INDONESIA ENERGY OUTLOOK 2018

basuki_hpyir647 | May 1, 2020 | 0 | Uncategorized

Indonesia is the country with the largest energy consumption in Southeast Asia and fifth in Asia Pacific in primary energy consumption, placed after China, India, Japan and South Korea. High GDP growth, reaching an average of 6.04% per year for the 2017-2050 period, is expected to increase Indonesia’s oil fuels demand in the future. This will escalate Indonesia’s role both in the world energy market and in efforts to decrease global greenhouse emissions. Final energy consumption (excluding firewood) of Indonesia in 2016 was still dominated by oil fuels by 47%. In sectoral, the transportation sector has the largest share of 42%, higher than the industrial sector with 36% share. Energy consumption in the transportation sector is almost entirely met with oil fuels.

On the other hand, Indonesia has been a net importer of BBM since 2004. One third of Indonesia’s oil fuel consumption in 2016 is supplied by imports. If the increase in this oil fuel-dominated demand is not followed by any changes in the pattern of energy consumption, especially in the transportation sector, the energy sustainability and security of Indonesia will be disrupted. In addition, Indonesia’s greenhouse emission reduction commitments listed in First Nationally Determined Contribution of 29% or 314 million tonnes of CO2e (unconditional) and 41% or 398 million tonnes of CO2e (conditional) by 2030 can also be difficult to achieve. Sustainable transportation is an alternative solution offered in the Outlook Energy Indonesia (BPPT-OEI) 2018 to address this challenge. Sustainable transportation is expected to encourage the use of environmentally friendly modes of transportation that reduces road congestion and drive the national economy. Furthermore, the analysis in BPPT-OEI2018 is focused on land transportation for Jabodetabek area due to the high mobility and energy consumption in thissubsector

Presidential Regulation No. 22 of 2017 concerning the General Plan of National Energy (RUEN) was enacted on March 13, 2017. Broadly speaking, the RUEN was prepared by the Government as the basis for technical plans such as the General Plan for the Provision of Electric Power (RUPTL)
by PLN, drafting plan of State and Regional Revenue and Expenditure Budget plan (APBN/APBD), as well as guidelines for the drafting of strategic plans by the Ministry and Regional General Plan of Energy (RUED) by local governments. To achieve independence and resilience of national energy as stated in its parent regulation, Government Regulation No. 79 of 2014 on National Energy Policy (KEN), RUEN describes the priorities of Indonesia’s energy development which includes several things, namely the use of maximum renewable energy by taking into account the level of economy, minimalizing the use of petroleum, optimization the utilization of natural gas and new energy and define coal as a mainstay of supply national energy. The Government is aware that Indonesia has a considerable potential of coal resources and still prioritize this primary energy source for national energy supplies. However, in RUEN, coal is strived to be used as a last resort for the fulfillment of domestic demand after maximizing the use  of renewable energy, minimizing the use of petroleum, and optimizing the utilization of new energy and natural gas. In general, the Government of Indonesia is aiming to control coal production from 2019 to 400 million tons, unles domestic demand exceeds this figure. For the transportation sector, RUEN states that the Government will develop electric / hybrid vehicles in 2025 of 2,200 units of four wheels and 2.1 million units of two wheels. The Government also sets target for development of gas refueling station (SPBG) of 2,888 units with a total capacity of 1,291 MMCFD in 2050. The development of an integrated mass transit system such as Mass Rapid Transit (MRT) and Light Rail Transit (LRT) is also one of the important  points in RUEN to achieve the target of public transportation share by 30% of total modes in 2025. As a follow-up to the efforts energy diversification for the
transportation sector, the Ministry of Energy and Mineral Resources (MEMR) issued Ministerial Regulation no. 25 of 2017 on the Acceleration of Gas Fuel Utilization for Road Transportation. This rule requires each gas station to provide one gas dispenser. The obligation to supply gas dispensers at each gas station is not only applied to domestic gas stations, but also foreign ones. The price of natural gas and the price of gas fuel (BBG) in the form of CNG will be determined by the Minister of Energy and Mineral Resources according to its allocation and integrated. Furthermore, the allocation of natural gas for industrial and household sectors is limited to 30%.
In addition to the BBG, the RUEN mentioned that theGovernment would prepare a road map of the use of biofuels on the transportation of land, sea, air and rail transportation until 2050. The target of biofuels mixing in RUEN is consistent to the Biofuel Mandatory determined in Minister of Energy and Mineral Resources Regulation no. 12 of 2015. The control of greenhouse gas emissions from the energy sector is also elaborated in detail in RUEN. Environmental indicators, especially emissions, are one of the foundations  for the projection of long-term energy demand andsupplies. To that end, the MEMR is assigned to carrying out conservation on the downstream side, requiring the use of clean coal technology and high efficiency (ultra-supercritical) boilers gradually, and carrying out the development of renewable energy power plants. Meanwhile, the Ministry of Environment and Forestry is focused on the documentation of all greenhouse gas mitigation actions carried out by all institutions responsible for mitigation actions, and facilitating internal and external verifiers.

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