Ebtke Conex 210813 Draft 2 English'

8/12/2019 Ebtke Conex 210813 Draft 2 English'

1/18

RENEWABLE ENERGY IN THE EYES

OF PARLIAMENT

IR. SATYA WIDYA YUDHA, M.SC

ANGGOTA KOMISI VII FRAKSI PARTAI GOLKAR DPR RI


2/18

INDONESIA LEGAL BASIS ON ENERGY

Indonesia Constituion , Article 33 (3)

Earth and water and the natural riches contained therein controlled by the state and used for the

people's welfare..

Law No. 17/2007on Long Term Development Plan Year 2005-2025

Management of natural resources including energy sources nationwide are treated as inputs in the

production process as fuel or raw materials that can bring added value to the country.

Law No. 30/2007 on Energy

The role of energy is very important for the improvement of economic and energy security, so it

includes the provision of energy management, utilization should be conducted in a fair, sustainable,

optimal, and integrated.

Law No. 22/2001 on Oil and Gas

Oil and gas is a strategic resource that is not renewable and controlled by the state and also vital

commodity that controls the lives of many people which has an important role in the national

economy. Thus, the management of it should be able to provide prosperity and the well-being of the

people.


3/18

Law No. 10/1997 on Nuclear Energy

Nuclear energy Affect the lives and the safety of many, therefore, it must be controlled by the state,

thus, the utilization of Nuclear Energy for national development should be aimed at realizing a fair

and prosperous society

Law No. 27/2003 on Geothermal

Geothermal energy is a natural resource that can be renewed, it has large potential , controlled by

the state and have an important role as a source of alternative energy in the national energy

diversity to support sustainable development in order to realize the people's welfare

Law No. 30/2009 on Electricity

Electricity plays a very important role in realizing the strategic objectives and national development

. Thus, the electricity supply business controlled by the state and its provision should be increased in

line with the national development. Therefore. electric power should be available in sufficient

quantities, equitable, and high quality.

Law No. 4/2009 on Mineral Resource and Coal

Mineral resource and coal contained in the Indonesian mining jurisdiction are non-renewable

energy which have an important role in meeting the lives of many people, Therefore its

management should be controlled by the State to provide significant added value for the national

economy in order to achieve prosperity and welfare of the people equitably.


4/18

FALSE ASSUMPTION ON ENERGY IN INDONESIA

1. Indonesia is a country rich in oil. In fact its NOT! We have other type of

energy such as coal, gas, CBM (Coal Bed Methane), geothermal, hydro power,biofuels (Biofuels) and etc.

2. Fuel prices must be very cheap,without thinking that it cost the state budget

to subsidize fuel prices, our dependence on oil and this way of thinking create

condition where we keep importing oil and fuel and difficult condition forother energy to grow

3. Investors will come by itself without the need to be friendly and provide a

good investment climate.

4. National economy will be improved on its own with outh the intervention of

the Government


5/18

NATIONAL ENERGY SOURCES

NO RENEWABLE ENERGY

SOURCES

(SR)

INSTALLED

CAPASITY (IC)

RATIO IC/SR

(%)

1 2 3 4 5 = 4/3

1 Tenaga Air/ Hydro Power 75,670 MW 5,705.29 MW 7.54

2 Panas Bumi/Geothermal 29,038 MW 1,189 MW 4.00

3 Mini/Micro Hydro 769.69 MW 217.89 MW 28.31

4 Biomass 49,810 MW 1,618.40 MW 3.25

5 Tenaga Surya/Solar 4.80 kWh/m2/day 13.5 MW -

6 Tenaga Angin/Wind Power 3 6 m/s 1.87 MW -

7 Uranium

3.000 MW

(e.q. 24,112 ton) for 11

years*)

30 MW 1.00

*) Hanya di Kalan Kalimantan Barat

Production and proven reserves of oil continue to fall. Although our

gas proved reserves quadrupled our oil reserves, but the oil-to-gas

conversion program did NOT run smoothly.


6/18

NoENERGI FOSIL

(TIDAK TERBARUKAN)

SDACADANGAN

(CAD)

RASIOSD/CAD

(%)

PRODUKSI

(PROD)

RASIOCAD/PROD

(TAHUN)*)

1 2 3 4 5 = 4/3 6 7 = 4/6

1 Minyak Bumi / Oil (miliar barel) 56.6 7.99 **) 14 0.346 23

2 Gas Bumi / Natural Gas (TSCF) 334.5 159.64 51 2.9 55

3 Batubara / Coal (miliar ton) 104.8 20.98 18 0.254 83

4 Coal Bed Methane/CBM (TSCF) 453 - - - -

5 Shale gas (TSCF) 574 - - - -

*) Dengan asumsi tidak ada penemuan cadangan baru

**) Termasuk Blok Cepu

Proven Oil Reserves

Proven Gas Reserves

NATIONAL ENERGY SOURCES


7/18

# BUDGETING ENERGY SECTOR


8/18

STATE BUDGET MACRO ECONOMIC BASIC

ASSUMPTION 2013No. Macro Economic basic Assumption

2013

NUMBER INFO

1 Economic Growth 6,8 (%)

2 inflation 4,9 (%)

3 Interest Rate of 3months Treasury

Bonds (%)

5,0 (%)

4 Exchange Rate Rp 9.300 (Rp/US$)

5 Indonesia Crude Price 100 (US$/barrel)

7 Oil Lifting 900.000 (barrel per hari)

8 Gas Lifting 1.360 (mboepd)

9 Total of Energy Subsidy Rp 274,74 T

10 Fuel Subsidy Rp 193,8 T

11 Electricity Subsidy Rp 80,94 T


9/18

State Budget Revenue Trends

Optimization of Natural Resources Revenue

Needs to improve the governance of natural resources that incur losses to the

government due to business practices in the oil and gas sector, mining, farming, forestry,

and fisheries

Need to revisit the cooperation contracts in the form of rights management, profit

sharing, royalties or sales of natural resources, which resulting in losses to the state due

to the loss of usage use potential of the natural wealth of Indonesia.


10/18

GOVERNMENT STATE BUDGET 2013

* dalam Triliun Rupiah

Problems: Infrastructure Development to be hampered because of the

allocation of capital expenditure in the state budget is always smaller than

Routine & Subsidies.

The Government must undertake the management of the fuel subsidy budget

strictly to avoid any swelling in the state budget.


11/18

ENERGY SUBSIDY TRENDS IN STATE BUDGET

64.2 61.8

140

54.3

81.1

129.7123.6

137,38

193,8199.8

32.225.8

78.56

48.16

62.81 65.5

44.9

65

80,943

99.97

0

20

40

60

80

100

120

140

160

180

200

2006 2007 2008 2009 2010 2011 APBN 2012 APBN-P

2012

2013 APBN-P

2013Subsidi BBM Subsidi Listrik

APBN-P 2013:

Energy Subsidy Rp 299,77 T

( Fuel Rp 199.8 T &

Electrity Rp 99.97 T )

DRAFT APBN 2014:

Energy Subsidy Rp 284.7 T,

( Fuel Rp 194,9 T &

Electricity Rp 89.8 T )

APBN 2013:

Energy Subsidy Rp 274,7 T

( Fuel Rp 193,8 T &

Electricity Rp 80,94 T )


12/18

COMPARATION OF ENERGY SUBSIDY

Negara Bensin Solar

Minyak

Tanah LPG

Minyak Bakar

RinganMinyak Bakar

BeratGas

Bumi Batubara Listrik

Indonesia 24 54 58 30 35 t.a 0 58 13

Cina 5 13 3 18 0 0 45 17 0

India 0 0 41 20 0 0 70 0 5

Pakistan 0 28 19 0 19 0 59 0 0

Malaysia 26 37 0 33 9 0 t.a t.a 5

Thailand 0 16 0 35 0 0 65 57 10

Filipina 0 0 5 0 34 t.a t.a t.a 0

Iran 82 96 76 67 32 73 66 t.a 30

Venezuela 90 96 0 82 94 84 t.a t.a 25

Mesir 65 80 88 94 80 71 76 t.a 4

Rusia 0 0 0 0 0 16 57 17 34

Catatan : t.a. = tidak ada data; 0 = tidak ada subsidi Sumber: EIA, 2006

(% Subsidi)


13/18

# LEGISLATIVE PERSPECTIVES


14/18

ENERGY INDEPENDENCE

Sumber:

Asia Pacific Energy Research Centre (APERC)&International Energy Agency (IEA)

ENERGY SECURITY

Ability to respond to the changing

dynamics of the global energy

(external)

Ability to ensure the availability of

energy at reasonable prices

(internal)

availability

The ability to provide energy security (security of

energy supply)

Accessibility

The ability to gain access to energy

(infrastructure availability)

Purchasing Power

willingness to pay


15/18

NATIONAL ENERGY DEVELOPMENT DIRECTION

EXPLORATON ON NEW RENEWABLE ENERGY

RESOURCES

INCREASING ACCESSIBILITY

INCREASING THE PURCHASING POWER OF

THE PEOPLE

DIVERSIFICATION AND ENERGY

CONSERVATION

INTESIFICATION OFEXPLORATION AND

EXPLOITATION ACTIVITY

INFRASTRUCTURE

DEVELOPMENT

RIGHT TARGET AND RIGHT

VOLUME ON SUBSIDY

ENCOURAGE THE USE OF

RENEWABLE ENERGY


16/18

NEW PARADIGM ON ENERGY SUBSIDIES

The government should change the paradigm of fuel subsidy.Currently, the pattern is still focused subsidies for fuel prices. In the

future, the government should design a DIRECT SUBSIDY PROGRAM that

can be precisely targeted to low-income and poor people.

Shift fuel subsidy gradually in the next five years for renewable energy

subsidies (future energy) in order to achieve energy security

Saving Fuel subsidies should be allocated for the infrastructure and the

development of Renewable Energy (Geothermal, Microhydro, Nuclear,

Solar power, Biomass, Wind Power, Uranium)


17/18

HOW DO WE MOVE FORWARD ???

Easing Necessary Permitts (Such as: RevisingGeothermal Law)

Forming Pricing scheme which is economicly

viable- Ministrial Decree need to be promulgated for

the above purposes

Revisit Subsidy Policy : Subsidizing RenewableEnergy less than Fossil Fuels ???


18/18

THANK YOU

WWW.SATYAYUDHA.COM

FOLLOWMETWITTER@SATYAWIDYAYUDHA
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Ebtke Conex 210813 Draft 2 English'

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