Dr. Surya Darma Chairman of METI

Masyarakat Energi Terbarukan Indonesia (The Indonesian Renewable Energy Society) Gedung BPSDM Lantai 5 Jl. Gatot Subroto Kav.49, Jakarta 10340 Ph: 021-38901106,38901107 ; Fax : 021-38901108 E-mail: meti.ires@gmail.com ; http: //www.meti.or.id Dr. Surya Darma Chairman of METI Sustainable Energy Technology Asia (SETA) 2018 BITEC, Bangkok Thailand, 21-23 March 2018

Outline 1. What is METI? 2. Strategic Issues on Energy Management 3. Energy Security Aspect 4. History Policy of the Energy 5. National Energy Policy 6. Lessons Learnt From National Energy Policy 7. Why RE in Indonesia? 8. RE Development Barriers in Indonesia 9. RE Target and Road Map 10. METIs Role in RE Development in Indonesia 11. Summary

What is METI?

Masyarakat Energi Terbarukan Indonesia (METI) Indonesia Renewable Energy Society Established in Jakarta on 1999. About 700 Members: Expertise, Private and State Own Company, Industry, Consultant, Lawyer, Academician, NGO, Government To advocate, communicate, assistance, consult, cooperation and partnership between expertise, RE operator and development and the Universities and other research institute even national and international Forum for all RE Association: (API- INAGA, Asosiasi Biogas, Masyarakat Biogas Indonesia, Ahli Bioenergi, Biomasa, Mini Hidro, Hidro Bandung, APAMSI & AESI, AEAI & MEAI, ASELI, APROBI, APLIBI, APPLTA, etc.) Subsidiary of METI: Yayasan Energi Lestari (YEL) Sustainable Energy Institute Lembaga Sertifikasi Profesi ET (LSP ET) RE Sertification Agency

Strategic Issues on Energy Management

Strategic Issues on Energy Management Indonesia will become a net importer of gas by 2027 and net importer coal by 2046. Need a significant effort to delay these (Source: BPPT). On the other hand, RE development take about 8-10 years for geothermal plant; and take about 7-8 years for hydropower.

GOI commitment to reduce CO 2 29% by 2030 Emisi GRK dari sektor energi menjadi kontributor utama emisi GRK Indonesia mulai 2020 dan dapat diturunkan apabila target ET KEN tercapai Source: Bappenas 2015 Hasil simulasi jangka panjang menunjukkan trend emisi GRK meningkat cukup signifikan terutama Simulation berasal of Indonesian dari sektor baseline energi emission hingga2010 tahun 2045 2015-2030. (in thousand PascatCO2e) 2030, emisi diperkirakan

CO 2 Reduction (Law No. 16 Years 2016 Paris Agreement) Self Effort CO2 Emision Reduction by 2030 29% (856 juta Ton) 41% With International Support Melalui pengembangan energi baru terbarukan dan pelaksanaan konservasi energi dari seluruh sektor Kehutanan, Gambut, Pertanian 680 Juta Ton Perpres No. 61/2011 RAN-GRK & UU No.16/2016 Perpres No. 71/2011 GHG Inventory dan MRV Sektor Energi Limbah 30 Juta Ton 48 Juta Ton Industri dan Transportasi 9 Juta Ton

Global Trend in RE Development Investment/additional capacity netto in 2014 Cina investasi secara massif untuk ET sebagai upaya untuk mengurangi ketergantungan kepada energi fosil dan sekaligus penurunan emisi GRK Kenya memimpin dalam investasi panas bumi Source: REN21

Global Trend in RE Development Installed Capacity in 2014

Energy Security Aspect Availability (Supply) National & International Sources (Import), Bukan berarti harus diproduksi sendiri Energy security self-sufficiency Affordability - Keterjangkauan harga Apa indikator keterjangkauan? Perlukah subsidi Harga yang terlalu rendah tidak mendorong investasi dan inovasi Accessability - Stabilitas harga Jarang ditinjau Dari sisi ekonomi mempunyai dampak yang besar

History Policy of the Energy

Indonesia s Energy Problems Energy Resources Conflicts for domestic or export? Declining oil & gas production Limited energy access and infrastructures Imported fuel and LPG Dependences Uncompetitive NRE prices Low RE utilisation Inefficient energy utilisation Low NRE technology mastery Geopolitical condition and environmental issues National energy reserves

History Policy of the Energy Diversification initiatives 1980 s: Building coal power plant Building big Hydro plant Building Geothermal power plant in Kamojang Crisis (1998): Increase sale No additional Power plant Covered by petrol based plant Before 1980: Mostly using Petrol Small Hydro No Coal 1980 1990 2000 2010 2017 Diversification initiatives 1990 s: Building coal power plant Building natural gas power plant Building more Geothermal power plant Privatization of non petrol power plant 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

Perpres No.5 Tahun 2006 Kebijakan Energi Nasional History Policy of the Energy RUEN; Prepres No.22 Tahun 2017; Target ET: 23% Bauran Energi Nasional pada Tahun 2025 RUEN; Prepres No.22 Tahun 2017; Target ET: 31% Bauran Energi Nasional pada Tahun 2050; BBN ditargetkan sebesar 26% dari target EBT 2006 2014 2025 2030 2050 Energy Law No.30 Year 2007 : Perpres No.79 Tahun 2014 Energy supply through: Kebijakan Energi Nasional 1) Resources inventarisation; 2) Increase energy reserve; 3) Energy balance; 4) Diversify, conservation, and intensify energy and energy sources; and 5) Guaranteeing energy supply, transmision, and energy resources and energy storage RUEN; Prepres No.22 Tahun 2017; Target ET: 25% Bauran Energi Nasional pada Tahun 2030

National Energy Policy

24% 31% LONG TERM PLANNING OF ENERGY DEVELOPMENT Total 1000 MTOE 22% 23% 25% 20% New and Renewable Energy Oil Natural Gas Coal Data Source: National Energy Council, 2015 31% 18% 5% Total 194 MTOE 46% 30% Total 400 MTOE 2013 25% Power Plant: 51 GW 2025 Power Plant:115 GW Energy Consumption: 0.8 TOE/kap Electricity Consumption: 776 KWh/kap Electrification Ratio (2014): 84.33% 2050 Energy Consumption: 1.4 TOE/kap Power Plant:430 GW Electricity Consumption: 2,500 KWh/kap Electrification Ratio (2020): closely to 100% Energy Consumption: 3.2 TOE/kap Electricity Consumption: 7,000 KWh/kap

Current Status (2014) Year 2025 Energy Mix Target in 2025 From NEP 18% 5% 22% 23% 194 MTOE 46% ~ 400 MTOE 31% New & RE Oil Gas Coal 30% 25% Saat ini Tahun 2025 Installed Capacity 51 GW 115 GW Energy Consumption 0,8 TOE/kapita 1,4 TOE/kapita Electricity Consumption 776 KWh/kapita 2.500 KWh/kapita

Lessons Learnt From National Energy Policy

Energy Policy (KUBE) 1980 - Intensification - Energy Diersification - Energy Conservation - Pricing Policy - Environment - Mostly using Petrol (77%)

Indonesian Government Aims (2006) 1. To guarantee the energy availability through for domestic need for domestic need 2. To improve quality services 3. To guarantee long term sustainability of energy supply energy supply 4. To guarantee energy for export purposes 5. To conserve and preserve the environment.

Why RE in Indonesia?

RE Potential Hydro/Mini hydro 75 GW Solar 207,8 GWp Geothermal Resources : 12,3 GW Reserve : 17,2 GW Energi Fosil Cadangan terbukti: Minyak Bumi : 3,6 miliar barel Gas Bumi : 100,3 TSCF Batubara : 7,2 miliar ton Produksi: Minyak Bumi : 288 Juta barel Gas Bumi : 2,97 TSCF Batubara : 434 juta ton Diperkirakan akan habis: Minyak Bumi : 13 tahun Gas Bumi : 34 tahun Batubara : 16 tahun Wind 60,6 GW Installed: Hydro 5,124 GW Mini Hydro 0,162 GW (7,07%) 0,085 GWp (0,04%) 1,64 GW (5,6%) Bioenergy 32,6 GW BBN 200 Ribu Bph 443,2 GW Installed Capacity Current Status Planning - Under Development 8,80 GW (2% of total potency) 59,656 MW 35.000 MW +7.500 MW New project 1,1 MW (0,002%) 1,78 GW (5,5%) 0,0 MW (0,000%) Ocean Energy 17,9 GW

Why RE? Its renewable and environmental friendly Business : capital intensive, high technology, high risk. Energy Security: Abundant and the most completed Resources in the world which is located in the rural area Positive economic impact to the rural, which is very difficult to be reached by fossil fuel (limited fossil fuel infrastructure) To reduce risk and increase affordability may collaborate to any international partnership through fiscal and non fiscal incentive. Need level of playing field Can not be transported but positive economic impact to the local people 24

Projection and Policy Scenario 2020-2030, Coverage of Emission Reduction, Projected BAUand emission reduction from each sector category Why RE? Projected BAU and emission reduction from each sector category Government Commitment to reduce CO 2 Emision - GHG RE is one of the main target in CO 2 emision reduction

RE Development Barriers in Indonesia

RE Issues Economical Tariff Remote areas Pricing &Financial NIMBY (not in my back yard) Perception (mindset) Bilateral and Regional Cooperation Energy savings Local content Technology Policies and Regulations CO 2 emissions reduction Incentives RE Issues Intermittent Business licensed and non- Licensed Off-taker (substation, Transmission and Consumer) Business Process Subsidy Leadership Regional Government Abundant RE resources

RE Target and Road Map

169 GW Energy and RE Road PLT Arus Laut PLT Bayu PLTS PLTD BBN PLT Bioenergi PLTA dan PLTMH PLTP KEN 45 GW Map Scenario 2015 2020 2025 2030 2035 2040 2045 2050 2015 2016 2017 2018 2019 2020 2025 2030 2040 2050 Geothermal 1.439 1.654 1.909 2.134 2.494 3.110 7.242 9.300 13.423 17.546 Hydro & Microhidro 5.024 5.119 5.236 5.491 7.008 7.889 20.960 25.844 35.611 45.379 Bio-energy 1.740 1.886 2.093 2.359 2.674 3.024 5.532 9.651 17.887 26.123 Solar 79 229 429 679 979 1.379 6.379 14.103 29.551 45.000 Wind 7 57 107 207 307 507 1.807 7.167 17.887 28.607 Ocean & Others 372 1.860 1.860 1.860 1.861 1.863 3.128 3.779 5.081 6.383 Total 8.660 10.804 11.728 12.939 15.807 18.475 45.044 69.843 119.440 169.038 Unit: MW

METI s Role in RE Development in Indonesia

6. Energy Infrastructure 1. Attractive Policy and Regulation Perlu mendorong kebijakan dan regulasi untuk mempercepat pencapaian tingkat pemanfaatan energi baru terbarukan dalam bauran energi primer nasional. 2. RE Market Melalui pemanfaatan EBT, penugasan PT. PLN untuk membeli energi listrik dari energi baru terbarukan 3. National Standard on Materials & Profession LSP ET Adanya SNI terkait dengan peralatan pembangkit dan profesi energi baru terbarukan 4. Economic Price (FEED-IN TARIFF) Dukung Permen ESDM yang mengatur FiT dari pembangkit listrik yang menggunakan energi baru terbarukan sesuai keekonomian 5. RE Incentive and Ease of Doing Business Perijinan usaha penyediaan tenaga listrik dari energi baru terbarukan yang lebih mudah. Dorong APBN, APBD dan DAK untuk membangun infrastruktur energi untuk perdesaan dg prioritas pembangkit listrik sesuai potensi energi terbarukan setempat. 7. Capacity Building Edukasi dan pelatihan di bidang perencanaan pemanfaatan dan lembaga pembiayaan energi terbarukan. Meningkatkan jaringan informasi melalui asosiasi atau jejaring terkait dengan energi terbarukan. 8. Local Content for Power Plant Manufacture - PLTM dan PLTA Dukung adanya R & D pemanfaatan EBT 9. International Cooperation Kerjasama untuk peningkatan kapasitas dan transfer teknologi pemanfaatan energi baru terbarukan. Pertukaran informasi terkait regulasi dan kebijakan pemanfaatan energi baru terbarukan dengan negara lain. Dukungan dalam lesson learnt ET 31

MILESTONE INDOEBTKE CONEX INDOEBTKE CONEX 2014 INDOEBTKE CONEX 2015 INDOEBTKE CONEX 2017 Theme: Time to Deliver Clean Energy for The Nation Opened by: Prof. Dr. Boediono, Vice President of The Republic of Indonesia Conference Participants: 1208 persons Exhibitors: 31 exhibitors Visitors: 1985 persons Theme: Time to Act: Accelerate The Implementation of Renewable Energy and Energy Conservation Opened by: Prof. Dr. Boediono, Vice President of The Republic of Indonesia Conference Participants: 1115 persons Exhibitors: 36 exhibitors Visitors: 1578 persons Theme: Renewable Energy is a Solution for Energy Security and Paris Agreement Opened by: Ignatiius Jonan, Minister of Mineral and Energy Resources of the Republic of Indonesia Conference Participants: 198 persons Exhibitors: 30 exhibitors Visitors: 850 persons

EVENT TITLE The 7 th Indonesia EBTKE ConEx 2017 Date of Event Theme Venue 27 31 August 2018 (Tba) Investment Breakthrough to Achieve Renewable Energy Target Balai Kartini Auditorium Hall Hosted by Indonesian Renewable Energy Society (IRES/METI) and supported by Ministry of Energy & Mineral Resources of the Republic of Indonesia.

LAYOUT

PARTICIPATION COST BOOTH PARTICIPATION COST BOOT CONFERENCE PARTICIPATION COST Early Bird REGISTRATION TYPE PRICE Member METI IDR 2,000,000 H Non Member (Indonesia) IDR 2,500,000 Non Member (Foreign) IDR 3,000,000 COLO Normal R BOOTH TYPE PRICE/M2 Member METI IDR 2,500,000 Non Member (Indonesia) IDR 3,000,000 Non Member (Foreign) IDR 3,500,000

EVENT TITLE Standard Shell Scheme Booth The organizer can provide standard booth module, which includes: Wall partition (1mL x 2,49mH) for in-line / standard (non-corner) booth Aluminum system fascia board (0,35mH) 2 (two) units standard folded chairs 1 MCB 2A/Single/Phase and 1 single electrical power outlet 1 (one) aluminum system reception desk (1,030mL x 0,50mW x 0,75mH) Standard lighting 1 (one) waste paper basket Standard carpet

Summary 1. Regulation and Policy Pricing Fiscal incentive Energy use dis-incentive BOOT scheme? Bidding scheme No RPS RE Development Fund 2. Coordination interdepartmental

So, don t let Indonesia suffer for energy. Please use RE for the better Indonesia Thank you Dr. Surya Darma suryadarma.za@gmail.com METI.IRES@gmail.com