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CNPP INDONESIA (updated 2014) 1. GENERAL INFORMATION 1.1. Country overview 1.1.1. Governmental System As in other democratic countries, the Republic of Indonesia applies the Trias Politica that recognizes the separation of the legislative, executive and judicial bodies. The legislative authority is under the People’s Consultative Assembly (MPR) that consists of two bodies namely the Parliament composed of members of political parties (DPR), and the Regional Representative Council (DPD) composed of representatives from each province in Indonesia. The executive institution is centralized under the president, vice president, and the cabinet of ministers. The cabinet is a presidential cabinet in which the ministers report to the president and do not represent the political parties. Presidential election is also held every five years. Since 2004, president of the Republic of Indonesia is elected through direct election by the people. The judicial institution - since the reform era and upon the amendment of the 1945 Constitution - is administered by the Supreme Court including the administration of the judges. 1.1.2. Geography and Climate Indonesia is one of the largest archipelagos in the world that has 17,508 islands, situated between 6 degrees northern latitude and 11 degrees southern latitude and spreading from 97 degrees to 141 degrees eastern longitude and it is located between two continents – Asia and Australia/Oceania. This strategic position greatly influences the country’s culture, social, politics and economy. Stretching along 3,977 miles between the Indian Ocean and the Pacific Ocean. Indonesia has a total area of 1.9 million square miles (4,92 million square kilometres) including the ocean. The water area is about two-third of total area. The five large islands of Indonesia are: Sumatra, Java, Kalimantan, Sulawesi, and Papua. These islands were formed range from Tertiary to Quaternary age. The Australian and Pacific tectonic plate have a great effect on the change of the islands. The Australian plate changes slowly with an upward movement into the small plates of the Pacific plate that moves southward. Between these lines, the islands of Indonesia are stretched out. This makes Indonesia as one of the most changing geological area in the world. There are 400 volcanic mountains – which 100 of them are active- that dot the islands of Indonesia. Java alone is home to 112 volcanoes, fifteen of which are still active. Most of the islands are hot and humid throughout the year. Temperature ranges from 27.6° to 36.8° C during the day and from 14.6° to 24.6° C during the night. Humidity ranges from 63% to 83%. Rain falls primarily from December to March, when the winter monsoon dominates. Only western Java and the Lesser Sunda Islands have a dry season, from June to September. 1.1.3. Population TABLE 1. POPULATION INFORMATION Average annual Growth Rate (%) Year 1980 1990 2000 2005 2010 2011 2012 2000 to 2012 Population 147,490.3 179,378.9 205,843.0 218,869.0 237,641.0 241,134.0 244,523 (thousands) 1.38 Population (million) 147.5 179.4 205.8 218.9 237.6 241.1 244.52 Population density 76.1 92.6 106.3 113.0 122.7 124.5 126 (inhabitants/km2) Urban Population as - - 42 48.1 50 51 % of total Area (1000 km2) 1,937.2 Source: Statistic Centre Board (www.bps.go.id) Currently, there are more than 244 million people living in Indonesia. The population grew at an average rate of 1.38% between 2000 and 2012. It is projected that the total population of Indonesia will always increase in the next 25 years, from 241.1 million in 2011 to 273.1 million in the year 2025. Every year there is an increasing number in urban population. Based on the data shows in Table 1, in 2011 about 51% of Indonesia population is living in a city. Generally, urbanization level is projected to reach 68 percent in year 2025. The results of the 2010 National Population Census shows that Java and Madura Islands, which accounts for 7% of the total area, is resided by around 57,5% of the population (136 millions), while Maluku and Papua which account for 25% of the total area, are inhabited by 3% of the total population. 1.1.4. Economic Data TABLE 2. GROSS DOMESTIC PRODUCT (GDP) Average annual growth rate (%) 2000 to Year 2000 2005 2007 2008 2009 2010 2011 2012 2012 GDP (million of 144,843.1 285,861.0 432,264.0 510,647.9 538,643.7 709,458.8 853,193.2 879,601.3 current US$) GDP (million of constant 2000 144,843.1 182,471.6 204,724.1 217,035.5 227,081.9 241,215.1 256,870.9 272,864.9 5.42 US$) GDP per Capita (PPP 2,199.6 2,875.0 3,340.1 3,615.0 3,875.7 4,055.7 4,311.9 US$/capita) GDP Per Capita (current 703.7 1,306.1 1,915.7 2,234.6 2,297.7 2,985.4 3,538.3 3,590.2 US$/capita) Source: Statistic Centre Board Indonesia had an average real gross domestic product (GDP) growth rate of 5.42 percent between 2000 and 2012. During the 2000-2012 periods, GDP of Indonesia had increased from US$144.8 billion to US$ 272.86 billion (CY 2000 Price). Table 2 shows the GDP of Indonesia. By utilizing the Masterplan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI), Indonesia aims to earn its place as one of the world’s developed country by 2025 with expected per capita income of USD 14,250-USD 15,500 with total GDP of USD 4.0-4.5 Trillion. To achieve the above objectives, real economic growth of 6.4-7.5 percent is expected for the period of 2011-2014. This economic growth is expected to coincide with the decrease in the rate of inflation from 6.5 percent in 2011-2014 to 3.0 percent in 2025. The combined growth and inflation rates reflect the characteristics of a developed country. 1.2. Energy Information 1.2.1. Estimated available energy TABLE 3. ESTIMATED AVAILABLE ENERGY SOURCES Estimated Available Energy Sources Fossil Fuels Nuclear* Renewables Thorium Solid Liquid Gas Uranium Hydro Geothermal Solar Biomass (Hypothetical) Specific Unit Million Billion TSCF Metric tons Metric tons GW GW GW GW tons Barrel Total Amount 126,319.28 7.41 150.70 63,000 121,500 845.29 29,177 22.5 49.81 in specific unit Total Amount 3,599.88 42.32 154.60 1,986.77 3,831.62 26.66 920.13 0.71 1.57 in Exajoule (EJ) Source: - Ministry of Enery & Mineral Resources (2013) - Batan (National Nuclear Energy Agency) for nuclear data 1.2.2. Energy Statistics TABLE 4. ENERGY STATISTICS (in EJ) Average Annual Growth Rate (%) Year 2000 2005 2006 2007 2008 2009 2010 2011 2000 to 2011 Energy Consumption * Total 3.85 4.56 4.63 4.81 4.73 4.95 5.66 5.81 - Solid 0.21 0.38 0.51 0.70 0.54 0.47 0.78 0.83 17.21 - Liquids 1.88 2.10 2.02 2.02 1.93 2.07 2.39 2.48 2.79 - Gases 0.48 0.54 0.53 0.52 0.67 0.82 0.84 0.90 6.39 - Nuclear 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 - Hydro 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 Other Renewables * Geothermal 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 * Biomass 1.28 1.54 1.58 1.57 1.59 1.59 1.65 1.60 2.22 Energy Production * Total 9.29 10.80 11.56 11.49 11.90 12.59 13.85 15.46 - Solid 1.88 3.65 4.65 5.22 5.49 6.15 6.60 8.47 14.87 - Liquids 2.96 2.21 2.10 1.99 2.04 1.98 2.13 2.15 -2.76 - Gases 2.98 3.06 3.03 2.49 2.54 2.62 3.13 2.97 0.35 - Nuclear 0 0 0 0 0 0 0 0 0,00 - Hydro 0.14 0.20 0.14 0.16 0.17 0.16 0.25 0.18 4.36 -Other Renewables * Geothermal 0.05 0.14 0.06 0.07 0.08 0.09 0.08 0.09 9.95 * Biomass 1.28 1.54 1.58 1.57 1.59 1.60 1.65 1.60 2.15 Net Import (Import - Export) * Total -3.61 -3.34 -4.38 -4.80 -4.66 -5.59 -5.90 -7.35 7.34 Source: Handbook of Energy and Economic Statistics of Indonesia 2012, Ministry of Energy & Mineral Resources 1.2.3. Energy policy The President of the Republic of Indonesia issued a Presidential Regulation No. 5 of 2006 that outlined the National Energy Policy (NEP). This NEP is a comprehensive policy which covers both the supply and the demand-side policy. The NEP also underlines the need that energy conversion in all sectors has to be implemented immediately, not only to reduce the dependence on oil fuel, but also to diversify energy, alleviate poverty, increase economic growth, and promote environmentally-friendly development. The aforementioned Presidential Regulation serves as the main guideline in the national energy management to achieve the security of domestic energy supply.
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