COAL IN INDONESIA’S DEVELOPMENT
Endah Murniningtyas
Deputy for Natural Resources and Environment Ministry for National Development Planning/BAPPENAS Presented at Indonesia Coal Investment Forum
Jakarta, 1-2 November 2011,
1 1. Energy demand is rising
1. Indonesia is entering middle income country. 2. Energy use in Indonesia is still low and population is growing. 3. Indonesia with economic growth 6,5% needs energy to sustain and support the increasing growth. 4. Energy needs increasing also due to Master Plan for Acceleration and Expansion of Economic Growth (MP3EI).
2 Vision 2025 100 tahun kemerdekaan
“Increase Indonesia’s position as developed nation and among 12 big countries in 2025 and being among 8 big countries 2045 through inclusive and sustaianble economic growth” 2045 GDP ~US$ 16.6 trillion Income/cap estmated~US$ 2025 46,900. At 8th – 7th in the world*) GDP: 3,8 – 4,5 trillion US$ Income/cap: 13,000 – 16,100 US$ At 12th with estimated income/cap 2010 ~US$ 14,900 (high income country) GDP ~ US$ 700 billion Income/cap US$ 3,000 (2010) At 17th Note: *) Predicted by G-Sachs dan Standard Chartered Bank for Source: Coordinating Ministry for Economic Affairs Indonesia 2050. 3 MP3EI
1.6 ECONOMIC CORRIDORS – GROWTH CENTERS 2.STRENGTHENING DOMESTIC CONNECTIVITY – WITHIN, AND BETWEEN INDONESIA AND GLOBAL MARKET 3.HUMAN RESOURCES AND TECHNOLOGY
4 4 Banda Aceh BIMP-EAGA Medan IMT-GT 1 3 4 Manado Pekanbaru Sofifi Tj. Pinang Pontianak Samarinda Manokwari Padang Palu Gorontalo Jambi Jayapura Palangkaraya Mamuju Sorong Palembang 6 Kendari Pkl. Pinang Ambon Bengkulu Banjarmasin Lampung 2 Makassar Wamena Jakarta Semarang Surabaya 5 Serang Mataram Merauke Jogjakarta Denpasar Kupang
1 EC Sumatera 3 EC Kalimantan 5 EC Bali – Nusa Tenggara
EC Jawa 2 4 EC Sulawesi – North Maluku 6 EC Papua – Maluku
6 Economic Corridors: Based on commodity/local/regional sectoral priority
5 5 Theme of 6 Economic Corridors
6 6 2. The role of Coal is significant
1. Indonesia is one of coal sources. 2. Coal is the second source of energy resources a.Indonesia in increasing energy diversity – energy mix. b.1st 10.000 MW is based on coal 3. Coal is an important part of energy mix
7 COAL IS ONE OF KEY COMMODITIES IN MP3EI
8 8 TARGET OF ENERGY MIX 2025 (Presidential Regulation No. 5/ 2006)
Primary Energy Mix Energy Mix 2025 2006
Hydro Power 3.11% Oil Geothermal Gas 20% 1.32% Gas 30% 28.57% Biofuel 5%
Geothermal 5% NRE,17% Biomass, Nuclear, Hydro Oil Power, Solar, Wind Power 5% 51.66% Liquefaction Coal 2% Coal 15.34% Coal 33%
9 3. Opportunity 1. Increasing demand and continued economic growth is opportunity for investment. 2. Development of PPP scheme opportunity for private participation is facilitated and accelerated local content and partnership. 3. MP3EI opportunity for: a. De-bottlenecking. b.Expanding national and regional market and economy (demand) 4. Challenge is: emission reduction clean technology and technology to transform coal into low emission and efficient energy sources; and sustainable productions. 10 THANK YOU
11