PRIORITY TO DECISION MAKINGIEEJ : August 2014

CHANGING ENERGY FUTURE
FUTURE,, STARTS NOWINDONESIA ENER
RGY POLICY

Ministry of Energy and Miineral Resources

11Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

OUTL
LINE
I. INDONESIA AT TH
HE GLANCE
II. CURRENT ENERG
GY POLICY
III. NATIONAL ENERG
GY POLICY
IV CHALLENGES
IV.
V PARTICIPANTV.
PARTICIPANT’SSGGOALS
22Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

I INDONESIA A
I.
AT A GLANCE

33
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

INDONESIA’S PROFILE
2011

Indicator

Nominal GrowthPopulation

240 millionGDP$ 846.3 billions

GDP ppercapita (PPP)

1.49%
INDONESIA

6.4%$ 3,5423 542

17.000 islands

44

Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

INDONESIAA’S PROFILE• In the last few years, Indonesia managed to maintain a good economic growth and attractive
investment climate.
• That is reflected in increasing of rating and amount of investment
Realization and Indonesian Investment ProjectionsUSD Billions
ActualProjected

Institutions

RatingOutlook

S&P (Jan’12)

BB+

Positive

Fitch (Dec’11)

BBB-

StableMoody’s(Jan’12)

Baa3

Stable

56.32
22

60.00

43.36740.00

31.50023.16720.00

26 66726.66715.011

.00
2009

2010

2011

2012

2013

2014
4

source: The Investment Coordinating Board of the Republic of Indonesia, 2011

“Indonesia was ranked 9th as major destination for FDI”
World Investment Prospects Survey 2010 – 2012, UNCTA
AD

The government has set a target for Indonesia tobecome an advanced country by 2025 and the IMF
predicts that it will be the world's fifth largest
economy by 2030

5Euromonitor International,International 2012

5Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

HIGH ECONOMICC GROWTH ANDSUSTAIINABLE
Economic goals:(1) High income country;(2) Top 10 world's biggest economy by 2025,, and top 6 by 2050.

GDP: US$ 3,8 – 4,5 trillion

Acceleration ofi l ifinclusif
economic
growth andgsustainable

GDP/capita:
US$ ~ 13.000 – 16.100
GDP: US$ ~ 1,2 trillion(high income country)

GDP/capita:
US$ ~ 4.800-5.000
GDP ~ US$ 850 billion
GDP/capita: US$ 3.542,9

2011-2014: 6,4 – 7,5 %/year
2015-2025: 7,5 – 9 %/year

66

Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

CURRENT CONDITIONCDemand for energy, materials, water and other key resourcesdemand is likely to increase rapidly
Indonesia today…

…and in 2030

77
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

Source: McKinsey Global Institute, 2012

POTENTIAL AND ENE
ERGY PRODUCTIONNOFOSSIL ENERGYRESOURCE(RE)

RESERVE(RV)

RATIO RE/RV(%)

PRODUCTION(PROD)RATIO RV/PROD(YEAR)*)

1

2

3

4

5 = 4/3

6

7 = 4/6

1

Oil (Billion(Billi barrel)b l)

56 656.67 73 **)7.73

140 3290.329

23

2Gas (TSCF)

334.5

152.9

46

3.07

50

3

Coal (billion ton)

161.3 ***)

28.17

17

0.353

80

4

Coal Bed Methane (TSCF)

453

----

5

Shale Gas (TSCF)

574----*) Assuming no new reserve are found**) Including Cepu Block***) Including 41 Billion Ton underground resources

NONEW AND RENEWABLE ENERGYRESOURCE (RRE)

INSTALLED CAPACITY (IC)RATIO IC/RE

1234

5 = 4/3

1Hydro75.670 MW
W

6.654,29 MW

8,79 %

2Geothermal

29.038 MWW

1.226 MW

4,22 %

3Mini/Micro Hydro

769,69 MWW

228,983 MW

29,75 %

4Biomass

49.810 MW
W

1.618,40 MW

3,25 %

5Solar4,80 kWh/m2/dday

22,45 MW

-6Wind

3 – 6 m/s

1,87 MW-7Uranium*)3.000 MW ((e.q.
q 24,112,tonn)) for 11 years
y30 MW,00 %1,00*) Only in Kalan – West Kalimantan
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

88II. CURRENT ENNERGYPOLICY

99Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

CURRENT ENER
RGY CONDITION
1. 28% or US$ 41,9 billion of total national budget comes fromfenergy & mineral sector revenue;
2 Fuel2.
F l andd electricity
l i i are still
ill subsidized,b idi d andd theh amount isi iincreasing
i every year. FFor 20122012, amount off subsidy
b id
aproximately US$ 25 billion, which 77% are not on targeet;
3 Investment
3.
In estment in EMR sector reached US$ 27 billion in 20111.
11 Good Investment
In estment climate;climate
4. Indonesia has diversity of energy;
5. Indonesia is an exporter energy (oil, coal, and gas), but also an importer of energy (fuel);
6. Gas utilization is 56% for export and 44% for domestic;
7. Oil still has the largest share (49,7%). Use of Renewablee energy still only around 6%. Renewable energy are
targeted to reach 26% in 2025;
8. Growth in energy consumption is average of 7% per yeaar, but has not been supported by enough supply energy.
Dependence on fossil fuels is still high, even though thee reserve is decreasing;
9. Limited access of energy, electrification ratio still only 811%. Infrastructure is one of challenge to fulfill domesticenergy needs.

1010Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

NATIONAL ENE
ERGY MIX 2012
Gaas
20,120 1 %Coal
24 5 %
24,5Oil
49,7 %Renewable
5,7 %1111Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

CONTRIBUTION ENERGY & MINERAL REVENUERTO NATIONALBUDGETTotal National Budget 2012$151 billion

1. Energy & mineral revenue is still thebackbone of Indonesia
Indonesia’ss economy$$29,6(20%)

2. 28% or US$ 41,9 billion of total national
budget comes from energy & mineral
sector revenue$12,3$12 3 ;
(8%%)

3. 20% or US$ 29,6 billion of total national
budget is cotributed by oil&gas revenue$ 109(72%)

ENERGY & MINERAL SECTOR REVENUE
50,045,0$ 0,05(0,0032%%)(0 0032%
Oil and gas

BilionUS$40,0In billion US$

Mining & geothermalOthers
thMining
Oil &gas

35,030030,025,020,0Others

5,0

Other sector (non EMR)-

0,231,841 89
41,89
0,05

8,912,26

31,229,58

0,122 922,97,40,1

5,115,010,040,324 3
24,317,71220092010

2011

2012

12
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s WelfareII. NATIONAL ENERGYPOLICY

1313
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

NATIONAL ENERGY
EMIX
Target of 2025 (~400 TOE)
Gas
20,1 %
Oil
49,7 %

Gas
22 %

Coal
24,5 %Oil
25 %Coal30 %Renewable
23 %Renewable
5,7 %

1414
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

NATIONAL ENER
RGY DEMAND
1097.72

Million B
M
BOEPD

87

5.90

6

2.00

0.88

4.36

5

2.4

4

3.23

0.46

3

0.18
0.8

1.4

2

0.65

0.85

1.12

1

1.60
1 60

1 69
1.69

1.73

1.83

2010

2015

2020

2025

2.2
1.52

• Energy
gy demandincreases every year
following the economic
growth.
th• Portion of renewableenergy will be be 25,9%
25 9%in 2025.
• Investment is requiredtoqfulfill energy demand.

0Renewable

CoalGasOil1515Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

LEGAL FRAMEWORK OF NATIONALN
ENERGY POLICYUU No.10 / 1997 on Nuclear
UU No. 22 / 2001 on Oil and Gas
UU No. 27 / 2003 on Geothermal
UU No. 17 / 2007 on National Long Term
Development Planning (RPJPN)UU No. 4 / 2009 on Mining and CoalUU No. 30 / 2009 on Electricity
UU No. 32 / 2009 on Environmentalg
Other Law and Regulation

UU N
No. 30/2007 on Energy
E

NATIONAL ENERGY POLICYUU No. 30/2009 onElectricity

REGIONAL
ENERGY PLAN(Province)

NATIONAL ENERGY
PLANNINGREGIONAL ENERGY
PLAN(City/District)

NATIONAL PLANNING OF
ELECTRICITY

1616Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

POLICY AND DIRECTION OF NATIONALENERGYY POLICY
1.

To shift the paradigm in energy management;

2.

Energygy sovereignty
g y management;g3.

To ensure the availability of domestic energy;;

4.

To optimalize energy resources managementt;5.

Efficiencyy of energy
gy utilization;;6.

To improve energy accessibility;

7.

To develop capabilities and independency of energy industry;8.

Job creation;

9.

Preserving the environmental functions.

1717
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s WelfareTHE GOAL OF NA
ATIONAL ENERGY
POL
LICY
1.

To establish of a new paradigm that energy as a source of development;

2.

To achieve energy elasticity is smaller thann 1 (one) in 2025, which is aligned with theeconomic growth target3.

To achieve final energy intensity reduction become 1 (one) percent per year in 2025;

4.

To achieve of electrification ratio of 85% byy 2015 and approach 100% in 2020;5.

To achieve household ratio of gas utilizatioon by 85% in 2015;6.

To fulfill the objectives of supply and utilizaation of energy;

7.

To achieve the optimal of primary energy mix.
m
18

18
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s WelfareIV CHALLENGES
IV.

1919
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

SHARE OF ENERGY SUBSIDY IN NATIONAL BUDGET
Total government expenditure in national budgget 2012:
US$ 172 billion
Energy subsidy::US$ 25 billion(15%)

Other government expenditure:
US$ 147 billion(85%)• Total ggovernment expenditurepin 2012 is US$$172 billion;• US$ 25 billion or 15% of government
expenditure is used for energy subsidy;• Energy subsidy has a great share in nationalb d t so thbudget,
thatt otherth iimportantt t program
cannot deliver to the fullest;• Most of energy subsidy is not on target;• Increasing in fuels consumption could makesubsidyy to become US$$ 34 billon ((19%).
)2020
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

POTENTIAL AND ENE
ERGY PRODUCTIONNOFOSSIL ENERGYRESOURCE(RE)RESERVE(RV)RATIO RE/RV(%)

PRODUCTION(PROD)RATIO RV/PROD(YEAR)*)1234

5 = 4/3

6

7 = 4/6

1

Oil (Billion(Billi barrel)
b l)

56 6
56.6

7 73 **)
7.73

140 3290.329

23

2Gas (TSCF)

334.5

152.9

46

3.07

50

3

Coal (billion ton)

161.3 ***)

28.17

170.35380

4Coal Bed Methane (TSCF)

453----

5Shale Gas (TSCF)

574----*) Assuming no new reserve are found**) Including Cepu Block***) Including 41 Billion Ton underground resources

NONEW AND RENEWABLE ENERGYRESOURCE (RRE)

INSTALLED CAPACITY (IC)RATIO IC/RE

12345 = 4/3

1Hydro75.670 MW
W

6.654,29 MW

8,79 %

2Geothermal

29.038 MWW

1.226 MW

4,22 %

3Mini/Micro Hydro

769,69 MWW

228,983 MW

29,75 %

4Biomass

49.810 MW
W

1.618,40 MW

3,25 %

5Solar4,80 kWh/m2/dday

22,45 MW

-6Wind

3 – 6 m/s

1,87 MW-7Uranium*)3.000 MW ((e.q.
q 24,112,tonn)) for 11 years
y30 MW,00 %1,00*) Only in Kalan – West Kalimantan
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare2121

V PARTICIPANV.
NT’SNTS GOALS

22

22
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

PARTICIPAN
NT’S GOALS• To formulate energy planning in medium term and long term
references for indonesia as the country with rapid economic
growth.
• To formulate energy policy forr the developing countries which
the level of dependence on foossil fuels subsidized is highenough. This led to the difficu
ulty of the development ofalternative energy
gy especiallypy renewablerenergy.
gy• To provide better input in the formulation of national energy
plan as a derivative of a nation
nal energy policy drawn up by
the national energy council. So it can be implemented
properly
pp y and successfullyy achiieve the ggoals of the nationalenergy policy that has been seet.
2323
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfaredm go id
dm.go.idwww.esd
wwwesd2424Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

OIL AND GAS RESERVE
as of 01 Januari 2013

6,93,
150,681,22
110,67360.65
50.27

14,63

3.386,67

2,58

8,06

573,50051,87

PAPUA

65,97

18,30

23,90

1.005,34,
24,96

3,18

15,21

5,89
494,891.312,03,

OIL REMAINING RESERVE (MMSTB)GAS REMAINING RESERVE (TSCF)

PROVEN (P1)

PROVEN (P1)

= 3.692,50 MMSTB= 101,54 TSCF

POTENTIAL (P2+P3) = 3.857,31 MMSTBPOTENTIAL (P2+P3) = 48,85 TSCFTOTAL (3P)

TOTAL (3P)

= 7.549,81 MMSTB

25= 150,39
150 39 TSCF

25Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

INDONESIAN BASINS

Eastern part
Discoveries in Jurrasic Plays 1998‐2008

Western part(mature fields)< 100 MMBOE

100 ‐ 500 MMBOE

Discovered Basin

Undiscovered Basin

500 ‐ 1000 MMBOE

New Basin
B(2008)1000 ‐ 1500 or up to 1500 MMBOE

26262010 © BPMIGAS – AllEtnawati
rights reserved
Prihandayani  MEMR Indonesia  EMR for People’s Welfare

COAL BED METHAANE RESOURCESNORTH TARAKANBASIN(17.50 TCF)

KUTEI BASIN(80.40 TCF)

BERAU BASIN(8 40 TCF)
(8.40CENTRALSUMATERA BASIN(52.50 TCF)OMBILIN BASIN(0.50 TCF)

KALIMANTANBARITO BASIN(101.60 TCF)

SOUTH
SUMATERA BASIN(183.00 TCF)

PAPUALegends :CBM Basin

SULAWESIPASIR AND ASEM
B
ASEM BASIN(3.00 TCF)BENGKULU BASIN(3.60 TCF)

SOUTHWEST
SULAWESI BASIN(2.00 TCF)

JATIBARANG BASIN((0.80TCF))• Resource p
potential estimated at 453 TCF• Total CBM Basin = 11
• Contract Signed up to 2012 : 50 CBM PSCCs• Early good results in East Kalimantan, currrently used for small scale power
generation; future development includes supply to existing LNG facility

27

27
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

COAL RESOURCE AND RESSERVETOTAL RESOURCES
161.34 Billion Ton*

TOTAL RESERVE
28.17 Billion T on

Very High ( > 7100 kal/gr )High ( 6100 ‐ 7100 kal/gr )Medium ( 5100 ‐ 6100 kal/gr )Low ( < 5100 kal/gr )*) 41 billion ton is underground mining

28

28
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare

MINERAL RESOURCE AND RESE
ERVENOFerro and Associates : Fe, Nickel, Cobalt, Chromit , Mangan, Molibdenum,
M
Titanium
Precious Metal: Gold, Silver, Platinum
Base Metal: Zinc, Cupper, Tin, Lead, Mercury
Light and Rare metal : Bauxite, Monasit

COMODITYRESOURCE(MILLION TONORE)RERSERVE(MILLIONTON ORE)

1Copper

4.925

4.161

2Bauxite

551

180

3Nickel

2.633

577

4

Iron sand

1.649

5

5

Lateritic iron

1.462

106

6

Primary iron

563

30

7Iron sediment

18‐8Manganese

1149Alluvial gold

1.4551710Primary gold

5.386

4.231

11Silver

3.406

4.104

12Zinc577

713Tin354

0,714

Leadd363

1,629(Source : Geological Agency,Agency

29Etnawati Prihandayani  MEMR Indonesia  EMR for People’s WelfareGEOTHERMAL POTENTIAL IN INDONESIA
PLTP LAHENDONG:
80 MW
PLTP SIBAYAK: 12 MW

KALIMANTAN
115 MW
8 LOKASI

SUMATERA
13 516 MW
13.51686 LOKASISULAWESI
2.519 MW55 LOKASIPLTP GUNUNGSALAK: 377 MW

PLTP WAYANGWINDU: 227 MW
PLTP KAMOJANG:200 MW

JAWA
10.092 MW
71 LOKASIPLTP DARAJAT: 270 MW

MALUKU954 MW
24 LOKASI
PAPUA
75 MW
3 LOKASIBA
ALI + NT
1.767 MW27 LOKASIPLTP DIENG: 60 MW*) Does not account for potential geothermal offshore

CCcContact: report@tky.ieej.or.jp

TOTAL POTENTIAL: 29.038 MW (276 LOCATION)TOTAL INSTALLED CAPACITY: 1.226 MW (6 WORKING ACREAGE)

30

30
Etnawati Prihandayani  MEMR Indonesia  EMR for People’s Welfare