INSISTS Sustainable Bioenergy Development in Indonesia
Bioenergy is an important part of Indonesia’s energy agenda. A main preoccupation is to combine local resource potential
with competitive technological options to provide modern and reliable energy services. This shall help improve the
country’s energy balance, and enhance energy security. Swedish experiences and expertise in bioenergy can provide
support and insights that are most valuable to the country. The program INSISTS (Indonesian-Swedish Initiative for
Sustainable Energy Solutions) establishes a platform to support cooperation in this field.
About INSISTS Bioenergy project
The project will define strategies for deployment of sustainable
bioenergy in Indonesia. Indonesia has large biomass potential and
policies are being defined to deal with energy and climate
challenges. Opportunities exist to build synergies with various
sectors of the economy, thus promoting sustainable production
while also creating jobs and income. Strategic choices, public
policy, and coordinated action among stakeholders at local and
national levels shall be defined based on biomass resources and
commercial technologies available, using multiple criteria to
determine an enhanced role for bioenergy. Ultimately, bioenergy
shall contribute to improved energy security, energy balance in the
economy, and welfare. Attention shall be given to guarantee food
security and welfare distribution.
The project will result in a multi-step strategy and implementation
plan towards a competitive bioenergy production in Indonesia. The
idea is to build upon existing structures to define entry points for
expansion. In a second step, the strategy will evolve towards the
use of low-value feedstocks in the form of various agricultural
wastes using second generation technologies. The strategy will
incorporate all drivers of technological innovation, viz. policy and
regulatory, environmental, technological, socio-economic, and
institutional, thus being placed in a broader context of bioenergy
development nationally and internationally. The project takes
advantage of experiences from other countries that have
succeeded in the modernization of bioenergy, particularly Sweden.
Project team
Prof. Semida Silveira, Project leader KTH
Dr. Siti Syamsiah, Project leader UGM
Dr. Dilip Khatiwada, KTH
Carl Palmén, KTH
Fumi Harahap, KTH
Dr. Francis Johnson, SEI
Dr. Takeshi Takama, SEI
Eko Suyono, UGM
Cahyo Wulandari, UGM
Dr. Ahmad T. Yuliansyah, UGM
KTH ROYAL INSTITUTE OF TECHNOLOGY
Conditions for a sustainable development of
palm-oil-based biodiesel in IndonesiaFumi Harahap, Carl Palmén, Semida Silveira, Dilip Khatiwada
Division of Energy and Climate Studies, KTH Royal Institute of Technology, Sweden
Number one palm oil producer in the world
CPO production in 2014: 33 Million tonne; 10.5 million hectare of planted area
Average yield of CPO: 3.8 tonne per ha (Malaysia: 4.4 tonne per ha)
70% of CPO exported; 30% used in Indonesia (9% for biodiesel, 21% for food
and other industrial uses)
How Important Palm-Oil-Based Biodiesel for Indonesia?
Securing Sustainable Feedstock
Energy and Climate Studies Unit
Dept. of Energy Technology
School of Industrial Engineering
and Management (ITM)
The division of Energy and
Climate Studies (ECS) has an
interdisciplinary character with a
strong systems approach, linking
issues related to energy
technology and policy, climate
change and sustainable
development.
At present, ECS works with five
defined research themes:
Bioenergy systems
Energy for sustainable
development
Energy systems efficiency
Urban sustainability
Energy ánd climate policy
www.ecs.kth.se
IN COOPERATION WITH:
Fumi Harahap
PhD Student
Brinellvägen 68,
SE-100 44 Stockholm,
Sweden
Tel: +46 8 790 7465
Email: [email protected]
Crude Palm Oil (CPO) production (Million tonne/year) and
biodiesel production (billion liter/year)
Abundant feedstock production
Commitment to sustainable biofuel development
Biodiesel blending target of 30% by 2025 for transport, commercial and power
sectors to reduce dependence on oil imports
Emissions reductions’ target in relation to land use of oil palm plantation: 279
million tonne of CO2eq
Processing capacity of 5.6 billion liter/year
Producing 3.3 billion liter, 48% used in the country, the remaining was exported
6.7% of diesel fuel in transport sector does not meeting the set target
Indonesia biodiesel in numbers 2014
Policy goals
Policy instruments
Implementations
Biofuel
policy
Internal
Land
Agriculture
policy
Climate
policy
External
Internal evaluation =
allocation of land in
biofuel policy
External evaluation =
available land when
agriculture and climate
policies are also
considered
Coherence of Policy Goals
This research is part of the
program INSISTs (Indonesian
Swedish Initiative for Sustainable
Energy Solutions), a joint research
and innovation platform established
between Sweden and Indonesia.
Agriculture policy: Land is essential for crops plantation to ensure food security
targeting annual growth rate of 2-5% of agricultural crops production by 2019.
Climate policy: Land use change in forestry sector and peatland contributes to
reduce 23% GHG emissions from business as usual by 2020.
The role of land in delivering the policy goal:
How much land is required to meet increasing CPO demand from
domestic and export?
What is the role of land in biofuel, agriculture and climate policies?
Biofuel policy: Land is needed for production of biodiesel feedstock to achieve
biodiesel blending rate of 30% by 2025 in various sectors of the economy for energy
security.
CPO Demand:
Domestic plus export
Palm Oil Milling
Industrial uses
(4.2 million tonne)
Biodiesel Production
(3 million tonne)
Oil Palm Plantation
(10.5 Mha)
Crude Palm Oil (CPO)
(33 million tonne)
Domestic Use
(10 million tonne*)Export
(23 million tonne)
Food use
(5.5 million tonne)
Other Industrial uses
(1.2 million tonne)
Food Industrial use
Domestic use
(1.6 billion liter)
Export
(1.7 billion liter)
Figures from 2014, Source: USDA 2015
*Waste 0.3 million tonne
National and international demand for Indonesian CPO in 2014
How much land is available for future palm-biodiesel feedstock
production when considering biofuel, agriculture and climate policies?
There are incoherences related to land classifications and concepts used in different
policies. According to biofuel policy, 29 Mha are available for oil palm expansion. If
agriculture and climate policies are considered, only 20 Mha are actually available.
Future CPO demand for domestic use and export. Assuming annual increase of
domestic food use (+1.1%) other domestic industrial uses (+5.7%) and export (+1.6%)
6
8
10
12
14
16
18
2015 2020 2025
Oil
Palm
Pla
nta
tio
ns (
Mh
a)
No Yield Improvement (3.8 tonne/ha)
Medium Yield Improvement (3.8-4.4 tonne/ha)
High Yield Improvement (4-6 tonne/ha)
2014 Area
17
Mha
14
Mha
11
Mha
Understanding on how the government priorities the policy goals on land allocation is a
prerequisite for deploying the result of the policy coherence analysis to identify the area
available for palm biodiesel feedstock production.
1.01
2.33
0.32
0.83 1.02
0.05
0.08
Enough land is available for future CPO production without threatening food security,
deforestation and climate change. Improved yield allows further expansion of both
domestic and export markets with more efficient use of land.
Total
Indonesia
land area:
187
Mha
20
Mha
Conservation
forest
10
Mha
10
Mha
KTH ROYAL INSTITUTE OF TECHNOLOGY
Research Questions
How can we meet mandatory bioethanol
blending targets in Indonesia?
Dilip Khatiwada, Semida Silveira
Division of Energy and Climate Studies, KTH Royal Institute of Technology, Sweden
• What is the potential of bioethanol production in the current
production practices in Indonesia?
• How much bioethanol blends can be achieved without
compromising food-security?
• How can we realize the bioethanol blend mandates and
could we go beyond the target?
• Indonesia has long tradition of sugar production but has
gone from exporter to importer
• Indonesia is an oil producer but went from exporter to
importer in 2004
• Sugarcane is a main feedstock for sugar and ethanol.
Combination of sugar and ethanol production has proved
successful e.g. in Brazil
• Sugar production for self-sufficiency and ethanol for meeting mandatory bioethanol blending targets can be met using land
that is suitable for sugarcane within the time frame of 2015-2025.
• To meet both sugar self-sufficiency and bioethanol blending targets, 1.6 Mha land are required by 2020.
• To meet the 20% bioethanol mandate after sugar self-sufficiency, 2.76 Mha land are needed by 2025.
• Sugar and bioethanol programs should be tied together through integrated policies for sustainable expansion of sugarcane
crops, modernization of sugar mills, and investments in biorefineries and blending infrastructure.
Energy and Climate Studies Unit
Department of Energy Technology
School of Industrial Engineering
and Management (ITM)
The division of Energy and
Climate Studies (ECS) has an
interdisciplinary character with a
strong systems approach, linking
issues related to energy
technology and policy, climate
change and sustainable
development.
At present, ECS works with five
defined research themes:
Bioenergy systems
Energy for sustainable
development
Energy systems efficiency
Urban sustainability
Energy ánd climate policy
www.ecs.kth.se
Stakeholder consultations at sugarcane research
institute in Indonesia
Sugarcane processing in Indonesia
α’ is the proportion of total sugarcane juice (X) used for sugar production.
Dotted lines represent expanded land use and improved utilization of bioresources
• Present production of sugarcane from 0.47 Mha is not
enough to meet sugar and bioethanol targets.
• 1.07 Mha sugarcane field is needed to meet sugar demand
by 2020. In this case only one fourth of the bioethanol
volume target can be met using molasses (case 1).
Case 1: Land required (Mha) for meeting sugar self-
sufficiency and producing ethanol from molasses only
Particulars2015
(2% blend)
2020
(10% blend)
2025
(20% blend)
Land required
(Mha)0.71 1.60 2.76
Molasses ethanol
(BL)0.68 1.02 1.09
Juice ethanol (BL) - 3.42 10.39
Total ethanol (BL) 0.68 4.45 11.48
Case 3: Transport liquid fuel projection and % of gasoline substitution
when sugarcane is produced from available land
Case 2: Land required for producing ethanol to meet sugar
demand and bioethanol blending targets
IN COOPERATION WITH:
This research is part of the
program INSISTs (Indonesian
Swedish Initiative for Sustainable
Energy Solutions), a joint research
and innovation platform established
between Sweden and Indonesia.
Targets: Sugar Self-sufficiency by 2020 and
20% Bioethanol Blending by 2025
Scenarios for Estimating Bioethanol Using
Sugarcane Feedstock
Estimating Bioethanol Potential and Required Land for Meeting Sugar and Ethanol Targets
Indonesia Can Meet Both Sugar Self-Sufficiency and Bioethanol Mandates
Dilip Khatiwada
Researcher
Brinellvägen 68,
SE-100 44 Stockholm,
Sweden
Tel: +46 8 790 7464
Email: [email protected]
• In order to meet the sugar demand and bioethanol
mandate by 2020 and 2025, 1.60 and 2.76 Mha
sugarcane land are required, respectively (case 2).
• 34% bioethanol blend by 2020 and 63% by 2025 can
be achieved using the total 5 Mha available land for
cultivation of sugarcane cultivation (case 3).
Energy and Climate Studies (ECS) Division
KTH, Royal Institute of Technology, Sweden
www.ecs.kth.se
About ECS division
Sustainable energy solutions encompass not only efficient and renewable technologies but also the establishment of policy,
institutional and market structures to foster the adoption of new technological alternatives and paths. Energy solutions need to
operate realistically and efficiently in the context of dynamic energy markets, stringent environmental and social requirements,
and limited resource availability. What solutions can be pursued globally and regionally, which will lead to sustainable
development? What are the solutions that will lead to mitigation and adaptation to climate change while also promoting
sustainable development? These are central research questions at ECS.
Research project at ECS
ECS projects range from research and scientific evidence to policy briefs and dialogues, finally culminating at design and
implementation of policy and/or project development. Our portfolio of projects includes research and actions over different
geographical areas. The research themes are: (i) Bioenergy Systems (ii) Energy for Sustainable Development (iii) Energy
Systems Efficiency (iv) Urban Sustainability (v) Energy and Climate Policy. The projects cover multiple dimensions including
socio-economic development, environmental goals, markets and institutional capacity, aiming at achieving impact in a
coordinate way. Each project usually covers at least two of our thematic areas and all of them involve policy dimensions. ECS
activities are characterized by: (i) sustainability principles (ii) systems approach (iii) interdisciplinary character (iv)
development oriented (v) institutional capacity (vi) alliances for impact.
Head of ECS
Professor Semida Silveira
KTH Royal Institute of Technology
School of Industrial Engineering and Management
Brinellvägen 68, SE-100 44 Stockholm, Sweden
Email: [email protected]
Synthesis of resource base and policy framework
Assessment of availability of land to accommodate future oil palm
production for meeting biodiesel blending target and other uses
• Land available for palm biodiesel feedstock based on analysis of the
coherence of policy goals (ongoing study)
• Securing sustainable feedstock to meet the biodiesel targets (ongoing
study)
Publications and ongoing studies in relation to INSISTS bioenergy project
Sustainability assessment in perspective
Analysing the sustainability of biofuel production in Indonesia by
performing Life Cycle Analysis (LCA) study
• Energy and GHG balances of ethanol production from cane
molasses in Indonesia (published in journal of Applied Energy, 2016)
• Life cycle analysis and water footprint of biodiesel production in
Indonesia (ongoing study)
Lessons from other countries
Exploring the transition towards modern bioenergy in some countries
using a socio-technical approach
• Navigating the transition to sustainable bioenergy in Sweden and
Brazil: Lessons learned in a European and International context
(published in journal of Energy Research & Social Science, 2016)
Definition of scenarios for chosen bioenergy segments
Investigating different scenarios for the production of bioethanol using
sugarcane feedstock in Indonesia for meeting the both sugar self-
sufficiency and mandatory bioethanol blending targets.
• Scenarios for bioethanol production in Indonesia: How can we meet
mandatory blending targets? (under review in journal of Energy)
For more information contact:
Fumi Harahap
KTH Royal Institute of Technology
School of Industrial Engineering and Management
Brinellvägen 68, SE-100 44 Stockholm, Sweden
Email: [email protected]
Phone: +46 8 790 7465