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The Indonesia Initiatives on Reducing Emissions of GHG State Action Plan in The Air Transport Sector and Aviation Biofuels Policy and Progress Presented by : Yusfandri Gona Head of Airport Authority Region IV Bali Chairman Indonesia Aviation Biofuels and Renewable Energy Task Force DGCA Indonesia - ICAO CAEP Representative

Indonesia Aviation Biofuels and Renewable Energy Task Force

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Page 1: Indonesia Aviation Biofuels and Renewable Energy Task Force

The Indonesia Initiatives on Reducing Emissions of GHG State Action Plan in The Air Transport Sector and Aviation

Biofuels Policy and Progress

Presented by :

Yusfandri Gona Head of Airport Authority Region IV Bali

Chairman Indonesia Aviation Biofuels and Renewable Energy Task Force DGCA Indonesia - ICAO CAEP Representative

Page 2: Indonesia Aviation Biofuels and Renewable Energy Task Force

CONTENT

Indonesia State Action Plan in The Air Transport Sector

Indonesia Aviation Biofuels and Renewable Energy Task Force

Global Policy and Strategy Initiative Driven

Energy Policy, Target and Implementation on Aviation Biofuels

National Potential Resources Driven

Industry Readiness on Implementation of Aviation Biofuels

Renewable Energy for Airport Operation Programme

Future Programme

Resume

Page 3: Indonesia Aviation Biofuels and Renewable Energy Task Force

INDONESIA COMMITMENT ON GHG MITIGATION

Sources : Maryam Ayumi & Hardiv 2012

0,008

(Giga ton) CO2e

0,011

(Giga ton) CO2e

0,038

(Giga ton) CO2e

0,056

(Giga ton) CO2e

0,001

(Giga ton) CO2e

0,015 (Giga ton) CO2e

0,048

(Giga ton) CO2e

0,078

(Giga ton) CO2e

0,672

(Giga ton) CO2e

1.079

(Giga ton) CO2e

Page 4: Indonesia Aviation Biofuels and Renewable Energy Task Force

Sources : ICCTF, 2014

THE INDONESIA CLIMATE CHANGE TRUST FUND

Page 5: Indonesia Aviation Biofuels and Renewable Energy Task Force

4TH Pillars + Global Scenario 2011-2030

Market based Measures

Indonesia Action Plan & Implementation Measures

Technology Initiatives

Operational Efficiency Initiatives

Infrastructure Efficiency Initiatives

Alternatives Fuels & Additional Technology Initiatives. Estimated Cover 40%-50% carbon mitigation depend

on production and blending capacity

INTERNATIONAL POLICY BACKGROUND Contribution to the ICAO Global Programs

The Indonesia State Action Plan to Reduce Emissions in The Aviation Sector

ICAO ASSEMBLY RESOLUTION A38-18: Consolidated statement of continuing ICAO policies and practices related to environmental protection CLIMATE CHANGE

11. Submit their voluntary ACTION PLANS on international aviation CO2 EMISSIONS to ICAO;

32. h) Develop policy actions to accelerate the appropriate development, deployment and use of sustainable ALTERNATIVE FUELS FOR AVIATION

Indonesia Focus

Page 6: Indonesia Aviation Biofuels and Renewable Energy Task Force

Main Program of National Action Plan

Aircraft fleets increased of 10% - 15% each year from 2012 up to 2018 for domestic fleet and 5% each year start from 2014 up to 2017 for international fleet, being all of them new technology aircraft.

Aircraft operational efficiency and maintenance improvement starting 2013.

Alternative fuel (bio-fuel) for aircraft (2% blend by 2018 & 3% at 2020) and GSE (15 % start 2015)

Renewable energy (solar-cell, wind-hybrid, water-based) for air port facilities ( 7.5 MW by 2015-2020 )

Improve the air space system management through PBN (Star-SID,RNP-10, RNP-5, R-Nav-App).

Eco-airport continuous implementation (LED, Green Building, New Tech )

The Indonesia State Action Plan to Reduce Emissions in The Aviation Sector

Page 7: Indonesia Aviation Biofuels and Renewable Energy Task Force

Sources : The State Action Plan , an update Juni 2015, DGCA Indonesia

The State Action Plan and Carbon Reduction Emissions on Air Transportation Sector by 2020

Page 8: Indonesia Aviation Biofuels and Renewable Energy Task Force

National Regulatory Background Minister Energy & Mineral Resources Decree No 25/1013 2% MANDATE OF BIOFUELS USE BY 2018

STEERING COMMITTEECHAIRMAN/CO-CHAIRMAN

Secretary Directorate General of Civil AviationDirector of Bioenergy

INDONESIA AVIATION BIOFUEL AND RENEWABLE ENERGY TASK FORCE (INDONESIA ABRETF)DG DECREE NO.: 517 K/73/DJE/2014 & KP. 429 YEAR 2014

EXECUTIVE ADVISORY BOARDDIRECTOR GENERAL OF CIVIL AVIATION

DIRECTOR GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION

TASK FORCECHAIRMAN/VICE CHAIRMAN

YUSFANDRI GONA (DGCA)/ EDY WIBOWO (EBTKE)

Sub Task Force

Policy, Regulation and Capacity Building

Dothor Panjaitan (EBTKE)/ Sayuta Senobua (DGCA)

Sub Task Force

Commercial and Risk Assessment Sustainability

Eldi Hendry (Pertamina)/ Indra Pramono (Garuda)

Sub Task Force

Testing and Certification

I Nyoman Oka (DGCA)/ David Wibisono (Garuda)

Sub Task Force

Research and Development

Verina Wargadalam (ESDM)/ Tatang Hernas (IKABI/ITB)

Stakeholders : regulator, operators, manufacturer, MROs, associations, research center, university and academia

The Indonesia State Action Plan to Reduce Emissions in The Aviation Sector

Page 9: Indonesia Aviation Biofuels and Renewable Energy Task Force

COLLABORATION OF NATIONAL & INTERNATIONAL STAKEHOLDERS IN ABRETF

Page 10: Indonesia Aviation Biofuels and Renewable Energy Task Force

10/14/2015 10

1.ICAO Global initiatives was adopted alternative fuels formally at Assembly 37, 2010 by ICAO Resolution 37A-19 and response measures by State member policy such as:

2.Fuel market demand increasing while open sky policy in place by 2015 on Asean region

Global Policy and Strategy Initiatives Driven

Country Year Total Target

European Union 2020 application drop-in biofuel 4% , 2 MTon/year

United State of America 2018 application drop-in biofuel 1.000 MGallon /year

China 2020 application drop-in biofuel 3% , 4.2 MTon/year

Indonesia Initiatives 2016 -2020 2025

Application drop-in up to 3% , Totally 1, 76 Mkl 5% mixed target

Etc.

Page 11: Indonesia Aviation Biofuels and Renewable Energy Task Force

10/14/2015 11

Figure 3 : Indicative biofuels production costs and spot oil prices

Oil product spot prices (2009-2011):

Range Average

Biofuels costs: 2011

Price overlap 2011-2035

2035 NPS

Further cost reduction in 450 Scenario

Gasoline Ethanol Diesel Biodiesel

Conv Advanced Conv Advanced 0.

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Notes: NPS = New Policies Scenario; Conv. = Conventional

Biofuels costs are not adjusted for subsidies; cost variations can be even larger than depicted here, depending on feedstock and region.

Biofuels costs are not adjusted for subsidies; cost variations can be even larger than depicted here, depending on feedstock and region.

Source: WEO Renewable Energy Outlook 2012

Economic Feasibility : Alternative Fuels Prices Global Scenario

Global Policy and Strategy Initiatives Driven

Page 12: Indonesia Aviation Biofuels and Renewable Energy Task Force

Source: Ministry Energy and Mineral Resources of ROI 12

Energy Diversification : Biofuels Bioenergy mix 9.7% by 2025 Instructions related to the Minister, Governor and Mayor to take action in order to accelerate the provision and utilization of biofuels; 1.Priority of biofuel utilization, 2.Mandatory of biofuel Implementation Biodiesel for Land Transportation/Ground Services 15% by Q2/2015; 20% by 2016 and 30% by 2020

Biojet Fuels for Aviation 2% by 2018 , 3% by 2020 and 5% by 2025 Renewable Energy for Airport Operational 7.5 MW up to 2020 Implementation of energy conservation in the airport

3. Standard and quality of biofuel, 4. Pricing policy, 5. Commercial activities of biofuel,

LAW NO. 30 YEAR 2007 concerning on Energy

National Energy Policy Government Regulation No. 79/ 2014: PRESIDENTIAL INSTRUCTION NO. 1 YEAR 2006 concerning on Provision and Utilization of Biofuel as Other Fuel Ministry of Transportation Decree No. KP 201/2013; Ministry of Energy & Mineral Resources Decree No. PM 32/2008 revised to No. PM 12/2015 Concerning on Provision, Utilization, and Procedures of Commerce of Biofuels as Other Fuel

Energy Policy - Target and Implementation on Aviation Biofuel and Renewable Energy

Page 13: Indonesia Aviation Biofuels and Renewable Energy Task Force

BIODIESEL and BIOAVTUR

• There are huge potential resources of energy plantation and feedstock for biodiesel from Palm Oil (annually production of CPO is around 30 Million Tons), Jatropha Curcas, and Candlenut (Kemiri Sunan), Nyamplung and Algae.

BIOETHANOL

• The potential of bioethanol from Molasses 1.5 MT(Sugar Cane), Cassava 14 MT, and Sorghum is more than 3 Million kL.

BIOOIL

• Vegetable oil (straight vegetable oil biomass through the process pirolisa and PPO (Pure Plant Oil).

National Potential Resources Driven Aviation Biofuels and Renewable Energy Initiatives 1. Natural Resources : Land and Feedstock

Refinery Capacity Of Bio Diesel : 6.2 M Klt/Year

Producer Business Licence : 25 Biodiesel And 8 Bioethanol

Technology And Know-how : Bio Diesel FAME 1st G And Develop To 1.5 G & 2g

Green Diesel Technology, Wind & Solar Exposure Database

2. Technology and Production Capacity

3. Sustainability Framework Indonesia Sustainability Palm Oil (ISPO) Standard and Certification System

Page 14: Indonesia Aviation Biofuels and Renewable Energy Task Force

14

National Potential Resources Driven Alternative Fuels and Renewable Energy Initiatives

Fiscal Instrument Policy Ministry of Finance Decree 21/PMK.011/2010 & 131/PMK.011/2011 Regulation of tax and customs facility for renewable energy resources

and utilization activities

Income Tax

Reduced net income for

30% of total investment

Accelerated depreciation

Imposition of Income Tax

on dividend paid to

Foreign Taxable at 10%

Compensation for losses

in certain circumstances

Energy

Tax Borne by Government

Value Added Tax

Import Duty

Exemptions of VAT for

Taxable Goods, machinery

and equipment for RE

utilization (not included

spare parts)

Exemptions for Import Duty

of Goods and Machinery

for development & Capital

Investment

Capital Goods Imports for

Construction and

Development of Electricity

Industry

Regulated in State

Annual Budget Law and

its implementing

regulations

Page 15: Indonesia Aviation Biofuels and Renewable Energy Task Force

Industry Readiness on Implementation the Aviation Biofuel

Feedstock Output Process

Feedstock input Hydro De-oxygenation

Hydro-isomerization

Technology Partnership UOP, Neste Oil

Biojet

Green Diesel Sources: Pertamina 2nd IGAC 2015

Page 16: Indonesia Aviation Biofuels and Renewable Energy Task Force

The Implementation of Renewable Energy for Airport Operation by Using Solar Photovoltaics (PV) System:

A. On going pilot project (2015), bidding on each installation 400 kw solar PV system in :

1. Kalimarau Airport (Berau, East Kalimantan)

2. Muhammad Salahuddin Airport (Bima-Sumbawa Island, West Nusa Tenggara)

3. Umbu Mehang Kunda Airport ( Waingapu-East Sumba, East Nusa Tenggara)

4. Tambolaka Airport (Waikabubak, East Nusa Tenggara)

B. Feasibility study on solar PV system implementation (2015) in :

1. Sultan Hasanuddin International Airport (Makassar, South Sulawesi)

2. Juanda International Airport (Surabaya, East Java)

3. Kualanamu International Airport (Medan, West Sumatera)

4. Ngurah Rai International Airport (Bali).

Renewable Energy for Airport Operation Programme

400Kw 400Kw

400Kw

400Kw

1Mw

1Mw

1Mw

1Mw

Page 17: Indonesia Aviation Biofuels and Renewable Energy Task Force

Future Programme : Indonesia Policy and Strategy Framework

AVIATION BIOFUELS POLICIES ARE PART OF AN ICAO GLOBAL STRATEGY

GLOBAL DEVELOPMENT OF COORDINATED AND HARMONIZED FRAMEWORKS ARE NEEDED

INTERNATIONAL COOPERATION IS ESSENTIAL

SIMILAR REGIONAL APPROACHES GENERATES SYNERGIES

Indonesia has invited ICAO

Committee on Aviation and

Environmental Protection (CAEP)

to develop future work on aviation

alternative fuels policies

harmonization

Promote Harmonization of Aviation Biofuels Policies

Page 18: Indonesia Aviation Biofuels and Renewable Energy Task Force

REGIONAL COOPERATION

Harmonized Regulations and

Sustainability Criteria

No Competitive Distorsion and Market Prices

Harmonized Requirements for

Operators

Industrial and Technology Synergies

Supply Chain and Feedstock Optimization

Future Programme : Indonesia Policy and Strategy Framework

Promote Harmonization of Aviation Biofuels Policies

Page 19: Indonesia Aviation Biofuels and Renewable Energy Task Force

1. The Indonesia policy and regulations initiatives on the aviation biofuels and renewable energy is considered in line with ICAO global and international policy and strategy, and it will continuously to develop in order to accelerate utilization national potential resources, investment and implementation.

2. Strong leadership of the Indonesia government is required as an importance innovation on development biofuels and renewable energy on the aviation sector, and the government should initiate to develop collaborations in the national and international community to cater issues on technology and sustainability, and also for fostering the future program.

3. Indonesia had experiences on biofuel development in particular for biodiesel for land transportation, it’s lesson learn would be very important in developing of aviation biofuels as drop-in fuels mandatory blend up to 3% by 2020 and 5% by 2025 which is comply to ASTM 7566 and 1655 and Indonesia National Standard.

RESUME

Page 20: Indonesia Aviation Biofuels and Renewable Energy Task Force