National Electric Car Can Begin Mass Production in 2013: Dahlan

Jakarta Globe, July 16, 2012

Depok Mayor Nurmahmudi Ismail, in the driver’s seat, tests an electric
 car on Jatimulya in Depok in West Java, on Friday. The car, which was
 invented by Depok resident Dasep Ahmadi, reportedly runs 150 kilometers,
 or between four and five hours on a single charge. (Antara Photo/Indrianto
Eko Suwarso)

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State-Owned Enterprises Minister Dahlan Iskan said on Monday that the country can begin mass production of the national electric car as early as next year after doing a test drive of its prototype on Monday. 

“If the infrastructure is ready, we can start mass producing the car with a capacity of 5,000 units per year,” he claimed. 

The minister drove the prototype of the Ahmadi Mesin 5.0 electric car, which was named after its maker Dasep Ahmadi, 48 kilometers from its garage at Jati Mulya, on the outskirts of Jakarta, to the Research and Technology Ministry building on Jalan Thamrin in Central Jakarta. 

The prototype so far only has a local police road certificate since regulations on taxes and registrations for electric vehicles, which do not fall under existing categories, have yet to be put in place.

Dahlan said President Susilo Bambang Yudhoyono has already instructed the ministers for industry, research and technology and trade to work on the necessary regulations. 

“Within the next three months, there should be a clear technical guide for commercial regulations, so that the car can be mass produced,” Dahlan said. 

Besides Ahmadi’s electric car, there are four other versions in the final stages of completion under the minibus, city car and sports car categories.

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Indonesia 's PIP allocates Rp1.8 trillion for geothermal investment

Antara News, Sat, July 14 2012

Jakarta (ANTARA News) - Government investment agency Pusat Investasi Pemerintah (PIP) has allocated around US$192 million for investment in the geothermal sector in the second semester this year, PIP chief Soritaon Siregar said.

"A total of US$132 million of the funds will be for exploitation activities and US$60 million for two projects now still under exploration," he said in Banten on Saturday.

He said the investment for geothermal projects is indeed huge because the government is striving to increase electricity supply from renewable sources.

On the other hand, he said, the geothermal investment is also risky as only three out of ten explorations could be continued to a exploitation stage.

In view of that it is difficult to expect private parties to develop the business by themselves, he said.

"To reduce risks PIP is now setting up a team of the best consultants in the world hailing from Japan, Norway, Australia and the US," he said.

They will be assigned to appoint technical, legal and financial consultants and supervisors to analyze the investment risks seen from various fields.

Regarding mini hydro-power projects (PLTMH) PIP meanwhile has allocated around Rp649 billion distributed to 29 applicants for investment loans, he said.

"All the applicants for the PLTMH projects are private because the value of the project is too small to be carried out a state-owned enterprise," he said.

He said the PLTMH projects are located in Sumatra, Java and Sulawesi.

Besides geothermal and PLTMH projects PIP also plans in the second semestet to purchase securities worth Rp1.5 trillion and carry out a public-private partnership project worth Rp100 billion.

Total funds provided for investment in the same year is Rp13.280 trillion.

Editor: Suryanto

Indonesia, Germany team on geothermal energy

Deutsche Welle, 12 July 2012

Indonesia is said to have the world's largest geothermal energy reserves but their potential remains mostly untapped. That could soon change with German know-how.

With 240 million people, Indonesia is the biggest and fastest growing market in Southeast Asia. And as the country's economy grows, so, too, does its demand for electricity.

President Susilo Bambang Yudhoyono is a self-acclaimed fan of "green energy." In a meeting with German Chancellor Angela Merkel during her recent visit to Indonesia, Yudhoyono talked about one of his major goals: to give greater focus to alternative energy resources such as wind, solar and, in particular, geothermal heat.

Untapped resources

Volcanic areas, like Indonesia, are a rich source of geothermal energy. The island nation is situated on the so-called "Ring of Fire" volcanic belt, which encircles the Pacific Ocean, accounting for 40 percent of the world's geothermal reserves - more than any other country. 

Indonesia lies in Pacific's volcanic
'Ring of Fire'

The government has pinpointed 250 locations where geothermal energy can be produced, including Seulawah on Sumatra, Ijen on Java and Tomohon on Sulawesi. Today, just 15 geothermal plants are in operation, with the last one going live in 1997.

Not all geothermal fields, however, are suited for commercial energy use because they don't have the right temperature, pressure or permeability.

"With geophysical, geochemical and geological tests, you try to get a picture of what it looks like inside the Earth," says Thorsten Schneider from Germany's KfW Entwicklungsbank in Jakarta.

After the test, drilling begins, representing a huge financial risk, according to Schneider. "A typical drilling costs between 3 and 5 million US dollars," he says. "And if you find nothing, the money is gone."

Expensive undertaking

Building a geothermal power plant is an expensive undertaking. Its costs are estimated to be two to three times more than that of a coal power facility, according to Schneider. 

Volcanic areas are ideal sites for
geothermal energy plants

In addition to costs, Indonesia's excessive bureaucracy, tough regulations and strict government price controls add to the challenges. So the country, concedes Schneider, "has a bit of a problem at the moment."

Most of the geothermal power plants in operation in Indonesia today are run by the state-owned natural gas and oil company PT Pertamina.

But in a move to tap into the country's vast geothermal reserves, the Indonesian government has opened the doors to foreign investment and know-how.

German money and know-how

Today, Germany is one of the biggest supporters, together with Japan, Australia and the US. The German government has earmarked 300 million euros in aid. 

Although Germany is not a "volcanic country," it has extensive geothermal expertise, admits Professor Ernst Huenges from the German Research Center for Geosciences in Potsdam.

"Currently in Indonesia, only geothermal steam is used," he says. "In Germany, by comparison, we're also able to utilize the energy from hot water" to significantly increase power production "by as much as 60 gigawatts."

'Demanding target'

Potential business opportunities also exist for German companies, points out KfW's Schneider. "Building power plants, with all the electronics and other technical equipment involved, is certainly of interest to German businesses," he says.

Merkel and Yudhoyono have agreed to collaborate in increasing Indonesia's share of renewable energies to 25 percent by 2015.

Schneider calls the target "utopian." Merkel, on the other hand, prefers more diplomatic language, referring to the agreement as a "demanding target," which Germany can help Indonesia achieve.

Few will disagree, however, that there is plenty of work to be done - and some risk involved - if Indonesia wants to tap its vast reservoirs of geothermal energy deep down.

Author: Monika Griebeler / jrb

Editor: Sarah Berning

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

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

Indonesia pursues wind power

UPI, July 5, 2012

UPI File Photo/Pat Benic

JAKARTA, July 5 (UPI) -- Indonesia is investing in wind power to cut its import bills of fossil fuels.

State utility Perusahaan Listrik Negara Director Nur Pamudji said his company is eager to see the country's second large-scale wind farm begin operations by the end of 2013.

UPC Renewables Indonesia and Binatek Reka Energi are constructing the $100 million, 50-megawatt wind farm off the coast of Samas in Yogyakarta, which will house 16 to 33 turbines.

Pamudji said, "This will be Indonesia's second wind farm after the one in Sukabumi. It will be the largest. UPC Renewables will study the investment plan and come up with a price. Then we will sign power-purchase agreement," the Jakarta Globe reported Wednesday.

Pamudji added PLN is interested in purchasing electricity from the UPC Renewables Samas wind farm because it would save billions of dollars that would otherwise be spent on costlier fuel imports.

Binatek Reka Energi Director Erwin Jahja said, "This wind power project is safe for the community and will help Indonesia achieve its target for the use of clean energy."

Homegrown Electric Car Can Go the Distance: Govt

Jakarta Globe, June 24, 2012

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Indonesian scientists have unveiled an electric car that they claim can travel 150 kilometers on a single charge, further than most electric city cars available today.

Two prototypes of the car were rolled out on Thursday at the National Monument (Monas) Park in Central Jakarta by researchers from the Agency for the Assessment and Application of Technology (BPPT) and the Indonesian Institute of Sciences (LIPI).

“This car is fueled entirely by electricity and is not a hybrid vehicle,” said Agus Hoetman, an adviser to Research and Technology Minister Gusti Muhammad Hatta.

“We are currently testing it for urban use,” he said, adding that the car was particularly suited for the stop-start driving pattern in a congested city environment.

“This car saves energy because there are no parts in the engine that need to keep moving when the car is stationary during a traffic jam. That’s different from gasoline-fueled cars,” he said.

Agus said the car had a range of up to 150 kilometers on a single charge, further than the 60-145 kilometers currently available from electric cars with a top speed of less than 100 kilometers an hour.

He said that in a recent test, the researchers almost managed to complete a round trip from Jakarta to Bandung on a single charge. The distance each way is about 130 kilometers.

Hatta previously said the government was earmarking Rp 100 billion ($10.6 million) for the development of an Indonesian-built electric car by four state universities. He said the universities were expected to present their designs soon, before production could begin sometime in 2014.

The minister also said that LIPI had been allocated Rp 1.2 trillion to develop an electric minibus capable of carrying up to 16 passengers.

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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

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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