Energy Policy for Indonesia Energy Policy for Indonesia Sustainable DevelopmentSustainable Development

ZuhalZuhalRector of Rector of thetheUniversityUniversity ofof Al Azhar IndonesiaAl Azhar Indonesia

Professor at Professor at the the Engineering FacultyEngineering Faculty--University of IndonesiaUniversity of Indonesia

BackgroundBackgroundWorldWorld’’s future economic growth is heavily depends on the s future economic growth is heavily depends on the energy and electricity useenergy and electricity useThe depleting reserves and high price for oil had significant The depleting reserves and high price for oil had significant effect on the role of oil in the energy mix.effect on the role of oil in the energy mix.The current centuryThe current century——an era of environmental awareness an era of environmental awareness ((Kyoto Protocol in 1997Kyoto Protocol in 1997))——requires energy resources to satisfy requires energy resources to satisfy the worldthe world’’s future energy demands.s future energy demands.Changes in the electricity sector, international concern over Changes in the electricity sector, international concern over climate change, and domestic concerns about energy security climate change, and domestic concerns about energy security provide opportunities for renewable energy sources to increase provide opportunities for renewable energy sources to increase their market share.their market share.By 2030, the world is projected to consume twoBy 2030, the world is projected to consume two--thirds more thirds more energy than today, with developing countries replacing the energy than today, with developing countries replacing the industrialized world as the largest group of energy consumers.industrialized world as the largest group of energy consumers.

Structure of Primary Energy Demand (%)Structure of Primary Energy Demand (%)(Business as usual)(Business as usual)

2000 2010 2020

World (%) Indonesia (%) Indonesia (%) Indonesia (%)

Oil 38 53 49 Decrease (Decrease (-- -- ))

Gas 24 29 23 Increase (++)Increase (++)

Coal 24 15 21 Flat (=)Flat (=)

Hydro 6 2 5 Increase (++Increase (++++))

Nuclear, Geothermal & others

6 1 2 Increase (+++)Increase (+++)

Type of Primary energy

Indonesian Energy DilemmaIndonesian Energy Dilemma

Hydro CarbonResources

DomesticNeeds

EnergyFor

Export

•Fuel•Electricity

CommercialFunction

SocialFunction

Foreign Exchange

IndustrialProducts

ForExport

The Indonesian government aimsThe Indonesian government aims

To guarantee the energy availability through To guarantee the energy availability through for domestic needfor domestic needTo improve quality servicesTo improve quality servicesTo guarantee long term sustainability of To guarantee long term sustainability of energy supplyenergy supplyTo guarantee energy for export purposesTo guarantee energy for export purposesTo conserve and preserve the environment.To conserve and preserve the environment.

Government PolicyGovernment Policy

Energy diversification

Energy Conservation

Energy Price

Environment

CNG and LPGCNG and LPGElectrification of train systemsElectrification of train systemsUsing renewable energy sources (Castor Oil)Using renewable energy sources (Castor Oil)

0

200000

400000

600000

800000

1000000

1200000

1995 2010 2020

Tho

usan

d B

OE

.

ResCommercialIndustryTransportation

Energy Diversification in Transportation SectorEnergy Diversification in Transportation Sector

Diversification initiatives 1990’s:-Building coal power plant -Building natural gas power plant-Building more Geothermal power plant -Privatization of non petrol power plant

Before 1980Petrol udfor electricity

77%

In 1993Petrol used for electricity

54%In 1997Petrol used for electricity

21%

In 2005Petrol used for electricity

30%

In 2010Petrol used for electricity

5%

19801993 1998 2005 2010

Before 1980:-Mostly using Petrol-Small Hydro-No Coal

Crisis:-Increase sale-No additional Power plant-Covered by petrol based plant

Diversification initiatives 1980’s:-Building coal power plant-Building big Hydro plant-Building Geothermal power plant in Kamojang

Diversification initiatives 2000’s:-Building more coal power plant -Building more natural gas power plant-Building liquid natural gas power plant -Privatization of non petrol power plant-Conversion of petrol power plant into gas

Sources: Kompas Newspaper

Energy diversification in Electricity SectorEnergy diversification in Electricity Sector((Reduce Petrol UsedReduce Petrol Used))

5%54%

77%

21%30%

Indonesia Energy Balance 2006-2015

0

20000

40000

60000

80000

100000

120000

140000

160000

2006 2010 2015Year

GW

h

Fuel OilGasCoalGeothermalHydro

Source: http://202.162.220.3/statistik/statistik.asp

Electricity production by each energy source

0

5000

10000

15000

20000

25000

30000

HSD IDO MFO Coal Gas Hydro

Type of fuel

GW

h

Outside JavaJava

Source: http://202.162.220.3/statistik/statistik.asp

Concentration Map of NO2Concentration Map of NO2 (DNC)(DNC)

Java Java (2021)(2021)

JavaJava(( 1991)1991)

Concentration Map of Concentration Map of SO2 (DNC)SO2 (DNC)

))

JavaJava(( 1991)1991)

JavaJava(2021)(2021)

EnvironmentEnvironmentJavaJava--Bali IslandBali Island:: New ApproachNew Approach

Use low sulfur coalUse low sulfur coal--supplysupplyApply high thermal efficiency processApply high thermal efficiency processUse anti pollution equipmentsUse anti pollution equipments

Electrostatic precipitatorElectrostatic precipitatorFluidized bed boiler technology & other high tech Fluidized bed boiler technology & other high tech BoilersBoilersThe importance of nuclear option (need support for The importance of nuclear option (need support for geogeo--technique study)technique study)Burn low quality coal in Sumatra (nine months) and Burn low quality coal in Sumatra (nine months) and use AC/DC cable to Javause AC/DC cable to Java--Bali IslandBali Island

EnvironmentEnvironment

Outside JavaOutside Java--BaliBaliThe role of rural electrificationThe role of rural electrificationIncrease the use of new & renewable energy Increase the use of new & renewable energy sourcessources

Research and DevelopmentResearch and Development

Ocean wave energyOcean wave energyWind energyWind energyBioBio--diesel energydiesel energyHybrids Hybrids BiomassBiomassEnergy garden (Castor oil plant)Energy garden (Castor oil plant)Hydrogen (but it is still far reach and very Hydrogen (but it is still far reach and very expensive)expensive)

ConclusionConclusionThe Indonesian energy sector is still heavily dependent The Indonesian energy sector is still heavily dependent on nonon non--renewable fuel such as fossil fuels and natural renewable fuel such as fossil fuels and natural gas as a source of energy gas as a source of energy

These nonThese non--renewable fuels are finite and gradually renewable fuels are finite and gradually depleting and also contribute to the emission of depleting and also contribute to the emission of greenhouse gas. greenhouse gas.

The implementation of various policies and programs by The implementation of various policies and programs by the government of Indonesia has increased the the government of Indonesia has increased the awareness of the importance of the role of renewable awareness of the importance of the role of renewable energy in a sustainable energy system energy in a sustainable energy system

For Indonesia archipelago the energy solution is really For Indonesia archipelago the energy solution is really depend on its geographical position and natural depend on its geographical position and natural resources resources

Thank YouThank You