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Towards Cleaner Fuel in Indonesia

Towards Cleaner Fuel in Indonesia. Ridwan D. Tamin Assistant Deputy for Mobile Source Emission Pollution Control Deputy Minister for Environment Pollution Control Ministry of Environment Manila, 22 May 2006. Presidential Decree No. 5 Year 2006 on National Energy Policy

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Towards Cleaner Fuel in Indonesia

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  1. Towards Cleaner Fuel in Indonesia Ridwan D. Tamin Assistant Deputy for Mobile Source Emission Pollution Control Deputy Minister for Environment Pollution Control Ministry of Environment Manila, 22 May 2006

  2. Presidential Decree No. 5 Year 2006 on National Energy Policy • establish security of energy supply • energy elasticity <1 by 2025 • optimal primary energy mix by 2025 for national consumption: oil<20%, gas>30%, coal>33%, biofuel>5%, geothermal>5%, other renewable energies>5%, liquified coal>2% • Energy blueprint: domestic security of supply, public service obligations (PSO), mgmt of energy resources • Stages in pricing policy • incentives

  3. Gasoline & Diesel Consumption in Indonesia 30,000,000 25,000,000 20,000,000 Gasoline (kL) Diesel (kL) 15,000,000 10,000,000 kL 5,000,000 0 1992 1994 1996 1998 2000 2002 2004 Year

  4. Vehicle Emission Standards/Technology Euro 2 emission standards for type approval

  5. MoE Decree No. 141 Year 2003: Euro 2 Emission Standards Petrol Light Duty and Diesel light Duty (GVW<3.5 ton ; Category : M1 2003 2004 2005 2009 2012 2010 2011 2014 2006 2015 2013 2007 2008 Year Enforce to New Model Idle (Euro-4) ECE 83-04 (Euro-2) Enforce to Existing Model Idle ECE 83-04 (Euro-2) (Euro-4) Diesel Heavy Duty (GVW>3.5 ton ; Category : M2,M3,N2,N3,O3, & O4) 2003 2004 2005 2009 2012 2010 2011 2006 2007 2008 Year Enforce to New Model ECE 49-02 (Euro-2) Idle Enforce to Existing Model ECE 49-02 (Euro-2) Idle

  6. Cleaner Fuels • Unleaded gasoline • Diesel with low sulfur • Alternative Fuels: CNG, BIOFUEL

  7. Plan Unleaded gasoline to be introduced in phased in Bali, Batam Island, Surabaya and Semarang before 2005, nationally 2005 Open up private sector to provide unleaded gasoline. Use of additives as gasoline octane booster taking into account health, environment automotive industries views; Increased use of natural gas for transportation to reduce gasoline market demand Reality Nationwide 30% unleaded Downstream regulation recently announced (Govt. Regulation No. 36/2004) Requires ERA, at present only preliminary studies carried out Draft Presidential Instruction (Decree) already submitted by MoEMR through stakeholders study by MoE. Jakarta already use CNG for busway Cleaner Fuel

  8. Unleaded Gasoline July 2001 : Greater Jakarta Oct 2001 : Cirebon Jan 2003 : Bali June 2003: Batam Sept 2005: Surabaya

  9. Unleaded Gasoline in Indonesia MBCD

  10. Unleaded Gasoline Fuel Availability CITIES WITH ULG PREMIUM, ULG PERTAMAX AND ULG PERTAMAX PLUS. CITIES WITH LEADED PREMIUM, ULG PERTAMAX AND ULG PERTAMAX PLUS. ACEH CITIES WITH LEADED PREMIUM. MEDAN BATAM MENADO PEKANBARU SAMARINDA PADANG SORONG JAMBI PONTIANAK PALU PALEMBANG PALANGKARAYA BENGKULU KENDARI AMBON BANJARMASIN LAMPUNG JAKARTA SEMARANG UJUNGPANDANG BANDUNG SURABAYA BALI MERAUKE YOGYAKARTA LOMBOK KUPANG

  11. Diesel Fuel Availability CITIES WITH SULFUR CONTENT < 3500 PPM. CITIES WITH SULFUR CONTENT < THAN 1000 PPM. ACEH CITIES WITH SULFUR CONTENT < 500 PPM. MEDAN JAKARTA BATAM MENADO PEKANBARU SAMARINDA PADANG SORONG JAMBI PONTIANAK PALU PALEMBANG PALANGKARAYA BENGKULU KENDARI AMBON BANJARMASIN LAMPUNG SEMARANG UJUNGPANDANG BANDUNG SURABAYA BALI MERAUKE YOGYAKARTA LOMBOK KUPANG

  12. Further developments: • Open up private sector to provide cleaner fuel (unleaded gasoline and clean diesel) • Draft Presidential Instruction on gas usage submitted in Oct 2005 • Request to Mo State Coys to reduce automotive gas price from Rp.3000/ Premium Eq. Lt. (PEL) to Rp. 2200/PEL • Jakarta introduced CNG for Jakarta busway, recently launched by President • Jakarta to introduce three wheelers with CNG, initially 180

  13. Clean Fuel Availability and Future Plan (Gaikindo, May 2006) PRODUCT NAME FUEL PUMP STATION RETAIL FUEL COMPANIES P’CIPAL GASOLINE DIESEL Until 2006 Until 2010 •ULG Super (RON : 92 ) •ULG Super Extra (RON : 95 ) PT. Krida Petra Graha Shell Singapore Jakarta (18) Java (300) PT. Petronas Niaga Indonesia •LG Prima 92 (RON : 92 ) •ULG Primas PX2 (RON : 95 ) Jakarta (6) Petronas Java (200) Gulf Petroleum D-Xtra (CN=53 ; S. max.300ppm) • ULG Petrol Super 95 • ULG Petrol 92. PT. Sigma Rancang Perdana Jakarta (12) Java (390) • Unleaded Gasoline Super 97 PT. Conoco Phillips Indonesia Conoco Phillips Jakarta (10) Java (100) • ULG Race Power 91 • ULG Super Power 98 PT. Premindo Mitra Kencana Singapore Jakarta (2) Java (10) PT. Duta Karya Industry • ULG Race Power 91 • ULG Super Power 95 Singapore Jakarta (5) Java (60) PT. Pandu Selaras • ULG Pertamax (RON:92 ) • ULG Pertamax Plus (RON:95 ) • Pertamina DEX (CEN = 53 ; S max=300ppm) PT. Elnusa Petrofin Pertamina PT. Elnusa Harapan PT. Raven Sejahtera Available Fuel in the Market

  14. Bus way

  15. Trans Jakarta Busway Plan up to 2010 with CNG

  16. Biofuel Development • Resources and production: the case of Jatropa Curcas • Specification and standards • Technology: automotive issue, biofuel (abundant source) vs. hybrid (reduced fuel consumption) • Pricing policy and incentives: vs existing subsidy on diesel fuel • Distribution mechanism • Socialization and communication

  17. Presidential Instruction No.1/2006 on the Supply and Usage of Biofuel as Alternative Fuel • Coordinating Minister for Economics mandated to coordinate acceleration for the supply and utilization of biofuel • 12 ministeries, governors and regents/city mayors to execute specific related measures

  18. Trial Biodiesel

  19. Alternative Fuel Biofuel Biodiesel • Biodiesel Riau Pilot Plant, capacity 8 ton/day • Estimate biodiesel need in year 2010 • If 2% of diesel fuel use biofuel~ • 800.000 kl • Will require ~ 25 plants w/ capacity of 30.000 ton/day PERTAMINA recently introduced Biosolar into the market

  20. The Path Ahead The need for a Clean Air Act ? Dominant source

  21. Manage and develop on-line AQMS • Bigger role of MoE in fuel quality and promotion of alternative fuel for motor vehicles • Integration of emission standard requirement to annual vehicle registration • Promotion of mass rapid transport • Increased public awareness and participation on • various alternative mode of transportation in urban areas • health effects of air pollution • use of environmentally “green” vehicles

  22. Proposed new Indonesia Clean Air Act: • address stationary and mobile sources, air quality, transboundary air pollution (haze), climate change, acid rain, ODS issues • Coordination meeting with multi stakeholders • Justification on needs of Clean Air Act, 5-7 July 2006 • Academic draft Revision of Environment Act No. 23 Year 1997

  23. Institutional Capacity • MoE to enlarge its mandate and be more instrumental in facilitating enforcement through local government • Environmental institutions in local government to be empowered based on the autonomy law No. 32 Year 2004 • MoE instrumental in the establishment of a multi-stakeholders forum (MEB, Clean Emission Partnership) to address issues on air pollutions • Draft of national action plan (NAP) to reduce air pollution from vehicles • Development of National Action Plan and local Strategic Action Plan by ADB

  24. BAQ 2006 speed up the process?

  25. Better Air Quality (BAQ) 2006 Yogyakarta13–15 September, 2006 “A CELEBRATION OF EFFORTS” to pay tribute to what has been achieved in air quality management in Asia while highlighting the efforts that are still required to improve air quality in Asia

  26. BAQ 2006 hosted by 20 March 2006 Sustainable Urban Mobility in Asia A CAI-Asia Program

  27. Thank you

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