Presentation from Devi Ebtke OECD Stakeholder dialogue: Mobilising Clean Energy Finance and Investment Joint OECD-Government of Indonesia (GoI) Workshop at the Indo EBTKE Conex 2019, 8 November, Jakarta

1. @djebtkeLintas EBTKEwww.ebtke.esdm.go.id @djebtke
Ministry of Energy and Mineral Resources
INDONESIA
Ministry of Energy and Mineral Resource
November 8th 2019
ENERGY CONSERVATION INVESTMENT IN INDONESIA

2. Background

3. Energy Conservation Target and Strategy
10%
18%
51%
3%
18%
13%
18%
40%
5%
24%
2015 2025
41%
30%
15%
5%
9%
31% 36%
15%
5%
13%
2015 2025
ElectricityGas Oil Coal RE
Final Energy Mix by Type of Energy Final Energy Mix by Sector
Industry
Transport
Others
Household
Commercial
Supply Energi Final 2015 - 2050
• Reduce energy
intensity 1% per year
up to 2025
• Reach energy
elasticity < 1 on
2025
• Reduce final energy
consumption by 17%
on 2025
Target 2025
0
1
2
3
4
5
6
7
8
2015 2025 2030 2050
JutaSBM
BAU Scenario RUEN Scenario
Target 2025 : 17%
Target 2030 : 22%
Target 2050 : 39%
Energy Conservation Implemetation Strategy
1. Implement Mandatory Energy
Management for Large Energy
users ≥ 6.000 TOE;
2. Apply Energy Efficient Standard
and Labeling on appliances;
3. Implement energy conservation in
public sector as best practices;
4. Promote private sector investment
in energy conservation;
5. Increease awareness on energy
conservation;
6. Build capacity and technology
transfer;
7. Implement monitoring,
evaluation system in energy
conservation.
3
Reference: -. Excluding Biomass
-. Other sectorsincluding agriculture,constructionand mining
Source: Handbook of Energy& EconomicStatisticsof Indonesia2017 Final Edition, KESDM

4. Energy Conservation Standards and Regulations
1982 • Presidential Regulation No. 9/1982 on Energy Conservation
1995 • National Master Plan on Energy Conservation, revised on 2005.
2007 • Law No. 30/2007 on Energy
2009 • Government Regulation No.70/2009 on Energy Conservation
2011 • Presidential Regulation No. 61/2011 National Action Plan on GHG
Emission Reduction;
• National Standard SNI : 6196:2011 on Energy Audit Procedure on
Building;
• National Standard SNI : 6197:2011 on Energy Conservation on
Lighting System;
• National Standard SNI : 6389-2011 on Energy Conservation on
Building Envelope;
• National Standards SNI : 6390-2011 on Energy Conservation for Air
Conditioning on Building
2012 • Ministry EMR Regulation No. 13/2012 on Electricity Saving;
• Ministry EMR Regulation No. 14/2012 on Energy Management;
• Ministry EMR Regulation ESDM No. 15/2012 tentang Ground Water
Saving;
• Governor Jakart Regulation No. 38/ 2012 on Green Building
• Ministry EMR Regulation No. 01/2013 on Fuel Usage Control2013
2014 • Ministry EMR Regulation No. 18/2014 on Energy Efficiency Labeling
for CFL;
• Ministry EMR Regulation No. 19/2014 on Electricity Billing Price by
PLN;
• Government Regulation No. 79/2014 on National Energy Policy.
2015 • Presidential Regulation No. 38/2015 on PPP for Government
Infrastructure Projects (including energy conservation);
• Ministry EMR Regulation No. 7/2015 on MEPS and EE labeling for
AC;
• Ministry of Labor Regulation No. 80/2015 on Standard of
Competency for Energy Manager in Industry and Building;
• Ministry of Public Works and Housing Regulation No.
02/PRT/M/2015 on Green Building
2017 • Presidential Regulation No. 22/2017 on National Energy Planning
• MEMR Reg. No. 57/2017 MEPS Implementation and Energy Saving
Label for AC
4
2018 • SNI ISO:817-2018 on Refrigerant: Names and Safety Classifications
• SNI 6500-2018 on Fixed Installation Refrigeration System: Safety
and Environmental Requirement
• SNI 8476-2018 on Performance Testing and Evaluation Method for
Chillers using Steam Vapor Compression System
• Minister of Manpower Decree No. 53/2018 on Establishment of
Indonesian National Working Competency Standard for Energy Audit

5. Final Energy Consumption
5
Final Energy Mix by Sector
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Lainnya 25 25 22 27 34 31 29 33 20 21 16
Transportasi 186 210 230 278 330 341 343 309 340 362 391
Komersial 27 28 30 33 36 38 39 41 39 41 42
Rumah Tangga 84 81 82 85 92 100 106 111 115 120 128
Industri 276 260 306 331 327 239 246 266 223 237 291
-
100
200
300
400
500
600
700
800
900
1.000
JutaSBM
Industri Rumah Tangga Komersial Transportasi Lainnya
34%
15%
5%
45%
2%
Industri Rumah Tangga Komersial Transportasi Lainnya
2008
2008
2013

6. Energy Intensity
6
Reference: -. Excluding Biomass
-. Other sectorsincluding agriculture,constructionand mining
Source: Handbook of Energy& EconomicStatisticsof Indonesia2017 Final Edition, KESDM
157
165
161
150 144 145 135
135
141
98
104 106
92 89 85
78 79 83
0
20
40
60
80
100
120
140
160
180
2010 2011 2012 2013 2014 2015 2016 2017 2018
BOE/BillionIDR
Primary Energy Intensity Final Energy Intensity
Linear (Primary Energy Intensity) Linear (Final Energy Intensity)
GR No.79 Tahun 2014
on National Energy
Policy
Energy Intensity id an
amount of total energy
consumption per unit
gross domestic product

7. Energy Saving Potential
7
Reference: -. Excluding Biomass
-. Other sectorsincluding agriculture,constructionand mining
Source: Handbook of Energy& EconomicStatisticsof Indonesia2017 Final Edition, KESDM

8. Cascading of Energy Conservation
OUTCOME
PROGRAM
Energy Audit on
Industry and
Building
Energy Audit &
Investment Grade
Audit
Energy Management
System
Implementation
Energy Management
System
Efficiency
Technology
Implementation
EE Technology
Implementation
and SNI on
Appliances
Awareness & EE
Socialization
Public Awareness
Potential Energy
Saving 5-10 %
EE Funding
Incentive &
Disincentive
OUTPUT
Energy Efficiency onDemand Side
Industrial Sector
Energy Saving Potential
10%(23,2 JutaSBM)
Commercial Sector
Energy Saving Potential
10%(4,2 Juta SBM)
Household Sector
Energy Saving Potential
15%(18 JutaSBM)
Transportation Sector
Energy Saving Potential
15% (54,3Juta SBM)
- Reduce final energy consumption by 17%
- Reduce energy intensity 1% per year
- Reach energy elasticity < 1 EconomicGrowth and
Competitiiveness
Energy
Security
Climate
Change
IMPACT
Energy Efficiency on Supply Side
Energy Saving Potential
1% (5,4 Juta SBM)
Generation Sector
EE Standard (Label/
MEPS)
AC & CFL
EE Standard and
Label

9. Energy Conservation Programs

10. Energy Conservation on Utilization Side
Government Regulation No. 70/2009 Article 12
10
1. appointing energy manager;
2. formulating energy conservation program;
3. applying energy audit regularly;
4. implementing energy audit recommendation;
5. reporting the implementation of energy conservation to the Government.
Obligates to energy users > 6,000 TOE* per annum to apply energy
management by:
*) 6000 TOE equivalent to 251,400 giga joule (GJ) or 69,780 mega watt hour (MWh).

11. Distribution of Energy Users consume ≥ 6000 TOE per Annum
11

12. Energy Manager and Auditor in Industries and Buildings
12

13. LABELING ON HOUSEHOLD APPLIANCES
13

14. ENERGY EFFICIENT STREET LIGHTING
14

15. 15

16. Target Products for MEPS & Labelling
16

17. Investment

18. INVESTMENT POTENTIAL FOR ENERGY EFFICIENCY
Ministry of Energy and Mineral Resources – Republic of Indonesia
18

19. INVESTMENT IMPLEMENTATION
Ministry of Energy and Mineral Resources – Republic of Indonesia
19

20. 20

21. 21

22. Energy Saving from POME (Pelaporan Online Management Energy)/
Energy Management Online Reporting
22
2013 2014 2015 2016 2017 2018
Number of Participant 15 23 87 104 141 123
Saving (MWh) 52 68 270 7765 8262 8771
15
23
87
104
141
123
52
68
270
7765
8262
8771
POME REPORTING NUMBER OF PERTICIPANT VS ENERGY
SAVING
EE Investment
Tahun 2018 Energy Saving
8.771 GWh
Emission Reduction
2.634.113
Ton CO2 eq
Equal to Develop
new Power Plant
1.090 MW eq** 1 USD equal to 14,400 IDR
**power plant operation hours :
8040 hours per annum
Equal to Saving
Cost for Energy
Rp 24,05/kWh
Equal to Cost of
CO2 Reduction
Rp 300 per
kg CO2 eqAction

23. Challenges

24. Some consideration that create the issues on EE Implementation are :
 Knowledge gap between banks and industries as industries are not aware of the financing
aspects of their EE project and Obtaining loans or funds for EE in local bank is often
complicated process
 Incentive hasn’t been given yet
 No Project Financing scheme for EE Project
 ESCO has very limited budget, long Payback period
 Financial institutions have limited confidence in the ESCO market and The concept of energy
performance contracting is relatively new in Indonesia
 Facility managers have limited awareness on EE benefits causing limited interest in funding
EE projects and also consideration of its intangibility EE output
Energy Efficiency Investment Challanges

25. What next to do ??
• Strengthen and Harmonizing Policy and Regulation to support EE in Indonesia
• Incentive can be given to accelerate EE project and reduce the project risk
• EE project need funding support from the government and private sector
• Implement EE pilot project with project financing scheme
• Funding support can be applied in exsisting institution (PT SMI and BDP LH)
• International financial institution should support EE project with easy procedure
• Conduct targeted awareness raising and stakeholder knowledge exchange
activities. Dedicated trainings oriented towards their role in EE financing and
focus areas.
• Streamline approval process and establish standard documentations for
financial institutions for EE funding

26. 26
Thank You