Indonesian government’s strong commitment for promoting clean, new and renewable energy has been reflected in the Vision 25/25 document. It calls for 25% New and Renewable Energy (NRE) sources to be provided in 2025. The government will achieve this vision by diversifying energy sources through various fiscal and non-fiscal incentives,as well rationalizing the energy use. While the later policy is seen as a quite difficult undertaking given the current low energy consumption per capita, the prospect for expanding the source for alternative energy has been enormous. The availability of vast array of energy choices is ranging from cleaning the coal to biofuel, from solar energy to shale oil. Despite the recent advances of enhance oil recovery, shale gas and oil in the US for example (US Energy Information Administration predict that by 2035 shale gas will have a share of 46%, as opposed to 1% in 2000 and 10% in 2010), the pursuit for renewable energy is gaining more support from the promoter of sustainable development. Indonesia’s commitment to unilaterally reduce its GHG emission by 26% in 2020 has again demonstrated its leadership on global search for more sustainable energy sources.
25/30 is more realistic and optimistic
renewable energy continue to be developed and optimized by changing the mindset (Mid-set) of new renewable energy not just as an energy alternative to fossil fuels, but it should be the main core of national energy supply with posi 17% in 2025 (Presidential Decree on. 5/2006 on national energy policy) in the form bifuel> 5%, geothermal> 5%, more EBT> 5%, and liquid coal> 3%, while other energy is still supplied by oil <20%, Natural Gas> 30%, and coal> 33%. Government committed to achieving 25/30 vision, that the utilization of renewable energy to 25% in 2030 (originally predicted 25/25, but in practice allegedly not be achieved). In January 2012, the secretary general of united nation encourage the use of renewable energy world twofold (from 15% to 30%) by 2030, especially the developing countries is currently in charge of at least 50% of the global renewable energy capacity.
Programs to achieve its target of 25% renewable energy is rural power, interconnect generating renewable energy, the development of biogas, an energy independent village, integrated microhydro Development program (IMIDAP), Solar Power Plant for urban, biofuel development, project acceleration power plants 10 GW phase II from renewable Energy (Geothermal and Hydro), and additional generating capacity of 35 GW. Allocation of funds on renewable energy programs and energy conservation in the state budget (State Budget Amendment) in 2015 approximately Rp. 1.04 trillion. In order to increase production and consumption of energy in fiscal year 2016, the Ministry of Energy and Natural Resources proposed a budget 10 times, which is about Rp. 10 Trillion. In the next 10 years requires Rp. 2000 Trillion to accelerate the development of new renewable energy.
The government will add capacity of 35 GW of electricity supply by 2019, 24 GW of coal plant remaining and 11 GW of new renewable energy. Currently renewable energy accounts for only 10.7 GW of 53GW. Plans new renewable energy amounting to 11 GW comes from geothermal power plants of 4.9 GW; Hydroelectric 13.4 GW; Bioenergy 2.8 GW; Solar power plants 0.25 GW; wind power plants 0,044 GW, and sea currents power plants 1 MW. While the resource potential ET, according to the Ministry of EMR are: Hydro 75 GW; Solar 112 GW; biofuels 32 GW; wind 0.95 GW; geothermal 28.8 GW; and the sea 60 GW.
The entire plant will be gradually increased its capacity from 2015 until 2019. The development of new renewable energy refers to the local situation and the potential energy in each region. For example sources: solar power and thermal power station; Sukabumi: Wind power plants. The government supports innovation utilization of solar power, for example, for street lighting, and also the installation of solar panels on the roofs of shopping centers, malls, government buildings, even housing residents so that they get the power supplies themselves (Solar pwer plants 1m square will generate power of 100 W with cost of Rp. 2 million).
In 2016, SPP built as many as 109 units (18.4 MW in total) spread across Indonesia, and consists of hybrid SPP, Floating solar power, solar power rooftop airports, the MHP 25 units (1.6 MW) wind power station 1 unit ( 850 kW), garbage unit (1500kW), Biogas power plant (Pome) 3 units (3000kW), Bio Seaweed power plant 1 unit (1000kW), and Nabati power plant 1 unit (5000kW).
Efforts to diversify the sources of energy other than petroleum continue to be made, including the utilization of gas, coal, and renewable energy (water / micro hydro, geothermal, biomass, solar, wind, wave / ocean currents, BB Nabati, nuclear green / thorium, liquefied coal, gasified coal, and gas hydrates). Law no.30 of 2007 classifies that New Energy comprises nuclear (green), hydrogen, coal bed methane (CBM, Coal Bed Methane), liquified coal, and gasified coal. Meanwhile, reneweble energy consists of geothermal, wind , bioenergy, solar light / solar, water flow and waterfall, and the movement and the temperature difference of sea layer.
corporate green initiatives
PT PLN (State Electricity Company) to develop CSR (Corporate Social Responsibility) sustainable form of development in DME (Rp30miliar, 2012) in order to reach in remote areas that have not been electrified using existing infrastructure in the vicinity as energy generation, such as MHP (eg: Watu length of 25 kWh / 63KK, Probolinggo, East Java) / SPP (eg PLTS SEHEN / Super Extra Low Energy, in Sota, Merauke, Papua) / Bayu power plants / Waste power plants/ Biomass, biogas, etc. DME is expected to insufficient development of electricity in remote communities, and it also have a positive impact to the PLN itself and the relevant stakeholders.
One example of CSR help: PT PLN (Persero) Head Office mandated the PT PJB (a subsidiary of PLN) to develop DME near the project site, for example Sumberejo, Pasuruan, (2 units, 2x850 W), Bondowoso (10 units, 10x850W) , Trenggalek (4 units), Tulungagung (2 units), Jabung (Malang), Bergas Kidul (Ungaran), Kalongan and Coral Sulang (Semarang), Pilang Umbrella (Grobogan), Karang Mukti (Subang), Karyamukti and Lebakwangi (Bandung) , Rajagaluh (Majalengka), Parung Banteng and Cadassari (Purwakarta), Pasanggrahan (Garut), Purworejo (10 units), Brebes (10 units), Pandesari (Malang, Ciherang (Cianjur), Cipendeuy (Bandung Barat), Agrabinta (Garut) . PLN NTB: develop solar power plants in 9 hamlets scattered in Kab. Lombok North, Central, West, East, Regency Bima, and Kab. Dompu. Meanwhile, Minister for Rural, PDT & T encourages other state and private entrepreneurs to continue to develop DME in remote areas via CSR.
In 2015, only 5,000 remote villages left behind, and on the border of the target DME as a target of CSR (from ~ 10 thousands remote villages; a total of 74 045 villages in Indonesia as of December 10, 2014), while the well-being of the village is enhanced with the development of BUMDesa as has achieved at Gunung Kidul village, DIY. Kampung Waitabar, West Sumba. NTT chosen as a pilot by the Men Village DME PDT & T. Earlier, the MHP & Solar power plants already build in Sumba (MHP: Kamanggih 1x40kW, Lapopu 2x800kW, Lokomboro 2,3MW, and Laputi 32 kW; Solar pwer plants: Salura 1x150kW, and Bilachenge 480 kWp).
Year 2012 - 2014, the development of Desa Mandiri Energy (DME) is concerned with the development of biogas for cooking and lighting. In 2011, the Government developed the 35 of DME-based non BBN, the MHP in 10 locations (5 in Sumatra, two in Java, 3 in Kalimantan 4 in Sulawesi, 2 in Nusa Tenggara, one in Maluku and Papua), ocean currents 1 location, Hybrid 1 location, production equipment (residual electrical energy from EBT) 10 locations. In 2010, DME developed in 15 regions in Indonesia, 9 outside Java and 6 in Java. In 2009, the DME program reached 633 villages, with details of Hydropower 244 villages, BB Nabati 237 villages, Solar power 125 villages, Biogas 14 villages, Wind Power 12 villages, Biomass 1 village.
• On the other hand, PT Pertamina (Persero) is committed to developing five types of renewable energy, namely Geothermal, PT PGE (Pertamina Geothermal Energy) (Geothermal Power Plant Kamojang5 / 35MW; Karaha1 / 30MW; Lahendong5 & 6 / 2x20MW; Ulubelu3 & 4 / 40MW).
• Coal Bed Methane (CBM), PT PHE (Pertamina Hulu Energi) and Sangatta2 Sangatta1 Block in East Kalimantan, Block Tanjung Enim and Muara Enim in South Sumatra.
• Shale Gas potential in Indonesia: 574TCF (~ 4x natural gas reserves) in Sumatra, Kalimantan, Papua, Java (development is set in the ESDM No.5 / 2012). Pertamina holding the US.
• algae / moss (Algae to Biodiesel Euro 45). Other research results: Euro5 Biodiesel from palm oil biodiesel through hydrotreated catalysts and diesel emulsion derived from a mixture of biodiesel, water, and a surfactant.
• Wind.
On the other hand, Pertamina signed a MoU with Akuo Energy (IPP, Paris, France), focused on the development of the Wind power plants, solar PV, and OTEC in remote locations. The target in the near future, it will set up 3 island's location 5MW solar power by 2016. The Wind power plant 60 MW will be developed in 2017. Then, for solar thermal power station and OTEC will develop up to 560 MW in 2018.
Some foreign businessmen interested in participating in the development of renewable energy in Indonesia, for example:
• Australia experienced in the field of energy infrastructure in the field of geothermal, solar, algae, micro hydro, biomass for power generation is interested in developing renewable energy in Indonesia.
• Austria offers cooperation to build hydropower.
• Germany, France (planting US $ 10 billion),
• USA and New Zealand would like to cooperate in the field of geothermal energy (geothermal). New Zealand has signed a partnership with Indonesia (April 2012) in order to build a Geothermal Power Plant 4 GW by 2015. Chevron Co. (The second largest gas producer after ExxonMobil Indonesia in 2011) is also interested in investing in geothermal and ocean energy within. Exxon and General Electric will help in the energy efficiency sector, one of which is to develop the turbines and small-scale power plants based on renewable energy in the outer islands and in the fishing villages.
• Turkey is also keen to develop geothermal energy in Palembang / South Sumatera, Argo Puro / Java, and Pidie / Aceh.
• Canada (Biotermika Technology) interested in investing their funds in the field of municipal waste in big cities, such as Bandung, Surabaya, and Jakarta in order to build a power plant of waste. In addition, Canada is also interested in the field of steam power plant (Brookfield Power and Utilities), MHP (Essence Lavalin), and SPP (Expert Development of Canada, and Senjaya Surya Pro).
• Singapore interested in setting up the fertilizer industry from waste landfill in the village of Ngembalrejo, district. Bae, Kudus, while Japan and South Korea are interested in establishing fertilizer industry and processing of plastic waste into fuel / diesel / premium of municipal waste in landfill Palembang, South Sumatra. Brunei Darussalam is interested in developing sorghum processing industry for food and bioethanol in Soloraya. China and South Korea's keen to develop hydropower.
• Finland propose cooperation with donated 4 million euros in the field of biomass in Prop. Central Kalimantan and Riau, and South Korea's is also working in the field of biomass in Gorontalo.
• Japan (NEDO) interested in building a bioethanol plant of drops in Mojokerto, East Java.
• Russia and Australia are interested in developing the biomass power plant (straw + rice husk) in Sergai, North Sumatra, while China is interested in using waste oil palm shells. Russia is also interested in developing other renewable energy, including nuclear and coal. Estonia interested in developing oil sands and biomass.
• Denmark supports energy efficiency and conservation programs in Indonesia by providing funding of US $ 10 million for a four-year program.
• US via ThorCon (Martingale) interested in building a new energy, Thorium power plant (nuclear green, thorium MSR, 2x2x250MW, when possible, COD in 2021) in various parts of Indonesia who took (and signed MoU) with three state-owned enterprises (Inuki, PLN, and Pertamina) to replace the growth of coal based power plant 20GW.
Insentives
Indonesia enforces regulations by providing tax incentives to renewable energy development company with still involving local parties mainly plants with a capacity below 10 MW. FIT system, feed-in tariffs, fiscal policy, incentives for funding, support incentives market, and easy licensing, applied in order to encourage the implementation of renewable energy commercially and increased access to the public. On the other hand, Bank Indonesia formed a green banking in order to provide incentives to banks that will fund the development of renewable energy.
To encourage investor, government via ESDM No. 27 in 2014 to raise the purchase of electricity from Biomass power plant and Biogas power plant by PT PLN (Persero) is its capacity up to 10 MW to revise ESDM No.04 in 2012. The selling price of electricity Biomass power plant (FIT 2014) for intermediate V: Rp1.150 / kWh (previously Rp.656 / kWh); V low: IDR 1,500 / kWh (previously Rp.1.004 / kWh); Fit (2014) for PLTBg: V medium: Rp 1,050 / Koh (previously Rp.975 / kWh); V low: Rp.1,400 / kWh (previously Rp.1.325 / kWh). Meanwhile, the purchase of electricity from hydropower by PLN up to 10 MW can be seen in ESDM No. 19, 2015.
Conclusion
Vision 25/30 Indonesian government in order to achieve national energy independence based on renewable energy is not impossible to achieve. The government has set up and designed the projection of energy consumption, as well as the security of energy supply for the short, medium and long term. With incentives and regulations, the government is serious to increase the supply of energy by maximizing the potential of renewable energy in Indonesia. Then other elements such as private companies, research institutions, and the public should also be aware to support the government's policy. With so expected, Indonesia can increase access to modern energy not only as energy security, but also as a sustainable energy
Reference
[1] The development team of Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources, Republic of Indonesia, Design Blueprint: Pengembangan Energi Terbarukan dan Energi Konservasi,” Tambahasn energi ramah lingkungan, emisi karbon kurang”,August 2010.
[2] PLN (State Electricity Company), Electrical Business Supply Plan 2010-2019. 2010
Presidetal Regulation of Republic of Indonesia No. 5 of 2006, concerning the national energy policy, 25 January 2006
[3] Rachman, Fattu 2016. EBT conditions in Indonesia / Renewable Energy in Indonesia. Accesed May 14th, 2016.