

Banda Aceh Lhokseumawe

Penang WEST Kerteh Duyong Mogpu MALAYSIA Port Klang Medan

1.58

West Natuna

Natuna

Alpha

BRUNEI

Bandara Seri Begawan

EAST MALAYSIA
Bintul u

Kuala Lumpur

Port Dickson Dumai

SINGAPORE
Batam Bintan

Kuching

28.37
Bontang

Pacific Ocean
Manado Ternate

7.58
Duri

HALMAHERA
Sorong

Padang

4.07 KALIMANTAN
T R A
Grissik Jambi Palembang

S U M A

Samarinda
Balikpapan

Jayapura

SULAWESI
Banjarmasin

17.7
BURU
Ujung Pandang

IRIAN JAYA
SERAM

40.13
Jakarta
Semarang

MADURA
Bangkalan Surabaya

JAVA

I Pagerungan O N E S I A N D
SUMBAWA FLORES
TIMOR

Merauke

BALI
LOMBOK

Indian Ocean

SUMBA
AUSTRALIA

REGULATION ON COAL UTILIZATION

Presidential Instruction No. 2 /2006 for Supply and Utilization of Liquefaction Coal as Alternative Energy. Presidential Decree no. 71/2006 for Assignment to PT. PLN to Accelerate Development of Coal Power Plant using Presidential Decree No. 72/2006 for Coordinating Team for Acceleration of Coal Power Plant Development

UTILIZATION OF COAL
Acceleration of Coal Power Plants Development Program Briquette Utilization Program for small scale industries and household :
Standardization and certification of briquette for small scale industries and household. Certification and Flexible Control System Briquette utilization for household socialization Briquette stove supply Briquette factory development

UTILIZATION OF COAL (continuation) Liquefaction Coal Program

Setting up supply and utilization policy, incentives and fiscal reduction Securing coal as liquefaction coal raw material Standard of quality, liquefaction coal standard method and trade system Local production, technology and supervising development Increasing liquefaction coal as alternative fuel for transportation

UTILIZATION OF COAL (continuation)

Liquefaction Coal Program (continuation) Dissemination of coal supply and utilization Laboratory scale research/benchmark Pre-feasibility study for 3 kinds of coal (Banko, Berau, and Mulia) Policy and liquefaction coal factory development studies Preparing to build liquefaction coal refinery to produce alternative fuel Giving incentive and setting floor price for oil
Joint initiatives between Government, investors and BUMN in Energy and Mineral Resources sector for liquefaction coal development acceleration program

Gasification Coal Program

PRIMARY ENERGY PLAN FOR POWER PLANTS

100% 90% 80% 70% 60% 50% 40%
70% 9% 5% 24% 19% 15% 24% 9% 6% 6% 8% 6% 14% 20% 2% 8% 6% 2% 8% 7% 12%

71%

30% 20% 10% 0% 2006 2007

42% 47%

60%

2008

2009

2010

Coal

Gas

Geothermal

Hydro

Oil

Note : Low Rank Coal (calories 4.500 kkal/kg)

BIOFUEL COMMODITIES

Palm Jatropha Curcas Sugarcane Cassava

LAND AND CLIMATE COMPATIBILITY MAP FOR PALM

(3 million hectares)

LAND AND CLIMATE COMPATIBILITY MAP FOR JATROPHA CURCAS (million hectares)

LAND AND CLIMATE COMPATIBILITY MAP FOR SUGARCANE

(0.5 million hectares)

POTENTIAL LAND FOR CASSAVA PLANTATION (million hectares)

Potential land : < 75 ha : 75 200 ha : 201 400 ha : 401 1.800 ha Production projection 100 ton cassava per dot

REGULATIONS ON BIOFUEL DEVELOPMENT

Presidential Instruction No. 1 /2006 for Supply and Utilization of Biofuel as Alternative Fuel Presidential Regulation No. 10/2006 for National Team for Biofuel Development Ministry of Energy and Mineral Resources Regulation No. 051/2006 for Requirements and Trading Licensing Guidance for Biofuel as Alternative Fuel. Presidential Regulation No. 1/2007 for Reduction of Income Tax Governmental Regulation No 8/2007 for Government Investment Management

FAST TRACK BIOFUEL DEVELOPMENT

Energy Self Sufficient Village
Each Region Developing its Bioenergy Potential SHORT RUN LONG RUN

Create Job Energy Poverty Alleviation

Fast Track

SPECIAL BIOFUEL ZONE

Infrastructure

Explicit Investment Employment Ratio

Demplot

On time Schedule

BIOFUEL UTILIZATION
Type
Bioethanol Biooil Biokerosin Biooil Kerosene Substitute ADO substitute Household 10% Transportation 10% Power Plant 1050% IDO substitute Biooil Biodiesel Fuel oil substitute Solar substitute Sea Transportation and Train 10% Industry 50% Transportation 10% Power Plant 50%
Palm and Jatropha curcas

Usage
Gasoline substitute

User Side
Transportation 10%

Raw Material
Sugar cane and cassava

Palm and Jatropha curcas

30

PROJECTION OF BIOFUEL DEVELOPMENT UNTIL 2010

Parameter
Direct employment Income/capita (Sugar cane@0.5 ha, cassava, palm@2 ha; jatropha@3 ha) Bio-ethanol or biodiesel Production Industry Land Indirect employment Seeds On farm investation Off farm investation

Unit
person

PALM
750,000

JATROPHA

SUGAR CANE
1,500,000

CASSAVA
750,000

TOTAL
3,500,000

500,000

Rp/year/person

20,000,000

13,500,000

9,140,625

12,000,000

54,640,625

Ton oil ton seeds, unit, tuber Unit Hectar Person ton batang million Rp million Rp

6,000,000

2,250,000

3,750,000

4,615,385

16,615,385

30,000,000 167 1,500,000 1,167 202,500,000 45,000,000 10,000,000

7,500,000 22,727 1,500,000 68,182 3,750,000 4,500,000 2,272,727

60,000,000 125 750,000 6,250 6,000,000 11,250,000 43,750,000

30,000,000 288 1,500,000 11,538 12,000,000 5,250,000 43,269,231

127,500,000 23,307 5,250,000 87,137 224,250,000 66,000,000 99,291,958

GEOTHERMAL POTENTIAL IN INDONESIA

Geothermal potentials in Indonesia are spread in 253 locations

REGULATION ON GEOTHERMAL
LAW NO. 27 YEAR 2003 FOR GEOTHERMAL

a. The aims of geothermal regulation are :

1. To control geothermal activities in order to support sustainable development and value added 2. To increase national income to support national economic growth for citizens welfare

b. Geothermal is operated by central and local government c. The authority of geothermal activities is distributed between government, province, and local government

GEOTHERMAL POWER PLANT INSTALLED CAPACITY

No. Production field Location Turbine Capacity 1 x 30 MW 1 Kamojang West Java 2 x 55 MW 1 x 60 MW 1 X 20 MW 2 Lahendong North Sulawesi North Sumatera West Java 1 x 20 MW 1 x 20 MW 3 4 Sibayak G. Salak 1 x 2 MW 2 X 5 MW 3 x 60 MW 3 x 65 MW 1 x 55 MW 5 6 7 8 Darajat Wayang Windu Dieng Bedugul Total West Java West Java Central Java Bali 1 x 90 MW 1 X 110 MW 1 x 110 MW 1 x 60 MW 1 x 10 MW Owner PLN PLN PLN PLN PLN PLN Pertamina Pertamina PLN CGS PLN CGI CGI SE GDE Pertamina 852 110 60 110 60 10 1002 110 60 10 1082 375 145 255 255 2 12 375 12 375 20 40 60 Total Capacity (MW) 2006 140 2007 140 2008 200

COAL BED METHANE RESOURCES

Basin CBM Resources (TCF) S. Sumatra Barito Kutei C. Sumatra N. Tarakan Berau Ombilin Pasir/Asem NW Java Sulawesi Bengkulu 183.0 101.6 80.4 52.5 17.5 8.4 0.5 3.0 0.8 2.0 3.6 Low Prospective Moderate Prospective High Prospective Degree of Prospectively

453.3

REGULATIONS ON COAL BED METHANE

Law No. 22 Year 2001 for Oil and Natural Gas Governmental Regulation No. 36 Year 2004 for Downstream Oil and Gas Activities Ministry of Energy and Mineral Resources Regulation No. 33 Year 2006 for CBM Business Ministry of Energy and Mineral Resources Regulation No. 40 Year 2006 for the Offering of Oil and Gas Operation Field

UTILIZATION OF CBM
The Government of Indonesia has made research on first CBM exploration well since 2004 Pilot Project for 5 CBM wells are under process and will be evaluated in year 2008 Contract Model for CBM activities is on discussion.

CBM DEVELOPMENT ROAD MAP

PP: CBM 1 Rambutan (GOI Sponsor) CBM Production Projection Evaluation CBM Production Projection ~1 BcfD PP: CBM 1,2,3 ~100 MMcfD USD 2.5 USD 600 billion million CBM Production Projection PP CBM: 2,3 Incentive ~500 MMcfD (Private sponsor) 2nd-5th KKS changes

2004

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Other KKS/ average production = 250 MSCFD/well

Legend:
MEMR Reg No. 033/2006 & Contract Model Start Era CBM (1st KKS) Government Participation First CBM production Project evaluation Start of commercial era CBM Production PP PSC : Pilot Project : Production Sharing Contract

RADIOACTIVE RESOURCES IN INDONESIA 2004

Legend
Regions with speculative resources (DSS) Regions with indicated resources (DSB) Potential regions U Potential regions Th

Map of Radioactive Mineral Resources in Indonesia until the year 2004

REGULATION ON NUCLEAR
Law No. 10 year 1997 for Nuclear as Energy Presidential Decree No. 197 year 1998 for Badan Tenaga Nuklir Nasional (BATAN) establishment as research and development centre for nuclear utilization in Indonesia Governmental Regulation No. 43 year 2006 for Nuclear Reactor Licensing

ROADMAP OF NUCLEAR ENERGY DEVELOPMENT

PLTN = Nuclear Power Generator Plant
Establishment of Owner Sensitizing the public about PLTN Construction of PLTN-2 Tender of PLTN 3&4 Construction of PLTN-4 Operation of PLTN-4 4000 MWe

Tender PLTN 1&2

Operation of PLTN-2 2000 MWe

2000

2005

2010

2015

2020

2025

Planning of National Nuclear Energy Option

Decision to construct PLTN

Construction of PLTN-1

1000 MWe Operation of PLTN-1 Construction PLTN-3

3000 MWe Operation of PLTN-3