ASSESSING AND ENHANCING CAPACITY FOR GBEP SUSTAINABILITY INDICATOR EVALUATION IN INDONESIA€¦ ·...

Ministry of Energy and Mineral Resources

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

ASSESSING AND ENHANCING CAPACITY FOR GBEP ASSESSING AND ENHANCING CAPACITY FOR GBEP ASSESSING AND ENHANCING CAPACITY FOR GBEP ASSESSING AND ENHANCING CAPACITY FOR GBEP

SUSTAINABILITY INDICATOR EVALUATION IN INDONESIASUSTAINABILITY INDICATOR EVALUATION IN INDONESIASUSTAINABILITY INDICATOR EVALUATION IN INDONESIASUSTAINABILITY INDICATOR EVALUATION IN INDONESIA

by :

DR. DADAN KUSDIANA

Global Bioenergy Partnership (GBEP) Seminar

“Sustainable Bioenergy: Providing Energy Access for Sustainable Development”

Rio de Janeiro, 18 June 2012


THIS PRESENTATION

1. Bioenergy in Indonesia

2. Project Overview

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3. Status Update

4. Next Steps


BIOENERGY IN INDONESIA

1. Commercial utilization of biofuel has been implemented since 2006 for

transportation sector. Since 2009, Government has gradually mandatorized

biofuel utilization in transportation, industry and power plant sectors.

2. Existing capacity on biodiesel is 4,25 million KL, and bioethanol is 153 thousand

KL per year (as of 2011). Palm oil and sugar cane are the feedstock for biofuel.

3. Government has provided subsidy for biofuel use in transportation sector.3. Government has provided subsidy for biofuel use in transportation sector.

4. Bioenergy for electricity generation has also been promoted for bot on-grid and off

grid aproach. Feed-in tariff for on-grid has been issued in February 2012 and

currently around 20MW has been implemented. Most of them are using palm oil

waste as the feedstock fuel.

5. A national biogas program for household has been in placed since 2009 targetting

8000 unit in 2012 with the suport from Netherlands government.

6. Indonesia is also active in the discussion on European RED and EPA RFS 2 on

sustainability issues.

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Indonesia Sustainable Palm Oil

• Indonesian Sustainable Palm Oil/ISPO) was issued in 29 March 2011 as a

reference to promote sustainable palm oil plantation in accordance to the market

and global requirements

• The content of the ISPO is anot different very much from Europe's Roundtable

Sustainable Palm Oil (RSPO) that has earlier been implemented

• Challenges to make it become a competitive power or a national palm oil power • Challenges to make it become a competitive power or a national palm oil power

namely assuring that its process would be easy and appropriate, auditing and

auditors, certificates for farmers and acceptance of buyers and international

community

• The ISPO has been officially effective as of March 2012 and it is hoped all oil palm

plantation companies will have obtained the ISPO certificate by 2014

• In 2011, Indonesia has been appointed by GBEP as a Country Project to Pilot the

Global Bioenergy Partnership (GBEP) Sustainability Indicators for Bioenergy

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PROJECT OVERVIEWActors involved:

i. The Food and Agriculture Organization of the United Nations (FAO) is managing the project, through the GBEP Secretariat;

ii. Indonesian Ministry of Energy and Mineral Resources is the national focal point for the project;

iii. The German government is funding the project through its iii. The German government is funding the project through its International Climate Initiative (ICI);

iv. Experts from Bogor Agricultural University (IPB) are performing the operations of data collection;

v. Various public sector, private sector, and civil society institutions are participating, as well as research centres, some of whom will be contracted to support IPB in the data collection.

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PROJECT OVERVIEWOBJECTIVES:

i. Assess and enhance the capacity of Indonesia to evaluate bioenergy sustainability using the GBEP indicators and use them to inform bioenergy policymaking; and

ii. Learn lessons about how to apply the indicators as a tool for sustainable development and how to enhance the practicality sustainable development and how to enhance the practicality of the tool.

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PROJECT OVERVIEW

These objectives will be met by:

i. Indentifying existing national and international data sources and assessing what data are required for measuring the Indicators;

ii. Better understanding the Indonesian bioenergy system through collection of spatially discrete data on production, through collection of spatially discrete data on production, infrastructure, and distribution logistics;

iii. Facilitating multi-stakeholder dialogue within Indonesia on indicators, data, and methodologies;

iv. Producing maps providing a spatial evaluation of bioenergyimpact and land suitability

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PROJECT OVERVIEW

RESEARCH TEAM:

• A research team at Bogor Agricultural University (IPB) was

selected to undertake the piloting exercise.

• Team led by Prof. Dr. Erliza Hambali:• Team led by Prof. Dr. Erliza Hambali:

– Economists, forestry and biodiversity experts, general

environmental experts, and GIS/spatial analysis experts.

• Dr. Hambali and her team are deeply experienced in biofuels,

as well as well networked in the bioenergy space among

researchers, producers and government – facilitating data

collection and private/public sector engagement.

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STAKEHOLDER CONSULTATION:

Kick-off meetings (November 12-13, 2011)

• Lists of stakeholders from the public and private sectors and civil society, were

developed by FAO - with input from FAO regional offices - and Indonesian Government

focal points. These were then used as the basis for invitations to the kick-off meetings.

• November, 2011 – kickoff meetings – more than 30 participants from public and private

Status Update

• November, 2011 – kickoff meetings – more than 30 participants from public and private

sector, including four key Ministries (Agriculture, Energy, Forestry, and Industry) were

present.– Discussed data collection and overall methodology

– Constructive dialogue between public sector, private sector, and civil society, including on sensitive

subjects such as land tenure

– Electronic working group was created for knowledge sharing

• April 13-14, 2012 – Midterm meetings– Sought stakeholder feedback on the proposed data collection strategy and the adapted methodologies

– Shared info on relevant studies and discussed potential sites for primary data collection


DATA COLLECTION:

• Because of the size, heterogeneity, and diffuse nature of the Indonesian agriculture and bioenergy context, data availability vary and identification of reliable data sources has been a critical early focus.

Status Update

• IPB researchers have identified data sources for measuring each of the indicators, and are assessing their quality and suitability with the support of FAO/GBEP technical experts.

• Data sources were presented and discussed in detail at the mid-term meeting, allowing stakeholders to comment on their suitability and accuracy as well as to suggest other approaches.


DATA SOURCES: • Both primary and secondary data are being included in assessment

• Primary data will be obtained from farmer and community surveys in the

locations of bioenergy producers and of the bioenergy processing plants.

– Riau Province for biodiesel, Lampung for bioethanol, and West-Java for biogas.

• Surveys and interviews will also be conducted with private sector stakeholders

Status Update

• Surveys and interviews will also be conducted with private sector stakeholders

• Primary environmental data will be collected through field work

– Field water and soil sampling

• Secondary data are being obtained from literature study and other sources


MAPPING:

• IPB researchers are working to produce a map of the country showing:

– areas of high biodiversity value or critical ecosystems

– areas lacking access to modern energy services

– level of water scarcity/stress on a watershed basis

Status Update

– level of water scarcity/stress on a watershed basis

– infrastructure for transport and distribution of energy

– bioenergy feedstock production and processing into bioenergy

• This involves: (1) Interpretation of Landsat images, (2) Field verification, and (3)

Land Use Map correction.

• This, along with land quality criteria (soil, topography, climate) are being used

to create a land suitability map.


SECONDARY DATA SOURCES:

• Data sources drawn on vary by the indicator in question, but include:

Government agencies– Government Ministries - Agriculture, Forestry, Public Works, Human Rights, Transmigration, and Energy & Mineral

Resources

– National Land Board (BPN)

– Bureau of Statistics (BPS)

Status Update

Private sector– Indonesian Biofuel Association (APROBI)

– Indonesian Renewable Energy Society (METI)

– Pertamina – State-owned oil and gas company

Research entities– Indonesian Association of Bioenergy Scientists and Technologists (IKABI)

– Academic literature

– Indonesia National Geospatial Information Portal (BAKOSURTANAL)

– ICRAF

NGO– SawitWatch


NEXT STEPS

� Capacity Building:

June – September 2012: Training of government officials and scientists in order to put Indonesia in the position of measuring the indicators periodically;

� Discussion: � Discussion:

September – November 2012: Assess baseline indicator values through a multi-stakeholder process and identify the next 5-10 years objectives;

� Draw conclusions:

November – December 2012: Recommendation on the use and improvement of the GBEP indicators for the Indonesian and similar contexts as the result of discussions among project participants.

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NEXT STEPS

KEY MESSAGES TO-DATE:

� The multi-stakeholder, country-led approach taken in this project has been

successful in bringing together a mixture of public, private and civil society

institutions;

� The FAO-Indonesia collaboration building upon the GBEP indicators is

providing a useful framework for organising the national researchproviding a useful framework for organising the national research

programme on bioenergy sustainability;

� The GBEP indicators provide a useful, evidence-based, structure for

important but often-difficult discussion on issues such as land tenure,

habitat conservation, and GHG emission;

� This approach is facilitating the identification of analytical capacities, data

sources and gaps, and institutional synergies.

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THANK YOUUseful links:

Bogor Agricultural UniversityBogor Agricultural University

http://www.ipb.ac.id/

Food and Agriculture Organization of the United Nations

http://www.fao.org/

GBEP Indicators

http://www.globalbioenergy.org/

Indonesian Ministry of Energy and Mineral Resources

http://www.esdm.go.id/

International Climate Initiative

http://www.bmu-klimaschutzinitiative.de/en/


Thank YouThank YouThank YouThank You

Energy for the Welfare of Society

www.ebtke.esdm.go.id

Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950; Telp/Faks : 021-5250575

KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL REPUBLIK INDONESIA

DIREKTORAT JENDERAL ENERGI BARU, TERBARUKAN, DAN KONSERVASI ENERGI

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INCENTIVES ON RENEWABLE ENERGY

• Creation of market/demand

• Feed-in tariff

• Financing mechanism

• For micro grid, subsidi for construction and • For micro grid, subsidi for construction and

operation

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EXISTING EXISTING INCENTIVES FOR COMMERCIAL ONINCENTIVES FOR COMMERCIAL ON--GRID GRID IMPLEMENTATIONIMPLEMENTATION IN INDONESIAIN INDONESIA

1. Giving priority for locally available renewable energy resources

(no need for tender)

2. Mandatory for electric utility to purchase electricity generated from

renewable energy

3. Regulated Purchasing Price (Feed-in Tariff)

4. Tax investment credit for electricity generated from renewable

energy (currently applies for geothermal)

5. Reduced or exempted custom tax for renewable energy

technologies

6. Simple permit procedure

7. Support from the government for selected FS

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BIOFUEL INCENTIVES

• Staging of mandatory biofuel utilization

• Tax exemption on VAT

• Investment tax incentives

• Direct subsidy on retail price for transportation sector• Direct subsidy on retail price for transportation sector

• Interest rate subsidy for biofuel feedstock plantation

• Simplifying the license procedure on biofuel business

ASSESSING AND ENHANCING CAPACITY FOR GBEP SUSTAINABILITY INDICATOR EVALUATION IN INDONESIA€¦ ·...

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