Ministry of Energy and Mineral Resources

“Bioenergy in Indonesia:
Rules and Implementations”

ELIS HEVIATI
Directorate of Bioenergy
Directorate General of New, Renewable
Energy and Energy Conservation

International Workshop:
Future Perspectives of Bioenergy
Development in Asia
Tokyo, 6 – 7 September 2018

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Ministry of Energy and Mineral Resources of Republic of Indonesia
 “Bioenergy in Indonesia:

Table of Contents Rules and Implementations”

BIOENERGY BIOENERGI
01 PROGRAM AND 02 FOR POWER
REGULATIONS GENERATION

BIOFUEL CLOSING
03 DEVELOPMENT 04 REMARKS

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Ministry of Energy and Mineral Resources of Republic of Indonesia
 01 BIOENERGY
PROGRAM &
REGULATIONS
Ministry of Energy and Mineral Resources of Republic of Indonesia
 MAIN VISION IN BIOENERGY DEVELOPMENT

Increasing the use of

biofuel as a fossil fuel
substitution

Increasing the sustainability

supply of bioenergy feedstock
through development of Developing
energy farms/forest bioenergy based
power plant
(as based load)

Increasing contribution to national

economy through development of Utilization of organic
bioenergy industries waste as source of
energy
Ministry of Energy and Mineral Resources of Republic of Indonesia
 POLICIES AND REGULATIONS FOR BIOENERGY
PRESIDENTIAL REGULATION
NO. 35/2018

01 LAW NO. 30/2007

On Energy. 06 on the Accelerated Construction of Waste-
Processing Electrical-Energy Installations Based
on Environmentally Friendly Technologies.
PRESIDENTIAL REGULATION

06
NO. 66/2018
02 GOVERNMENT REGULATION
NO. 79/2014
on National Energy Policy
on Collection and Utilization of
the Palm Oil Plantation Fund.

MEMR REGULATION

07
GOVERNMENT REGULATION
03
NO. 12/2015
NO. 24/2015 on Biofuel Supply, Utilization and
on Collection of Plantation Trading as An Alternative Fuels.
Fund
MEMR REGULATION
PRESIDENTIAL REGULATION
04 NO. 22/2017
on General Planning for
National Energy.
08 NO. 41/2018
Provision and Utilization of Biodiesel in
the Financing Framework of the
Indonesian Oil Palm Estate Fund.
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Ministry of Energy and Mineral Resources of Republic of Indonesia
 RENEWABLE ENERGY TARGET
PRIMARY ENERGY MIX
Based On:
@ 2025
• Government Regulation
No. 79/2014 on National
NRE Energy Policy
Gas
• Presidential Regulation Bioenergi
No. 22/2017 on General Power Plant
5.5 GW
Plan of National Energy

Coal Oil
69.2
MTOE Electricity 45.2 GW

23 % 92.2
Biofuel 13.8 M KL
NRE MTOE
Biomass 8.4 M ton
23.0
MTOE
Biogas 489.8 M M3

CBM 46.0 MMSCFD

Ministry of Energy and Mineral Resources of Republic of Indonesia

 02 BIOENERGY for
POWER
GENERATION
Ministry of Energy and Mineral Resources of Republic of Indonesia
 No Potential Sumatera Kalimantan Jamali Nusa Total
Tenggara Sulawesi Maluku Papua (Mwe)
1 Palm oil 8,812 3,384 60 - 323 - 75 12,654

2 Sugar cane 399 - 854 - 42 - - 1,295

3 Rubber 1,918 862 - - - - - 2,781

4 Coconut 53 10 37 7 38 19 14 177

5 Rice husk 2,255 642 5,353 405 1,111 22 20 9,808

6 Corn 408 30 954 85 251 4 1 1,733

7 Cassava 110 7 120 18 12 2 1 271

8 Wood 1,212 44 14 19 21 4 21 1,335

9 Cow dung 96 16 296 53 65 5 4 535

10 MSW 326 66 1,527 48 74 11 14 2,066

Total potential 15,588 5,062 9,215 636 1,937 67 151 32,654

Based on MEMR survey 2013
Ministry of Energy and Mineral Resources of Republic of Indonesia
 ELECTRICITY TARIFF FOR BIOENERGY POWER PLANT

TARIFF (Based on MEMR Regulation No. 50/2017)

Regional Electricity Regional Electricity
BIOENERGY
NO PURCHASING MECHANISM Generation Cost (Regional BPP) Generation Cost (Regional BPP)
POWER PLANT > <
Avarage of National Electricity Avarage of National Electricity
Generation Cost (National BPP) Generation Cost (National BPP)
1 Biomass (PLTBm) Direct Selection Maximum 85% x Regional BPP Agreement between parties

2 Bogas (PLTBg) Direct Selection Maximum 85% x Regional BPP Agreement between parties

Direct Appointment (based on Agreement between parties

3 MSW (PLTSa) Maximum 100% x Regional BPP
local government auctions) (Apply for Sumatera, Java and Bali)

ELECTRICITY TARIFF FOR ACCELERATION PROJECT OF MSW POWER PLANT (Based On Presidential Regulation No. 35/2018)

PURCHASING MECHANISM Capacity ≤ 20 MW Capacity > 20 MW

Direct Appointment (based on

4 MSW (PLTSa) US$ 13.35 cent / kWh = 14.54 – (0.076 x contract capacity)
local government auctions)

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Ministry of Energy and Mineral Resources of Republic of Indonesia
 INSTALLED CAPACITY OF BIOENERGY POWER PLANT
EXCESS POWER: PALM WASTE:
163.4 MW 139 MW

TOTAL: ON GRID: POME:

1857.5 MW 213.6 MW 22.8 MW
ON GRID: IPP:
50.2 MW BAGASSE:
213.6 MW 7 MW

OTHERS:
213.6 MW

BIOENERGY NO. FEEDSTOCK / INDUSTRY CAPACITY (MW)

POWER PLANT
1 PALM WASTE 460.9
2 POME 9
3 SUGAR CANE INDUSTRY 219

OFF GRID: 4 PULP & PAPER INDUSTRY 955

1643.9 MW TOTAL 1643.9
Ministry of Energy and Mineral Resources of Republic of Indonesia
 LOCATION OF WASTE TO ENERGY ACCELERATION PROJECT

Manado City
Waste : 1,000 ton
15 - 20 MW

Jakarta City
Waste : 2,200 tons
35 MW
Palembang City Bandung City
Waste : 1,000 tons Waste : 1,820 ton
25 MW 15 - 20 MW
Tangerang City Surabaya City
Waste : 2,000 tons Waste : 1,500 ton Makassar City
15 - 20 MW 11 MW Waste : 1,400 ton
15 - 20 MW
South Tangerang
Waste : 800 tons
15 - 20 MW

Bekasi City Semarang City Surakarta City Denpasar City

Waste : 2,200 tons Waste : 800 tons Waste : 450 ton Waste : 1,200 ton
19 MW 15 - 20 MW 12 MW 15 - 20 MW
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Ministry of Energy and Mineral Resources of Republic of Indonesia
 03 BIOFUEL
DEVELOPMENT

Ministry of Energy and Mineral Resources of Republic of Indonesia

Biofuel Blending Mandatory
Biodiesel Mandatory Roadmap Bioethanol Mandatory Roadmap
April Jan Jan Jan April Jan Jan Jan
Sectors Sectors
2015 2016 2020 2025 2015 2016 2020 2025
Micro Business, Fishery, Micro Business, Fishery,
Agriculture, Transportation 15% 20% 30% 30% Agriculture, Transportation 1% 2% 5% 20%
and Public Services (PSO) and Public Services (PSO)
Transportation Transportation
15% 20% 30% 30% 2% 5% 10% 20%
(Non PSO) (Non PSO)
Industrial and Industrial and
15% 20% 30% 30% 2% 5% 10% 20%
Commercial Business Commercial Business
Electricity Generation 25% 30% 30% 30%
Based on Ministry of Energy Mineral
Resources Regulation No. 12/2015

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Ministry of Energy and Mineral Resources of Republic of Indonesia
B20 IMPLEMENTATION FOR PSO SECTORS
STARTED:
January 2016 1. Performance test

2. Incentive from CPO Fund

B20 FOR PSO

SECTORS ARE 3. Sufficient production capacity
SUPPORTED BY:
4. Quality/Quantity Monitoring

5. National standard

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Ministry of Energy and Mineral Resources of Republic of Indonesia
EXPANSION OF B20 IMPLEMENTATION
MAINTAIN THE CURRENT ACCOUNT DEFICIT

SAVE FOREIGN EXCHANGE EXPENSES

REDUCE DIESEL FUEL IMPORTS

BOOST DOMESTIC BIODIESEL CONSUMPTION

Expands the use of biodiesel to All related sectors

THE Started on 1st September 2018, all related sectors are
compulsory to use B20 (PSO and Non-PSO sectors). 1 Sept 18

MEASURES
Widens the incentives to Non-PSO sectors
The CPO Fund will cover the price gap between biodiesel
and petroleum-based diesel fuel.
Ministry of Energy and Mineral Resources of Republic of Indonesia
 B30 PREPARATION
Based on current regulation, B30 Continue studies for other sectors, such
will be implemented in 2020 as railways, heavy equipment,
armaments, and other non-PSO sectors
Taking into account the readiness of
supporting infrastructure, the Preparing a road test to evaluate the
government is considering to accelerate increase of biodiesel blending towards
the B30 implementation in 2019 engine performance.

Preparing B100
parameters to be used for Revise national
B30 testing for standard on Biodiesel
transportation sector

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Ministry of Energy and Mineral Resources of Republic of Indonesia
 Distribution of Biodiesel Producers
PT Sintong Abadi PT Pelita Agung Agrindustri
35.000 kL 229.885 kL
2.444.444 USD 32.135.257 USD

PT Musim Mas (Medan) PT Cemerlang Energi

459.770 kL Perkasa
203.703.704 USD 689.655 kL
22.933.333 USD
PT Permata Hijau Palm Oleo
417.241 kL PT Wilmar Bioenergi
Indonesia PT SMART
56.165.185 USD
1.603.448 kL 440.520 kL
53.472.377 USD 59.677.951 USD
PT Dabi Biofuels
413.793 kL PT Kutai Refinery
31.770.370 USD PT Musim Mas Nusantara
(Batam) 419.540 kL
PT Multi Nabati Sulawesi
896.552 kL 32.310.000 USD
475.862 kL
PT Intibenua Perkasatama 203.703.704 USD
32.620.407 USD
442.529 kL
55.555.556 USD

PT Sukajadi Sawit Mekar

PT Ciliandra Perkasa 402.299 kL
287.356 kL
46.581.449 USD 52.222.222 USD

PT Sumiasih
PT Bayas Biofuels 114.943 kL
862.069 kL 26.666.667 USD
85.000.000 USD

PT Anugerahinti Gemanusa
PT LDC Indonesia
482.759 kL
160.920 kL
48.984.354 USD
PT Batara Elok Semesta
Terpadu
Installed Capacity by Region
78.518.519 USD 287.356 kL
38.000.000 USD Capacity Investment
Region
PT Tunas Baru Lampung
(kL) (USD)
402.299 kL PT Bali Hijau Biodiesel
26.962.963 USD 360 kl Sumatera 7.337.299 721.909.824
Java 2.983.852 353.818.187
PT Alpha Global Cynergy PT Wilmar Nabati Indonesia
12.000 kL PT Darmex Biofuel 1.665.517 kL
3.000.000 USD 287.356 kL 67.859.188 USD
Kalimantan 1.262.356 91.987.951
57.629.630 USD
Sulawesi 475.862 32.620.407
PT Sinar Mas Bio Energy PT Energi Baharu Lestari
455.400 kL 114.943 kL
6.370.370 USD
Total 12.059.369 1.200.336.369
111.678.349 USD

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Ministry of Energy and Mineral Resources of Republic of Indonesia
 Biodiesel Utilization
4,500 B2 – B7,5 B10 B15 B20
3,961
4,000 3,656
3,416
3,500
3,008
3,000 2,805
2,572
2,500 2,221
Thousand kL

2,000 1,812 1,757 1,845

1,552 1,629 1,653
1,453
1,500
1,048
915 913
1,000 669 697
477
500 359 329
190 243 223 179
70 119 20 49
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Production Export Domestic

• Government stopped biodiesel subsidies in

Remarks: the state budget revision in 2015
State budget subsidy • Incentive from IECF for Palm Oil is
effectively applied in August 2015
Incentives from IECF for Palm Oil
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Ministry of Energy and Mineral Resources of Republic of Indonesia 8
 INDONESIAN BIODIESEL EXPORTS
TO VARIOUS COUNTRIES

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Ministry of Energy and Mineral Resources of Republic of Indonesia
 Indonesian Sustainable Palm Oil (ISPO)
The Indonesian Sustainable Palm Oil (ISPO) system is a policy adopted by the Ministry of Agriculture on
behalf of the Government of Indonesia with the aim to improve the competitiveness of the Indonesian
palm oil on the global market and contribute to the objective set by the President of the Republic of
Indonesia to reduce greenhouse gases emissions and draw attention to environmental issues.

 According to the Ministry of Agriculture,

7 PRINCIPLES OF ISPO as of August 2017, the number of oil palm
plantations that have received ISPO
certificates is 306 companies, 1
Sustainable business Licensing system and independent farmer cooperative and 1
plantation management
development group of plasma farmers.
 This is equivalent to 16.7% of the total
Strengthening
community economic
Technical guidelines for palm area of national palm oil (11.9 million
oil cultivation and
activities; and processing; hectares) or 8.1 million tons of palm oil
from a total of 35 million tons of national
Environmental management palm oil production.
Social and community and monitoring
responsibility  There are 350 companies in the
Responsibilities for workers certification process.

Ministry of Energy and Mineral Resources of Republic of Indonesia

 The Journey of Bioethanol Implementation
2015
- Ministry of Energy and
13 November 2007 Mineral Regulation No.
First sales of January 2010 12/2015 January 2020
BIOPERTAMAX in BIOPREMIUM and - February 2015 Mandatory E5 for PSO
Surabaya, Malang and PT Shell Indonesia began
BIOPERTAMAX sales were to implement 2% of sectors and E10 for Non-
Denpasar. stopped in January 2010 bioethanol blending in PSO sectors.
BIOPERTAMAX is a special due to the high price of RON 92 and RON 95
product (RON 92) that bioethanol. - October 2015
PT Shell Indonesia stopped
contains 3.5% -5% the bioethanol blending
bioethanol. due to technical problem
of blending and handling

January 2025
13 August 2006 2008 October 2014 Mandatory E20 for all
Pertamina began selling Ministry of Energy and MEMR issued the sectors.
BIOPREMIUM with 5% Mineral Regulation No. regulation for Market
blending of bioethanol in 32/2008 on Biofuel Price Index of Bioethanol
Malang, East Java. Mandatory (MEMR Decree No. 3784 2018
K/12/MEM/2014) E2 will restart by the end
December 2006 of 2018, limited to East
BIOPERTAMAX was Java.
launched in 4 gas
stations located in 1 3 5 7 9
Jakarta.

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Ministry of Energy and Mineral Resources of Republic of Indonesia
 The National Existing Bioethanol Producers
Total Capacity: 40.000 kL/Year

PT Molindo Raya
10.000 kL/Yr PT Energi Agro Nusantara
30.000 kL/Yr
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Ministry of Energy and Mineral Resources of Republic of Indonesia
 04 CLOSING
REMARKS

Ministry of Energy and Mineral Resources of Republic of Indonesia

 Create Market
01
CONCLUSION - Biofuel Mandatory Program
- Require PT PLN (Persero) to buy electricity from RE source
- Accelerate Waste to Energy Program in 12 cities

Pricing Policy
02 -
-
Regulates the selling price of electricity from renewable energy
purchased by National Electricity Company;
Regulate market price index for biofuel

Incentives
03 -
-
Fiscal Incentives
Non-Fiscal Incentives, including simplifying permits and procedures

R&D
04 -
-
R&D on advanced biofuel/second generation of biofuel, including bioavtur;
Collaborate with related stakeholder (Ministry of Environment and
Forestry, Research and Development Agency of MEMR and others) to
ensure the sustainability of feedstock

Standard and Specification

05 To maintain quality and protect consumers, government provides
Standard for Biofuel, Biomass, Guidelines for Handling and Storing
Biofuels (B100 & BXX) for domestic market.
Ministry of Energy and Mineral Resources of Republic of Indonesia
 MINISTRY OF
ENERGY AND MINERAL RESOURCES

THANK YOU

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Ministry of Energy and Mineral Resources of Republic of Indonesia