Jakarta City to Convert Waste to Thermal Energy

Indonesia produces 64 million tons of waste annually. Jakarta itself produces 6,600 to 6,700 tons of garbage per day. The capital city needs at least three waste-to-energy plants – as per 2012- 2023 master plan for garbage management. Currently, Jakarta has only Bantar Gebang waste treatment facility in Bekasi, West Java to treat its waste. Jakarta city administration spends Rp 133,000 (US$9.77) for every ton of waste that is processed at Bantar Gebang.

Jakarta is expected to construct intermediate treatment facilities (ITF) to process waste into energy in four areas of the capital.

The plants will be located in – Sunter with a capacity to process 1,000 tons of waste per day, Cakung Cilincing (with 1,500 tons per day capacity) and Marunda (capacity for 2,500 tons per day) and another in Duri Kosmabi, West Jakarta.

The facilities are expected to use incinerating machines to produce thermal energy.

PT Jakarta Propertindo will develop the ITF in Cakung Cilincing and Marunda while ITF in Sunter and Duri Kosambi is said to be developed by the Jakarta Sanitation Agency.

Although tenders for the projects were offered in 2012 and foreign companies were selected, no winners are announced yet – due to the change in political leadership.

More on ‘Municipal Solid Waste (MSW) to Energy – Techno-Economics For Growth in Indonesia’ will be discussed by Made Wahyu Wiratma, Growth & Strategy Director, Gas Engine, General Electric Company (GE Indonesia) at CMT’s 3rd Biomass & BioEnergy Asia on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Hafizah at hafizah@cmtsp.com.sg or call 65 6346 9218.

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Indonesia’s Adaro Energy to Diversify into Renewable Power

Indonesia’s second-largest coal miner by volume, Adaro Energy is planning to diversify its business by exploring the renewable energy domain.

The company via its subsidiary Adaro Power is aiming to slowly make an entry into the green energy domain. As a start, it plans to add 50 megawatts of renewable power. However, the company is still exploring different types of clean energy sources such as solar-cell, geothermal, biomass and micro hydro power for its project.

Adaro is aiming to invest approximately US$75 million to $100 million for the initial project. It plans to secure 70 percent of the funds from loans and the remainder from internal sources. Adaro has enough equity, but the challenge for the company is to acquire a loan.

Meanwhile the Japan Bank for International Cooperation (JBIC) has provided a loan for Batang power plant project in which Adaro owns 34 percent shares. It will be the biggest coal-fired steam power plant in Southeast Asia.

Adaro is hopeful to secure more finance from Japanese banks as well as JBIC for power projects in Indonesia.

More about clean energy projects in Indonesia will be discussed at CMT’s Indonesia Renewable Power on 27 Feb – 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.

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Indonesia allows IPPs to supply power to customers in remote areas

Indonesia’s power sector that is dominated by state power company Perusahaan Listrik Negara (PLN), will open-up soon. In a ministerial decree, Energy and Mineral Resources Ministry has approved to allow independent power producers (IPP) to sell their power directly to customers, particularly in remote areas or regions that are not serviced by PLN.  The move is likely to end the monopoly of PLN in the power sector.

The decree now awaits ratification from the Ministry of Justice and Human Rights.

IPPs will be allowed to build their own plants, distribute power and also take care of their own costs.

The move will be a boost to renewable power as the smaller IPPs that produce renewable and fossil fuel power, can operate in 2,500 villages across the country which have not been connected to PLN’s power grid.

Prior to this regulation, IPPs were allowed to sell its power to PLN only. The process was marred with lengthy negotiations that often made these small-scale projects unfeasible.

PLN is expected to concentrate on more large-scale projects to support the government’s target of adding 35,000 MW to the country’s power grid by 2019.

One possible challenge for the small scale IPPs is that the electricity produced might be expensive and households might not be able to afford it.

Estimates show that as much as $8 billion might be needed to provide electrification in remote areas. This figure is much higher than PLN’s average base cost of Rp 1,352 (1 US cent) per kilowatt hour. The government might have to step in to subsidize the private sector to address this problem.

More on Indonesia’s power sector developments will be discussed at CMT’s Indonesia Renewable Power on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.

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Indonesia & Malaysia moving ahead in South East Asia biodiesel market developments

In a new record, Indonesia has consumed as much as 2 million kiloliters of biodiesel in the period between January and October 2016. The government had introduced biodiesel to stabilize the country’s palm oil prices and also to address climate change.

The total consumption of 2.06 kiloliters in the first 9 months of the year translates to almost the monthly requirement of Indonesia.

However only about 7 percent of the 33 million tons of crude palm oil produced in 2016 was used to make biofuel. The Indonesian government aims to raise this number to 26 percent by 2020. Already the use of biodiesel has helped Indonesia reduce 4.3 million tons of carbon dioxide from its greenhouse gas emissions this year. Indonesia expects to obtain 23 percent of its energy from mixed and renewable sources, including biofuels and raise this percentage to 30 percent by 2050.

The other key South East Asian player – Malaysia is planning to raise the current B7 biodiesel mandate to B10. The biodiesel B10 is a blend of 10 percent palm methyl ester (PME) and 90 percent regular diesel while B7 is of a lower blend of 7 per cent PME.

The new measure will also require the industrial sector to start using the B7 blend. The industrial sector has until now been using regular diesel.

The new mandate is expected to create demand for 800,000 tonnes of palm oil per year to be converted into PME. The initiative is expected to help Malaysia’s palm oil stocks and support palm oil prices in the international market.

The Malaysian government, via the Ministry of Plantation Industries and Commodities and its agency Malaysian Palm Oil Board, has taken a gradual approach in rolling out the B5 and then B7 blends in the country.

The country’s biodiesel producers supply PME to the transport sector, starting June 2011 with the B5 programme. Thereafter, the blending percentage was raised to B7 in November 2014.

More about biodiesel market developments will be discussed at CMT’s 3rd Biomass & BioEnergy Asia on 27 February- 1 March, 2017 in Jakarta.

For more information about the event, contact Ms. Hafizah at hafizah@cmtsp.com.sg or call 65 6346 9218.

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Indonesia Consumed More Than 2 Million Kiloliters of Biodiesel in 2016

B10 boon set to support palm oil industry