Newsletter from Indonesia (7/10/2003)

1. Activities related to the CDM. On September 9, 2003 strong 53 members ofIndonesian delegation, including 21 developers left for Manila to attend the South East
Asia Forum on Green House Gas Mitigation, Market Mechanism and Sustainable
Development conducted between 10-12 th September. Among the 21 proposals for CDM
and CDM related Project for GHG mitigation five dealing with organic waste utilizationfor energy. One project from CREATA-LP-IPB deals with the use of organic waste tosupply additional heating to greenhouse gas solar dryer, four projects, one from PT
Rekapasa Sumberdaya Hayati, PNM TV company and PT Smart Bonzeoak Indonesia,
deal with the use of palm oil mills effluent to produce electricity and thereby reduce
GHG emissions.
Nabil Makarim, Indonesia’s Minister of Environment, who also attended the forum said,
that in order to implement the CDM, there is a need for a balance between emissions,benefits, and obligations, and for a review of regulations and procedures in host countries.
He further drew attention to various barriers in using the CDM effectively, including alack of capacity and technology and the absence of experience negotiating with, andattracting, buyers. Although most buyers were interested with big projects in order tohave significant reduction in GHG emissions the forum also provided opportunities forsmaller projects through different kinds of funding mechanisms such those offered ofUNDP and the Community Development Carbon Fund (CDCF) from the World Bank. It
was suggested that small CDM projects should be bundled to make it sounds businessand have a meaningful GHG abatement.
2. Ratification of the Kyoto Protocol. Recently, during the Workshop on CDM ProjectDevelopment in the Electricity Sector in Indonesia on October 3rd, organized by theDirectorate General of Electricity and Energy Utilization, Ministry of Energy andMineral Resources of Indonesia, NOVEM ( the Netherlands Agency for Energy andEnvironment)in Jakarta, Ms Liana Bratasida, the Deputy Minister for EnvironmentalConservation, the Ministry of Environment, of Indonesia reiterated that Indonesia is now
in the final stage of processing all necessary procedural matters for the ratification of theKyoto Protocol. She estimated that the ratification of the Protocol may be done in mid2004, and the Designated National Authority (DNA), one of the necessary body toapprove and disapprove CDM projects should be operational before Conference of theParties (COP)-9 in December 2003.
3. The Electricity Law.
Indonesian government had already enacted the Electricity Law No.20/2003, which
provides ample opportunities for the private sectors to invest actively on power
generation utilizing locally available energy resources, including the use of organicwastes. Big cities in Indonesia are having difficulties in recycling municipal wastes either
for direct energy generation or converted into fertilizers. According to Article 4 ofChapter III, it is stipulated that in order to secure sustainable energy supply, any newpower generation should give high priority in utilizing local energy resources especiallyfrom renewable energy.

4. Green Energy Initiative
In line with the Electricity Law and other pertinent Laws and regulations to promote theeffective use of potential renewable energy resources in Indonesia, on 28 of August 2003,
Dr. Luluk Sumiarso, the Director General of, the Directorate General of Electricity andEnergy Utilization, Ministry of Energy and Mineral Resources, had launched the Green
Energy Initiative, in which, renewable energy, clean and high efficiency fossil fuels
development and utilizations are being promoted as an effort to secure domestic energy
supply as well as reducing GHG emissions. During the launching event which involving
well known artists and singers of Jakarta city, was attended by representatives of several
private industries in the country, both foreign and domestic, was also attended by threeMinisters, namely Dr. Purnomo Yusgiantoro, Minister of Energy and Mineral Resources,Ir. Hatta Radjasa, Minister of Research and Technology, and Dr. Nabil Makarim,
Minister of Environment.
5. NEDO Indonesia Office is helping to promote biomass energy workshop
Dr. T. Takekawa, Chief Representative for Jakarta and Sydney Office has been
cooperating with the LSDE (the Institute of Energy Resources) of the Indonesian Agency
for the Assessment and Application of Technology to hold a biomass energy seminar inJanuary 2004. The workshop is aimed to provide opportunities for technology developers
and the private sectors to find potential biomass energy projects. The participants areexpected to come both from domestic as well from overseas.