B. Isi Roadmap Eng

ROADMAP
FOR ACCELERATED DEVELOPMENT
OF NEW AND RENEWABLE ENERGY
2015-2025
P2EBT
Jakarta Mei 2015

CHAPTER 1 INTRODUCTION – THE PARADOX OF INDONESIAN ENERGY 3
1.1 Indonesia is no longer an oil and gas exporter 3
1.2 Hidden dangers of cheap global oil prices 4
1.3 Energy Conservation 4
1.4 Mitigating Climate Change 5
CHAPTER 2 THE ENERGY SITUATION IN INDONESIA 5
2.1 17% increase of NRE in 10 years 5
2.2 Indonesia’s NRE condition 6
2.3 Investment needed 7
CHAPTER 3 WHAT IS REQUIRED IN ORDER TO CHANGE? 8
3.1 The projected outcome of NRE development 8
3.2 Avoided Cost 8
3.3 Innovative Financing 9
3.4 Planning and budgeting 9
3.5 Program Delivery 9
3.6 Landscape Monitoring 10
3.7 A transparent and accountable governance 10
3.8 Cross-sectoral collaboration 11
BAB 4. HOW DO WE MANAGE IT? 11
4.1 Policy and Governance breakthrough 11
4.2 Financial breakthrough 12
4.3 Technology development breakthrough 13
4.4 Capacity building breakthrough 13
TABLE OF CONTENT

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CHAPTER 1 INTRODUCTION
THE PARADOX
OF INDONESIAN ENERGY
1.1 Indonesia is no longer an oil and gas exporter
Since the mid 1990s, one dynamic of the national energy sector, specifically from the perspective of
the petroleum industry, was the achievement of peak production. Since then production levels have
begun a steady but sure decline. At the same time, levels of domestic consumption have continued
to rise. These two trend lines, namely declining production and increasing consumption have finally
been passed. Since the middle of the last decade, Indonesia switched from being a petroleum
exporting nation to becoming a petroleum importing nation.
The transition from a petroleum exporter to importer should have awoken the nation to realizing that
alternative sources of energy could and should be developed. In 2008, the gap between production
and consumption has widened so significantly that Indonesia decided to resign its membership
of OPEC. As a member for more than 40 years, this decision should have constituted a kind of
national shock therapy that the direction of energy sector development has reached a crisis point.
But unfortunately the moment of these historic developments passed with no cathartic reflection
or change. Until today there are many who still assume that the national oil production value can
“suddenly” rise significantly. The era to believe in any myth that the country could return to another
domestic petroleum age has gone. Graph 1 demonstrates the shift in Indonesia over the past 30
years as oil moved from being a foreign reserve bonanza to being a major drain on the balance of
payments. As an oil importer Indonesia now faces the assorted threats to its current account balance
and its balance of payments as well as domestic inflation that arises due to the frequent price and
availability shocks that affect the global oil industry.
Graph 1 Historical changes of Indonesian energy, from Member of OPEC to Oil importer
The difference between the volume of domestic oil production and consumption displays an historic
trend that is clear and is certainly not easy to overcome, as illustrated by Graph 2 below:
Indonesia’s oil and
gas resource is
depleting

4
Roadmap for Accelerated Development
of New and Renewable Energy 2015-2025
Graph 2 Challenges of securing energy resilience
Apart from the limited capacity of the petroleum sector to fill the growing demands of national
energy, the natural gas sector are also limited in the near future.
The efforts to ensure Indonesia’s energy resilience in the future should be conducted by reducing its
dependence on oil the mainstay source of national energy needs.
1.2 Hidden dangers of cheap global oil prices
Superficially, current low global oil prices would appear to be a boon for a petroleum importing
nation like Indonesia. However, there are potential of pitfalls from low oil prices that should be
anticipated. The decline of oil prices in the global market over the last year reduces the pressure
on the current account as well as the national budget (APBN). The decline in oil prices may also
reduce the national urgency/resolve to shift its dependencies on the petroleum sector as well as to
reduce the financial viability of the required upfront investment required to develop the capacity
of production, distribution as well as consumption of non-oil energy sources including bioenergy.
Moreover, low oil prices may also reduce the market’s and consumers’ urgency/insistence to
consume petroleum in efficient and frugal ways.
All of these potential factors should be monitored with an eye towards their long term impacts,
especially based on any assumption (or wishful thinking) that current low prices for oil will continue.
1.3 Energy Conservation
In the Medium Term National Development Plan economic growth is projected to reach 8%. By the
Year 2025 the population of Indonesia is expected to reach 285 million, an increase of 35 million
compared to 2015. As a result it is clear that this will have an impact of energy demands. At this
point based on the Draft National Energy Conservation Plan of 2011, we expect to save between
10 and 30 percent in the industrial sector, between 15 and 35 percent in transportation, between
15 and 30 percent in the households sector and 25 percent in other sectors (including agriculture,
construction and mining). In comparison to the reduced trend in production of oil and gas there is
an increased urgency to save energy.
Low oil price can
reduce the urgency
to act

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1.4 Mitigating Climate Change
One of the benefits of developing the NER sector is to reduce greenhouse gas emissions. Recalling
that Indonesia has undertaken to reduce its levels of green house gas emissions by 26 percent below
the business-as-usual projection by 2020, increases in energy sourced from NER with their light
carbon footprints will make a positive contribution to achieving this national target.
Additionally the prices of hydrocarbon based energy such as oil do not take into account the
externalities of their use, notably on the wider environment be that in terms of their impact on
climate change as well as more localized issues such the delibitating impact of pollution on the
public costs of health care and the flow-on impacts on productivity especially in urban areas. For
Indonesia prioritizing the accelerated development of renewable energy is about reducing its levels
of emissions of greenhouse gases as well as providing for longer term assurity of energy supplies
and the welfare of its citizens.
CHAPTER 2 THE ENERGY SITUATION
IN INDONESIA
2.1 17% increase of NRE in 10 years
The National Energy Mix in 2014 consists of 4 energy main sources with the following details:
41% Petroleum, 30% Coal, 23% Gas, and 6% New and Renewable Energy (NRE). In 2014, that
Government Regulation 79/2014 regarding National Energy Policy agreed to set targets on
increasing the provision of primary energy in Indonesia in 2025 to 400 MTOE (millions tonnes of oil
equivalent) with the following breakdown: 25% Petroleum, 30% Coal, 22% Gas, and 23% NRE or an
equivalent of 92 MTOE sourced from NRE. In the past 10 years, the growth of Indonesia’s energy
mix sourced from NRE was only 3%, while for the next 10 years Indonesia is targeting growth of 17%.
Figure 2 is a portrait of the potential of renewable energy in Indonesia.
Figure 1 a) The National Energy Mix 2014 b) The National Energy Mix Target 2025
1a 1b
Government Regulation
79/2014 National Energy
Policy targeting 23% from
NRE source

6
Figure 2 Map indicating NRE potentials across Indonesia1
2.2 Indonesia’s NRE condition
Law 30 of 2007 regarding Energy and Presidential Regulation 79 of 2014 regarding National Energy
Policy stress the need to develop New and Renewable Energy. Several aspects referred to in
Regulation 79 of 2014 cover:
• Energy prices, subsidies and incentives;
• Infrastructure access for communities and the energy industry;
• Research, development and the application of energy technologies;
• Institutions and funding.
Based on this, the Government has simplified these aspects to become a) policy, b) technology, c)
funding and 4) capacity development. The general picture related to NER (geothermal, bioenergy
and other forms of NER) are divided based upon the aspects concerned. Studied further each sub-
sector within the NER sector faces different obstacles/problems.
In terms of policy several sub-sectors of NER face problems such as difficulties in securing
exploration permits if for example the geothermal area is within a forested areas, security of land
tenure that can be unclear in developing bioenergy, and limits to domestic investment availability
for the development of various energy sources (such as solar, wind etc) in addition to considering
the capacity of domestic companies are insufficient to undertake these developments.
In terms of technology several obstacles faced include the limited technology available to support
geothermal exploration, weakness in supervising the benefits of biofuel and managing data related
to NER and the limited number of networks off-grid.
In terms of financing and capacity in general the problems faced by all NER players include the
minimal capacity of funding including through capital markets to provide loans and investments
because of weak mechanisms within the capital sector to balance the high risks associated with NER
investments or the lack of capacity of the Indonesian financial sector to evaluate the viability of NER
investment propositions. In addition poor capacity in maintaining and managing NER facilities adds
further to the problems facing the development of NER in Indonesia.
1 Kuncoro, A.H., (2011) Renewable Energy For Power Generation in Indonesia; Susandi A., (2008) Potential
Area For Solar Energy Generator and its Benefits to Clean Development Mechanism (CDM) in Indonesia;
PLN, (2011) Wilayah Perairan Indonesia Menyimpan Potensi Energi Listrik Dari Arus Laut
Overview of NRE
bottlenecks

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Among sources of NER in Indonesia bioenergy represents a key priority including as a replacement
to the use of oil products especially as biofuel. However the opportunity available through these
sources has yet to be optimized. In addition there remain a number of important obstacles related
to increasing the use of biofuel to guarantee that the NER agenda is grounded in the sustainable
development model. As an example the palm oil industry in Indonesia grew to become the largest
in the world in the middle of the last decade2
and thereafter has continued to grow quite robustly
to become the most dominant player of palm oil in the world. However, at the same time the
contribution of bioenergy to the national energy mix is still far below its potential. While it is greatly
hoped that biofuel from palm oil will grow briskly, there is also a need to be alert to ensuring the
process of plantation development does not destroy primary forested areas. In this regard there
have emerged a number of initiatives, including from the private sector, to promote the assurance of
sustainable palm oil. These developments are to be welcomed. At the same time the Government
also need to be sensitive to the need to ensure both food security as well as protecting biodiversity.
In addition to the contribution of bioenergy from plants such as palm oil as well as product sources
that can be used as biomass, there exist other sources of renewable energy such as geothermal.
Indonesia as the nation with the most active volcanoes in the world has the potential to become
the largest producer of geothermal energy. Based on data from Pertamina, Indonesia “contains
potentially 40% of the world’s geothermal resources3
”. However, data from Geothermal Energi
Association notes that the contribution of Indonesia towards geothermal energy production is only
11% of the global production4
. Compared to its potential Indonesia is exploiting less than 5%5
of its geothermal resources.
Beyond the aforementioned sources of renewable energy, there are other energy sources with great
potential in Indonesia, including solar power. There are several examples of applying solar power,
above and beyond its more traditional application through solar powered-lights. As a tropical country,
Indonesia has the potential to develop solar power on a large scale. Another option for renewable
energy that has not been widely developed is wind energy. In addition to wind energy, Indonesia
as an archipelago has another potential renewable energy, that is tidal sea energy. Recalling that
Indonesia’s coastline is among the most extensive in the world there also offers opportunities to
develop very new sources of biofuel energy such as from algae.
Despite their limited development to date, these four energy sources, namely geothermal, solar,
wind and sea are reliable sources that can exploit the geology and geography of Indonesia, in
an environmentally-friendly and sustainable basis. Unfortunately, until today the implementation of
these energy sources in Indonesia is still far below their optimal or potential. Overall, these NREs
often face operational and maintenance obstacles resulting from various factors including funds,
commitment, lack of local capacity, inappropriate technology, as well as economically unsustainable
operating models.
2.3 Investment needed
To achieve the target of 23% NRE (7% geothermal, 10% bioenergy, 3% water, and 3% other NREs),
in the next ten years, investment in the order of 1.600 trillion rupiah will be required (the calculation
details can be found in APPENDIX 1). This investment value by 2025 is divided into 475 trillion
rupiah for geothermal, 645 trillion rupiah bioenergy, 320 trillion rupiah for hydro, and 160 trillion
rupiah for new energy.
Overall, NRE has the potential to generate 200,000 MW, but until today only 6,8% of this figure has
been realized (APPENDIX 2). Based on the ambitious targets set through Government Regulation
74/2014 and the challenges faced by every sector of NREs, the business patterns need to be
changed. An innovative change is needed in terms of integrated models of funding, planning,
delivery and monitoring. The paradigm shift in this case is very important and is supported by strong
and consistent leadership.
Besarnya potensi
bioenergi
The use of
geothermal is still
below the potential
2 As quoted from GAPKI data as published in: http://www.pecad.fas.usda.gov/highlights/2007/12/
indonesia_palmoil/
3 http://pge.pertamina.com/index.php?option=com_content&view=article&id=19&Itemid=8
4 http://www.geo-energi.org/pdf/reports/GEA_International_Market_Report_Final_May_2010.pdf
5 http://ebtke.esdm.go.id/post/2015/03/26/815/statistik.2014
Solar, wind and sea
energy sources are
very suitable for
Indonesia
An investment of
1,600 trilion rupiah
is required
Business as usual
will not work

8
CHAPTER 3 WHAT IS REQUIRED
IN ORDER TO CHANGE?
3.1 The projected outcome of NRE development
Towards the end of Chapter 2, summary reference was made to a number of changes needed to
support moves towards energy resilience including a paradigm shift and innovation. The paradigm
that must be changed is that our country can no longer rely on non-renewable energy to secure
energy resilience thus necessitating a shift towards NREs. This large and innovative breakthrough
should be conducted in an integrated manner by ensuring the synergy of economic growth, social
welfare, and sustainable environment. The expected outcome from the development of NREs
should be connected with these three aspects: economic, social and environmental. The increase of
population is likely to rise and in order to suppress excessive energy needs in the future, therefor,
one of the key outcomes is being able to understand the importance of energy conservation.
Figure 3 The Outcomes of NRE Development
3.2 Avoided Cost
The costs of renewable energy are measured by the investments required. There are several
weaknesses in to valuing renewable energy solely from this approach, including:
• The costs of technology for renewable energy are often valued at high rates compared to the
conventional energy. One of the reasons is that the inclusion of benefits (including general
benefits) of the use of renewable energy, such as reduced carbon emissions or reduced pollution
are not included into the calculations;
• The evaluation of renewable energy to the vaue of the investment often times do not take
into account the costs avoided by replacing fossil fuels with renewable energy. For example
if solar energy used to produce energy is islands in which beforehand the energy used was
diesel, thus the use of solar electricity generation in-situ represents a benefits of avoided costs
of production; the cost of purchasing diesel for a diesel generator, the costs of transmission etc.
Into the longer term, the comprehensive pricing of conventional energy, stripped of their current
implicit subsidies facilitated as these costs are now externalized and thus do not cover their full
environmental costs and impacts, will add further to the economic viability, indeed, competitiveness
of NER.
The expected
outcome
Accessible and sustainable
services for beneficiaries
Environmental
sustainability
Economic growth and
development
Raising the standards of
living in the community
Developing
organisational quality
Financial viability and
stregnth
Understanding the importance of energy conservation

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3.3 Innovative Financing
Chapter 2 identified that Indonesia requires investment of 1,600 trillion rupiah to achieve the target
of 23% NRE in 2025. The budget for year 2015 allocates IDR 2 trillion (USD 160 million) for renewable
energy, in 2016 it is hoped to increase this budget to IDR 10 trillion rupiah (USD 800 million). It is
clear that there is a significant difference between funds available and funds required. Therefore,
Indonesia needs to apply innovative and creative funding scheme so as to invite various parties to
participate in investing in the accelerated development of renewable energy. The current funds in
the State Budget (APBN) should be used as a stimulus for NRE investment. The expectation is that
the more incoming investment, the faster NRE development in Indonesia.
To create a system for investing in the NER sector on a sustainable basis, there will be a need to
blend public funds with private funding including foreign investment to function as a stimulus to
investment to address the investment and technology risks. These stimulants can be used to create
a combination between market policies, effective fiscal policies to bridge differences in costs and
viability of projects, clearing obstacles and increasing mastery over and access to NER technologies.
Creating a conducive market for private sector investors will be a key to the success of achieving the
national targets for developing NER.
The Financial Services Authority have launched a Roadmap for Sustainable Finance in Indonesia
among which includes renewable energy. As a result, innovative funding both through existing or
new institutions can be optimized by involving other existing financial institutions especially those
committed to allocating funds to the NER sector.
3.4 Planning and budgeting
Planning and budgeting should consider the social, economic and environmental aspects in detail
with a bottom up approach. Planning and budgeting will be conducted together with communities.
This approach is intended to provide access and energy facilities in accordance with the needs of
the local communities.
Figure 4 Illustration of NRE Planning and Budgeting
An integraded
funding
mechanisme
across the entire
supply chain
Bottom up
approach

10
3.5 Program Delivery
Delivery must assure the achievement of outcomes. Key performance indicators are to be applied
to verify these outcomes. Key performance indicators will consist of various aspects including
the percentage of those with access to electricity, percentage of land not degraded, percentage
increase in standards of living, etc. Asset Transfer is included in the delivery phase and shall depend
upon the nature of cooperative agreements for investment and or loans as agreed.
3.6 Landscape Monitoring
All of these activities should be monitored through an integrated landscape format from the
“upstream” to the “downstream” of the value chain. Monitoring the accelerated development
of NER will be undertaken comprehensively by the Government across Indonesia to facilitate the
review and verification of policies adopted. One important principle to be applied in the Landscape
Monitoring System will include transparency and ease of access to information for all stakeholders
both in terms of across ministries and agencies as well as the private sector, civil society, the media
and academia.
Figure 5 Landscape Monitoring on the entire NRE value chain
3.7 A transparent and accountable governance
At this stage the risks of investing in NER are still much higher than in comparison to other sources
of energy. As a result, the Government must ensure that the governance of all activities conducted
are transparent, accountable and consistent. Such governing arrangements will represent a positive
value added in the eyes of relevant stakeholders. Integrity and honesty will be upheld and applied
in all aspects of activities. The Government will put forward an anti-corruption in all aspects of its
engagement.
Monitoring
Landscape from
“upstream” to the
“downstream”
Gaining and
protecting public
trust
KPI will be the
key tool to ensure
expected NRE
outcome
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3.8 Cross-sectoral collaboration
Key to the program is that it is cross-sectoral in nature. Recalling the number of ministries and
agencies that need to be engaged along the national energy production line, it is thus essential that
the approach to be applied to develop and implement the program is cross-sectoral in nature. There
is no role for administrative silo approaches because such approaches will create obstacles to the
smooth implementation of this programme.
Noting that, at its core, this programme relates to the issue of energy, it is appropriate that the
Ministry of Energy and Mineral Resources will carry a fundamental responsibility for this programme.
To be effective the Ministry will need to create a set of mechanisms to work with other ministries/
agencies that have a role in various parts of the overall NRE programme. Even within the Ministry
of Energy and Mineral Resources the success of this programme will rely upon the capacity of each
component within the Ministry to collaborate beyond the confines of administrative silos.
BAB 4. HOW DO WE MANAGE IT?
4. 1 Policy and governance breakthrough
Until now, investors often confront a wide range of obstacles to investing in the field of NRE. In
earlier occasions, the feed-in tariff of geothermal power plants were negotiated at a number of
levels of government thus leading to some complexities and uncertainties in reaching the necessary
pre-conditions for providers and also end-use purchasers to enable quick progress in implementing
investment projects and thus as times leading to a postponement in the issuance of the exploration
investment license. Therefore, the coordination mechanism between central and local should be
integrated to one-door to eliminate issues like this. A type of one door integrated service for NRE
investment, where there will be one spatial information system presenting the opportunities of
NRE investment (water, biomass, geothermal, and solar) over Indonesia will be completely opened
to the public. Indonesia has actually issued a number of investment incentives, but perhaps not
many investors know what and how to utilize these incentives. Therefore, this integrated service will
also provide comprehensive information on investment incentives to investors of various kinds of
NREs, including the structure and implementation of well-targeted and rational incentives in terms
of supporting investment and development efforts of the NRE sector with a long-term perspective.
The development of NRE is related to and requires support from various stakeholders in terms of
policy, technology, financing and other technical issues. As a result there is a need for a forum that
can bridge these various stakeholders in order to accelerate the development of NRE. This forum
has the following functions a) to network opportunities and the potential for collaboration among
agencies, and b) to accelerate the removal of obstacles that hinder the development of NRE.
In examining economic issues, it is notable that there are several regions of Indonesia where the
intensity of economic expansion has not been as significant as on Java. Regional development must
be supported by an energy sector in terms of the supply of electricity and other special sectors that
can help develop the economy in these areas. It is anticipated that the development of NRE will be
applied together to increase development and promote inter-regional equity.
The environment should not be neglected even as the accelerated development of NRE is
being implemented. Aspects concerned centrally to environmental sustainability need also to
be implemented. Key principles to inform practice include no deforestation, no destruction of
peat land, reduced waste. With particular regard to renewable energy from bioenergy, the land
development for bioenergy will be implemented on degraded land. The determination of the types
of fauna to be used will be based on the conditions of land suitability and locality. Another focus
is the respect and protection of the customary community’s rights over land. The development
of NRE will use the principles of building together with the local communities, including customary
communities.
Gotong Royong
between ministry
One stop integrated
investment of NRE
Decentralised
sources of
electricity
NRE Cooperation
Forum
Safe-guarded
environment

12
4.2 Financial breakthrough
Economic/financial aspects represent one of the key obstacles that have and continue to face the
development of NER. As a result, correcting and strengthening the policy instruments of financing
need to be undertaken from the upstream to the downstream of the NER value chain, both on-grid
and off-grid. The full support of all aspects of policy and capacity development are required to
reduce the risks of investment in NER. These policy will be placed in pre production, production,
and post production phase.
By April 2015 the policy for feed-in tariffs for electricity have been established for four sources of
renewable energy, namely bioenergy, solar, geothermal and hydro. The value of the feed in tariffs.
There is a need to underline that all aspects of financing must operate in full consistency with
other agencies in order to achieve maximum results. Suggestions accepted have opened wider
opportunities to the private sector to to be a feed in tariff provider for electricity generation above
10 MW.
Several earlier experiences in applying policies of grant based off-grid activities have shown that
the NER generating facilities ultimately proved unsustainable in terms of a business model. Further
research needs to be conducted to review the business models to be applied including mechanisms
for financing by the users of the electricity generated.
In addition to that fiscal incentive policies for NER are greatly needed including among others policies
covering import duties for several NER technologies, tax holidays etc. It should be underlined that
all a aspects of financing need to be coherent and synchronized with other institutions in order to
achieve the best results.
In accelerating the development and operationalization of NRE, significant breakthroughs are
needed specifically in relation to fiscal policy reforms, including but not limited to domestic and
foreign investment requirement; feed in tariff; financing facilities provided by banks and financial
institutions for NRE; risk guarantee, etc. Aside from policy changes, there is also a need to have
a Fund that functions as financial leverage in accelerating NRE whilst at the same time targeting
central government, regional government, community and private sectors as intermediaries and
beneficiaries. This institution will be known as Sustainable Energy Fund (“SEF’) which may take the
form of a Trust Fund or a Public Service Institution (Badan Layanan Umum).
The SEF is designed to provide ease of access to funding for stakeholders and to mobilize funds in
accelerating the investment needed for developing NRE. The SEF will need support from financing
and financial guarantee institutions such as from the PT Sarana Multi Infrastruktur (with PIP), Indonesia
Infrastructure Guarantee Fund (IIGF) and Geothermal Fund Facility (GFF) in maximizing the funding
and minimizing risks for NRE investments.
The SEF will accommodate various sources of funding from bilateral and multilateral donors; investors;
domestic and international financial institutions in the form of grants, conditional grants, soft loans
and investment. Grants can be used to support policy changes, capacity building, community-based
projects whereas the loans and investment modalities can be channeled to small scale, medium
and large scale private sectors. The allocation of funds will be conducted aligned with the GoI’s
National Energy Policy and the Roadmap of NRE Development Acceleration. On the other hand,
funds received by the SEF will be channeled directly to the beneficiaries or through intermediaries
including but not limited to Indonesia Climate Change Trust Fund (ICCTF), Millennium Challenge
Account-Indonesia (MCA-I), etc. Innovative financing scheme will also be the backbone of the SEF.
The increased use of NRE needs to be supported by a number of integrated and comprehensive
policies. One of the policies that has been implemented by the Government is the implementation
of the mandatory use of biofuel. In previous years, the Government provides a subsidy to Pertamina
for biofuel products to the value of Rp 3,000/L biodiesel and Rp 3,500/L bioethanol. However, this
year, the subsidy has been removed. Considering the need for this subsidy mechanism to support
the development of the biofuel industry, there are plans to reconsider this policy for next year.
Moreover, starting May 2015, the Government will increase the mandatory biodiesel to 15%; and
starting 2016-2019, for transportation and industry sector to 20% while for power plant sector to
30%. For bioethanol, starting 2016-2019, the mandatory will increase to 5% for transportation and
industry. Another crucial aspect is monitoring because the mandatory applications will only be
a discourse if not accompanied by proper monitoring, where if possible to be accompanied by
effective incentive and disincentive mechanisms.
Strengthening
financial policy
instruments
Biofuel subsidy,
mandatory and
monitoring of the
use of biofuel
Sustainable Energy
Fund

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4.3 Technology development breakthrough
As noted in Chapter 2, one of the major issues in developing NER technologies has been the
availability of data. Because of that breakthroughs in data management will be undertaken by
reforming the potential of NER and applying good data management comprehensively. This data
is to be integrated into a centralized system in which the management is conducted transparently
and openly to the public. By providing good and reliable data we expect to be simplify investment,
borrowing and other forms of funding that are used to develop business models.
In addition to more comprehensive management of data there is also a crucial need to better
connect the work of centres of research and development with potential users of the fruits of the
research conducted. This must include the application of better two way communication between
potential users of research and members of the research community.
4.4 Capacity building breakthrough
It is quite difficult and expensive to expect the infrastructure of state-owned energy companies
to reach communities living in remote areas or outer islands. Renewable energy is an alternative
solution to provide energy for such communities. However, remote or outer communities should
be facilitated to implement autonomous energy supply. A well ordered system at the community
level is required to arrange all processes and procedures for providing NRE-based energy so that
the processes are sustainable, and not just as ephemeral “project” initiatives that survive only for as
long as project funds flow. To empower the excellent potential of Indonesia’s youth, quantitatively
and qualitatively, 10,000 energy facilitators will be trained and deployed to all regions of Indonesia
to become innovators and activators in providing education and energy to the communities. The
participation of communities, filled with a sense of belonging towards this initiative, together with
a sense of the benefits of the results of the work will ensure the continuity of this process even after
the funding has concluded.
A common constraint in the development of NRE in Indonesia is the lack of capacity of project
developers in putting together financially viable proposals and the capacity of banks to assess the
project’s feasibility. Therefore, developers and banks should be equipped with capacity building in
this regard. This capacity building activity can be integrated into the one-door integrated service.
In an outline, the acceleration of NRE development until 2025 will present support of incentive
policies across the entire NRE value chain. To sustain all of these processes, a support from three
aspects, namely technology, communities, and international institutions, will be engaged and
strengthened. The outline of NRE development acceleration until 2025 is illustrated as shown below.
Figure 6 The Acceleration of NRE Development until 2025
Data governance
Participation of
communities and
energy facilitators
Connecting the
research sector
with industrial
sector
Capacity building
for developers
and banks related
to NRE project’s
finance

14
APPENDIX 1
QUICK CALCULATION OF NRE INVESTMENT
NEEDS UNTIL 2025
*) Reference of investment cost per kWh:
- Geothermal (https://www.iea.org/publications/freepublications/publication/Geothermal_
Essentials.pdf)
- Biomass (http://www.wbdg.org/resources/biomasselectric.php)
- MSW (http://www.seas.columbia.edu/earth/wtert/faq.html)
- Hydro (http://www.irena.org/documentdownloads/publications/re_technologies_cost_analysis-
hydropower.pdf)
- New Energy: nuclear (http://world-nuclear.org/info/Economic-Aspects/Economics-of-Nuclear-
Power/)
**) 1 US$ = Rp 12.000

2020
% MTOE GWh
Investment
cost per
kWh*
Total
investment
(mio US$)
Total
investment**
(trilion rupiah)
Total energy 290 3,372,700
Geothermal 8% 23.2 269,816 $0.12 32,378 389
Bioenergy 5% 14.5 168,635 20,573 247
- Biofuel 3% 8.7 101,181 $0.15 15,177 182
- MSW 2% 5.8 67,454 $0.08 5,396 65
Hydro 2% 5.8 67,454 $0.19 12,816 154
New Energy 2% 5.8 67,454 $0.09 6,296 76
Total NRE 17% 49.3 352.14 77,460 ≈ 930
2025
% MTOE GWh
Investment
cost per
kWh*
Total
investment
(mio US$)
Total
investment**
(trilion rupiah)
Total energy 400 4,652,000
Geothermal 7% 28 325,640 $0.12 39,077 469
Bioenergy 10% 40 465,200 53,498 642
- Biofuel 5% 20 232,600 $0.15 34,890 419
- MSW 5% 20 232,600 $0.08 18,608 223
Hydro 3% 12 139,560 $0.19 26,516 318
New Energy 3% 12 139,560 $0.09 13,026 156
23% 92 1,069,960 132,117 ≈ 1,600

APPENDIX 2
POTENTIAL NATURAL
RESOURCES NRE VS INSTALLED

B. Isi Roadmap Eng

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