Indonesia to Offer PPP Projects Worth $52b

Jakarta Globe, Eko Adityo Nugroho, Nov 06, 2014

Jakarta's government has set the capital's Decent Living Index at Rp 2.5 million
 ($206) for 2015, a strong signal to workers that minimum wages are unlikely
to increase substantially. (Reuters Photo/Beawiharta)

Jakarta. The Indonesian government plans to offer 43 infrastructure projects worth $52 billion to private investors next year, according to an official of the National Development Planning Ministry.

Bastari Panji Indra, a director at the ministry, said the projects will be offered under public-private partnership (PPP) schemes.

The projects offered include airports, monorail and, light rail transits, toll roads, coal transportation trains, ports, and water supply.

The government has published details regarding the projects in the Public Private Partnership Book 2015, which guides infrastructure development in the country.

Speaking on the sideline of Indonesia Infrastructure Week late on Wednesday, Bastari said of the 43 projects, eight are classified as “ready” to be offered, 11 are   “prospective” and 24 are marked as “potential.”

Bastari said the government will offer 10 major airport projects to private investors, including Juwata in North Kalimantan, Tjilik Riwut in Central Kalimantan and Fatmawati Soekarno in Bengkulu.

“Apart from airports, there are also a monorail project, coal transportation by train, water supply and six ports,” Bastari said.

Citing the Public Private Partnership Book 2015, he said the government plans to build an express train line connecting the Halim Perdanakusuma Airport in East Jakarta to the Soekarno-Hatta International Airport in Tangerang, Banten, in order to ease passenger commuting.

The director also announced a light rail transit system in Bandung, West Java, new train networks for South Sumatra, three water supply projects in Semarang, Central Java; Pekanbaru in Riau, and Pondok Gede in Bekasi.

Bastari also flagged a project for waste disposal processing in Bogor and Depok.

Deputy Minister Dedy Supriadi Priatna, who is charged with infrastructure affairs, said the government plans to revise the PPP scheme to attract investors, including with the introduction of a performance-based annuity scheme.

Under such a scheme, private investors contribute to development, financing and the operation of a project with a given concession time.

Once the project is open for commercial use, investors will receive regular payments for providing the service to the public, with a performance standard agreed to by both parties.

The new government under President Joko Widodo has a lot of research to do into the infrastructure sector.

Poor road and toll road conditions, over-crowded airports, over-capacity ports, and a lack of train networks have been cited as the main stumbling blocks to strong and sustained economic growth.

The previous administration under Susilo Bambang Yudhoyono repeatedly offered infrastructure projects to tender, but only a few have been completed.

Poor preparation of projects, complex bureaucracy and low return in investment for the private sector remain major factors that deter investor interest.

Indonesia Allocates $302 Million to Back Geothermal Exploration

Jakarta Globe, Fitri Wulandari,  June 18, 2013.

Indonesia started a fund to finance the exploration of geothermal energy resources as the nation seeks to reduce its dependence on fossil fuels for electricity.

The finance ministry’s investment agency will manage Rp 3 trillion ($302 million) this year for geothermal exploration, Saritaon Siregar, the agency’s chairman, said in an interview at a conference in Jakarta on Tuesday.

Local governments that have geothermal areas can use the fund to determine their potential, he said.

“If exploration shows good results, the local government can put the area for bidding and investors that win can repay the exploration funds to us,” Siregar said.

The energy source produces 1,341 megawatts, or less than 5 percent of Indonesia’s potential geothermal generating capacity of 29,038 megawatts, according to data from the energy and mineral resources ministry.

Private investors can also apply for loans for geothermal exploration, Siregar said. The agency hasn’t started distributing funds, he said.

Bloomberg

LEN, Pertamina to Develop Solar Panel Plant

Jakarta Globe, October 29, 2012

LEN Industri and Pertamina will join forces to build a solar cell production
plant. (AFP Photo)

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State-owned companies LEN Industri and Pertamina are collaborating together to build a solar cell production plant in Rancaekek, Bandung, according LEN Insdustri President Abraham Mose.

Abraham, speaking to Antara news agency on Monday, said that the groundbreaking for the plant's construction is expected to take place in December.

"This an asignment project and at the same time an investment, so that we do have a renewable energy inustry in Indonesia," Abraham said. He gave no further details on the plant, but that it could produce solar cells with a total capacity of 60 MWatts.

"This is a venture and an investment. [It will be done] so that we can have a renewable energy industry in Indonesia," Abraham said. He gave no further details about the plant, but mentioned that it could produce solar cells with a capacity of 60 megawatts.

A presidential regulation issued in 2006 states that solar energy should account for between 0.2 and 0.3 precent of national energy usage by 2025, or the equivalent of 1,000 megawatts per hour.

Abraham also noted that LEN was planning on investing in airport navigation equipment.

"We will make a proposal for the airport navigation project since it is in line with LEN's focus. We will do this in the next five years," he said.

Abraham mentioned that on Nov. 28 the company would introduce products made in conjunction with the Research and Technology Ministry.

 LEN Industri's expertise, according to to the company's president, lies in railway signage, marine navigation, renewable energy, military communication equipment and control systems.

Abraham noted that LEN has a strategic corporate division devoted to mapping industrial trends.

"Basically, we are always monitoring development and looking for opportunities for growth," he said.

Indonesia Geothermal Sector Attracts Panax, Mitsubishi, BP, Chevron

Renewable Energy World, Leslie Blodgett, GEA, October 18, 2012

WASHINGTON, D.C. -- Indonesia has had the lowest volatility in economic growth of any OECD or BRIC economy over the past decade, while its economy in the short term is conjectured at close to 7% growth per year, according to Proactiveinvestors.com.au.

Concurrently, recent efforts by the Indonesian government to attract geothermal companies seem to be having an effect. At a September meeting in Washington DC on Renewable Energy Opportunities in Indonesia, hosted by the US-ASEAN Business Council, speaker Joel Kopp (U.S. Embassy Jakarta) recounted the efforts of Indonesian leaders, who have set a separate feed-in tariff for geothermal at between 10 and 18.5 cents-per-kWh. Also, projects under 10 MW are required to be purchased by state-owned utility Perusahaan Listrik Negara (PLN). Kopp added that PLN has made improvements to their reliability, as well.

Australian Panax Geothermal is making strides in Indonesia. With three key geothermal projects scheduled to begin production in Indonesia over the next three to four years, Kerry Parker, managing director, commented to press on the company’s growth in Indonesia: “Panax has long recognized the investment potential in Indonesia, having launched several projects within the region and with plans to expand on our current interests,” Parker said. Projects for Panax include the recently negotiated power purchase agreements for its Sokoria and Dairi Prime geothermal projects, each with a planned initial capacity to generate 30 MW. Agreements are with Indonesian electricity regulator PT PLN and the Indonesian Government.

One company with increasing interest is Mitsubishi Corporation, which has agreed to acquire 20% shares of Star Energy Geothermal Pte Ltd ("SEGPL"). SEGPL manages operation of the 420-MW Wayang Windu Geothermal Power Project Plant in Java Island, one of the world's largest geothermal resources. This acquisition is the country’s “first entry into the Indonesian power industry and its first operation of a geothermal power plant,” according to the release. Mitsubishi could develop and operate multiple geothermal power plants in Indonesia in the future, including an expansion of Wayang Windu.

Additionally, oil and gas giant BP (UK) could expand its business in Indonesia, it said recently. Energy and Mineral Resources Minister Jero Wacik told The Jakarta Post the government was curious as to whether BP would enter the geothermal energy sector after US-based Chevron “had successfully become the world’s largest geothermal power producer after years of operating in Indonesia.”

Chevron Geothermal’s policy, government and public affairs manager, Ida Bagus Wibatsya was quoted that the development could create healthy competition among geothermal energy developers: “It will be very positive for the development of the geothermal energy industry as well as supporting the government’s programs on renewable energy resources.”

This article was originally published in GEA's Geothermal Energy Weekly and was republished with permission.

A geothermal energy project in Tibet. (Photo/Xinhua)

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"Recalibration of Free Choice"–  Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth,  4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical)  8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version) 

“…  4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much….”

General Electric, PLN to Build Renewable Energy Plant in Sumba

Jakarta Globe, October 15, 2012

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General Electric and state utility firm Perusahaan Listrik Negara on Monday signed a Letter of Intent to cooperate in the development of a model renewable energy power plant in Sumba, East Nusa Tenggara.

Under the agreement, GE will provide expertise in the construction of a power plant on Sumba that will use Integrated Biomass Gasification technology, according to a GE statement.

The plant, which is expected to produce 1 megawatt of electricity, will use wood chips as fuel.

“PLN is certain that the technology and the experts from GE can play an important role in the development of an electricity plant using biomass in Indonesia,” PLN president director Nur Pamudji said after the signing.

He said success in Sumba would demonstrate the technical and economic feasibility of expanding the nation's electricity grid to isolated regions using biomass fuels and could also become a model for similar power plants elsewhere.

“GE is committed in bringing the latest technology and solutions to help Indonesia overcome its challenges in developing the country,” GE Indonesian CEO Handry Satriago said.

China's geothermal energy could run the country for 260,000 years

Want China Times, Staff Reporter 2012-10-07

A geothermal energy project in Tibet. (Photo/Xinhua)

China holds potential geothermal energy between 3,000 and 10,000 meters below the surface of the earth equal to 860 trillion tons of standard coal, a storage which is estimated to have a lifespan of 260,000 years using current figures for energy consumption.

The Ministry of Land and Resources underwent a national survey on the distribution of geothermal energy over the country between 2009 and 2011, re-evaluating the storage of shallow geothermal energy in 287 cities, geothermal energy in 12 sedimentary basins and 2562 hot springs regions, as well as the potential hot-dry-rock geothermal power at between 3,000 and 10,000 meters below the surface of the earth, reports our sister newspaper the China Times.

The results showed that the total shallow geothermal energy storage is commensurate with 9.5 billion tons of standard coal. The usable part is about 350 million a year, which can save 250 million tons of standard coal and reduce 500 million tons of carbon dioxide emissions in a year if the energy is fully exploited and used.

The geothermal power in sedimentary basins is commensurate with 853 billion tons of coal, while the usable part for a year is equal to 640 tons of standard coal, which can reduce 1.3 billion tons of carbon dioxide emission a year.

The survey found the total geothermal energy stored between 3,000 and 10,000 meters below the surface of the earth is about equal to 860 trillion tons of standard coal, which is 260,000 times China's total energy consumption a year.

Geothermal energy is a kind of renewable energy, originating from the original formation of the earth and radioactive decay of minerals. The ministry said the country is moving slowly to exploit the rich energy and need to push the reusable project soon.

A report by Massachusetts Institute of Technology said the United States only has to exploit 2% of its geothermal energy between 3,000 and 10,000 meters below the surface of the earth, which is able to offer electricity equal to 2,500 times the country's total electricity consumption a year.

Related Article:

"Recalibration of Free Choice"–  Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth,  4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical)  8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version)

“…  4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much….”

PLN to Provide Solar Power to Indonesia's Remote Islands

Jakarta Globe, October 01, 2012

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State utility company Perusahaan Listrik Negara is close to completing the construction of 100 solar power plants on dozens of small and remote islands.

Vickner Sinaga, PLN operational director for eastern Indonesia, said the construction of the solar power plants, which will have a total capacity of 18,150 kilowatt peak (kWp), has been progressing smoothly. Kilowatt peak is a measure of power in solar energy devices.

The undertaking aims to provide electricity to remote populations.

“The progress [has gone] smoothly, and by the end of this year around 80 solar plants [will] have been constructed. The rest are expected [to be completed] next year,” Vickner said.

The project costs around Rp 600 billion ($63 million). According to PLN data, the solar plants currently being built are located in West Papua, North Maluku, East Nusa Tenggara, South and Southeast Sulawesi and South Kalimantan.

The government a few years ago instructed PLN to supply an additional 55,500 megawatts nationwide by 2019 and increase the electrification rate — the proportion of the population with access to the power grid — to 90 percent by 2020, from around 71 percent currently.

The first phase of the program has moved more slowly than planned, with the government admitting poor choices for contractors had delayed progress.

The government has initiated projects to add another 30,000 MW of power to the national grid by 2014 through a fast-track program using coal, geothermal and hydroelectric resources. The preferred source differs by region, Vickner said.

For remote islands, solar power plants are more economical, partly because consumption in such areas is low, he added.

“In Java, it is better to use diesel power plants when there is a lack of power. Solar power plants with 100 kWp would only last for five hours in Java,” Vickner said.

Investor Daily

Geothermal Takes a Step Forward in Indonesia With Sumatra Drill

Jakarta Globe, Tito Summa Siahaan, September 24, 2012

This 2010 file photo shows an Indonesian worker of PT Pertamina Geothermal
 Energy checking a production well in Kamojang. The government has announced
 it will raise the price of three types of renewable energies for electricity needs,
saying the move is necessary to encourage Indonesia's overall renewable
energy production. (AFP Photo/FILES/ ADEK BERRY)

               

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Nearly a decade after government set the rules for geothermal energy, a developer on Friday undertook the first exploration drilling for the much-vaunted resource that could help power the nation.

Supreme Energy Muara Laboh has started drilling at its working area in South Solok, West Sumatra. The activity is expected to take up to nine months to complete, and will be followed by the construction of a 220 megawatt geothermal power plant should the exploration be successful.

The geothermal energy director at the Energy and Mineral Resources Ministry, Tisnaldi, hailed the project as an historical landmark because it was the first such activity conducted since the government issued the Law on Geothermal Energy in 2003. He added that it was one of the largest energy projects in Sumatra.

“Geothermal projects are crucial in order to make our energy more environmentally friendly in the future, especially considering that our oil, gas and coal resources are in decline,” Tisnaldi said.

If the power plant goes ahead, the project is estimated to cost Rp 7 trillion ($722 million), according to a company statement received on Sunday. “The power plant construction will start in 2014 and is expected to begin commercial operation in 2016,” the statement said.

The electricity generated from the power plant will be dispatched to state utility Perusahaan Listrik Negara’s power grid based on a 30-year power purchase agreement, it said.

Surpeme Energy Muara Laboh is jointly controlled by local company Supreme Energy, France-based International Power-GDF Suez and Japanese firm Sumitomo Corporation.

This project is a part of phase II of a government program to add 10,000 megawatts in generating capacity across the country. While phase I consisted largely of new coal-fired power plants, phase II concentrates on renewable energy.

By 2025, the government expects the portion of electricity generated from renewable energies to reach 17 percent, while diesel fuel will stand at 20 percent, gas at 30 percent and coal at 33 percent.

At present, 5.7 percent of electricity is from renewable sources, 24.5 percent is from coal and 20.1 percent from gas.

To encourage investment, the government this month raised the price floor for renewable energy.

Pertamina’s Geothermal Push Gets a Price Boost

Jakarta Globe, August 15, 2012

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Pertamina Geothermal Energy, a subsidiary of state energy firm Pertamina, plans to develop another eight geothermal projects after the government announced that the electricity price from geothermal power plants would be increased to make the sector more attractive.

Work on the projects is expected to begin next year but there was no information on where they would be located.

Slamet Riyadhi, president director of PGE, said the company planned to spend an additional $2.7 billion on geothermal projects. That is in addition to the $6 billion it has invested in the ongoing development of 10 geothermal projects.

The new projects would generate 900 megawatts of electricity, he said. The 10 projects already in development would have an estimated combined capacity of 962 megawatts once completed.

The energy and mineral resources minister, Jero Wacik, announced last month that the purchase price of electricity produced by geothermal sources would be increased from 9.7 cents per kilowatt hour to between 10 cents and 17 cents per kilowatt hour, depending on the location.

“If the government makes this price increase official this year, we can start the process of surveying for the new projects next year,” Slamet said.

He said the internal rate of return, a measure of profitability on investment, for geothermal projects under the current price of 9.7 cents per kilowatt hour was 9 percent.

“That is well below the ideal 11 to 14 percent rate for investment in renewable energy,” Slamet said. He added that an 11 to 14 percent rate of investment return could be reached under the proposed new price.

He said the current price structure left investors reluctant to develop geothermal projects, particularly with the additional upstream risks they faced.

“Now they will have no more excuses,” he said.

Slamet said the Energy and Mineral Resources Ministry and the Forestry Ministry had signed a memorandum of understanding on the utilization of forest areas for geothermal projects that could speed up the process of obtaining permits.

“Now we can secure a permit for a geothermal project a month or two faster than usual,” he said. “This is good. Now we can achieve our target of generating 2,000MW of electricity in 2018, ahead of our previous timeline of 2020.”

Indonesia is said to hold some 40 percent of the world’s geothermal energy potential. Unlike other energy sources, however, geothermal energy cannot be transported so a power plant must be built near the source to tap it, making investment more expensive.

Investor Daily

High-Tech Reverse Osmosis Water Plant on Its Way to Riau Islands, Ministry Says

Jakarta Globe, July 28, 2012

Water vendors fill up jerry cans in Madura, East Java. The water comes
from a plant that uses reverse osmosis. (JG Photo/Safir Makki)  

   

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The national government is planning to build a plant to convert seawater into drinking water using reverse osmosis technology in Tanjung Pinang, Riau Islands, an official said on Friday.

The plant will have a clean water production capacity of 50 liters per second, said Danny Sutjiono, director for drinking water development at the Public Works Ministry.

“This is estimated to be able to meet the demand for 40,000 customers at a tariff of around Rp 8,000 to Rp 9,000 per cubic meter per second,” Danny said.

Danny said the project was now in the tender phase for construction. He said that he hoped a contract could be signed in October and that construction could start immediately thereafter.

“I hope the project will be operational at the end of 2013,” he added.

Reverse osmosis is expensive. Danny said the investment needed for the Riau Islands project was four times what freshwater projects of a similar scale would cost.

The Public Works Ministry said it would allocate Rp 40 billion ($4.24 million) to build the plant.

The winner of the tender must not only construct the physical facility but also operate the plant and build the necessary distribution pipeline network, Danny said.

“They will have to handle the construction process and the provision of water. All we want is for the seawater to be processed into drinking water and channeled to the houses,” he said.

The ministry has already built one reverse osmosis plant, on Mandangin island in Sampang, East Java, off the coast of the larger Madura island.

That plant has a similar production capacity to that of the proposed Riau Islands facility. After the Mandangin plant is officially inaugurated by Public Works Minister Djoko Kirmanto in early August, it will serve an estimated 20,000 people.

That plant’s water sells for Rp 12,000 per cubic meter per second, Danny said.

Investor Daily

VP opens renewable energy conference 2012

The Jakarta Post, Rabby Pramudatama, Jakarta, July 17 2012

Boediono: (Antara/Puspa Perwitasari)

Vice President Boediono kicked off the 2012 Indonesia Renewable Energy and Energy Conservation conference and exhibition at the Jakarta Convention Center (JCC) on Tuesday.

The event, which was initiated by the Indonesian Renewable Energy Society (METI) and is supported by the government, is open to the public from July 17 to 19.

“The technologies for developing renewable energy have been advancing rapidly. They have also become much more economic. We are lucky to have such diverse sources of energy ... that we can rely on in the future,” Boediono said at the opening ceremony.

He said it was important to synchronize political, economic and environmental aspects to support the development of the country’s renewable energy and energy conservation policies.

Aside from the conference, as many as 75 international and local companies working in the energy field are participating in the event to showcase their products and achievements in renewable energy innovation. (iwa)

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Geothermal Power Could Help Bridge Indonesia's Energy Gap: WWF

Jakarta Globe, Fidelis E. Satriastanti,  July 06, 2012

An employee of Indonesia Power walks near a thermal pipe at Kamojang
 geothermal power plant near Garut, in Indonesia's West Java province in this
 file photo. Indonesia invested in green energy like geothermal power at a greater
rate than G20 countries like the United States, India and Japan. (Reuters Photo)      

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WWF Indonesia launched a report on Thursday which mapped out the country’s geothermal resources in a bid to promote the use of alternative energy sources.

The report, titled “Igniting the Ring of Fire: A Vision to Develop Indonesia’s Geothermal Power,” said Indonesia had the world’s biggest geothermal potential as the country sat on the world’s most active volcanic belt, the Ring of Fire, which frames the Pacific Ocean.

There could be up to 29 gigawatts of electricity produced if Indonesia was into tap all of its geothermal resources, the report said.

That is more than enough energy to fulfil the needs of two of Indonesia’s most populated islands, Java and Bali, where demand peaked in April at 20.1 gigawatts.

Currently, Indonesia only uses 1.2 gigawatts of geothermal power, the environment group said.

“The WWF, globally, has launched a mission of 100 percent renewable energy by 2050. It is an ambitious mission but hopefully serves as an inspiration. [The] Ring of Fire [project] wants [to accomplish] that mission,” WWF project coordinator Indra Sari Wardhani said.

Indra said that Indonesia must harness geothermal energy by not overlooking environmental, social and economic impacts as well as the capacity of the regional administrations and local residents.

“Challenges for developing geothermal [power] start with regulation and governance. In terms of regulation, there is an overlap between geothermal areas and forest areas,” the WWF coordinator said. “Ways need to be found so forest conservation is not sacrificed. There needs to be best practices [of geothermal harvesting] which can serve as benchmarks.”

The government has said it wants 25 percent of power used in the country to come from renewable energy sources and a 25 percent drop in carbon emissions by 2025. But the WWF said Indonesia could exceed that by harnessing geothermal energy, which now only contributes 1 percent of the country’s energy needs.

Last month, Energy Minister Jero Wacik said the government planned to directly award more concessions to companies to speed up the sector’s development.

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Indonesia pursues wind power

Japan seeks to increase geothermal cooperation with Indonesia

Antara News, Fri, June 22 2012 

Photo document of Indonesia geothermal operating by PT Pertamina
 Geothermal Energy (PGE) in Kamojang, Bandung, West Java.
(ANTARA/Ujang Zaelani)

  

Jakarta (ANTARA News) - Japan is seeking to increase its cooperation with Indonesia in the field of geothermal energy development as part of efforts to find energy sources to meet its needs.

"Japan has expressed its commitment to helping in cooperation in the field of geothermal energy development here," vice presidential spokesman Yopie Hidayat told newsmen here on Friday.

He made the statement after Vice President Boediono received the governor of Japan Bank for International Cooperation (JBIC), Hiroshi Okuda, and Japanese ambassador Yoshinori Katori.

He said the two countries could cooperate to develop geothermal and hydro-energy sources, noting the similarities in natural conditions in the two countries.

"Japan has used geothermal and hydro-energy sources to generate electricity. Japan wishes to be involved in the development of the energy resources in Indonesia," he said.

He said Vice President Boediono welcomed the JBIC`s request, saying the Indonesian government is prioritizing environmental-friendly power plant development.

Out of the country`s second phase of the 10,000 MW development project, 4,000 MW would come from geothermal sources. "It would be very good if JBIC would participate and support it," he said, quoting the vice president.

Besides power plant development, the vice president also explained about the basic development projects such as infrastructure, energy and non-infrastructure projects which are still widely needed in the country.

JBIC, Yopie said, has participated in the development of a coal-fired power plant in Central Java.

"The project is the first funded by JBIC outside Japan. Although it uses coal as its energy source, its use is very efficient, so that the plant remains environmental-friendly," he said.

During the meeting, which lasted for about 30 minutes, Okuda has also spoken of the law on minerals and coal mining that imposes tax on exports of raw materials.

"He understands that the law is aimed at developing coal and other mineral processing industries in the country. We support and are ready to be involved in the development of smelters in Indonesia," Yopie said.

Editor: Priyambodo RH

Indonesian Developer Invests $100m in Java Wind Farm

Jakarta Globe, Dion Bisara, April 22, 2012

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Wind farm developer UPC Renewables Indonesia plans to invest up to $100 million for a wind farm on the south Java coast to tap into Indonesia’s growing demand for cheaper energy.

The privately held company signed an agreement on Friday with the Ministry of Energy and Mineral Resources to build 33 wind turbines off the coast of Samas in Yogyakarta, a special region on the southern side of Java that faces the Indian Ocean. The total capacity of the wind farm will be 50 megawatts.

“This will be a milestone for a wind farm on a commercial scale,” said Kardaya Warnika, director general of renewable energy at the ministry.

UPC Renewables will partner with a local company, Binatek Reka Energi, which has been studying and collecting wind-pattern data on the south Java coast for the past four years.

The agreement for the power purchase has yet to be signed, Kardaya said. UPC Renewables has offered a purchasing period of 30 years at a price of Rp 1,200 (13 cents) per kilowatt hour for the first 20 years and Rp 700 per kWh beyond that.

That compares to an average production cost of Rp 1,100 per kWh last year and an average selling price of Rp 729 per kWh at the state power company, PLN.

Kardaya said UPC Renewables would start erecting the wind turbines once the power purchase agreement had been signed, and planned to use local materials as much as possible in the construction. It plans to complete the project in 15 months.

Steven Zwaan, director of  UPC Renewables, said he hoped the process could be done swiftly so the wind farm could start producing next year. He hopes that success with this project will generate interest to build more facilities across Indonesia.

In PLN’s 2011-20 electricity supply plan, the utility forecast states that Indonesia will needs to provide an additional 55,346 megawatts of power capacity over the next decade, assuming yearly economic growth of 7 percent, at a total investment estimated at $96.2 billion.

The plan outlines an aggressive decline in using oil fuel for the country’s power, shifting to cheaper gas and coal. Renewable energy would comprise 18 percent of total power production by the end of this decade, from just 10 percent currently. Wind energy, however, has yet to be included in the plan.

PLN operates biggest solar power plant in Morotai

Antara News, Sun, April 15 2012

Jakarta (ANTARA News) - State electricity company PT PLN is operating the biggest solar power plant (PLTS) with a capacity of 600 kW in the outermost island of Morotai in North Maluku.

The company`s director for Indonesian eastern region operations, Vickner Sinaga, said in a press statement received here on Sunday the operation of the PLTS would reduce oil consumption by an average of 800 liters daily or save about Rp2.5 billion a year.

"The PLTS began operating yesterday or Saturday," he said.

He said PLN would continue improving its service across Indonesia by prioritizing the use of alternative energy sources especially for the Indonesian eastern regions.

He said the operation of the PLTS will also help support the implementation of the Sail Morotai 2012 which is to be held from May to June.

Recently PT PLN operated a 350kW solar power plant at the peak period in the Sebatik island in East Kalimantan bordering Malaysia and another 100kW on Miangas island in North Sulawesi close to the Philippines.

The operation of the PLTS is part of the company's plan to distribute electricity to 100 outermost islands using 100 percent solar power with the target of achieving it by October 28, 2012.

PLN also expects 1,000 islands across Indonesia will have used solar energy as the source of their power plants by 2014 at the latest.

Editor: Ade Marboen

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Indonesia to soon develop renewable energy

Antara News, Fri, April 6 2012 

 "Indonesia has oil reserves of about 4 billion barrels, and it is estimated this will run out within the next 11 years. Therefore, we need to develop renewable energy as soon as possible."

Kardaya Warnika.
(FOTO ANTARA)

Jakarta (ANTARA News) - Indonesia will soon develop renewable energy to replace the country`s diminishing oil reserves, according to Deputy Energy and Mineral Resources Ministry, Kardaya Warnika.

"Indonesia has oil reserves of about 4 billion barrels, and it is estimated this will run out within the next 11 years. Therefore, we need to develop renewable energy as soon as possible," Kardaya recently said on the sidelines of a seminar entitled `The Development of New Renewable Energy to Save Fossil Fuel for the Sake of National Resilience`.

Officials note that renewable energy could become a solution for dealing with the energy crisis and maintaining energy resilience.

Currently, the nation receives up to 95 percent of its energy supply from fossil energy, such as oil, natural gas and coal.

The attraction of renewable energy includes its being environmentally friendly, endless and available domestically.

"Investment in oil and gas would require billions of US dollars, while renewable energy needs only billions of rupiahs," he noted.

The government hopes that the development of renewable energy will reach 25 percent of the nation`s needs by 2025. However, subsidies are a factor hampering the development of renewable energy, he added.

The ministry is currently developing 100 megawatts of solar power energy (PLTS) and 50 megawatts of windmill power energy.

A location for the development of PLTS is being looked for, while a windmill power energy plant will be built in Yogyakarta.

Editor: Ella Syafputri

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