Cleantech for Developing

Countries Briefing

Cleantech Opportunities in Indonesia

Tjut Devi, Senior Business Development Manager

26 July 2012

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Geography

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Rural

Urban

Landscape Housing

Posh Slum

Sumba Bali

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Indonesia's urgent challenge

Aim: *Sustainable economic growth*

Maintaining a healthy 6% economic growth while reducing up to 41% GHG emissions by 2020

Priority areas: MDGs (health, education, household income, etc)

Proposed solution: *Vision 25/25*

Increasing RE contribution to energy mix from 5% to 25% by 2025, improve EE contribution by 15.53%

Economic Masterplan 2011-2025 (MP3EI), resources-rich country (fossil and non-fossil), fuel subsidies

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• National electrification ratio: 72.95%

• Demand growth: 7% p.a.

• High dependency on fossil energy: 90%

• RE contribution: hydro 7%, geothermal 3%

Coal 39%

Gas 28%

Oil 23%

Hydro 7% Geothermal

3% Year 2011

Energy sources for power generators

Gas 30%

Coal 33%

Oil 20%

Hydro, Solar, Wind, Nuclear 5%

Geothermal 5%

Biofuel 5%

Liquid Coal 2%

RE 17%

Year 2025

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National Transmission Grid

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55,345 MW

49,162 KMs

114,554 MVA

USD 70

Billions

USD 15

Billions

USD 13.5

Billions

POWER GENERATION POWER TRANSMISSION POWER DISTRIBUTION

Energy investment (projected) source: MKI

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Sectoral Opportunities

Non Fossil Energy Resources Installed

Capacity

Ratio %

Micro hydro * 769,69 MW 217,89 MW 28.31

Hydro * 75,670 MW 5,771 MW 7.26

Geothermal * 28,543 MW 1,228 MW 4.30

Biomass * 49,810 MW 1,618.40 MW 3.25

Solar 4.80 kwh/m2/day 20 MW -

Wind 3 – 6 m/s 1.87 MW -

Source: MEMR, 2011

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Status of Cleantech Development

Type of Energy R&D Pilot Plant Semi commercial Commercial

Micro Hydro *

Geothermal *

Bioenergy *

› Direct Combustion

› Gasification

› Biogas

Solar

› Photovoltaic

› Thermal

Wind

Source: LIPI

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• Administrative

• Market

• Infrastructure

• Technical

• Financing

• Socio-cultural

Challenges

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• RE policies: establish and revise RE

policies to encourage further development

• Coordination: increase coordination

among stakeholders

• Capacity building: build capacity on

government and private sector levels

• PPP projects: establish PIP, SMI

• KKN: prosecute corruptors

Work-in-progress

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Key to Success

• Outlook: long-term, open-minded, patience

• Do your homework: develop country-specific strategy

• Find the right local partner: build and maintain strong relationship

with your partner

• Engage actively with stakeholders: government, associations,

communities, etc.

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Build a Presence

• IPP (FiT incentives)

• Sell to big conglomerates/main contractors, either direct

or through distributors

• Develop R&D partnerships with government-linked R&D

institutions, universities, or NGOs

• Offer stand-alone training/development/VET services

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Next step

• Austrade Trade Adviser / Trade Start

– Getting started in export: International Readiness Indicator

– http://www.austrade.gov.au/ or Telephone: 13 28 78

• Contact Industry Capability Network (ICN)

– Rob McCullagh, National Sector Manager - Clean Technology

– http://cleantech.icn.org.au/ or email: rmccullagh@icn.org.au

• Contact Post

– Market research, partner search, visit program

– Tjut.Devi@austrade.gov.au

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Useful references

• Trade opportunities report: http://www.austrade.gov.au/ArticleDocuments/2137/Low-emissions-

technology-and-services-sector-in-Indonesia.pdf.aspx

• International Readiness Indicator: http://www.austrade.gov.au/International-Readiness-Indicator

• ICN Gateway: http://cleantech.icn.org.au/

• Australian Government travel advice site: http://www.smartraveller.gov.au/

• Indonesia Government official tourism site: http://indonesia.travel/

• EBTKE Conex: http://www.ebtke-conex.com/download.html