RENEWABLE ENERGY IN THE EYES

OF PARLIAMENT
IR. SATYA WIDYA YUDHA, M.SC
ANGGOTA KOMISI VII FRAKSI PARTAI GOLKAR DPR RI
INDONESIA LEGAL BASIS ON ENERGY
Indonesia Constituion , Article 33 (3)
Earth and water and the natural riches contained therein controlled by the state and used for the
people's welfare..

Law No. 17/2007 on Long Term Development Plan Year 2005-2025
Management of natural resources including energy sources nationwide are treated as inputs in the
production process as fuel or raw materials that can bring added value to the country.

Law No. 30/2007 on Energy
The role of energy is very important for the improvement of economic and energy security, so it
includes the provision of energy management, utilization should be conducted in a fair, sustainable,
optimal, and integrated.

Law No. 22/2001 on Oil and Gas
Oil and gas is a strategic resource that is not renewable and controlled by the state and also vital
commodity that controls the lives of many people which has an important role in the national
economy. Thus, the management of it should be able to provide prosperity and the well-being of the
people.
Law No. 10/1997 on Nuclear Energy
Nuclear energy Affect the lives and the safety of many, therefore, it must be controlled by the state,
thus, the utilization of Nuclear Energy for national development should be aimed at realizing a fair
and prosperous society

Law No. 27/2003 on Geothermal
Geothermal energy is a natural resource that can be renewed, it has large potential , controlled by
the state and have an important role as a source of alternative energy in the national energy
diversity to support sustainable development in order to realize the people's welfare

Law No. 30/2009 on Electricity
Electricity plays a very important role in realizing the strategic objectives and national development
. Thus, the electricity supply business controlled by the state and its provision should be increased in
line with the national development. Therefore. electric power should be available in sufficient
quantities, equitable, and high quality.

Law No. 4/2009 on Mineral Resource and Coal
Mineral resource and coal contained in the Indonesian mining jurisdiction are non-renewable
energy which have an important role in meeting the lives of many people, Therefore its
management should be controlled by the State to provide significant added value for the national
economy in order to achieve prosperity and welfare of the people equitably.
FALSE ASSUMPTION ON ENERGY IN INDONESIA
1. Indonesia is a country rich in oil. In fact its NOT! We have other type of
energy such as coal, gas, CBM (Coal Bed Methane), geothermal, hydro power,
biofuels (Biofuels) and etc.

2. Fuel prices must be very cheap, without thinking that it cost the state budget
to subsidize fuel prices, our dependence on oil and this way of thinking create
condition where we keep importing oil and fuel and difficult condition for
other energy to grow

3. Investors will come by itself without the need to be friendly and provide a
good investment climate.

4. National economy will be improved on its own with outh the intervention of
the Government
NATIONAL ENERGY SOURCES
NO RENEWABLE ENERGY
SOURCES
(SR)
INSTALLED
CAPASITY (IC)
RATIO IC/SR
(%)
1 2 3 4 5 = 4/3
1 Tenaga Air/ Hydro Power 75,670 MW 5,705.29 MW 7.54
2 Panas Bumi/Geothermal 29,038 MW 1,189 MW 4.00
3 Mini/Micro Hydro 769.69 MW 217.89 MW 28.31
4 Biomass 49,810 MW 1,618.40 MW 3.25
5 Tenaga Surya/Solar 4.80 kWh/m
2
/day 13.5 MW -
6 Tenaga Angin/Wind Power 3 6 m/s 1.87 MW -
7 Uranium
3.000 MW
(e.q. 24,112 ton) for 11
years
*)
30 MW 1.00
*) Hanya di Kalan Kalimantan Barat
Production and proven reserves of oil continue to fall. Although our
gas proved reserves quadrupled our oil reserves, but the oil-to-gas
conversion program did NOT run smoothly.
No
ENERGI FOSIL
(TIDAK TERBARUKAN)
SDA
CADANGAN
(CAD)
RASIO
SD/CAD
(%)
PRODUKSI
(PROD)
RASIO
CAD/PROD
(TAHUN)*)
1 2 3 4 5 = 4/3 6 7 = 4/6
1 Minyak Bumi / Oil (miliar barel) 56.6 7.99 **) 14 0.346 23
2 Gas Bumi / Natural Gas (TSCF) 334.5 159.64 51 2.9 55
3 Batubara / Coal (miliar ton) 104.8 20.98 18 0.254 83
4 Coal Bed Methane/CBM (TSCF) 453 - - - -
5 Shale gas (TSCF) 574 - - - -
*) Dengan asumsi tidak ada penemuan cadangan baru
**) Termasuk Blok Cepu
Proven Oil Reserves
Proven Gas Reserves
NATIONAL ENERGY SOURCES

# BUDGETING ENERGY SECTOR
STATE BUDGET MACRO ECONOMIC BASIC
ASSUMPTION 2013
No. Macro Economic basic Assumption
2013
NUMBER INFO
1 Economic Growth 6,8 (%)
2 inflation 4,9 (%)
3 Interest Rate of 3months Treasury
Bonds (%)
5,0 (%)
4 Exchange Rate Rp 9.300 (Rp/US$)
5 Indonesia Crude Price 100 (US$/barrel)
7 Oil Lifting 900.000 (barrel per hari)
8 Gas Lifting 1.360 (mboepd)
9 Total of Energy Subsidy Rp 274,74 T
10 Fuel Subsidy Rp 193,8 T
11 Electricity Subsidy Rp 80,94 T
State Budget Revenue Trends
Optimization of Natural Resources Revenue
Needs to improve the governance of natural resources that incur losses to the
government due to business practices in the oil and gas sector, mining, farming, forestry,
and fisheries
Need to revisit the cooperation contracts in the form of rights management, profit
sharing, royalties or sales of natural resources, which resulting in losses to the state due
to the loss of usage use potential of the natural wealth of Indonesia.

GOVERNMENT STATE BUDGET 2013
* dalam Triliun Rupiah
Problems: Infrastructure Development to be hampered because of the
allocation of capital expenditure in the state budget is always smaller than
Routine & Subsidies.
The Government must undertake the management of the fuel subsidy budget
strictly to avoid any swelling in the state budget.
ENERGY SUBSIDY TRENDS IN STATE BUDGET
64.2
61.8
140
54.3
81.1
129.7
123.6
137,38
193,8
199.8
32.2
25.8
78.56
48.16
62.81
65.5
44.9
65
80,943
99.97
0
20
40
60
80
100
120
140
160
180
200
2006 2007 2008 2009 2010 2011 APBN 2012 APBN-P
2012
2013 APBN-P
2013
Subsidi BBM Subsidi Listrik
APBN-P 2013:
Energy Subsidy Rp 299,77 T
( Fuel Rp 199.8 T &
Electrity Rp 99.97 T )
DRAFT APBN 2014:
Energy Subsidy Rp 284.7 T,
( Fuel Rp 194,9 T &
Electricity Rp 89.8 T )
APBN 2013:
Energy Subsidy Rp 274,7 T
( Fuel Rp 193,8 T &
Electricity Rp 80,94 T )
COMPARATION OF ENERGY SUBSIDY
Negara Bensin Solar
Minyak
Tanah
LPG
Minyak Bakar
Ringan
Minyak Bakar
Berat
Gas
Bumi
Batubara Listrik
Indonesia 24 54 58 30 35 t.a 0 58 13
Cina 5 13 3 18 0 0 45 17 0
India 0 0 41 20 0 0 70 0 5
Pakistan 0 28 19 0 19 0 59 0 0
Malaysia 26 37 0 33 9 0 t.a t.a 5
Thailand 0 16 0 35 0 0 65 57 10
Filipina 0 0 5 0 34 t.a t.a t.a 0
Iran 82 96 76 67 32 73 66 t.a 30
Venezuela 90 96 0 82 94 84 t.a t.a 25
Mesir 65 80 88 94 80 71 76 t.a 4
Rusia 0 0 0 0 0 16 57 17 34
Catatan : t.a. = tidak ada data; 0 = tidak ada subsidi Sumber: EIA, 2006
(% Subsidi)

# LEGISLATIVE PERSPECTIVES
ENERGY INDEPENDENCE
Sumber:
Asia Pacific Energy Research Centre (APERC)
& International Energy Agency (IEA)
ENERGY SECURITY
Ability to respond to the changing
dynamics of the global energy
(external)
Ability to ensure the availability of
energy at reasonable prices
(internal)
availability
The ability to provide energy security (security of
energy supply)
Accessibility
The ability to gain access to energy
(infrastructure availability)
Purchasing Power
willingness to pay

NATIONAL ENERGY DEVELOPMENT DIRECTION
EXPLORATON ON NEW RENEWABLE ENERGY
RESOURCES
INCREASING ACCESSIBILITY
INCREASING THE PURCHASING POWER OF
THE PEOPLE
DIVERSIFICATION AND ENERGY
CONSERVATION
INTESIFICATION OF
EXPLORATION AND
EXPLOITATION ACTIVITY
INFRASTRUCTURE
DEVELOPMENT
RIGHT TARGET AND RIGHT
VOLUME ON SUBSIDY
ENCOURAGE THE USE OF
RENEWABLE ENERGY
NEW PARADIGM ON ENERGY SUBSIDIES
The government should change the paradigm of fuel subsidy.
Currently, the pattern is still focused subsidies for fuel prices. In the
future, the government should design a DIRECT SUBSIDY PROGRAM that
can be precisely targeted to low-income and poor people.

Shift fuel subsidy gradually in the next five years for renewable energy
subsidies (future energy) in order to achieve energy security

Saving Fuel subsidies should be allocated for the infrastructure and the
development of Renewable Energy (Geothermal, Microhydro, Nuclear,
Solar power, Biomass, Wind Power, Uranium)
HOW DO WE MOVE FORWARD ???
Easing Necessary Permitts (Such as: Revising
Geothermal Law)
Forming Pricing scheme which is economicly
viable
- Ministrial Decree need to be promulgated for
the above purposes
Revisit Subsidy Policy : Subsidizing Renewable
Energy less than Fossil Fuels ???
THANK YOU
WWW.SATYAYUDHA.COM
FOLLOW ME TWITTER @SATYAWIDYAYUDHA