British Petroleum to develop geothermal energy in indonesia: president

Antara News, Sat, May 26 2012

Yogyakarta (ANTARA News) - British Petroleum has agreed to participate in the development of geothermal energy in Indonesia, President Susilo Bambang Yudhoyono said here on Friday.

"BP in talks just now agreed to participate in the development of geothermal energy in Indonesia thus to increase our power capacity," he said at a press conference.

President Yudhoyono said the agreement was the result of his talks with BP CEO Bob Dudley at Gedung Agung.

He said so far geothermal energy in the country has not yet been exploited well despite the fact that the country has the world`s biggest reserves.

He said the energy source has not yet been developed well due to investment challenges.

He said although incentives had been given the sector has not developed well. He said the oil subsidy had also made the price of geothermal energy not competitive yet.

The President reiterated that geothermal energy is one of the future environmental friendly renewable energy sources.

President Yudhoyono on the occasion also expressed appreciation to BP that has agreed to transfer 230 cubic feet of gas per day from its Tangguh field in Papua to domestic industries. The gas from the field had so far been exported.

President Yudhoyono said the agreement would support the economic development especially domestic industrial development.

He said the government in the future must make efforts to re-negotiate its working contracts so that the gas produced by fields in the country could be sold to the domestic market.

"In view of our economic challenges the government had actually conducted re-negotiations to make the gas produced in Indonesia not to be totally sold abroad which is certainly not fair and correct," he said.

He said however the government would always respect the contracts that have been signed. "I honor the contracts but I also appeal to investors, business leaders in Indonesia to understand the situation in Indonesia. If the contracts are considered not right and not quite fair we, with a good will, wish to improve them and renew them," he said.

Editor: Aditia Maruli

Korean agency offers $700,000 for green school project

The Jakarta Post, Elly Burhaini Faizal,  Jakarta, Fri, 05/18/2012

Marking its first ever joint cooperation with the Education and Culture Ministry and the United Nations Educational, Scientific and Cultural Organization (UNESCO), the Korea International Cooperation Agency (KOICA) is launching a Green School Action Project to help accelerate the development of environmental education in schools in Indonesia.

KOICA Indonesia Office representative, Sungho Choi, said Friday that the Green School Action Project was a collaborative and supportive scheme for the Indonesian government delivered by the KOICA and UNESCO Jakarta office on behalf of the Korean government.

This program is aimed at helping to build the capacity of Indonesian teachers to raise awareness on sustainable development in schools.

“Combating climate change is now the global concern in which joint efforts are essential. No country or region is free from this global issue. It’s highly appropriate for us to invest in education for sustainable development as climate change is not only about changing the environment but it can also lead to poverty,” said Sungho Choi on the sidelines of a three-day regional workshop for “Green Action in East Asia: Centered on Teacher Capacity Building for Climate Change Education”, which began on Friday.

For the project, he said, the KOICA had contributed US$700,000 for building capacity among teachers from 20 pilot schools in Banjarmasin, South Kalimantan, through education on climate change and sustainable development.

About 160 participants from seven countries, comprising Brunei Darussalam, China, Indonesia, Japan, South Korea, Thailand and Vietnam, are attending the workshop. Teachers from the 20 pilot schools for the Green School Action Project in Banjarmasin are also taking part in the event.

“Supporting environmental management and sustainable development is one of the core sectors in bilateral cooperation conducted by the KOICA. I sincerely hope that we can continue to closely work on sustainable cooperation and environmental education to address the impacts of climate change,” said Sungho Choi.

Under the Adiwiyata program, which was launched in 2006, the Environment Ministry, in cooperation with the Education and Culture Ministry, has created green school communities that are able to manage and protect the environment partly to support sustainable development programs that the government is currently working on.

“We know that the Indonesian government already has a good program on green schools called Adiwiyata. We hope that the Green School Action Project can add increased values to that work,” said UNESCO Jakarta’s head of education division, Anwar al-Said.

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Diponegoro University to build Geothermal Study Center

Antara News, Mon, May 14 2012

 "One day, the use of fossil energy will end."

Semarang, Central Java (ANTARA News) - Diponegoro University of Semarang, central Java, is building a Geothermal Research Center to be run by the Faculty of Science and Mathematics to examine potential geothermal resources in Indonesia.

"The Geophysics and Geothermal Research Centre building begins today and is targeted to be completed in November 2012," said Dean of the university`s Faculty of Science and Mathematics M. Nur here on Monday.

Nur added that fossil energy cannot remain plentiful forever and will someday be depleted due to excessive consumption. So, renewable energy such as geothermal would be a needed breakthrough.

"We see the geothermal energy potential in Central Java is located in the Mount Dieng area, Wonosobo and Ungaran, and Semarang regency. The Geothermal Research Center is expected to assist in the use of alternative energy," he said.

Nur noted that the Geophysics and Geothermal Research Centre building will be built in an area of 2.105 square meters and supported by the state`s Oil and Gas Company, PT Pertamina.

"One day, the use of fossil energy will end. Oil-fueled cars will be finished. Therefore, we need a long-term breakthrough for new renewable energy use," he said.

According to the university`s Rector, Sudharto, Indonesia's use of fossil energy is still as high as 95 percent, using petroleum, natural gas, and coal, and the remaining five percent is made up of new renewable energy alternatives.

Though national renewable energy consumption is only five percent, it is targeted to be increased to 17 percent by 2025.

Pertamina General Manager Retail Fuel Marketing Region IV Rifky Hardijanto Effendi added that, with the funding for construction of this facility, this is the third time Pertamina has contributed to construction at the university.

"We distributed Rp7.2 billion to build the Geophysics and Geothermal facility, and earlier we also helped construct the building at the university's Faculty of Economics and Faculty of Engineering," he said.

Editor: Priyambodo RH

Clean power asia conference in nusa dua to focus on renewable energy

Antara News, Sat, May 12 2012

Denpasar (ANTARA News) - Clean Power Asia Conference (CPA), with an expected 600 professionals and experts in the field of renewable energy and cleaner fossil energy in attendance, is scheduled to be held in Nusa Dua, Bali, on 14-16 May 2012.

"The conference also brings together energy ministers from various countries, regulatory agencies, power companies, investors, and providers of services and technology to discuss the latest developments in Asia related to renewable energy and energy from fossil fuels," said Director of the CPA Program Daria La Valle in a press statement received here on Saturday.

According to Daria, Indonesia has become the model for countries in Asia in the use of electrical energy derived from renewable and clean fossil fuel.

"Indonesia is a country with the greatest potential in Asia for renewable electricity generation by clean fossil fuel," he said.

He noted that Indonesia contains the largest geothermal resources in the world. In addition, he said Indonesia has great potential in the field of bioenergy, solar, and water.

"If this potential is combined, then Indonesia would be a great power source for renewable electrical energy in Asia," he said.

He noted that speakers at the conference include Datuk Loo Took Gee, who served as Secretary General of the Ministry of Energy, Green Technology and Water Malaysia; Dr Songpope Polachan, Director General of the Department of Mineral Fuels Thailand Ministry of Energy; and Hatsady Sysoulath, Director General for Promotion of Renewable Energy Agency Ministry of Energy and Mines Laos.

Also speaking will be Dr. Lavansiri the Director, Chairman of the Thailand Energy Regulatory Commission; Dr Kardaya Warnika, Director of New Energy, Renewable Energy and Energy Conservation and the Ministry of Mineral Resources; Nur Pamudji, President Director of PT PLN, and Shinta W Kamdani, Vice-Chairman Chamber of Commerce and Industry / Chamber of Commerce.

Others speaking at the conference will be Datuk Mohd Nazri Shahruddin, Vice President Director of Power Plants Malaysia Tenaga Nasional Berhad; Yokihiro Hirabayashi, Deputy Director of International Business Development Department of Japan`s J-Power; Dr Nattakit Parkpoom, Expert Planning Division of Energy Systems Power Plant Thailand EGAT; Heru Dewanto, Commissioner of PT Cirebon Electric Power, and Anupam Datta, Calcutta Electric Supply Corporation GM India.

Editor: Aditia Maruli

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Panasonic donates 1,000 eco-friendly light bulbs to Indonesian village

The Jakarta Post, Jakarta, Thu, 04/26/2012

Japanese electronics firm Panasonic is calling on Indonesians to save energy and cut down on carbon dioxide emissions, through its "Eco Ideas" program of corporate social responsibility for villages.

"We are working together with an electronics retail company, Electronic City, to donate about 1,000 eco-friendly light bulbs to 651 household heads at Warung Kadu village in Purwakarta regency, West Java, where each family will receive three light bulbs," said Ronny Heribertus, Panasonic’s company spokesman, as quoted by kompas.com.

The 11-watt sustainable light bulbs can generate the kind of light similar to a 60-watt bulb. These so-called "eco spiral" bulbs can save 80 percent of electricity and last 10 thousand hours.

Panasonic's "Eco Ideas" program aimed to help Indonesian communities change their energy-consumption patterns so that they could save on energy, Ronny said on Tuesday.

Sembcorp opens S$34m 'energy from waste' plant

The Jakarta Post, Yunita Ong, Asia News Network/The Straits Times, Singapore, 04/25/2012

Sembcorp opened on Tuesday a S$34 million (US$27.29 million) plant in Sakra district on Jurong Island that will turn waste into energy.

The facility will process woodchips from the firm's solid waste management arm to output 20 ton of process steam an hour for use by other industries nearby, including multinational agribusiness Tate & Lyle.

The wood - gleaned from industrial, commercial, construction and demolition waste - would otherwise be incinerated.

The steam-producing process also cuts costs. Sembcorp has relied on natural gas from Indonesia to fuel its plants since 2001 but using woodchips instead would be 'significantly' less expensive, although the firm did not disclose the savings.

Ng Meng Poh, its executive vice-president for Singapore and ASEAN (Utilities), said Tuesday: “This solution provides an alternative economical source of energy for our customers on Jurong Island while leveraging synergies between our solid waste management and energy business.

“'It is also a step forward in our strategy to grow our portfolio of renewable energy assets and to offer sustainable and competitive energy-from-waste solutions to our customers on (Jurong Island).”

A range of other green facilities was also announced at Tuesday's opening ceremony.

Sembcorp will develop a second boiler at the plant to pump out 40 ton per hour of process steam. It will be completed later next year.

The two boilers, which will cost $64 million in total, will reduce carbon dioxide emissions by an estimated 70,000 ton a year compared with the typical Singapore steam-generating plant, which uses a mix of natural gas and other fuels.

Sembcorp also intends to supply its Sakra customers with one third of their steam demands using alternative fuel.

It aims to build two energy-from-waste boilers in Sakra to produce 140 ton of steam an hour by 2014. Its solid waste collection arm will provide the plant fuel.

In 2007, Sembcorp started burning woodchips, recycled wood and willows to fuel its $187 million power and steam station in Teeside in Britain. 

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.

Three state firms to invest $30 mln in solar cells

Antara News, Fri, April 20 2012

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Jakarta (ANTARA News) - Three state firms will cooperate in producing solar cells at a total cost of US$30 million, an official said.

"In the first phase, the solar cells which will be produced in the first semester of 2012 may have a capacity of 30 megawatts," the deputy for infrastructures and logistics to the state enterprises minister, Sumaryanto Widayatin, said here Thursday.

The three state firms are electricity company PT PLN, construction company PT Wijaya Karya Tbk, and highway operator PT Jasa Marga Tbk.

Sumaryanto said the cooperation is part of synergy to deal with rising demand for electrical power.

"In the first phase, Jasa Marga will serve as off taker (direct user) of the solar cell production," he said.

In addition, the solar cells will also help PLN meet electrical power needs in remote areas, outlying islands and hinterlands, he said.

The study on the development of solar cells has reached the final stage, he said adding the three state firms will soon set up a kind of subsidiary to carry out the project.

He said Indonesia has large potentials to develop solar cells.

"We have quartz sand deposits of up to 75 billion tons as raw material to make solar cell crystal or silicon," he said. 

Editor: B Kunto Wibisono

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NZ interested in geothermal and animal husbandry projects

Antara News, Mon, April 16 2012

 "For investments there are two sectors that New Zealand is interested in, animal husbandry and geothermal plants."

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Gita Wirjawan. (ANTARA)

Jakarta (ANTARA News) - New Zealand is interested in investing in geothermal and animal husbandry projects in Indonesia, trade minister Gita Wirjawan said.

"For investments there are two sectors that New Zealand is interested in, animal husbandry and geothermal plants," he said during a seminar on business and investments held by the Indonesian Chamber of Commerce and Industry (Kadin) and the New Zealand government here on Monday.

The event was also attended by visiting New Zealand prime minister John Key, flanked by trade minister Tim Groser and a 40-member business delegation.

"With regard to animal husbandry, New Zealand has 30 million head of cattle and 40 million sheep, while its population is only 4.5 millions. So there is a lot of added value that they could give us," he said.

Gita who is also head of the Capital Investment Board, said New Zealand`s businessmen have been positive about the investment potential in the animal husbandry sector, not only in cattle breeding but also processed cattle products.

"New Zealand is also interested in geothermal development projects because that country is, like Indonesia, located in the ring of fire and so they are interested in Indonesia, which has 40 percent of the world`s geothermal total reserves," he said.

Gita added that New Zealand also has skills in processing geothermal energy, as some experts in the field also joined the prime minister`s delegation.

He said, however, he could not as yet tell about the value of their investment. "But I think it will be quite big. For cattle development the investment is expected to be realized this year, while for geothermal projects, further study is needed.

With regard to trade between the two countries, the minister admitted it was still very small, only US$1.1 billion.

"The government is making efforts to see trade between the two countries reach minimally one percent of the two countries` total gross domestic product. The two countries` GDPs total US$1.2 trillion and so one percent of that is US$12 billion. As it is now still recorded at US$1.1 billion, it means a lot of work still has to be done," he said.

Indonesia export products to New Zealand include textile, garments, agricultural and animal husbandry materials.

"Indonesia, meanwhile, imports a lot of processed milk, which is their main export. We now still suffer a deficit of between US$100 million and US$200 million in our trade with New Zealand, but hope with the ratification of the ASEAN-New Zealand Free Trade Agreement early this year that conditions would become more equal," he said.

The FTA has been considered mutually beneficial because, the minister said, under it Indonesia could export more goods and services to New Zealand.

According to data from the New Zealand government, Indonesia is the world`s tenth largest export market for that country and the largest market in Southeast Asia.

New Zealand`s exports to Indonesia reach 870 million New Zealand dollars, and imports from Indonesia total 704 million dollars.

Total bilateral trade between the two countries has reached 1.5 billion New Zealand dollars.

New Zealand`s main exports to Indonesia in 2011 were food and drink, including milk, cream milk, cheese and butter, amounting to 60.9 percent of its total exports worth 521.3 million New Zealand dollars.

Cooperation between the two countries in geothermal projects began in 1982 when New Zealand`s then prime minister, Robert Muldoon, and president Soeharto opened the first geothermal project in the country in Kamojang.

Editor: Priyambodo RH

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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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Private companies to build 3 hydro power plants

Rangga D. Fadillah, The Jakarta Post, Jakarta | Tue, 03/20/2012

State power company PT PLN has decided that three hydro power plants in Batang Toru in North Sumatera, Kerinci, in Jambi and Karama in West Sulawesi will be built under the public-private partnership.

Nur Pamuji: PLN president director.
(Tribunnews.com) 

“Considering that the projects require huge investments, the projects will be given to private developers. The financing may come from foreign financial institutions thus we suggest that the government provide guarantee through PT Penjaminan Infrastruktur Indonesia [PII],” said PLN president director Nur Pamudji.

The Karama power plant will be built by PT Sulbar Group and China Gezhoumba Group. The plant will have a total capacity of 450 megawatts (MW) and requires a total investment of US$$1.2 billion.

The contract for the Kerinci plant has been awarded to PT Kerinci Hydro Energy. The investment for the 450 MW plant is forecast to hit $510 million.

In Batang Boru, Operational Cooperation (KSO) Dharma Hydro will build the 500 MW power plant. The total investment is expected to reach $1.2 billion.

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Indonesia Bids to Host Future Clean Technology Center

Jakarta Globe, March 20, 2012

The surge in wind energy could save 1.6 billion tonnes of carbon
dioxide emissions each year 

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Paris. Plans for a global center to help transfer clean technology to poorer countries have drawn nine bids, including from Indonesia’s National Council on Climate Change, the UN climate forum said on Monday. 

Parties to the UN Framework Convention on Climate Change (UNFCCC) backed the proposal at a meeting in Durban, South Africa last December. 

Bidders to host the center include a 13-member consortium led by the Kenya-based UN Environment Programme (UNEP) and whose ranks include energy research institutes in India, the United States and Netherlands, the UNFCCC said in a press release. 

Others are the Global Environmental Facility (GEF), a Washington-based international funder of environmental programmes; Costa Rica’s Institute of Technology; and Indonesia’s National Council on Climate Change. 

There is also a bid by the Research Institute of Petrolum Industry (RIPI) in Tehran, which carries out research for Iran’s oil and gas sector. 

Fossil fuels are the biggest contributor to global warming, which scientists say is inflicting worrying changes to the climate system. 

The nine applicants will be whittled down to a shortlist of five next month. 

In May, a UNFCCC expert panel will propose the winner. Final approval rests with the UNFCCC’s annual ministerial-level meeting, taking place in Qatar from November 26 - December 7. 

Agence France-Presse

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Govt to build solar cell company in West Java

Antara News, Mon, March 19 2012 

Jakarta (ANTARA News) - The Ministry of State Owned Enterprises plans to build a solar cell company in Karawang, West Java, in response to the growing suggestions that Indonesia should use more renewable energy and reduce its dependency on fossil fuel, a minister said.

Dahlan Iskan. (ANTARA
/Rosa Panggabean) 

"The company will produce a capacity of 60 megawatts per year, and the government has planned to invest Rp500 billion. The company is expected to start operations by November 2013," Minister of State Owned Enterprises Dahlan Iskan said here on Monday.

Earlier, Minister of Research and Technology Gusti Muhammad Hatta had said his ministry was continuously studying the pattern of geothermal energy utilization in Indonesia as part of the efforts to ready existing renewable energy sources for tapping by 2025.

"My ministry is continuously studying the utilization patterns since it has been planned that in 2025 new renewable energy should be ready in large amounts," he said.

Gusti added that the National Energy Board (DEN) had predicted that the availability of petroleum would deplete by 2020 so the preparation of renewable energy on a large scale should be started early.

Oil may still be available off the coast but it is deep inside the ocean and will require the use of advance technology and high costs to obtain.

Therefore, the renewable energy derived from various sources such as ocean currents, wind and plants (bio-ethanol) must be reviewed for use, the minister explained.

"In fact, in the near future we will be working on geothermal energy because we (Indonesia, Red) has 44 percent of the world`s geothermal potential," he noted.

The DEN version guided by the blue print of National Energy Management 2004 mentions that Indonesia`s energy source of fossil fuel, which is oil, will be exhausted within 18 years, gas in 61 years, and coal in 147 years.

Currently Indonesia needs as much as 1.5 percent of the world`s oil to reach 10.5 billion tons.

Meanwhile, Indonesia exports as much as 1.5 percent, which means that Indonesia`s ability to produce oil takes care of 3 percent of the total oil consumption in the world.

Earlier, Minister of Energy and Mineral Resources Jero Wacik said that renewable energy in Indonesia has not been fully utilized, especially the abundant solar energy.

"Solar energy is currently used only for drying coffee and during the tourist season, even though it can be utilized optimally," he said.

Jero noted that energy sources of oil will be exhausted but according to the data from the National Energy Board, renewable energy is currently only 5 percent of the total energy used.

So the government is working towards making sure that renewable energy reaches a minimum of 25 percent of the total energy used in 2025.

According to the Ministry of Energy and Mineral Resources, there are currently around 28 sources of geothermal energy with a potential of about 7,000 megawatts that have been licensed for exploration by the Forestry Ministry.

Editor: Priyambodo RH

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A New Home for Rp 70m? It Might Be Within Reach for Indonesia's Poor

Jakarta Globe, Anita Rachman, March 19, 2012

Model units of the prefab homes that the Ministry of Public Housing
 envisions as an affordable plan to homeownership. Accounting for all
the costs  associated with them, setting up the houses would cost at least
Rp 70 million, with mortgage plans available. (JG Photo/ Afriadi Hikmal)  

       

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Shortly after he was appointed public housing minister in October, Djan Faridz was given a daunting challenge: build Rp 25 million ($2,750) houses for low-ranking civil servants on land provided by the local government.

“I was shocked,” he told the Jakarta Globe in a recent interview. “How can I build a house with only Rp 25 million? And I wanted it to have at least a 36-square-meter [floor area].”

But he soon found an answer in Palembang, South Sumatra. In a trip to the province, he met representatives of Grand Wijaya Persada, a construction company that has been building houses for even less than that amount.

A model cheap house

Inside the ministry compound in South Jakarta, a fully furnished, two-bedroom 45-square-meter model unit now stands.

The basic structure of the prefab house costs Rp 35 million, sans flooring, ceiling and paint, which runs an additional Rp 5 million.

Beside it, a model unit of the Rp 25 million, 36-square-meter version is being built. Visible for now is the steel mold where concrete would be poured into to create the basic structure. But it won’t remain like that for long, because the house can be finished in as little as seven days.

Anyone interested in looking at the model units is welcome at the ministry. Both units have a defined two-bedroom floor plan according to the prefab mold patented by Umar Sumadi, the production head at Grand Wijaya. A single mold can be used to construct as many as 200 houses.

The ministry has already signed a memorandum of understanding with several other ministries committing to help provide civil servants with these cheap houses.

Djan said the project would be done in 60 districts and municipalities across the country, starting off with East Nusa Tenggara (NTT) and North Maluku.

The ministry is aiming to build around 7,900 cheap houses in NTT and 2,000 in North Maluku this year, among others.

Rp 70 million dream

The minister, however, is keen on finding a way to make the same cheap houses available to all Indonesians.

“Housing is a serious matter, after food and clothing. But many cannot afford it because it’s remarkably expensive,” Djan said.

According to his ministry’s data, as many as 4.8 million Indonesians today live in dilapidated houses, and more than 11 million people do not have their own homes. And with real estate prices expected to keep rising, chances are these figures will only climb higher.

That’s why the minister’s goal is to give Indonesians a chance to own a home for an affordable Rp 70 million.

Here’s how he sees it: in certain parts of Jakarta’s satellite cities, say Depok, people can still get a 60-square-meter plot of land for less than Rp 20 million.

If the Rp 25 million, 36-square-meter prefab model is built on that land, then for as little as Rp 70 million — including flooring, ceiling, paint, electricity and water installations and other fixtures — an Indonesian family can have a home it can call its own.

“Of course you can also get it elsewhere, anywhere you want,” the minister said. “So if you are outside Java, you can get a house for even less than Rp 70 million.”

Bringing it to the people

The idea is that the ministry will work with developers who can build subdivisions full of these prefab units.

For a housing project to be economically feasible, at least 200 units must be constructed to maximize the use of the mold. Grand Wijaya would earn a 5 percent licensing fee for each socialized housing project.

Indonesians can then buy the houses from these developers at prices determined together with the ministry. Of course, certain conditions, such as that the potential buyer does not own a house yet, have to be met.

The ministry will then help get bank housing loans. For a Rp 70 million house, Djan said the current computation would see a buyer pay Rp 575,000 a month for 15 years.

But it might still be a while before these become a reality, as the ministry hasn’t begun discussions with developers yet.

Real Estate Indonesia chair Setyo Maharso said delivering low-cost homes was not a problem, and the ministry’s plan could be executed in the same way as previous programs.

Doing it in Jakarta, though, would not be easy, he said.

“It’s even quite difficult to build it in Depok. Bogor or Bekasi are still possible, but not here in Jakarta,” he said.

Although he completely supports the policy, he said prefab units were not always ideal.

“Low-income families usually buy a small house, but when they have money, they will build more rooms. But prefab houses are not really flexible for modifications,” he said.

Priyo Suprobo, a structural engineer with the Sepuluh November Institute of Technology (ITS), agreed. He said modifying a prefab structure would be difficult, and that the lack of flexibility was a major weakness.

Another is that people could not embed electrical wiring into the walls.

But Priyo still believes this kind of model can help low-income families solve their housing problems, “especially if the ministry provides a subsidy,” he said.

Will people buy?

Ridwan, a security guard in an office building in Kuningan, currently rents a house in Kedoya in Kebun Jeruk, West Jakarta, with his wife and child for Rp 350,000.

Hearing about the Rp 70 million house made him happy and hopeful. “I think it’s affordable, and 36 square meters looks decent enough,” he said.

On the other hand, Afrizal, a single 24-year-old noddle seller in Lenteng Agung, felt the Rp 575,000 amortization per month was still out of reach.

“It’s already hard to make ends meet,” he said.

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Govt Pairs With F Cubed for Safe Drinking Water Project

Jakarta Globe, March 17, 2012

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The Indonesian government has announced it will partner with sustainable water technology firm F Cubed to set up solar-powered desalination kits across the country.

Indroyono Soesilo, secretary at the office of the coordinating minister for people’s welfare, said on Thursday that there was an urgent need to provide a sustainable and reliable source of clean water in villages and isolated communities nationwide.

The decision to partner with F Cubed, he said, was crucial in this respect. “We need to immediately find a solution to providing clean water in areas that experience chronic water shortages,” he said.

He said the Australian company would work with the Agency for the Assessment and Application of Technology (BPPT) and the Indonesian Institute of Sciences (LIPI) to set up its Carocell solar-powered desalination kits throughout the country.

Peter Johnstone, the F Cubed founder and chief executive, said the desalination technology that his company had pioneered was proven to produce high-quality drinking water.

“Our technology can turn water from any source, be it seawater, groundwater, polluted or even contaminated water, into clean, potable water,” he said. “And because it runs on solar power, the water can be produced at a very low cost.”

Among the other benefits of the Carocell system that the company touts are that it “emits no greenhouse gas emissions, uses no chemicals, no costly membranes, no filters, no electronics and no ongoing power source is required other than solar radiation.”

The system is based on a single or a series of low-cost solar panels that can be mounted on the roof of a building or on the ground. The water goes into a feeder pipe running along the top of the panel, then is allowed to run down in evenly dispersed streams to the bottom of the panel.

As it flows down, it gets heated by the solar panel and vaporizes, condensing on the inside of the panel enclosure and eventually dripping out through a clean water outlet pipe.

F Cubed claims the distillation process, high temperatures and exposure to ultraviolet light kill any bacteria and germs in the water. The company also says its panels have double the solar efficiency of similar water purification systems.

The smaller of its two types of solar panels, with a surface area of three square meters, can produce up to 20 liters of clean water a day, while the larger panel, at six square meters, can produce double that amount.

Each panel converts 30 to 40 percent of the feed water into clean water.

The whole cycle can be carried out six times, after which the remaining fluid, with a high salt concentration, is crystallized to produce salt, as part of the F Cubed’s “zero liquid discharge” technology.

Johnstone said the Carocell panels were already in use in 26 countries, including Malaysia, India and Bangladesh.

“We are currently assessing building a factory in Indonesia with investment of around $10 million,” he said. “We want to participate in efforts to improve people’s welfare by providing clean water and creating jobs.”

F Cubed says that because the system runs entirely on solar power, there are no mechanical parts and no electronics, making it ideal for installation in remote, rural areas, as well as for use in disaster relief situations.

Antara