10

1. Increasing Coal Production and

Utilization

2. Increasing Natuiral Gas

Production and Utilization

3. Reneweable Energy Utilization

4. New Power Plant and

Transmission Development

5. Rural Electrician Development

6. Human Resource Development

The Importance of Renewable The Importance of Renewable EnergyEnergy The Importance of Renewable The Importance of Renewable EnergyEnergy

Total capacity Hidrocarbon Train : 1 Total capacity Hidrocarbon Train : 1 milion K.Litre per Daymilion K.Litre per Day

Fuel Production : 44.5 milion K. Litre Fuel Production : 44.5 milion K. Litre (KL), Consumption : 62.3 milion (KL), Consumption : 62.3 milion K.Litre (KL)K.Litre (KL) defisit 17.8 juta KL (impor)defisit 17.8 juta KL (impor)

Diesel Oil demand (IDO and ADO) : Diesel Oil demand (IDO and ADO) : ±± 70.000 KL/Day or 70.000 KL/Day or ± 26 milion ± 26 milion KL/annumKL/annum

Domestic Diesel Oil supplay too tightDomestic Diesel Oil supplay too tight

Increasing Crude Oil PriceIncreasing Crude Oil Price

Total capacity Hidrocarbon Train : 1 Total capacity Hidrocarbon Train : 1 milion K.Litre per Daymilion K.Litre per Day

Fuel Production : 44.5 milion K. Litre Fuel Production : 44.5 milion K. Litre (KL), Consumption : 62.3 milion (KL), Consumption : 62.3 milion K.Litre (KL)K.Litre (KL) defisit 17.8 juta KL (impor)defisit 17.8 juta KL (impor)

Diesel Oil demand (IDO and ADO) : Diesel Oil demand (IDO and ADO) : ±± 70.000 KL/Day or 70.000 KL/Day or ± 26 milion ± 26 milion KL/annumKL/annum

Domestic Diesel Oil supplay too tightDomestic Diesel Oil supplay too tight

Increasing Crude Oil PriceIncreasing Crude Oil Price

OBJECTIVE OF ENERGI MIX 2025OBJECTIVE OF ENERGI MIX 2025

(PERPRES NOMOR: 5 TAHUN 2006)(PERPRES NOMOR: 5 TAHUN 2006) OBJECTIVE OF ENERGI MIX 2025OBJECTIVE OF ENERGI MIX 2025

(PERPRES NOMOR: 5 TAHUN 2006)(PERPRES NOMOR: 5 TAHUN 2006)

Primer EnergyPrimer Energy Energy MixEnergy Mix

RecentRecentEnergy MixEnergy Mix

at 2025at 2025

1. Crude Oil1. Crude Oil 51,66 %51,66 % 20,0 %20,0 %

2. Natural Gas2. Natural Gas 28,57 %28,57 % 30,0 %30,0 %

3. Coal3. Coal 15,34 %15,34 % 33,0 %33,0 %

4. Renewable Energy :4. Renewable Energy :

- Geothermal- Geothermal

- Hidro Power- Hidro Power

- Biofuel- Biofuel

- Coal Liquefaction - Coal Liquefaction

- Biomass, Nuclear, - Biomass, Nuclear, Solar Solar

and Wind Blowsand Wind Blows

1,32 %1,32 %

3,11 %3,11 %

--

--

--

5,0 %5,0 %

--

5,0 %5,0 %

2,0 %2,0 %

> 5,0 %> 5,0 %

RAW MATERIAL BIODIESELRAW MATERIAL BIODIESELPROSPECTIVE IN SOUTH SUMATERAPROSPECTIVE IN SOUTH SUMATERA

STRAIGHT JATROPHA OIL (SJO)

CRUDE PALM OIL (CPO)

COCONUT OIL

NUT OIL

STRAIGHT JATROPHA OIL (SJO)

CRUDE PALM OIL (CPO)

COCONUT OIL

NUT OIL

RAW MATERIAL BIOFUEL POTENSTIAL RAW MATERIAL BIOFUEL POTENSTIAL IN SOUTH SUMATERAIN SOUTH SUMATERA

Jatropha : 520 ha (50.000 ha potential Jatropha : 520 ha (50.000 ha potential area, developed on critical forest)area, developed on critical forest)

CPO production, 2006 : 1.6 milion CPO production, 2006 : 1.6 milion ton/annum (plantation area : 620.000 ton/annum (plantation area : 620.000 ha)ha)

Coconut, 2006 : 70.000 ton (plantation Coconut, 2006 : 70.000 ton (plantation area 60.000 ha)area 60.000 ha)

RAW MATERIAL BIOFUEL RESOURCES RAW MATERIAL BIOFUEL RESOURCES

1.1. Biodiesel utilization at 2010 : 720.000 K.Litre/annum (approx. 2 Biodiesel utilization at 2010 : 720.000 K.Litre/annum (approx. 2 % of total demand% of total demand).).

2.2. Biodiesel design implementation :Biodiesel design implementation :

20062006 20072007 20082008 20092009 20102010

1.1. Target :Target :

a. Biodiesel (K.Litre)a. Biodiesel (K.Litre)

b. Crude Palm Oil (Ton)b. Crude Palm Oil (Ton)50.00050.000

50.00050.000100.00100.00

00

100,00100,0000

300.00300.0000

300.00300.0000

500.00500.0000

500.00500.0000

720.00720.0000

720.00720.0000

2. Design :2. Design :

a. Biodiesel Plant a. Biodiesel Plant (K/Litre)(K/Litre)

- South Sumatera- South Sumatera

- Other Province- Other Province

b. Crude Palm Oil (Ton)b. Crude Palm Oil (Ton)

- South Sumatera- South Sumatera

- Other province - Other province

--

50.00050.000

--

50.00050.000

--

100.00100.0000

--

100.00100.0000

60.00060.000

240.00240.0000

60.00060.000

240.00240.0000

70.00070.000

430.00430.0000

70.00070.000

430.00430.0000

90.00090.000

630.00630.0000

90.00090.000

630.00630.0000

CPOCPO

JATROPHA OIL

JATROPHA OIL

Perpres no. 5 tahun 2006 AND Inpres No.1 tahun 2006

BIO DIESEL

Jatropha plantation and development (1.5 milion trees equivalent to 500 ha, in Lahat dan OKU Timur)

• Palm plantation development conduct by Plantation Revitalization Project : 300.000 ha (on year : 2007-2010)

• BIODIESEL PILOT PLANT PROJECT, capacity: 20 ton per day or (6000 ton/annum), at Research and Development Centre , Sembawa.

Area Utilization Master Plan

3,2 milion ha

Existing Area

2,2 milion ha (Year`2005)

Development Area

1 Juta ha

Rubber : 944.000 ha

Palm Plantation : 561.000 ha(CPO product. : 1.5 milion ton)

Coffe : 272.000 ha

Horticulture : 250.000 ha

Other comodity : 173.000 ha

Rubber : 250.000 ha

Palm : 600.000 ha

Sugarcane : 75.000 ha

Other : 25 ribu ha

Jatropha : 50.000 ha

Alocation area : Alocation area :

Policy : South Sumatera as National Energy CentrePolicy : South Sumatera as National Energy Centre

Raw Material : CPO is already exist, Jatropha development Raw Material : CPO is already exist, Jatropha development on going.on going.

Supporting system : 42 unit CPO plant existing, capacity Supporting system : 42 unit CPO plant existing, capacity 2.020 ton/hr.2.020 ton/hr.

Supporting organization : Local Government Enterprise (PD Supporting organization : Local Government Enterprise (PD PDE)PDE)

Human Resource: University (UNSRI) as a part of National Human Resource: University (UNSRI) as a part of National Energy Research, Indonesian Plantation Research Institute, Energy Research, Indonesian Plantation Research Institute, Plantation Research and Development Centre- Ministery of Plantation Research and Development Centre- Ministery of Horticuluture. Horticuluture.

Accesibility : transportation, telecomunication and port.Accesibility : transportation, telecomunication and port.

Area, plant and technology already exist. Area, plant and technology already exist.

Fun : Local government already for sharing budget.Fun : Local government already for sharing budget.

PROSPECT FOR BIODIESEL INVESTMENT PROSPECT FOR BIODIESEL INVESTMENT

IN SOUTH SUMATERAIN SOUTH SUMATERA

PROSPECT FOR BIODIESEL INVESTMENT PROSPECT FOR BIODIESEL INVESTMENT

IN SOUTH SUMATERAIN SOUTH SUMATERA

BIODIESEL POTENTIAL MARKET BIODIESEL POTENTIAL MARKET IN SOUTH SUMATERA IN SOUTH SUMATERA

ConsumptionConsumptionDiesel OilDiesel Oil Biodiesel Biodiesel

(000. k.litre)(000. k.litre)

TotalTotal 446446 7676

Crumb RubberCrumb Rubber 3030 3030

AutomotiveAutomotive 408408 4141

Farming Farming Machine and Machine and EquipmentEquipment

88 55

BIODIESEL PILOT PROJECT BIODIESEL PILOT PROJECT PLAN PLAN IN SOUTH SUMATERA IN SOUTH SUMATERA

LOCATION : SEMBAWA RESEARCH LOCATION : SEMBAWA RESEARCH CENTRE, BANYUASINCENTRE, BANYUASIN

SUPPORTING CONDITION :SUPPORTING CONDITION :A.A. Palm Plantation, owner by Sembawa Palm Plantation, owner by Sembawa

Research Centre, Palm tree 15 years old Research Centre, Palm tree 15 years old (TM 11), area: 1.200 Ha(TM 11), area: 1.200 Ha

B.B. Area for Site Location CPO & Bio Diesel Area for Site Location CPO & Bio Diesel Plant : 2 HaPlant : 2 Ha

C.C. CPO Production : 1.6 milion Ton/AnnumCPO Production : 1.6 milion Ton/Annum

Site Location Biodiesel Plant, Sembawa Research Centre

BIODISEL UTILIZATION RESEARCHBIODISEL UTILIZATION RESEARCHFOR MACHINERY AND EQUIPMENT FARMINGFOR MACHINERY AND EQUIPMENT FARMING

IN SOUTH SUMTERA IN SOUTH SUMTERA

Total Biodiesel consumption for Total Biodiesel consumption for machinery and equipment farming in machinery and equipment farming in South Sumatera Selatan South Sumatera Selatan 4.372 ton 4.372 ton litre per annumlitre per annum

Decreasing fuel consumptionDecreasing fuel consumption Long lifetime machinery and Long lifetime machinery and

equipmentequipment Biodegradability Biodegradability

NNoo

Machine and Machine and EquipmentEquipment

Total Total unitunit

BiodieselBiodiesel

TypeType

ConsumptiConsumption (ton on (ton ltr/thn)ltr/thn)

11 Hand tractorHand tractor 1.7501.750 BB2020 270270

22 Power Power thresherthresher

819819 BB2020 5959

33 Rice milling Rice milling UnitUnit

2.7502.750 BB100100 4.0434.043

TotalTotal 5.3195.319 4.3724.372

BIODIESEL MARKET BIODIESEL MARKET (50 % eksisting machinery and farming

equipment , year 2005)

BIODIESEL ECONOMIC SCALEBIODIESEL ECONOMIC SCALE

CPO PRICECPO PRICEASSUMPTIONASSUMPTION

PRICE (Rp/Litre)PRICE (Rp/Litre)

BIODIESELBIODIESEL DIESEL OIL (IDO)DIESEL OIL (IDO)

3.5003.500

(2006)(2006)4.5004.500 5.7005.700

4.0004.000 5.0005.000 5.7005.700

5.0005.000 6.0006.000 5.7005.700

BUDGET SCHEMEBUDGET SCHEME CPO PlantCPO Plant

5 Ton/Hr5 Ton/Hr:: 9 Bilion Rupiah 9 Bilion Rupiah budget Local Government budget Local Government

Enterprice (PD PDE) Enterprice (PD PDE)

(Owner budget or bank sindicate) (Owner budget or bank sindicate)

BIODIESEL PlantBIODIESEL Plant :: Ministry of Industry (investment & capital), Ministry of Industry (investment & capital), if necessary could be joint between The if necessary could be joint between The Government of South Sumatera Province Government of South Sumatera Province (represent by PD PDE) and The (represent by PD PDE) and The Government Banyuasin (represent by PD Government Banyuasin (represent by PD Banyuasin Resource)Banyuasin Resource)

Raw Material CPORaw Material CPO :: Palm Plantation – Sembawa Research Palm Plantation – Sembawa Research CentreCentre

Raw MaterialRaw Material

BIODIESELBIODIESEL:: CPO PlantCPO Plant

Operational Finance : Local Government Enterprise (PD PDE)Operational Finance : Local Government Enterprise (PD PDE)

BIODIESEL RETAILBIODIESEL RETAILOFF TAKERSOFF TAKERS

Conducted by Conducted by PD PDE PD PDE South South Sumatera:Sumatera: Fuel Pump Station (SPBU) Fuel Pump Station (SPBU) Stationary Plant BStationary Plant B100100 Machinery and Farming Machinery and Farming

Equipment BEquipment B2020 River transportation vehicleRiver transportation vehicle

PRODUCTION COST PRODUCTION COST

CAPACITYCAPACITY BIAYA PER LITER *)BIAYA PER LITER *)

<< 6.000 Ton/Annum 6.000 Ton/Annum Rp 1.000Rp 1.000

30.000 Ton/Annum30.000 Ton/Annum Rp 800Rp 800

60.000 Ton/Annum60.000 Ton/Annum Rp 700Rp 700

100.000 Ton/Annum100.000 Ton/Annum Rp 600Rp 600

*) Raw material cost not included, asumption $ 1 = Rp 10.000

DIESELBIO

Biodiesel Raw Material Resource Biodiesel Raw Material Resource in South in South Selatan.Selatan. Biodiesel Raw Material Resource Biodiesel Raw Material Resource in South in South Selatan.Selatan.

Crude Palm Oil (CPO)Crude Palm Oil (CPO)

Palm Plantation area (at 2006): 620 ribu HaPalm Plantation area (at 2006): 620 ribu Ha

CPO Production (at 2006): 1.6 milion ton/annumCPO Production (at 2006): 1.6 milion ton/annum

Land Productivity : 3.4 ton CPO/haLand Productivity : 3.4 ton CPO/ha

CPO Plant : 42 unit, capacity 2.020 ton/hourCPO Plant : 42 unit, capacity 2.020 ton/hour

Existing area for development :600.000 haExisting area for development :600.000 ha

Jatropha Oil (Jatropha Oil (J. curcasJ. curcas))

Plantation area : 1.5 milion trees in Lahat and Plantation area : 1.5 milion trees in Lahat and 100 ha in OKU Timur100 ha in OKU Timur

Productivity : data not available, aproximately 3 Productivity : data not available, aproximately 3 – 4 ton/ha.– 4 ton/ha.

Crude Palm Oil (CPO)Crude Palm Oil (CPO)

Palm Plantation area (at 2006): 620 ribu HaPalm Plantation area (at 2006): 620 ribu Ha

CPO Production (at 2006): 1.6 milion ton/annumCPO Production (at 2006): 1.6 milion ton/annum

Land Productivity : 3.4 ton CPO/haLand Productivity : 3.4 ton CPO/ha

CPO Plant : 42 unit, capacity 2.020 ton/hourCPO Plant : 42 unit, capacity 2.020 ton/hour

Existing area for development :600.000 haExisting area for development :600.000 ha

Jatropha Oil (Jatropha Oil (J. curcasJ. curcas))

Plantation area : 1.5 milion trees in Lahat and Plantation area : 1.5 milion trees in Lahat and 100 ha in OKU Timur100 ha in OKU Timur

Productivity : data not available, aproximately 3 Productivity : data not available, aproximately 3 – 4 ton/ha.– 4 ton/ha.

Potential area in South Sumatera Potential area in South Sumatera Sembawa Plantation Research Institute Sembawa Plantation Research Institute

(LRPI)(LRPI)

Potential area in South Sumatera Potential area in South Sumatera Sembawa Plantation Research Institute Sembawa Plantation Research Institute

(LRPI)(LRPI) Total area Plantation Research 3250 haaTotal area Plantation Research 3250 haa Palm Palnatation area Luas kebun : 1000 Palm Palnatation area Luas kebun : 1000

haha Production at 2006: 20-90 ton TBS/dayProduction at 2006: 20-90 ton TBS/day Area for site location Bio Diesel Plant Area for site location Bio Diesel Plant

already exist already exist The plantation neigbour : PBN, PBS & PRThe plantation neigbour : PBN, PBS & PR CPO plant development 5 ton TBS/hr, dua CPO plant development 5 ton TBS/hr, dua

shifts.shifts. CPO stock ex the neigbour CPO Plant : 20 CPO stock ex the neigbour CPO Plant : 20

ton CPO/day, not fulfill for bio diesel plant ton CPO/day, not fulfill for bio diesel plant demand wich capacity 20 ton/day or 6.000 demand wich capacity 20 ton/day or 6.000 ton/annum. ton/annum.

Prospect for Community DevelopmentProspect for Community Development

Total area Plantation Research 3250 haaTotal area Plantation Research 3250 haa Palm Palnatation area Luas kebun : 1000 Palm Palnatation area Luas kebun : 1000

haha Production at 2006: 20-90 ton TBS/dayProduction at 2006: 20-90 ton TBS/day Area for site location Bio Diesel Plant Area for site location Bio Diesel Plant

already exist already exist The plantation neigbour : PBN, PBS & PRThe plantation neigbour : PBN, PBS & PR CPO plant development 5 ton TBS/hr, dua CPO plant development 5 ton TBS/hr, dua

shifts.shifts. CPO stock ex the neigbour CPO Plant : 20 CPO stock ex the neigbour CPO Plant : 20

ton CPO/day, not fulfill for bio diesel plant ton CPO/day, not fulfill for bio diesel plant demand wich capacity 20 ton/day or 6.000 demand wich capacity 20 ton/day or 6.000 ton/annum. ton/annum.

Prospect for Community DevelopmentProspect for Community Development

Site Location CPO Pilot Plant Site Location CPO Pilot Plant

S. MUSI

500 m

500 m1000 m

Site Location CPO Plant

Integrated Biodiesel Pilot Plant DesignIntegrated Biodiesel Pilot Plant Designin South Sumaterain South Sumatera

Integrated Biodiesel Pilot Plant DesignIntegrated Biodiesel Pilot Plant Designin South Sumaterain South Sumatera

2006

CPO Mini Plant (5 ton TBS/jam, 2 Shift)

Biodiesel Plant (20 ton CPO/hari)

9 Billion RupiahLRPI & PEMDA

12-15 Bilion RupiahINVESTMENT

Palm Plantation : CPO (already)

Straight Jatropha Oil : SJO (on going development)

South Sumatera Province (4 B)

Banyuasin County (2 B)6 B