In recent years, Indonesia's annual power generation is about 29,700 megawatts, which is mainly dependent on oil and coal. However, the current electricity supply in Indonesia is no longer able to meet the demand brought by population growth and economic growth, and power outages frequently occur in most parts of Indonesia. Java and Bali, home to about half of the Indonesian population, are the regions with the most electricity consumption and are currently facing a serious power crisis. As traditional energy production such as oil has been unable to meet the growing consumer demand in Indonesia, the development of new energy alternatives including biofuels to replace fossil fuels has become an important part of the Indonesian government’s “national energy strategyâ€. Through vigorously developing new energy sources, Indonesia has achieved poverty reduction, eased employment pressures and resolved energy security issues. After years of hard work, Indonesia’s new energy has a strong momentum of development and is expected to effectively resolve the current energy shortage crisis.
Inclusion in the National Energy Development Strategy After a three-and-a-half-year consultation, the Indonesian Parliament passed the controversial New Energy and Minerals Law by the end of 2008. The main contents of the bill include that each step requiring investors to develop mineral resources, including seismic exploration, mining, feasibility studies and project construction, must be approved by the Indonesian government; investors are restricted to carry out mining activities in certain specific areas. To protect the small and medium-sized mining companies in the country; to require investors to set up smelters in Indonesia to process mineral resources; and to change the commercial contract system and the commercial contracts for the operation of coal minerals to the mineral business permit. Indonesia is the world's largest producer of palm oil and has a rich variety of domestic energy crops. The current development of biofuel crop varieties include oil palm, jatropha, coconut, cassava, sugar cane, sweet sorghum and so on. Indonesia currently produces two types of biofuels, namely biodiesel and bioethanol. The former raw materials mainly come from palm crude oil and Jatropha. The latter raw materials are cassava and sugarcane. At the same time, Indonesia is also increasing its R&D efforts on second-generation biofuels. It uses straw, bagasse, and rice husk as raw materials to produce non-food crops such as ethanol and cellulosic ethanol.
Indonesia plans to use biofuels in Indonesia to account for 2% of all energy sources by 2010 and 5% by 2025. In order to meet the increased demand for biofuel production capacity, Indonesia has been vigorously developing bioenergy crops in recent years, of which oil palm and sugarcane plantations are the largest, with 6 million hectares and 2.2 million hectares respectively. According to the planning of the Ministry of Agriculture of Indonesia, the Indonesian palm garden planting area will reach 8 million hectares by 2010.
Government Subsidies for Biofuels At the beginning of the year, 52 investors and 6 banks signed a cooperation agreement to develop Indonesian biofuels with a commitment of investing 1.24 billion U.S. dollars (111 trillion U.S. dollars) and a commitment loan of 25 trillion U.S. dollars. Thanks to the agreement, Indonesia is expected to produce 200,000 barrels of biofuels or plant fuels per day by 2010. The Indonesian government designated the National Petroleum Corporation to promote biofuels by covering gas stations throughout the country. Since January 2008, more than 200 gas stations have sold biofuels in Jakarta, Surabaya and Bali. Biofuels are priced by the government. When biofuel prices are higher than fossil fuel prices, the government subsidizes them.
According to the person in charge of the New Energy Technology Research Institute of the Ministry of Energy and Mines of Indonesia, the Indonesian national oil company currently sells 1 litre of bio-fuel every time, and the government subsidizes 1,000 rupiah. For example, the price of bio-shale oil (which is mixed with 2.5% biodiesel and 97.5% of traditional diesel) is the same as diesel price, which is 4500 rupiah, but the cost of bio-shale oil is much higher. The government gives Subsidies, hope that the state-owned oil companies can continue, but also the entire industry. The Indonesian government implemented a bill in October last year that requires manufacturers to use at least 2.5% of biofuels in energy consumption in order to reduce their dependence on fossil fuel energy. The first step was implemented in the densely populated islands of Java and Sumatra, where business and industry were concentrated, and then implemented throughout the country.
To ensure the implementation of the bill, the government will work with local state-run and foreign-funded major oil producers and retailers to add up to 2.5% of biofuels to finished crude products. In addition to reducing its reliance on petrochemical energy resources and expanding its energy supply, the Indonesian government has also given a "concentrated pill" to bioenergy companies that have developed in the local area.
The development of geothermal energy sources shows that Indonesia has proved reserves of geothermal energy of 27 million kilowatts, which accounts for 40% of the global geothermal energy. However, due to the lack of funds for development and utilization and insufficient synergies between various government departments, Indonesia’s Geothermal energy development and utilization is still very limited. Up to now, only 992,000 kilowatts have been developed, which is less than 4% of the national energy consumption. When Indonesian President Susilo attended the opening ceremony of four geothermal power stations in Talachat, Camoche, Lahengtong and Shibayak in Bali in Nusa Dua, he said that it must promote geothermal energy, reduce the use of petroleum energy, and reduce Environmental pollution, reduce carbon dioxide emissions.
Indonesian mining and energy officials said they will consider incentives for companies investing in geothermal power. Indonesia currently has 27 million installed geothermal resources, but currently only 800,000 kilowatts are used. The official said that they will give preferential policies to geothermal developers to encourage investment.
Since 2002, the government has issued development licenses through the Ministry of Geology and Minerals, which previously belonged to the National Oil Company. Geothermal resources are available in many areas in Sumatra and Java. Indonesia has implemented a tender, and the Indonesian national power company PLN said that they have negotiated with the US oil company CHERRONTEZACO at a local branch to expand the installed capacity of geothermal power plants. AMOSEAS Indonesia operates an electric field in West Java with an installed capacity of 150,000 kilowatts. PLN also said that Mitsui & Co., Ltd. in Japan and Mitsubishi Corp. are interested in geothermal power projects. PLN hopes to find a partner to build a 300,000 kilowatt geothermal power plant in northern Sumatra province.
In order to solve the problems caused by the continuous rise in international crude oil prices, using alternative energy sources for power generation, Indonesia is preparing to invest 600 million U.S. dollars to build the world's largest geothermal power station in North Sumatra Province with a total generating capacity of approximately 330,000 kilowatts.
Indonesia's geothermal resources have attracted international attention. More than 15 foreign companies have been waiting for the opportunity to develop geothermal energy in Indonesia. The manager of the geothermal department of the National Petroleum and Natural Gas Company stated that due to the rise in oil prices, other alternative energy sources compete with each other, and everyone has begun to crack down on geothermal energy. There are not a few partners interested in investing. The geothermal department has the power to select investors. Maybe this screening will be completed in 2008.
It is understood that the government has set targets to use diversified energy sources by 2025, of which oil use will account for 20%, far below the current 52%, and geothermal usage will increase to 5%.
At the same time, Susilo announced the official start of four thermal power station projects with a total investment of 326 million U.S. dollars. Ministry of Mines and Energy and Total E&PIndonesia sign cooperation agreement for “carbon dioxide absorptionâ€, Ministry of Mines and Energy and PTIEVB Energi Sdn Bhd, PT Mitra Energi Buana sign $125 million cooperation agreement, Bali State Power Company and PT Navigat Organic Energy Indonesia signed a waste disposal cooperation agreement, Guodian Co., Ltd. and IBRD Netherlands signed a cooperation agreement valued at 5.5 million U.S. dollars for Lajindong thermal power station.
In order to accelerate the development and utilization of geothermal energy, Indonesia has not only issued special government ordinances, but also actively attracted investment. At present, the Indonesian government plans to accelerate the development and utilization of geothermal energy based on the establishment of small-scale demonstration projects and the improvement of scientific and technological level. The plan for the development and utilization of geothermal energy developed by the Indonesian Ministry of Minerals and Energy clearly states that by 2020, the ultimate indicator for geothermal power generation is 6,000 megawatts, including 2,000 megawatts for 2008, 3442 megawatts for 2012, and 4,600 megawatts for 2016. And 6,000 MW in 2020.
Joint efforts with China to develop new energy Indonesian energy and mineral resources minister Yusgiantoro said that the energy cooperation mechanism between Indonesia and China is maturing. Indonesia and China have great room for cooperation in renewable energy, and Indonesia is willing to strengthen cooperation with Indonesia. China's cooperation in renewable energy.
Yusgiantoro said that in recent years, Indonesia and China have stepped up their cooperation in energy and mineral resources. In 2002, the two countries held the first China-Indonesian Energy Forum in Bali, and both sides signed a $2.4 billion energy source. Investment agreement. In 2006, the second China-Indonesia Energy Forum was held in Shanghai. Chinese President Hu Jintao and Indonesian President Susilo attended the forum. The two sides signed a $2.6 billion energy investment agreement. The successful holding of the two energy forums further improved the dialogue between the two countries on energy issues. The third China-Indonesia Energy Forum will be held in 2008 in Palembang, Sumatra, Indonesia. Yousgiantoro said that with the experience of the last two forums, the third energy forum will surely be successful.
When talking about the development and utilization of renewable energy, Yusgi Antoro said that the Indonesian government attaches great importance to the research and development of renewable energy and hopes that China can provide advanced biofuel research and development technology to Indonesia and promote renewable energy in both countries. Energy cooperation continues to develop in more depth.
Enlarging Bioenergy Promotion In the face of high international oil prices and pressure from insufficient domestic energy supply, the Indonesian government has introduced a series of new measures to actively develop power plants that focus on nuclear power and steam. Biodiesel based on ramie and palm processing, and bio-energy such as ethanol from cassava and sugarcane processing. At present, the use of traditional fuel oil by Indonesia's state-owned power companies has fallen by 25%, while the use of diesel engines has also reduced by 16%. It can be said that Indonesia's bio-energy market has gradually become a scale. In order to increase the implementation of bio-energy policies, the Indonesian Parliament passed a bill in October last year requiring manufacturers to use at least 2.5% of biofuels in energy consumption. The Ministry of Energy and Mines of Indonesia also imposes quotas on the use of biofuels by enterprises. The minimum standards for the use of biodiesel in transportation, industry and commerce, and power stations are 1%, 2.5%, and 0.25%. Meanwhile, retailers are required to guarantee the sale of 1% biodiesel and 3 % of bioethanol.
The basic idea of ​​Indonesia's development of bio-energy is that, in accordance with the regional and phased advancement, strict planning of bio-energy crop production areas is generally implemented in the remote villages "energy self-sufficiency plan." According to the introduction of the Deputy Director of Agricultural Affairs, Indonesia's Economic Coordination Department, Mr. Ba Yu, the Indonesian government started to implement the Rural Energy Self-supply Plan in 2006. The government provided funds and technical guidance, and the villagers took materials on the spot to carry out the cultivation and processing of bioenergy crops.
Indonesian President Susilo also stated that in view of Brazil's successful development of bioethanol and its wide application, Indonesia has also dispatched relevant experts to study biofuel development technology in Brazil. At present, many Indonesian companies and foreign investors have targeted this sunrise industry and hope to seize the opportunity to start early to benefit early. The use of traditional fuel by Indonesia’s state-owned power companies has fallen by 25%, while the use of diesel engines has also reduced by 16%. It can be said that Indonesia's bio-energy market has gradually become a scale.
Looking forward to stepping out of the energy development plight Amarek, a researcher at the Indonesian Petroleum Research Institute, believes that the current challenge for the bioenergy industry is the convergence of fossil fuel and biofuel prices, while the production of bioenergy feedstocks is mainly due to the high cost of palm oil, resulting in the industry Poor economic efficiency and therefore lose its appeal. The slow implementation of the Indonesian government subsidy plan has caused some manufacturers to temporarily suspend production or operate at low output.
Another problem facing the development of bioenergy in Indonesia is that the Indonesian government has long implemented a high subsidy for domestic fuel, and even if it gives the same subsidy to biofuels, there is no advantage in terms of price. Due to the high cost of producing bio-energy, not only can the producer not fundamentally realize profitability, but it also imposes a greater burden on state finances. Without subsidies, there is no way for biofuel companies to survive. The Indonesian government recently stated that it will increase its subsidy for biofuels from the current 1 litre biofuel subsidy of 1,000 rupiah to 2,000 rupiah, and gradually reduce the price subsidies for traditional oil and gas energy.
Akermal believes that the current bio-energy development in Indonesia is still in its infancy. In the long run, due to the scarcity of fossil fuels, the current price of oil is also picking up. The prospects for the development of bioenergy are broad, and its market is expected to mature after 5 to 10 years.
Inclusion in the National Energy Development Strategy After a three-and-a-half-year consultation, the Indonesian Parliament passed the controversial New Energy and Minerals Law by the end of 2008. The main contents of the bill include that each step requiring investors to develop mineral resources, including seismic exploration, mining, feasibility studies and project construction, must be approved by the Indonesian government; investors are restricted to carry out mining activities in certain specific areas. To protect the small and medium-sized mining companies in the country; to require investors to set up smelters in Indonesia to process mineral resources; and to change the commercial contract system and the commercial contracts for the operation of coal minerals to the mineral business permit. Indonesia is the world's largest producer of palm oil and has a rich variety of domestic energy crops. The current development of biofuel crop varieties include oil palm, jatropha, coconut, cassava, sugar cane, sweet sorghum and so on. Indonesia currently produces two types of biofuels, namely biodiesel and bioethanol. The former raw materials mainly come from palm crude oil and Jatropha. The latter raw materials are cassava and sugarcane. At the same time, Indonesia is also increasing its R&D efforts on second-generation biofuels. It uses straw, bagasse, and rice husk as raw materials to produce non-food crops such as ethanol and cellulosic ethanol.
Indonesia plans to use biofuels in Indonesia to account for 2% of all energy sources by 2010 and 5% by 2025. In order to meet the increased demand for biofuel production capacity, Indonesia has been vigorously developing bioenergy crops in recent years, of which oil palm and sugarcane plantations are the largest, with 6 million hectares and 2.2 million hectares respectively. According to the planning of the Ministry of Agriculture of Indonesia, the Indonesian palm garden planting area will reach 8 million hectares by 2010.
Government Subsidies for Biofuels At the beginning of the year, 52 investors and 6 banks signed a cooperation agreement to develop Indonesian biofuels with a commitment of investing 1.24 billion U.S. dollars (111 trillion U.S. dollars) and a commitment loan of 25 trillion U.S. dollars. Thanks to the agreement, Indonesia is expected to produce 200,000 barrels of biofuels or plant fuels per day by 2010. The Indonesian government designated the National Petroleum Corporation to promote biofuels by covering gas stations throughout the country. Since January 2008, more than 200 gas stations have sold biofuels in Jakarta, Surabaya and Bali. Biofuels are priced by the government. When biofuel prices are higher than fossil fuel prices, the government subsidizes them.
According to the person in charge of the New Energy Technology Research Institute of the Ministry of Energy and Mines of Indonesia, the Indonesian national oil company currently sells 1 litre of bio-fuel every time, and the government subsidizes 1,000 rupiah. For example, the price of bio-shale oil (which is mixed with 2.5% biodiesel and 97.5% of traditional diesel) is the same as diesel price, which is 4500 rupiah, but the cost of bio-shale oil is much higher. The government gives Subsidies, hope that the state-owned oil companies can continue, but also the entire industry. The Indonesian government implemented a bill in October last year that requires manufacturers to use at least 2.5% of biofuels in energy consumption in order to reduce their dependence on fossil fuel energy. The first step was implemented in the densely populated islands of Java and Sumatra, where business and industry were concentrated, and then implemented throughout the country.
To ensure the implementation of the bill, the government will work with local state-run and foreign-funded major oil producers and retailers to add up to 2.5% of biofuels to finished crude products. In addition to reducing its reliance on petrochemical energy resources and expanding its energy supply, the Indonesian government has also given a "concentrated pill" to bioenergy companies that have developed in the local area.
The development of geothermal energy sources shows that Indonesia has proved reserves of geothermal energy of 27 million kilowatts, which accounts for 40% of the global geothermal energy. However, due to the lack of funds for development and utilization and insufficient synergies between various government departments, Indonesia’s Geothermal energy development and utilization is still very limited. Up to now, only 992,000 kilowatts have been developed, which is less than 4% of the national energy consumption. When Indonesian President Susilo attended the opening ceremony of four geothermal power stations in Talachat, Camoche, Lahengtong and Shibayak in Bali in Nusa Dua, he said that it must promote geothermal energy, reduce the use of petroleum energy, and reduce Environmental pollution, reduce carbon dioxide emissions.
Indonesian mining and energy officials said they will consider incentives for companies investing in geothermal power. Indonesia currently has 27 million installed geothermal resources, but currently only 800,000 kilowatts are used. The official said that they will give preferential policies to geothermal developers to encourage investment.
Since 2002, the government has issued development licenses through the Ministry of Geology and Minerals, which previously belonged to the National Oil Company. Geothermal resources are available in many areas in Sumatra and Java. Indonesia has implemented a tender, and the Indonesian national power company PLN said that they have negotiated with the US oil company CHERRONTEZACO at a local branch to expand the installed capacity of geothermal power plants. AMOSEAS Indonesia operates an electric field in West Java with an installed capacity of 150,000 kilowatts. PLN also said that Mitsui & Co., Ltd. in Japan and Mitsubishi Corp. are interested in geothermal power projects. PLN hopes to find a partner to build a 300,000 kilowatt geothermal power plant in northern Sumatra province.
In order to solve the problems caused by the continuous rise in international crude oil prices, using alternative energy sources for power generation, Indonesia is preparing to invest 600 million U.S. dollars to build the world's largest geothermal power station in North Sumatra Province with a total generating capacity of approximately 330,000 kilowatts.
Indonesia's geothermal resources have attracted international attention. More than 15 foreign companies have been waiting for the opportunity to develop geothermal energy in Indonesia. The manager of the geothermal department of the National Petroleum and Natural Gas Company stated that due to the rise in oil prices, other alternative energy sources compete with each other, and everyone has begun to crack down on geothermal energy. There are not a few partners interested in investing. The geothermal department has the power to select investors. Maybe this screening will be completed in 2008.
It is understood that the government has set targets to use diversified energy sources by 2025, of which oil use will account for 20%, far below the current 52%, and geothermal usage will increase to 5%.
At the same time, Susilo announced the official start of four thermal power station projects with a total investment of 326 million U.S. dollars. Ministry of Mines and Energy and Total E&PIndonesia sign cooperation agreement for “carbon dioxide absorptionâ€, Ministry of Mines and Energy and PTIEVB Energi Sdn Bhd, PT Mitra Energi Buana sign $125 million cooperation agreement, Bali State Power Company and PT Navigat Organic Energy Indonesia signed a waste disposal cooperation agreement, Guodian Co., Ltd. and IBRD Netherlands signed a cooperation agreement valued at 5.5 million U.S. dollars for Lajindong thermal power station.
In order to accelerate the development and utilization of geothermal energy, Indonesia has not only issued special government ordinances, but also actively attracted investment. At present, the Indonesian government plans to accelerate the development and utilization of geothermal energy based on the establishment of small-scale demonstration projects and the improvement of scientific and technological level. The plan for the development and utilization of geothermal energy developed by the Indonesian Ministry of Minerals and Energy clearly states that by 2020, the ultimate indicator for geothermal power generation is 6,000 megawatts, including 2,000 megawatts for 2008, 3442 megawatts for 2012, and 4,600 megawatts for 2016. And 6,000 MW in 2020.
Joint efforts with China to develop new energy Indonesian energy and mineral resources minister Yusgiantoro said that the energy cooperation mechanism between Indonesia and China is maturing. Indonesia and China have great room for cooperation in renewable energy, and Indonesia is willing to strengthen cooperation with Indonesia. China's cooperation in renewable energy.
Yusgiantoro said that in recent years, Indonesia and China have stepped up their cooperation in energy and mineral resources. In 2002, the two countries held the first China-Indonesian Energy Forum in Bali, and both sides signed a $2.4 billion energy source. Investment agreement. In 2006, the second China-Indonesia Energy Forum was held in Shanghai. Chinese President Hu Jintao and Indonesian President Susilo attended the forum. The two sides signed a $2.6 billion energy investment agreement. The successful holding of the two energy forums further improved the dialogue between the two countries on energy issues. The third China-Indonesia Energy Forum will be held in 2008 in Palembang, Sumatra, Indonesia. Yousgiantoro said that with the experience of the last two forums, the third energy forum will surely be successful.
When talking about the development and utilization of renewable energy, Yusgi Antoro said that the Indonesian government attaches great importance to the research and development of renewable energy and hopes that China can provide advanced biofuel research and development technology to Indonesia and promote renewable energy in both countries. Energy cooperation continues to develop in more depth.
Enlarging Bioenergy Promotion In the face of high international oil prices and pressure from insufficient domestic energy supply, the Indonesian government has introduced a series of new measures to actively develop power plants that focus on nuclear power and steam. Biodiesel based on ramie and palm processing, and bio-energy such as ethanol from cassava and sugarcane processing. At present, the use of traditional fuel oil by Indonesia's state-owned power companies has fallen by 25%, while the use of diesel engines has also reduced by 16%. It can be said that Indonesia's bio-energy market has gradually become a scale. In order to increase the implementation of bio-energy policies, the Indonesian Parliament passed a bill in October last year requiring manufacturers to use at least 2.5% of biofuels in energy consumption. The Ministry of Energy and Mines of Indonesia also imposes quotas on the use of biofuels by enterprises. The minimum standards for the use of biodiesel in transportation, industry and commerce, and power stations are 1%, 2.5%, and 0.25%. Meanwhile, retailers are required to guarantee the sale of 1% biodiesel and 3 % of bioethanol.
The basic idea of ​​Indonesia's development of bio-energy is that, in accordance with the regional and phased advancement, strict planning of bio-energy crop production areas is generally implemented in the remote villages "energy self-sufficiency plan." According to the introduction of the Deputy Director of Agricultural Affairs, Indonesia's Economic Coordination Department, Mr. Ba Yu, the Indonesian government started to implement the Rural Energy Self-supply Plan in 2006. The government provided funds and technical guidance, and the villagers took materials on the spot to carry out the cultivation and processing of bioenergy crops.
Indonesian President Susilo also stated that in view of Brazil's successful development of bioethanol and its wide application, Indonesia has also dispatched relevant experts to study biofuel development technology in Brazil. At present, many Indonesian companies and foreign investors have targeted this sunrise industry and hope to seize the opportunity to start early to benefit early. The use of traditional fuel by Indonesia’s state-owned power companies has fallen by 25%, while the use of diesel engines has also reduced by 16%. It can be said that Indonesia's bio-energy market has gradually become a scale.
Looking forward to stepping out of the energy development plight Amarek, a researcher at the Indonesian Petroleum Research Institute, believes that the current challenge for the bioenergy industry is the convergence of fossil fuel and biofuel prices, while the production of bioenergy feedstocks is mainly due to the high cost of palm oil, resulting in the industry Poor economic efficiency and therefore lose its appeal. The slow implementation of the Indonesian government subsidy plan has caused some manufacturers to temporarily suspend production or operate at low output.
Another problem facing the development of bioenergy in Indonesia is that the Indonesian government has long implemented a high subsidy for domestic fuel, and even if it gives the same subsidy to biofuels, there is no advantage in terms of price. Due to the high cost of producing bio-energy, not only can the producer not fundamentally realize profitability, but it also imposes a greater burden on state finances. Without subsidies, there is no way for biofuel companies to survive. The Indonesian government recently stated that it will increase its subsidy for biofuels from the current 1 litre biofuel subsidy of 1,000 rupiah to 2,000 rupiah, and gradually reduce the price subsidies for traditional oil and gas energy.
Akermal believes that the current bio-energy development in Indonesia is still in its infancy. In the long run, due to the scarcity of fossil fuels, the current price of oil is also picking up. The prospects for the development of bioenergy are broad, and its market is expected to mature after 5 to 10 years.
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