Indonesia

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Indonesia
Population: 245,452,739 (July 2006 est.)[1]
GDP (PPP): $935 billion (2006 est.) [1]
Petroleum
– consumption
– imports:
– Gasoline to diesel ratio:
1.168 million bbl/day (2005 est.)[1]
424,000 bbl/day (2005 est.)[1]

???

Electricity
– consumption
– Main sources:
107.7 billion kWh (2005 est.)[1]
 ???
Renewable energy targets:  ???
Ethanol
– production:
– target:
– feedstocks:
45 mil. gal./yr. (2005)[2]
???
sugarcane, cassava
Biodiesel
– production:
– target
– feedstocks:
???
???
 ???

Information about biofuels and bioenergy in Indonesia.

Contents

Events

2008

2007

Policy/Initiatives

Issues

International net loss and net gain in 'forest' by country for the period 1990-2005 (modified from the World Resources Institute)

Oil palm plantations

  • Indonesia has 6 million hectares of land under oil palm and has cleared up to three times as much land for expansion of plantations. According to Indonesian NGO Sawit Watch another 20 million hectares have been allotted under regional development plans, mostly in Sumatra, Kalimantan, Sulawesi and West Papuafor conversion over the next 15 years.1.
  • Beyond the environmental impact of the increase in oil palm, there are issues regarding the land rights of indigineous people who live in areas that are being given to companies for large-scale plantations. Land for plantations is often given to companies without consultation or compensation for the people who are living there.[3].

International cooperation

Organizations

Academic organizations

Governmental organizations

  • PLN Indonesian government-owned power company. Is currently investing in power plants that will be fueled by a 80% pure plant oil, mostly from oil palm, 20% diesel mix. (source: see news)

Nongovernmental organizations

Industry associations

  • Indonesian Palm Oil Producers Association

Companies

Some companies that are creating biodiesel plants based on palm oil in Indonesia:

  • PT Bakrie Sumatra Plantations Tbk - Indonesian Palm oil and rubber company.
  • PT Astra Agro Lestari Tbk - Indonesian palm oil company.
  • PT Asian Agri;
  • Golden Hope Plantations - (Malaysian), A large Malaysian oil palm company with a strong sustainability focus:
    • a strong environmental advocate with global awards including the Forest Stewardship Council Certification (FSC), ISO 14001, ISO 9000, ISO 9001 and COC.
    • "It was the first plantation company in Malaysia to receive the Global 500 Award by the United Nations Environment Programme (UNEP) for its “Zero Burning” practices."
    • It is also a founder member of the Roundtable on Sustainable Palm Oil (RSPO)which comprises plantation companies, industries as well as environment-related Non-Governmental Organisations and interest groups.
  • Genting Bhd - (Malaysian) Genting Berhad is the investment holding and management company of Genting Group. Asiatic Development Berhad now has a land bank of over 71,000 hectares and is one of the leading and lowest cost palm oil producers in Malaysia.
  • Sime Darby Bhd - (Malaysian) The Sime Darby Group is Malaysia's leading multinational and one of Southeast Asia's largest conglomerates. In n addition to its original plantations core business activity, Sime Darby is also a major player in the motor vehicle, heavy equipment, property, and energy & utilies industries.
  • [10] - Wilmar Holding Pte Ltd. (Singapore) Is one of Asia’s largest palm oil refiners and crushers of copra and palm kernel. They are also a sizeable oil palm plantation owner with extensive palm fruit processing mills in Indonesia. They are "set to become one of the world's largest producers of palm biodiesel". They are also a member of the Roundtable on Sustainable Palm Oil (RSPO)

Resources

News

  • Indonesia may open more forests to palm oil, 16 February 2010 by The Malaysian Insider: "As Indonesia looks for ways to meet its ambitious emissions-reduction targets, the Ministry of Forestry yesterday said it plans to issue a new regulation that would allow commercial forestry companies to plant crops such as palm oil in new concession areas."
    • "The regulation would stipulate that at least 49 per cent of forest concessions in question be used for planting commercial forests, while up to 21 percent could be planted in crops. The remaining 30 percent would be set aside for conservation and the use of local communities."
    • "A similar regulation was issued in 1999 but was withdrawn after many forestry companies planted more of their land in palm oil than permitted."[13]
  • Indonesia could double oil palm plantation area, 2 December 2009 by Mongabay: "Indonesia has 18 million hectares of land suitable for oil palm cultivation, nearly twice the 9.7 million hectares that have already been allocated for plantations, said Agriculture Minister Suswono...at the opening of the 5th Indonesian Palm Oil Conference in Bali."
    • "Roughly 7.9 million hectares of the allocated area has already been planted with oil palm."
    • "Oil palm expansion in Indonesia promises to be controversial due to environmental concerns. In February the government approved a decree that will allow the conversion of up to 2 million hectares carbon-rich peatlands, a move scientists warn could trigger the release of hundreds of millions of tons of CO2."
    • "[E]conomic returns from oil palm plantations could soon face competition under a scheme (known as REDD for reducing emissions from deforestation and degradation) that would compensate countries for protecting carbon sinks, notably tropical forests and possibly peatlands. Under some circumstances carbon conservation could outperform palm oil production....Indonesia's recent announcements about oil palm expansion across peatlands may in fact be posturing to win more compensation under a REDD mechanism."[14]
  • UN's Ban calls deforestation summit, 3 September 2009 by AFP: "UN chief Ban Ki-moon said Thursday he planned to bring together leaders of the world's most forested nations, including Brazil and Indonesia, for a meeting this month to discuss deforestation" on 22 September.
    • "The UN Environment Programme recently underlined that since trees and plants absorb carbon dioxide (CO2), stemming deforestation could be a tried and tested method in tackling climate change instead of more ambitious carbon capture projects."
    • The proposed meeting in New York would coincide with the UN summit on climate change."[16]
  • (Palm Oil:) How the World Bank Let 'Deal Making' Torch the Rainforests, 19 August 2009 by Climate Wire / New York Times: "The World Bank ignored its own environmental and social protection standards when it approved nearly $200 million in loan guarantees for palm oil production in Indonesia, a stinging internal audit has found."
    • "The audit does not address climate change or how lending for palm oil -- an ingredient in foods and a biofuel added to diesel for cars -- fits into the World Bank's new 'strategic framework' for development and climate change."
    • "Specifically, auditors said, when loaning to Wilmar International Ltd. and other firms between 2003 and 2008, the IFC did not check out concerns about the companies' supply chain plantations. The Forest Peoples Programme, a U.K.-based nonprofit group that originally brought the complaint, charged that the companies illegally used fire to clear forestland, cleared primary forests, and seized lands belonging to indigenous people without due process."
    • In a letter, nonprofit organization representatives "called on the World Bank to freeze palm oil lending, charging that IFC suffers a 'systemic problem whereby the pressure to lend and to support business interests overcomes prudence, due diligence and concern for social and environmental outcomes.'"[17]
  • Oil giants destroy rainforests to make palm oil diesel for motorists, 15 August 2009 by TimesOnline: "Fuel companies are accelerating the destruction of rainforest by secretly adding palm oil to diesel that is sold to millions of British motorists."
    • "Twelve oil companies supplied a total of 123 million litres of palm oil to filling stations in the year to April, according to official figures obtained by The Times."
    • "Only 15 per cent of the palm oil came from plantations that met any kind of environmental standard. Much of the rest came from land previously occupied by rainforest."
    • "[C]learing rainforest to create biofuel plantations releases vast quantities of carbon stored in trees and soil. It takes up to 840 years for a palm oil plantation to soak up the carbon emitted when rainforest is burnt to plant the crop."
    • "The expansion of the palm oil industry in Indonesia has turned the country into the third-largest CO2 emitter, after China and the US. Indonesia has the fastest rate of deforestation, losing an area the size of Wales every year. The expansion of plantations has pushed the orang-utan to the brink of extinction in Sumatra."[18]
  • Small-scale biofuels production holds more promise, says USAID, 21 June 2009 by BusinessMirror: "Decentralized biofuel production, or small-scale factories built on degraded or underused lands, has the potential to provide energy to half a billion people living in poverty in rural Asia."
    • " The report, Biofuels in Asia: An Analysis of Sustainability Options…focused on China, India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam. It analyzed key trends and concerns and highlighted sustainability options for biofuel production."
    • "Compared with large-scale biofuels production, small-scale biofuels production for local use may deliver greater social benefits, including improvement of rural livelihoods, support of local industries, and a lower tendency toward exploitation of workers and co-opting of land from indigenous peoples."
  • The world's top 15 listed palm oil planters, 9 June 2009 by Reuters: Information on the "15 largest listed palm planters, ranked by market value....mostly located in Indonesia and Malaysia".
    • Statistics provided on "plantation holdings are in hectares and include both cultivated and uncultivated land".
  • Indonesia needs $4b to avert deforestation, 4 June 2009 by The Jakarta Post: "...Indonesian deforestation could be averted if international communities grant US$4 billion until 2012 to finance the livelihood of local peoples and stop forest conversions....The Forestry Ministry said the money would be used to address the main causes of deforestation prior to the implementation of the reducing emissions from deforestation and degradation (REDD) mechanism."
    • "Many have criticized the Indonesian government for its failure to combat high rates of deforestation, which have risen to over one million hectares per year."
    • "Indonesia has about 120 million hectares of rainforest – the third-largest on the planet after Brazil and Congo."
    • "...illegal logging [can] be seen from the expansion of oil palm estates in protected areas and conservation forests in the country....local administrations still [award] licenses for forest conversion, including for plantations."
  • "Green" palm planters struggling to find buyers, 30 May 2009 by Alibaba.com: "JAKARTA, May 27 - Palm oil planters in the world's top two producers Indonesia and Malaysia are struggling to find buyers for their eco-friendly palm oil...threatening to slow momentum."
    • "Under fire from green groups and some Western consumers, the palm oil industry established the Roundtable on Sustainable Palm Oil (RSPO) in 2004 to develop an ethical certification system that includes commitments to preserve rainforests and wildlife."
    • "...the industry had so far sold only 15,000 tonnes of certified green palm oil since the first shipment last November while output might have reached around 600,000 tonnes."
    • "The issue of 'green' palm remains contentious and some conservation groups argue that the current voluntary rules are not effective in protecting the environment."
  • Biofuels for the poor, 23 March 2009 opinion piece in The Jakarta Post: "After being criticized for being slow to develop the local biofuel industry, the Indonesian government has finally issued two important policies; first, a decree issued last year obliging industries and the transportation sector to use biofuels; and second, its recent decision to provide subsidies for sales of the fuel."
    • "The National Team for Biofuel Development also placed an emphasis on the poverty-alleviation aspect in its roadmap for biofuels development. In its roadmap, the agency says that the program will create at least one million jobs and significantly increase the value of many areas of land owned by farmers."
    • "At present, our biofuel producers mostly use crude palm oil as a raw material. This has sparked criticism, since by using a food source for fuel in order to solve the energy crisis, we are also creating a food crisis. There are also fears that, in anticipation of growing demands from biofuel sector, CPO firms will continue a trend of clearing forest areas for plantations, thus creating massive environmental problems."[20]
  • Indonesia reopens peatland to palm oil plantation, 18 February 2009 by The Guardian: "Indonesia today acknowledged it had quietly lifted a year-long freeze on the use of peat land for palm oil plantations, fuelling fears of a rise in greenhouse gas emissions."
    • "Environmental groups had pressed the government to maintain the ban but Indonesia's agriculture ministry said tighter controls for issuing new permits for growing palm oil on peat land had been set after a study during the past year."
    • "To grow palm oil, the peat land that must be cleared and drained, releasing millions of tonnes of CO2 into the atmosphere. The oil is a major export product and is used in numerous foods, soaps, washing powders and as a feedstock for biofuels."
    • "Indonesia is the world's leading palm oil producer and has planted palm estates of 7.1m hectares, with smallholders accounting for about 35 percent. Palm oil generated exports revenue of £7.64bn in 2008."[21]
  • The cost of the biofuel boom on Indonesia's forests, 21 January 2009 by The Guardian: "A flurry of scientific field work and environmental reports have linked the spread of oil palm plantations in Indonesia to the decimation of rain forests, increased conflict between logging and oil palm interests and rural and indigenous people, and massive CO2 emissions through logging, burning, and the draining of carbon-rich peat lands. And most of the trouble, as I learned on a recent visit, is playing out in the Indonesian lowland rain forests on Sumatra and Borneo, an ecosystem long regarded as a global hotspot for rare and endemic species — but perhaps not for much longer."
    • "According to Indonesia's own figures, 9.4 million acres of forest have been planted with oil palm since 1996, an area larger than New Hampshire and Connecticut combined. That works out to 2,000 acres a day, or about one football field a minute....Only Malaysia, which has less at stake biologically, produces more."
    • "The week [the author] visited Sumatra, Greenpeace activists aboard the Rainbow Warrior were blockading a shipment of palm oil off its coast. A banner tied to the ship's mast read: 'Palm Oil Kills Forests and Climate.'"[22]
  • Biofuel producers warn EU over "unjustifiably complex" sustainability rules, 7 November 2008 by BusinessGreen: "Eight developing countries have written to the EU warning they will complain to the World Trade Organisation (WTO) if it passes proposed legislation designed to improve the environmental sustainability of biofuels by restricting the types of fuels the bloc imports."
    • "The EU is considering legislation that is intended to ban the purchase of biofuels from energy crop plantations that are believed to harm the environment and lead to food shortages by displacing land used for food crops and contributing to rainforest deforestation."
    • "[E]ight countries – Argentina, Brazil, Colombia, Malawi, Mozambique, Sierra Leone, Indonesia and Malaysia – have written to the EU to protest against the proposals" in a letter that "claims that the new rules would 'impose unjustifiably complex requirements on producers' and argues that environmental criteria 'relating to land-use change will impinge disproportionately on developing countries'."[23]
  • Malaysia, Indonesia to cooperate on biofuels, 5 August 2008 by Reuters: "Malaysia and Indonesia will cooperate in a biofuel development program, and may use the same biofuel specifications and amount of blending, Malaysia's commodities minister said on Tuesday."
    • "Indonesia and Malaysia, the world's top two palm oil producers, together account for more than 80 percent of the world's crude palm oil output."
    • "Indonesia's state oil firm, Pertamina, uses a 2.5 percent blend of biofuel in diesel fuel, and plans to increase the blend to 5 percent, depending on the biofuel price."[24]

2007

  • A who's who of Indonesian biofuel, 22 May 2007, from Asia Times Online. Many of the companies that are now investing heavily in Indonesia's biodiesel industry are the sames ones that "incurred and defaulted on huge foreign debts in the wake of the 1997-98 Asian financial crisis. Few fully repaid their debts and today they still dominate the country's logging, wood-processing and pulp industries. Several also have highly suspect environmental records."
  • Indonesia ranked 3rd for greenhouse gas emissions 6 November 2006 from the Jakarta Post (requires free registration). "Indonesia has jumped to third place from 21st behind the United States and China as the world's top contributor of greenhouse gasses because of its clearing and burning of peatland areas". Emissions reached 2 billion tons of carbon dioxide a year -- almost a 10th of world greenhouse gas emissions from human activities. Indonesia emits 6.5 times as much CO2 from degraded peatlands as it does by burning fossil fuels every year, while it produces more gases than all the efforts of western countries to reduce. The peatlands are burned to make way for oil palm plantations among other uses.

Provinces

  • West Java Province
    • South Korean company LBL Network Ltd is investing in bio-ethanol production utilizing cassava (Manihot esculanta) as a feedstock. According to "Largest Bio-ethanol Factory to be Built", 1 December 2006 in TEMPO Interactive, LBL Network Ltd "signed a Memorandum of Understanding with West Java Province and the governments of Kuningan, Subang, Sumedang and Indramayu regencies". The provincial government will assist farmers to plant the crops, and the company PT Mitra Sae International will administer local operations, with a "manufacturing capacity of 200 million liters of ethanol per year," Indonesia's largest, costing $100 million. Some 50 thousand hectares of land will be needed to sustain the required production of 1.2 million tons of feedstock annually.[4]

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 https://www.cia.gov/cia/publications/factbook/geos/id.html
  2. ↑ http://www.ethanolrfa.org/industry/statistics/#E
  3. ↑ Promised Land - Palm Oil and Land Acquisition in Indonesia: Implications for Local Communities and Indigenous Peoples by Marcus Colchester, Norman Jiwan, Andiko, Martua Sirait, Asep Yunan Firdaus, A. Surambo, Herbert Pane; Forest Peoples Programme, Perkumpulan Sawit Watch, HuMA and the World Agroforestry Centre, 2006. Executive summary p. 11-17.
  4. ↑ "Largest Bio-ethanol Factory to be Built", 1 December 2006 in TEMPO Interactive


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