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GM International Development Visit – 27 February 2013
OTP GeothermalSampoerna Strategic Square, North Tower, Level 24th
Jl. Jend. Sudirman Kav. 45-46, Jakarta 12930
Combining Strengths. Lighting Up the Future.
INTRODUCTION TO INDONESIA
Presented by Bret Mattes
Jakarta, 27 February 2013
GM International Development Visit – 27 February 2013
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Republic of Indonesia
Archipelago of 17,508 islands (~6000 inhabited)
Population 248 million (58% on Java)
Constitutional Republic, Presidential, Unitary State, Multi-Party, Proportional Representation
Tri-Cameral Parliament
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People’s Consultative Assembly
(MPR)
Regional Representative Council
(DPD)132 Members
People’s Representative Council
(DPR) 560 Members
GM International Development Visit – 27 February 2013
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Republic of Indonesia (Continued)
Political Subdivisions:• Republic – Head of State: President
• Provinces (34) – Ruled by Governors• Regencies (Kabupaten) 399 – Ruled by Regents/Bupati • Cities (Kota) 94 – Ruled by Mayors/Walikota
• Capital City:• Jakarta Special Capital Region (Pop. 28.02 Million) – Governor
• Contains 1 Regency and 5 cities – Regent and Mayors appointed by the Governor • Sub-Districts (Kecamatan)
• Villages (Kelurahan, Desa, Kampung)
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GM International Development Visit – 27 February 2013
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Indonesia Governance – 3 Branches
Executive• President• Vice President• Cabinet
Legislative • People’s Consultative Assembly (Upper and Lower Houses)• Regional/City Assemblies • Municipalities
Judicial• Supreme Court – Cessation Appeals and Case Review• Constitutional Court – Legality of Regulations; Scope of Authority• State Administrative – Administrative law cases against Government • Judicial Commission – Oversight• Commercial Court – Insolvency• Religious Court – Sharia Law
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GM International Development Visit – 27 February 2013
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Indonesian State Philosophy - PANCASILA
From the Javanese (Orig. Sanskrit) words meaning “Five” and “Principles”
The five foundations of the Republic:
• 1. One and Only One God (Ketuhanan yang Maha Esa)• 2. Civil Society (Kemanusiaan yang adil dan beradab)• 3. One Indonesia (Persatuan Indonesia)• 4. Democracy (Kerakyatan yang dipimpin oleh hikmat
kebijaksanaan, dalam permusyawaratan dan perwakilan)• 5. Social Justice (Keadilan bagi seluruh rakyat Indonesia)
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GM International Development Visit – 27 February 2013
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Indonesian Culture and Geography
300 ethnic groups (Javanese 42% of total)
742 languages
6 official religions:
•Islam (mostly Sunni) 87% - Origin in North Sumatra•Protestant•RC•Hindu - 3%•Buddhist - 2%•Confucianism
155 active volcanoes – highest mountain (Puncak Jaya 4900m) and largest lake (Lake Toba 1, 150km²) both volcanic
World’s second highest biodiversity (after Brazil) – highest for fish
Wallace line
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8%
GM International Development Visit – 27 February 2013
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Indonesia Since 2000
Three successful National Elections + thousands of free and fair Provincial, Regional and Local Elections
Peaceful exit of the Military from civilian life
A vigorous free press
Strong, well-regulated banking system (decentralization, credit, consumer lending)
Economic growth driven by commodity exports/domestic consumption
Largest palm oil exporter ; second in coal, tin, cocoa
3.5 BBBL proven oil ; 110 TCF proven gas
Young population ; 50% <29 years (unemployment 7.6%)
Trillion Dollar economy in 2014 (per capita Rp36 million)
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GM International Development Visit – 27 February 2013
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Most Problematic Factors for Doing Business
Inefficient Bureaucracy 16.5%
Corruption 14.2%
Infrastructure 9%
Labour Regulations 7%
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GM International Development Visit – 27 February 2013
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Subsidies 2012
US$ Billion % GDP % Budget
GDP 995 - -
Government Spend 178 17.9 -
Fuels 20.8 2.1 11.7
Electricity 8.7 0.9 4.9
Non-Energy 4.4 2.5 2.5
Total Subsidies 34 3.4 19.1
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$1.00=IDR 9300
GM International Development Visit – 27 February 2013
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ESDM
Old Paradigm
• Energy supply side management• Supply fossil fuels at any cost (subsidies) to inefficient consumers
New Paradigm
• Demand side management• Efficient consumers paying full cost of energy• Maximize supply/demand of renewables
Regulators have not bought into this yet
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GM International Development Visit – 27 February 2013
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Primary Energy Supply 2011
Oil Coal
Gas Hydro
Geothermal
Gas 21.43%
Oil 46.9%
Coal 26.4%
Hydro 3.3%
Geothermal 1.5%
National energy supply and utiliza-tion system (SIS-PENNAS) is 95.2% dependent on fossil fuels
(Ignoring Biomass 19.7%)
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GM International Development Visit – 27 February 2013
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Energy Consumption
Oil Coal GasElectricityLPGBiomass
Coal 13.3%
Electricity 8.8%
Gas11.2%
Biomass 28% Oil 35.5%
LPG 3.1%
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GM International Development Visit – 27 February 2013
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Electrification
Indonesia 68% electrified
• (ie: 80 million people have no access to electricity)
Lowest installed capacity per capita in the region
• Low uptake of primary energy• Land access is a barrier• Regulatory framework not robust• Heavily subsidized
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GM International Development Visit – 27 February 2013
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Electricity Balance 2011
Supply
• Generation capacity 152TWh from 30.94GW of installed capacity• Growing 2% pa• Geothermal 3.6% of installed capacity
Demand
• 147 TWh• Growing 7-9% pa
PLN
• Peak Load 26.2 GW• Capacity factor 56%• Load factor 78% (34% in Sumatra)• System losses 10%
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GM International Development Visit – 27 February 2013
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North Sumatra – Probably the Best Geothermal Province in the World
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Lake Toba
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GM International Development Visit – 27 February 2013
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Lake Toba Expedition Route
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GM International Development Visit – 27 February 2013
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Panyabungan
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GM International Development Visit – 27 February 2013
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Panyabungan
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GM International Development Visit – 27 February 2013
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Mount Marapi
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