RE for Electricity Generation : Liquid Fuels :

Page  10 Innovation Ecosystem

a. Sustainable Energy Options

1. RE for Electricity Generation :

 Geothermal.  Hydro power.  Solar  Wind.  Biomass direct combustion or through biogas

2. Liquid Fuels :

• BIOMASS : – Biodiesel oil : diesel fuel substitute. » Currently 10 Biodiesel and 90 diesel oil Biosolar. – Bioethanol : for gasoline Premium, RON 88 substitute. » Currently : 10 bioethanol and 90 premium. Page  11 Regional Oil Natural gas Coal Hydro power Geo thermal Java 19 6 6 34 Sumatera 69 55 50 21 47 Kalimantan 9 14 50 29 Sulawesi 1 2 14 8 Others 2 24 31 10 : Jawa island is only 7 of total Indonesia Land, but occupied by 55 of total population Page  12 - 1,00 2,00 3,00 4,00 5,00 6,00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Final Energy Consumption per Capita BOEcapita Primary Energy Supply per Capita BOEcapita World average energy consumption : Page  13 Distribution share of final energy consumption by region . Source: M.H. Hasan et al. Renewable and Sustainable Energy Reviews 16 2012 67 of consumption in Jawa and Bali, where the sources is very limited. Page  14 No Renewable Energy Potential MW Install Capacity MW Ratio 1 2 3 4 5=43 1 Large Hydro 75,670 5,705.29 7.54 2 Geothermal 29,038 1,189 4.00 3 Small Hydro Microhydro 769.69 217.89 28.31 4 Biomass 49,810 1,618.40 3.25 5 Solar 4.80 kWhm 2 day 13.5 - 6 Wind 3-6 ms 1.96 - 7 Sea 43,000 - - data 2009 various sources Page  15 To increase utilization of RE sources for electric power generation by private companies : – Feed- in- tariff policy for renewable energy sources, the tariff: • Depend location Jawa - Bali, Sumatera, Kalimantan, etc . • Depend on energy sources solar energy, biomass, biogas, etc. Page  16 Background of Indonesia Biofuels Development Program 1. High bio-diversity in Indonesia, including biofuel feedstock. 2. Land availability for plantation and biofuel development. 3. Proven biofuel technology by local potential Engineering, Research and Development. 4. Biofuel industry allows community participations, including farmers. 5. High number of unemployment that could be employed in biofuel industry. 6. Biofuel is renewable, and potential for fossil oil substitution. Source : Evita L, 2007. Page  17 Facilities and incentives for Biofuel Development 1. Government regulation no 12007 : on income tax for investment in certain business orand certain area. – Biofuel development included in certain business : is given income tax facility in form of net income reduction, 30 of total investment. 2. Government regulation no 82007. It is set up Indonesia biofuel fund. – Seed capital for Indonesia Biofuel Fund : US 220 millions. Source : Evita L, 2007 Page  18 3. Minister of Finance Regulation 117PMK 62006. On credit of Bioenergy development and Plantation Revitalization. – Credit for bio-energy development and plantation revitalization is prepared in order to support funding for biofuel feedstock development program and plantation revitalization. – Plantation development that could be funded by the program includes plantation expansion, rehabilitation and rejuvenation. Source : Evita L, 2007 Page  19 1. Availability of biofuel development regulation and standard. 2. utilization of biodiesel oil and bioethanol as substitute of fossil oil Premium and Diesel OilSolar. 3. Development of Energy Self Sufficient Village ESSV utilizing biofuels, currently more than 130 ESSV. 4. Biofuel production industries. Page  20 Biofuel for Rural Communities Small scale bio energy projects :  PPO Pure plantation oil blend of jatropha oil with Diesel Fuel : Rural tractor , Water Pump, rural transportation, fishing boat engine.  Government grant for superior seedlingnursery, small scale pilot plant, pilot projects. e.g. Jatropha Nursery Center at West Java  Jatropha plantation was around 50,000 Ha. 2008 Source : Evita L. Page  21

2.7 Millions kLyear.