by: Edi Wibowo Directorate of Bioenergy Directorate General of New, Renewable Energy, and Energy

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1 REPUBLIC OF INDONESIA MINISTRY OF ENERGY AND MINERAL RESOURCES Based on Pilot Testing Of Global Bioenergy Partnership (GBEP) Indicators for Sustainable Bioenergy in Targeted Developing Countries: Study Case in Indonesia by: Edi Wibowo Directorate of Bioenergy Directorate General of New, Renewable Energy, and Energy 4th Meeting of the GBEP Working Group on Capacity Building for Sustainable Bioenergy (WGCB) Berlin, 30th May 2013

2 This indicator is primarily related to the theme of resource availability and use, efficiencies in bioenergy production, processing, and distribution. Productivity is a measure of output from a production process, per unit of input and can be used to measure the efficiency with which inputs are transformed into end-p products. This indicator focuses on the productivity of the land used to produce biofuel, as well as the overall economic efficiency of the production, which to an extent will capture the overall efficiency of use of all inputs.

3 Methodology : Desk study, Sampling (field survey), Data Sources from: Related government institution, National Statistics, Strategic document : the Master plan of Acceleration and Expansion of Indonesia Economic Development (MP3EI), Private sector (related association, company group as case study).

4 Palm Oil Productivity: Case study (Private) National (Average) Government Private Smallholders Potential Biodiesel Productivity : 4.8 T/Ha/Yr : 3.8 T/Ha/Yr : 4.2 T/Ha/Yr : 4.1 T/Ha/Yr : 3.4 T/Ha/Yr : 7.0 T/Ha/Yr : 38,412MJ/T CPO or 4.64 T/ha Potensial Biogas (POME) Productivity : 501 MJ/m3 Bioethanol(molasses) Productivity : 0.29 L /kg molasses

5 erage Palm Oil Productivity(kg/Ha) Productivity of palm oil by plantation(ton/ha) Year Productivity (Kg/Ha.) , , , , , , *) 3, *) 3,607 Note: SMEs is Small and Medium Enterprise s The Production 2011 Smallholder Government Private 38% 9% 53% e Composition of fresh fruit bunch (FFB)

6 Indonesia biodiesel production in 2011 amounted to 1.38 million MT, about 78% for export. Total production is still far from the capacity of the industry which in 2011 counted 3.77 million MT. For calculating the biodiesel productivity to CPO or land area is pretty hard, because no accurate data on the amount of CPO produced specifically for biodiesel. As we know, in addition to biodiesel, palm oil is also used for other downstream products such as Olein and Stearin. Similarly, palm oil land uses that are not specifically mentioned for the production of biodiesel. No. Item Unit Study National 1. Productivity of palm oil by plantation Tonnes/ha/year 4,8 2,67 (source: BPS calculated) 2. Biodiesel processing efficiencies by technology 3. Amount of biodiesel end product (mass of energy content) 4. Production cost per unit of biodiesel USD/MJ MJ/tonnes CPO Tonnes/ha /year 4,64 3,8 (source: MP3EI) 3,28 (source: Aprobi)

7 OST COMPARISON FOR BIODIESEL PRODUCTION Palm oil has the lowest cost of production amongst other vegetable oils 6 5 Annual Yield pe er Hectare (tonnes) Palm Oil Rapeseed Oil Soybean Oil Sunflower Oil Production Cost ($/tonne) Source: Oil World

8 Case: According to PT Medco Ethanol Lampung (MEL) Ethanol productivity is 0.29 liter ethanol/kg molasses Production cost is about USD 300/KL. Potensial Produced biogas about 43,113 Nm 3 /day.

9 Data gaps and limitations: Difficulties in defining productivity measure used to compare each type of biofuels where the feedstock comes from main product vs. by product in term of land use. Difficulties in determining (i.e bio-diesel) production. land area used for bioenergy

10 Yield vs Pollution? Improving the yield by fertilizer, r, modern machinery etc, at the same time those will encourage the pollution. Smallholders vs Productivity? If we want optimalize the productivity, it means we have to prioritize the development of efficient CPO plantation and biodiesel industry. As we know, the small holder certainly less efficient than private or state company.

11 Indicator #17 (productivity) that includes land productivity, efficiency of use of raw materials, th amount of biofuel, and the cost for production, also utilization of waste to energy, can be applie in view of the ability of national bioenergy industry in meeting the targets of sustainabl development of national energy. This indicator is closely linked to the targets to be achieved in a sustainable national energ development. With these positions, it is important, this indicator shall be applied and developed fo the future, especially in evaluating the implementation of the national policy of energ diversification. Integrated Energy Farming should be implemented for Sustainable of Biofuel, and also t optimalize the productivity of area. Critical concern: we need to increase productivity without increasing the risk. Monitoring needs survey including for smallholders. Policies to manage impacts of efforts to increasee productivity: Good agricultural practices guidelines, Extension services for farmer groups, Increasing plant breeding. Process efficiency apply new technology. Increasing utilization of Waste to energy, by integrating energy plantations/ integrating energ farming.

12 Vielen Dank Directorate General of New, Renewable Energy and Energy Conservation l. Pegangsaan Timur No. 1A,, Cikini, Jakarta, Phone/Fax: ;

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