Energy Efficiency and Conservation Policy in Indonesia: Maritje Hutapea

Energy and Mineral Resources for People Prosperity
Energy Efficiency and Conservation Policy

in Indonesia
Maritje Hutapea
Director of Energy Conservation, Ministry of Energy and Mineral Resources
Jakarta, 22 April 2013

Outline
2

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National Energy Demand and Supply Dominated
by Fossil Energy
3
• High dependency on Fossil Energy (> 95%)

–Oil 48% (around 50% import)
• Low Renewable Energy use (< 5%) Energy Mix
2011

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Primary Energy Su2000 - 2011
4
1237
1155 NRE 3,9%
1015
984
956 Natural Gas
896 899
859 873 21,1 %
772 800
726
Million BOE
Oil 48,0 %
Coal
27,0 %
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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Final Energy Consumption
5
Industry 11.8%
3.0% 37.8%
Household
2011
Commercial
Transportation 33.4% 10.2%

3.9%
Sector 2000 2005 2010 2011 Barrel
Million
Industry 193 218 312 315
Household 88 89 82 85
Commercial 19 25 31 32
Transportation 139 178 255 278
Others 29 29 28 25
Non Energy Use 40 54 84 98
Total 509 595 794 836

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Potential of Energy Conservation
6
Share of Final
Target of EC
Potenstial of Energy Total Target
Sector Sectoral
ED Consump. of EC (2025)
(2025)
(2009)
Industry 10 – 30% 17% 41% 6,9%
Commercial 10 – 30% 15% 5% 0,7%
Transportation 15 – 35% 20% 37% 7,4%
Household 15 – 30% 15% 13% 2%
Others (ACM) 25% - 4% -
Total 100% 17%

source: Draft National Renewable Energy Master Plan (RIKEN) 2011
• Low Energy Efficiency

• High primary energy intensity: 502 BOE/Billion IDR

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National Commitment to Reduce GHG Emission
Global Warming and Climate Change has been a Hot Issue
7
• President Commitment on G-20 Pittsburgh and COP15 To reduce the

GHG Emission in 2020
• Presidential Regulation No. 61 & 71 Year 2011
26% 41%
(767 mln Ton) (26%+15%) Own efforts and
Own efforts international support
Through the development of new

renewable energy and
implementing energy
conservation by all sectors

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Paradigm Shifting of National Energy Management
8
ENERGY SUPPLY SIDE MANAGEMENT ENERGY DEMAND SIDE MANAGEMENT
SUPPLY DEMAND DEMAND SUPPLY

Maximize the supply and
Efficient Sectoral
utilization of New Renewable
Supplied by Fossil Inefficient Sectoral Energy Demand: Energy, with Avoided Fossil
Energy, at any cost Household Energy Costs
Energy Demand:
Transport (DISVERSIFICATION
Household
(Subsidize) Industry
Transport Commercial
Industry
Commercial (CONSERVATION)
Renewable Energy as an Fossil Energy
alternative as balancing factor
Current condition: Future Condition:

1. Energy use has not been efficient 1. Minimize the energy use
2. Energy demand are met with fossil energy at a cost 2. Maximize the provision and utilization of renewable
of whatever and even subsidized energy, at least with the price of fossil energy
3. Renewable energy as an alternative only avoided cost, if necessary, subsidized
4. Renewable energy sources that are not utilized is 3. Fossil energy is used as a counterweight
wasted God's gift 4. Fossil energy sources are not utilized as a legacy for
their children and grandchildren / exported

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9

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Energy Policy
10
• Target in Energy Conservation in year 2025 :

- Energy elasticity < 1
- Reducing energy intensity 1% per year

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Regulations
11 Law and Its Derivative Related Regulations
Law No. 30 / 2007 Presidential Regulation No. 5/2006 on
Concerning ENERGY National Energy Policy
(Kebijakan Energi Nasional)
Presidential Regulation No. 61/2011 on

Government Regulation No.70/2009 National Action Plan for
On Energy Conservation Reduction Greenhouse Gas Emission
President Instruction No. 13/2011 on

Energy and Water Saving
Ministry of EMR Regulation No.01 / 2013 on
the Control of Oil Fuel Use
Ministry of EMR Regulation No.15/ 2012 on
Ministry of EMR Regulation No.13 / 2012 on Water Savings
Electricity Consumption Savings
Ministry of Manpower and Transmigration
Ministry of EMR Regulation No.14 / 2012 on Regulation No. 321 and 323/MEN/XII/2011 on
Energy Management Standard Work Competence of Indonesia
for Energy Manager (SKKNI Manajer Energi)
Ministry of EMR Regulation No. 6/2011 on Affixing Label Energy
Saving for Swaballast Lamp Ministry of Manpower and Transmigration
Regulation No. 614/MEN/IX/2012 on
Ministry of EMR Regulation No 13/2010 and No.14/2010 on
Standard Work Competence of Indonesia
Competency Standard for Energy Manager
for Energy Auditor (SKKNI Auditor Energi)

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Law No. 30 Year 2007 on Energy
12
Stipulate among others:

• Prioritizing the utilization of new renewable energy and energy efficiencies by the
government and regional government
• Providing incentives and disincentives for energy efficiency and renewable energy
• Energy prices based on market mechanism, but provide subsidy for less income
people
• Establishment of National Energy Council
• Development of National Energy Plan and Regional Energy Plan

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Gov. Reg. 70/2009 on Energy Conservation
13
Stipulate among others :

• Responsibilities of Government, regional governments, private sectors and society
in energy conservation
• Implementation of energy conservation and energy efficiency from downstream to
upstream
• The energy consumers which consume 6000TOE and more are obliged to
implement energy management by setting energy conservation program,
appointing energy manager and implementing energy audit
• Standard and labeling
• Facilitation, incentive and disincentive for energy consumer and producer of
energy saving technology
• Direction and supervision

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Gov. Reg. 70/2009 on Energy Conservation (CONTINUED)
14
Companies with energy consumption above 6000 TOE and

the manufacturer of energy efficient appliances are eligible for
incentives in forms of:
• Tax facilities
• Reduction or alleviation of provincial taxes
Companies with energy consumption above 6000 TOE • Custom facilities
must: • Low interest rate from banking sectors
(1) Appoint Energy Managers • Energy Audit through partnership program
(2) Design Energy Conservation program
(3) Conduct regular audit and implement the Meanwhile, in article 22, companies that do not implement
recommendation of the audit process conservation program will get disincentives in a form of
(4) Report the energy conservation implementation warnings, publication in media, fines and reduction of energy
supply

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14
15

MEMR
Energy Conservation Program… (1)
16 Program Description
1. Creating Policy and Regulation  Preparing Ministerial Decrees as a follow up of Government Regulation No. 70/2009
 MEMR Reg. No. 6/2011, 13,14 year 2012 and 01 year 2013
 Preparing policy on energy efficiency in industrial, commercial, household, and
transportation sector.
 Preparing policy on energy conservation of energy resources
2. Incentive and Disincensive  As a follow up of Government Regulation No. 70/2009 on Energy Conservation
 Preparing mechanism of fiscal incentive, incentive for import duty of energy efficiency
appliances, etc.
 To assess financing scheme for energy efficiency implementation such as revolving fund
 To assess criteria for energy efficiency appliances and implementation of energy
conservation which will receive incentive and disincentive
3. Creating Public Awareness  Conduct seminar/workshop and public advertisement through printed and electronics
media, and dissemination of brochure on energy efficiency
 Conduct National Energy Awards for building and industrial sector and participating in
ASEAN Energy Awards
 Energy Efficiency Guidelines (for Building)
4. Education and Training  Training on energy efficiency and conservation by Centre for Training and Education –
MEMR
 Participating in the overseas training on energy conservation in abroad

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5. Partnership Program on Energy  Free energy audit incentive for buildings and industries that commit to reduce
Conservation energy consumption by increasing the energy efficiency level.
 During 2003 - 2012, energy audit already done for 806 industries and buildings
6. Energy Manager & Auditor  Development of standards for energy manager and auditor
 Preparing the Certification Institution  HAKE (Expert Association on EC)
 Conducting Energy Manager Certification : 45 (2012)
7. Standard and Labeling  Energy Efficiency Labeling; provide information for consumers about energy
efficiency level of electric home appliances. “More Star, more efficient” (Maximum 4
stars).
 To encourage manufacturers to increase their quality of products especially in the
field of energy efficiency.
 Energy efficiency label for CFL is a pioneer for electric home appliances (2011).
 Followed by refrigerator and air conditioner which is implemented in 2012.
 Minimum Energy Performance Standard (MEPS) will be Implemented soon
.

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8. International Cooperation  ASEAN Energy Efficiency and Conservation Sub Sector Network (EE&C - SSN)
 Bilateral Indonesia –Denmark (DANIDA)
Cooperation with 3 (three) main outputs :
 Energy Efficiency and Conservation Clearing House
 Energy Efficient : New large building are efficient
 Auditor Certification and review of incentive scheme
 Bilateral Indonesia-Netherland (NL Agency) :
Energy efficiency improvement in industrial sector through implementation of Energy
Potential Scan (EPS)
 Bilateral Indonesia-Japan (NEDO) :
Implementation of Smart Grid in Industrial Park
 International Copper Association (ICA) :
Conducting Minimum Energy Performance Standards (MEPS) for Electric Motor and Air-
Conditioning
 Barrier Removal to the Cost-effective Development and Implementation of Energy
Standards and Labeling Efficiency (BRESL) :
Cooperative project among six Asian countries (Bangladesh, China, Indonesia,
Pakistan, Thailand, and Vietnam) which together make harmonization of standards and
labels of the seven household products (air conditioners, fan, refrigerator, electric
ballasts, electric motors, CFL and a rice cooker), also pilot project on replacing the
existing lamp with LED in local governent building in Makasar.

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8. International Cooperation  United Nations Industrial Development Organization (UNIDO) : Support the adoption
(cont.) process of the international Management System Standard for Energy ISO 50001 into
SNI and pilot project in implementing the standard in industries.
 The Indonesian Clean Energy Development (ICED) is a technical assistance program
supported by the United States Agency for International Development (USAID) from
March 2011 to September 2014. ICED supports govenrment, private sector and civil
society in increasing the contribution of clean energy resources (renewable energy,
energy efficiecny and energy conservation) in Indonesia.
 Development of a NAMA strategy on the substitution of conventional street lighting with
LED , supported by GIZ .
9. Energy Efficient Street  Developing standard for SL system

Lighting  Promoting energy efficient technology in SL
 Developing guidelines for implementing energy efficient technology SL.

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20
TERIMA KASIH
THANK YOU
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION
Jalan Pegangsaan Timur No.1A, Cikini, Jakarta 10320; Telp/Fax : (+6221) 3983007/ 31901087

www.ebtke.esdm.go.id
www.konservasienergiindonesia.info / www.energyefficiencyindonesia.info
ENERGY EFFICIENCY LABEL: SNI 04-6958-2003
(Comparative Label)
21
 To Introduce Energy-Saving Rate as a Guide for Consumers

 Logo: “More Star, More Efficient”

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TARGET PRODUCTS FOR LABELING
22
1. Compact Fluorescent Lamp

2. Refrigerator
3. Room Air Conditioner
4. Television
5. Electronic Ballast
6. Electric Fans
7. Rice Cooker
8. Motor
9. Washing machine
10. Electric Iron

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STANDARD & LABELING PLAN 2011 - 2015
23
* Will be enforced in may 2013

** The regulation of standard will be released in
2013

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MINIMUM ENERGY PERFORMANCE STANDARD
(MEPS)
24
Purpose:
• Demand side energy efficiency
• Encouraging supplier (importer and manufacturer) to supply only
efficient products;
Back to
page 17
Planning MEPS for 2014:
MEPS for Electric Motor and Air Conditioning

MEMR

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Energy and Mineral Resources for People Prosperity