B2. Syahrul-SET Innovation Presentation

A study on :

National Technology Innovation Ecosystem
for Sustainable Energy Options in Indonesia

By

Syahrul Aiman and Team
Indonesian Institute of Sciences
The study supported by APCTT - UNESCAP

content
I.

Background of the study.

II.

Indonesia Statistics.

III. RE and Electricity Condition.

IV. Business enabling environment and Ecosystem
V.

Page  2

Conclusion

Background of the Study
UN Secretary-General Ban Ki-moon (September 2011),
– vision for making Sustainable Energy for All (Energi Berkelanjutan untuk
Semua) a reality by 2030.
– launched Sustainable Energy for All as a global initiative that would mobilize
action from all sectors of society in support of 3 (three) interlinked objectives:

 providing universal access to modern energy services;
 doubling the global rate of improvement in energy efficiency; and
 doubling the share of renewable energy in the global energy mix.
 Indonesian Institute of Sciences (LIPI) responses:
– This Study ‘National Technology Innovation Ecosystem for SE Options in
Indonesia’.

• Electricity : demand, supply, energy resources to generate, electrification,
accessibility, regulation, etc.
• Potency, challenge to utilize RE for power generation
Page  3

Indonesia Statistic

 The population :
– (2012) : 251.8 Millions,
– 56 % lives in Jawa Island (7 % of land of Indonesia)
– Increasing Rate 1.49 % per year (since 2000)
– 51.4 % (M) and 48.6 % (F)
– 34.4 % at the productive age (17 – 35 years).

– Dependency ratio was 51.3 %
– (2013) : 11.47 % (below poverty line) :
• Rp.308,000/capita/month (US $ 32/month).

 lives in : Urban - 54 % , rural - 46 %.
 (2012) Electrification ratio 71 %.

Page  4

Energy issues :
1.

highly dependency on fossil oil.

2. possess abundant renewable resources.
3. the effort to increase RE utilization
4. role of community.

5. NTI ecosystem

Page  5

Energy issues :
 IND posses abundant resources of RE, but utilization is still limited.
 Increasing fuel oil consumtion, and increasing the energy demand 7
%/year.

 The GOI fasilitate, drive, and promote utiliztion of RE
 the GOI set up target, raod map, provide incentive,
 RD Instituions, Universities, and Community Group participate, but the
effect are still limited.
 Financial support for investment to utilicze RE : limited.

Page  6

Potency and Installed Capacity

Page  7

Ratio (%)

3

Install
Capacity
(MW)
4

75,670
29,038
769.69

5,705.29
1,189
217.89

7.54
4.00
28.31

49,810
4.80
kWh/m2/day
3-6 m/s
43,000

1,618.40

13.5

3.25
-

1.96
-

-

No

Renewable Energy

Potential
(MW)

1

2

1
2
3
4
5

Large Hydro
Geothermal
Small Hydro
(Microhydro)
Biomass
Solar

6
7

Wind
Sea

5=4/3

Energy Mix 2011 and target 2025
Oil

Gas

2025 (initially)

NRE, 4.79

oil

Coal, 26.38

oil 46.93

Gas
Coal
NRE

Gas, 21.9

Coal
2011

2025
Approved, Jan 2014
Page  8

Energy

%

Oil

23

Gas

22

Coal

32

NRE

23

Oil

Gas
Coal
NRE

Primary energy supply share in Indonesia
Year : ………
Regional

Oil Natural
(%) gas (%)

Coal
(%)

Hydropow
Geo
er (%)
thermal
(%)

Java

19

6

0

6

34

Sumatera

69

55

50

21

47

Kaliman
tan

9

14

50

29

0

Sulawesi

1

2

0

14

8

Others

2

24

0

31

10

Page  9

Popula
Tion
10x

Example of utilization of New and RE
 Bioethanol :
 Biodiesel :
 (Until 2012) : the biggest solar power system was 600 kWp.
 Geothermal.
 CMB

Page  10

Community Participation on (Utilizing) RE
1. AMAN (Asosiasi Masyarakat Adat Nusantara = Association Indigenous
Peoples of the Archipelago) :
–

Program ENTER – to support Indigenous Group at remote (far from Grid –
to access and utilize potential RE in their area.

2. …..

Page  11

Challenges of the NTI Ecosystem
 high dependency on fossil fuel, and community get used for highly
subsidies fuel and electricity
 lack of infrastructur energy for RE utilization,

 low investment for RE, and NRE researches.
 due to huge subsidy, price of energy in market is not reflect the
economic price of energy sources.
 Utilization energy resources in several sectors is not yet efficient.
 Public participation to promote RE is still low.
 Suitable local technology on RET is very limited.

Page  12

Suggestion : National Tech Innovation for SE
G

 A : Academic side
 B : Business side
 G : Government.

 C : community
B

 Incentive, approach, program
for B and C : are different.
 Support from A need to be
focused to C

A

C
Page  13

Technology Enabling Environment and Ecosystem for SET
• Government support for infrastructure
• The development of facilities needed for energy processing (e.g.
oil refineries, power generation), energy transmission and
distribution (e.g. pipelines for gas and oil fuels) and energy
storage (e.g. depots);
• The utilization of alternative energy including renewables (e.g.
geothermal, solar, water, wind and biomass); and
• The completion of implementing regulations to Law No. 30 of
2007 on energy.

• Attractive opportunities for IPPs
• The targeted GDP growth rates of 6.2% p.a. and an electrification
ratio of 91% by 2019 (source Bappenas), the electricity demand
will be growing by 7% to 9% p.a. (and even 9.2% p.a. through to
2019)  need massive capital investment

Technology Enabling Environment and Ecosystem for SET
(cont)…
• Legal and regulatory framework

Technology Enabling
Environment and Ecosystem
• Other important regulation :
for
SET
(cont)…
• Perpres No.67/2005 (since amended by Perpres No.13/2010) and MoF

Regulatio No. / 00 hi h set rules a d pro edures for pu li / pri ate
parti ipatio arra ge e ts;
• Perpres No.42/2005 which outlined the inter-ministerial Committee for
the Acceleration Program (KKPPI) responsible for coordinating policy
related to the private provision of infrastructure;
• MoEMR Reg No.44/2006 which allowed direct tender for the first fast
track programs (of coal-fired plants); Perpres No.71/2006 which launched
the first fast track program; Perpres No.4/2010 which launched the second
fast track program; and
• MoEMR Reg No. 1/2006 (and its revisions via MoEMR Reg.No. 4/2007) on
ele tri po er pur hasi g or re tal tra s issio li es hi h o ered the
appointment of IPPs.

Differences between the 1985 and 2009 electricity regulation

Regulation for SET (Study case:
Geothermal)
• Geothermal energy utilization is conducted under a regime
regulated by the following:
•
•
•
•

Presidential Decree No.76/2000;
Geothermal La No. / 00 the 00 Geother al La ;
Government Regulation No.59/2007;
MoEMR Regulation No.11/2009 (along with the 2009 Electricity
Law for power generation activities); and
• MoEMR Regulation No.32/2009 which sets purchasing price
arrangements for PLN.

Investment Law For
Developing Electricity in
Indonesia
• I est e t La No. / 00 the 00 I est e t La
aimed at providing a one-stop investment framework for
investors.
• Obligations for power plant investors under the 2007
Investment Law include:
•
•
•
•

prioritizing the use of Indonesian manpower;
ensuring a safe and healthy working environment;
implementing a corporate social responsibility program; and
certain environmental conservation obligations.

is

Business Enabling Environment and Ecosystem for SET
• Feed-In-Tariff (FIT) Policies
• A Feed-In Tariff (FIT, standard offer contract advanced renewable
tariff or renewable energy payments) is a policy mechanism
designed to accelerate investment in renewable energy
technologies
• In addition, feed-in tariffs often include "tariff depression", a
mechanism according to which the price (or tariff) ratchets down
over time

Business Enabling Environment and Ecosystem for SET
(cont)…
• Feed-in Tariff for Solar Power
FiT ( 30 – 60 kWh: 360
Block III: >60 kWh : 495

415

2

R-1/TR

900 VA

20,000

Block I : 0-20 kWh : 275
Block II: > 20 – 60 kWh: 445
Block III: >60 kWh : 495

605

3

R-1/TR

1,300 VA

*)

833

833

4

R-1/TR

2,200 VA

*)

843

843

5

R-2/TR

3,500-5,500 VA

*)

948

948

6

R-3/TR

6,600 VA above

**)

Source: FiT in Indonesia

Block I : 0-55 hours = 980
Block II: > 55 hours = 1,380

1,336

Basic Electricity Tariff (TDL) for Commercial Use Q1 2013
No

Group Rates

Power Limit

Reguler
Price
(Rp/kVA/month)

Pre-Paid
Usage Fee
(Rp/kWh)

1

B-1/TR

450 VA

23,500

Block I : 0-30 kWh : 254
Block II: > 30 : 420

535

2

B-1/TR

900 VA

26,500

Block I : 0-108 kWh : 420
Block II: > 108 kWh: 465

630

3

B-1/TR

1,300 VA

*)

835

835

4

B-1/TR

2,200 VA –
5,500 VA

*)

950

950

5

B-2/TR

6,600-200
kVA

**)

Block I : 0-60 hours =
1,035
Block II: > 60 hours =
1,380

1,215

6

B-3/TM

> 200 kVA

***)

Block WBP = K x 880
Block LWBP = 880
kVArh = 963 ***)

-

Source: FiT in Indonesia

Basic Electricity
(TDL) for Industrial Use
Q1 2013
Group Rates Tariff
Power Limit
Reguler

No

Price
(Rp/kVA/month)

Pre-Paid

Usage Fee
(Rp/kWh)

1

I-1/TR

450 VA

26,000

Block I : 0-30 kWh : 160
Block II: > 30 : 395

485

2

I-1/TR

900 VA

31,500

Block I : 0-72 kWh : 315
Block II: >72 kWh: 405

600

3

I-1/TR

1,300 VA

*)

803

803

4

I-1/TR

2,200 VA

*)

830

830

5

I-1/TR

*)

961

961

6

I-2/TR

3,500-14
kVA
>14 - 200
kVA

7

I-3/TM

8

I-4/TT

**)

Block WBP = K x 840
Block LWBP = 840
kVArh = 914 ***)

-

> 200 kVA

**)

Block WBP = K x 704
Block LWBP = 704
kVArh = 757 ***)

-

>30,000 kVA

***)

Block WBP and LWBP =
629
kVArh = 639 ***)

-

Source: FiT in Indonesia

CONCLUSION