Implementation of
Joint Crediting Mechanism
in Indonesia
Coordinating Ministry
for Economic Affairs
Republic of Indonesia

Basic concept of cooperation
JapanIndonesia
Low carbon technology,
financing, capacity building
MRV methodologies
will be developed by the Joint Committee
Carbon credits as the resultthat can be utilized by both countries

JCM project
MRVStructure of cooperation
JapanGovernment
Issuance of credits

Notifies
registration ofprojects
Report issuanceof credits

Joint Committee• Develop/revise the rules,
guidelines and methodologies• Register project• Discuss the implementation ofJCMJapanSecretariat• Request registrationof projects• Request issuance ofcarbon credits

Project participants
Implementation andmonitoring projects

Notifies
registration ofprojects
Report issuanceof credits

Inform results ofvalidation/verification

Government
Issuance of credits

Indonesia
Secretariat• Request registration ofprojects• Request issuance ofcarbon credits

Conduct policy consultations
Submit
PDD/monitoring
reportIndonesia

Third Party Entity• Validate projects• Verify the amount of GHG
emission reductions or removals

Submit
PDD/monitoring
reportInform results ofvalidation/verification

Project participants
Implementation andmonitoring projects

Financing schemes
Model project

Demonstration
project

up tomore than50%

• Supported by MOEJ
• 37 projects

50%• Supported by METI/NEDO• 3 projects• Implemented the newtechnology in Indonesia

Japan Fund for JCM

10%• Managed by ADB• Sovereign: grant forincremental cost
• Non-sovereign: interest
subsidy for ADB’s loanImplementation

Creditissuance

Verification

Monitoring

Registration

Validation

Developmentof PDD

Approval of
methodology

Methodology
submission

Announcement

Project idea
note

Project cycle

Call forproposal

Stakeholders

Morethan100Japanesecompanies

Japanese
Ministries
Embassy,
MOEJ, METI,Forestry
AgencyIndonesian
Ministries
CMEA, MOEF,
2 SOEs
MEMR, Min.
Industry,Bappenas,MOF, MOFA Morethan 40
Indonesiancompanies
10 TPEs

Infrastructure of JCM

Procedure:
Project Cycle Procedure
Methodologies:
22 methodologies of energy efficiency
and renewable energy
Registry system

ISO 14065 based

Guideline:
1. Project Design Document
2. Proposed Methodology
3. Third Party Entity
4. Validation andVerification
5. Sustainable
Development
Implementation Plan andReport

Rules:
1. Rules of Implementation
2. Rules of Procedure for JC

Recent updates
22 19
In theMethodologies

115
Feasibilitystudies

Sectors

pipeline

39Projects

20
Registered

12

Issuedcarbon credits

Automotive, building, cement, chemical, food, oil andgas, paper, plastic, power generation, retail, rubber,telecommunication, textile, transportation

Chiller

HydroBoiler
Solar PV
Co-generation
Refinery system optimization
LEDBiomass
BTS energy management
Waste heat recovery

OthersCity to city cooperation
Surabaya & Kitakyushu– Energy management in buildings– Waste management

Bandung & Kawasaki– Energy management in buildings– Waste management– Street lampsBatam & Yokohama– Energy efficiency in airport– Energy efficiency in waste watertreatment– Biomass energy

Semarang & Toyama– Bus rapid transit– Mini hydro– Solar PV

Jakarta & Kawasaki– Green building & green industry– Solid waste– Solar PV in remote areas

Project example
Power generation by
waste heat recovery
PT. Semen Indonesia & JFE Engineering Co.
PT. Semen Indonesia, Tuban Factory
14,063 tCO2/year• The waste heat recovery (WHR) system utilizes
unused waste heat currently emitted from 4 kiln plants
at the cement factory.
• System will produce steam using the waste heatexhausted from the cement plant, and the steam is fed
to the steam turbine generator to generate electricity.

Project example
Energy-Efficient Waste Paper
Processing System
PT. Fajar Surya Wisesa & Kanematsu Corp.
PT. Fajar Surya Wisesa Factory, Bekasi
19,011 tCO2/year•

This project aims to achieve 10% electricity usage reduction per ton
produced by introducing high efficient system for the old corrugatedcarton (OCC) proces, thereby contributing to CO2 reduction.

•The OCC is a process to prepare clean raw materials containingdissolved paper fibers by mixing used corrugated board into water for
defiberization and removing dirt.

•Since a large amount of material (water) is used in this process, theelectricity is significantly consumed to the power motors.

Project example
GHG emission reductions
through utility facility
operation optimization
system for refineries
PT. Pertamina & Azbil Corp.
PT. Pertamina, Refinery Unit IV Cilacap
55,000 tCO2/year•

The implementation project applied in utility facility at RU IV consists of
10 boilers, which supply high pressure steam to the steam turbinegenerators. “RENKEI Control”, or the utility facility operation
optimization technology through application of software algorithm using
linear programming method and advanced process control (APC).

•A remote monitoring system to monitor the performance of the system
is also installed. As a result, a great saving in fuel consumption for theutility facility is achieved.

Project example
Installation of Tribrid System
to mobile communication’s
Base Transceiver Stations
PT. XL Axiata & KDDI Corp.
20 locations in Sumatera, Java & Kalimantan
380 tCO2/year• Tribrid System is defined as a combined system of solarPV, batteries, and electric power control system• This system controls charge-discharge of battery, andalso improves the operational efficiency of diesel
generators with its electric power control system• Installed in off-grid and poor-grid areas in Indonesia

Project example
Solar PV Power Plant Projectin Jakabaring Sport CityPDPDE Sumsel & Sharp Corp.
Jakabaring Sport City, Palembang
1,277 tCO2/year• This project aims to reduce CO2 emissions by introducing
a 2 MW solar power plant in the Jakabaring Sport City
complex of South Sumatra Province• The power plant uses polycrystalline PV modules, 315W,
module efficiency 15.5%. About 5,243 of these modules
and peripheral systems installed on an expansive area ofabout 2.5 ha.

Project example
10MW Mini Hydro PowerPlant Project in NorthSumatra
PT. Citra Multi Energi & Toyo Energy Farm Co., Ltd.
Parlilitan, Humbang Hasundutan
47,182 tCO2/year• A mini hydro power plant is to be constructed in Humbang
Hasundutan District of North Sumatra with a capacity of
10MW (5MW x 2)
• The electricity generated by the plant is to be supplied toa power company (PLN) resulting in GHG emission
reductions by replacing grid electricity• This project is also expected to contribute to improving
energy supply in the region.

Thank you
www.jcm.ekon.go.id
secretariat@jcmindonesia.com