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StatusFuelsandVehicles

GlobalFuelEconomyInitiative
Indonesia
AdePalguna

Ministry of Environment Rpublic of Indonesia

INDONESIA

AhmadSafrudin
KPBB

Content
FuelsSupplyandDemand
pp y
FuelsSubsidyasthethreat
EnergyMix(Existing2005andPredictionfor2025)
CleanFuelsandVehiclesStandardinSouthEastAsia
ProgressonDialogtowardCleanFuelsandVehiclesRoadmap
(Indonesia and South East Asia)
(IndonesiaandSouthEastAsia)
GFEI IndonesianProject
Conclussion and Recommendation
ConclussionandRecommendation

WorseningAmbientAirQuality
AAQSReport2008
City

Good Air Status

Parameter Dominant

Jakarta

81

PM10

Bandung

10

PM10

Semarang

PM10

Surabaya

58

SO2

Medan

16

CO

g
y
Palangkaraya

123

O3

Source:MinistryofEnvironment2008

Transportation
andAirPollutionIssue

MotorvehicleisgrowingfasterwitholdenginetechnologyandworseonI/M
DisasterAirPollution:
Transportationismajorairpollutioncontributorincities
Transportsectorabsorbssignificantportionoffuels
Contributesto23%GHGemission
Trafficjam:
Increasingoftransportationdemand/mobility
Dominatedbyprivatecarandmotorcycle
SocialandeconomiclossalmostUS$500millionp.a.(Jakarta),andUS$65
millionp.a.(Bandung),
Increasingofemissionloadinthecity.
Lowonpublictransportservices

FUEL SUPPLY & DEMAND


2,500,000

Estimation of Consumption, Production, and Import of Oil Fuel


(Mogas, Kerosene, ADO, IDO, FO)
B

Volume (b
bbl/day)

2,000,000

1,500,000

1,000,000

500,000

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Year
Note:
FuelS upply=Domesticfuelproduction+Import
Dataon20062020import=C
Data on 2006 2020 import = C onsumptionP
onsumption P roduction
Fuelconsumptiongrowth(average)19952005is4,6%
Assumingaveragefuelconsumptiongrowthof4,5%in20062020

INDONESIA

Consumption
Domestic Fuel Prod.
Fuel Supply

OIL FUEL PRODUCTION & CONSUMPTION 2008


Productio
on and cons
sumption (kiilolitres)

30.000.000

25.000.000

Household

Note:

Electricity

Data on fuel
production
until Nov
Nov. 2008

Data on Av.
Gasoline & jet
fuel
consumption
not available
yet

Industry
Transportation
Production

20.000.000

15 000 000
15.000.000

10.000.000

5.000.000

Av.
Gasoline

Jet Fuel

Household

Electricity

Industry
y

Transportation

Production

INDONESIA

3.786

Reg.
g
Kerosene
Gasoline

ADO

IDO

FO

7.861.254

7.874.842

27.578

3.280.678

41.050

36.061

6.846.097

128.810

1.378.939

19.551.494

184

11.139.574

21.493

309.909

1.600.999 10.566.900 7.165.381 13.482.813

285.903

3.382.417

Final energy consumption by sector


Finalenergyconsumptionbysector
4.E+06

Tera
a Joule (TJ)

4.E+06
3.E+06
3.E+06
2.E+06
2.E+06
1.E+06
5.E+05
0.E+00
1991

1993

1995

Industry
Source:MoEMR,processedbyKPBB2008

INDONESIA

1997

1999

Year
Transportation

2001

2003

Agriculture

2005

2007

Domestic

Final energy mix


Finalenergymix
2005

,
Coal 17%
Coal,

2025
(Presidential Decree)
(PresidentialDecree)

Natural gas,
22%

Renewable
, 17%

Hydropower
3.80%

Natural
gas, 30%

Geothermal,
2%

Crude oil,
55%

Coal, 33%

Source:MoEMR,processedbyKPBB2008

INDONESIA

Crude oil,
20%

EnergySubsidies

PhaseoutFFsubsidiesin2014
INDONESIA

Social Issue
SocialIssue
Indonesiaisademocraticcountry:
SStrongcivilsocietymovement
i il
i
Publicinterestisthesensitiveissuetoraisesocial
pressure:
Phaseoutoffuelssubsidy
Increasingoffuelprice
Certainindustrieshaveinteresttokeepfuelssubsidy.
C t i i d ti h
i t
tt k
f l
b id

Needsthecompromisedoptiontosolvethe
fossil fuel subsidy phaseout:
fossilfuelsubsidyphase
out:
Taxincentivepolicy
Nonfossilfuels.

INDONESIA

EmissionStandard
N Li ht D t V hi l (SelectedAsiaPacificCountries)
NewLightDutyVehicle

Source:IFQC

FuelsSulfurContentinAsia(ppm)
2010
2500

2000

1500

1000

Gasoline
Diesel

500

Fuels Specification Roadmap


FuelsSpecificationRoadmap
Baseon2007Assesment*
Year

Gasoline

2007- 2011
2012 - 2015
2016 - 2020
2021 - 2025
Euro 2
EURO 3
EURO 3
EURO 4
Produced by UP II, Produced y by UP IV,VII Produced by all
Produced by all refineries.
UP III, UP IV ,UP V,
refineries.
UP VI & UP VII
EURO 4 produced by EURO 4 produced by
New Refinery
New Refinery
EURO 2
Produced UP II,VI

ADO

EURO 2
Produced by all
refineries

EURO 3
EURO 3
Produced by all
Produced by all refineries.
refineries.
EURO 4 produced by EURO 4 produced by
New Refinery
New Refinery

Refinery Development
Modification

Addition of Refining
unit
Contruction Of New
Refinery

Construction of RCCU
in UP IV & V (2015)
Construction
isomerization units in
IV & V( 2014)
Addition of
Desulfurization unit in
UP IV
150 MBCD (2014)
Standard EURO 4

*TodayhasbeenrevisedbyPertamina

13

Addition of Selective
Hydrogenation in UP IV,V
Addition of Benzene
Splitter in UP II, III, V

Addition of
Desulfurization UP VII

Source:MinistryofEnergy

TheChallenges
toImproveFuelsQuality
I
F l Q li
(Pertamina)
Properties

QualityGap: DomesticProductvsEURO
Unit

RON

D
i
e
s
e
l

Domestic Refinery
Reguler
Pertamax
Pertamax Plus
88

Specification
Domestic Refinery
Premium
Pertamax/
Reguler
Pertamax Plus

EURO II

Global
EURO III

EURO IV

91 - 95

88 min

91/95

91/95 min

95 min

95 min

Sulfur content

mg/kg

50 - 200

50 - 100

500 max

500 max

500 max

150 max

50/10

Lead content

g/l

< 0.006

< 0.006

0.013 max

none

0.013 max

0.005 max

0.005 max

Benzene content

%v/v

1-3

1-3

5 max

5 max

1 max

1 max

Aromatic content

%v/v

20 - 44

20 - 44

50/40 max

42 max

42 max

35 max

Olefin content

%v/v

2 - 29

2 - 29

18 max

18 max

18 max

Vapour pressure

kPa

49 - 60

49 - 60

60 max

60 max

60 max

Unit

Domestic Refinery
Reguler
PERTADEX

EURO II

Global
EURO III

EURO IV

Properties
Cetane number
Density
Sulfur content
Distlasi 95%

62 max

60 max

Specification
Domestic Refinery
Solar 48
Solar 51

49 - 63

53

48 min

51 min

49 min

51 min

51 min

kg/m3

819 - 853

840

815 - 870

820 - 860

820 - 860

845 max

845 max

ppm

400 - 2400

200 - 300

3500 max

500 max

500 max

350 max

50 max

oC

380 - 385

355

370 max

360 max

370 max

360 max

360 max

Source:Pertamina

Investment for Refinery Modification


InvestmentforRefineryModification
tomeetEuroIVStandard
Gasoline
RU II

New Naphtha
Hydrotreater
New Reformer
New Ref. SPL
Benzene
Saturation
Revamp
Platformer I

RU III

New Naphtha
Hydrotreater
New Reformer
New Ref. SPL
Benzene
Saturation

RU IV

New Naphtha
Hydrotreater
New Reformer
New Ref. SPL
Benzene
Saturation
Revamp
Platformer I

RU V

RU VI

New Naphtha
Hydrotreater
New Reformer
New Ref. SPL
Benzene
Saturation

De-S RCC NaphthaI

Diesel Fuel
RU II
DHDT 35 MBSD

RU III

DHDT 28 MBSD
H2 plant

RU IV
Revamp THDT,
HDT, AHU II

RU V

RU VI

DHDT 60 MBSD

ItisneededUS$800million.

Aktifkan LCO
treater
Revamp GO HTU

Source:Pertamina

Note:
RU:RefineryUnit
Indonesiahas7refineryunitswhichislocatedinthewholecountry

15

MatchmakingAgenda
F l
FuelsandVehicleStandardinSouthEastAsia
d V hi l St d d i S th E t A i
(Euro4Standard)

Source:AAF,processedbyKPBBrefertotheRevisedCleanFuelRoadmap
Pertamina

Fueleconomystandard
NofueleconomystandardputinplaceinIndonesia
Japanisleadinginthissector,andgettingmorestringent
o AnnouncedinFebruary2007,withthetargetyearsetfor2015
A
di F b
2007 i h h
f 2015

2004

2015

Improvement
rate

Passenger Car

13.6km/L

16.8km/L

23.5%

Small Bus

8.3km/L

8.9km/L

7.2%

Small Truck

13.5km/L

15.2km/L

12.6%

Japan'sfueleconomystandardsaimtoachieveamaximumefficiency
improvementof23.5%overaperiodof10years

Source:ITPS,2007

NatllWorkshopCleanFuelsStrategy
Nat
Workshop Clean Fuels Strategy
15April2010
Objectives:

Theoverallgoaloftheworkshopistoequipdecisionmakerswith
knowledgeandinformationonfuelsqualityimprovementprogramme as
triggertoadoptcleanerfuelspolicyinIndonesiathroughmatch
making/harmonizebetweencleanerfuelsandvehicles,
ki /h
i b
l
f l
d hi l

EntrypointtoGFEI.
Achievement:

Reviewedandupdated airqualitystatus,fuelsquality,vehiclestandard,
transportstatus,andenergyconsumptioninIndonesia,anditsanalysis
relatedtotheIndonesianpolicies,regulation,standards,programs.

Promoted GFEI and it project in Indonesia


PromotedGFEIanditprojectinIndonesia.

Commitmenttoharmonizecoordinationamongrelateddecisionmakerin
relationtoimprovefuelqualityintheframeworkof fuelseconomypolicy
(MinistryofFinance,MinistryofEnergy,MinistryofTransport,Ministryof
Industry,MinistryofEnvironment,OilIndustry,AutoIndustry,NGOsand
Universities).

FuelsEconomyApproach
NatlWorshopCleanFuelsStrategy,15April2010

Gasoline
DieselFuel
Vehicle
FuelEconomy

2005

2010

2015

2020

2025

2030

2035

2040

2045

2050

2055

Harmonizefuelsandvehiclesstandardintheshort
Harmonize
fuels and vehicles standard in the shortterm
term(3
(35
5years)isa
years) is a
triggerandentrypointtoadoptfueleconomypolicybasedon50%by2050

Conclusion and Recommendation


ConclusionandRecommendation

Transportationismajorairpollutioncontributorincities
Transport sector absorbs significant portion of fuel subsidy
Transportsectorabsorbssignificantportionoffuelsubsidy
Contributesto25%ofGHGemission
Useofalternative fuels isdeclining (CNG,LPG,Biofuels)
gg
GFEIisatrigger:
Harmonizefuelsandvehiclesstandardintheshortterm(35years)
isatriggerandentrypointtoadoptfueleconomypolicybasedon
50%by2050

Economicvaluation:

Thepotentialofcarbonreductionbyusingfuelseconomyinstrument:
FiscalPolicyReform:
Adotpcleanfuelsstandardisarequirementtoadoptloweremission
vehicle
Promotefuelefficiencevehicle
Thevaluationoncarbonreductionimpactoffuelseconomyinstrument
The valuation on carbon reduction impact of fuels economy instrument
Rationalfuespricingpolicyisapreconditiontoadoptcleanerfuelsstandard.

Technicalsolutionastheoptionoffuelseconomy
AdvocacyforPolicyReform:
Policydialogamongmultistakeholder
Policy dialog among multi stake holder
Policydrafting
Publiccampaign.

INDONESIA

Terimakasih
ThankYou
AdePalguna
Assistant Deputy For Mobile Sources Pollution Control
MOE Indonesia
Jl DI Pandjaitan Kav 24 Kebon Nanas Jakarta
Phone : + 62 21 859 11207
Fax. + 62 21 859 06678
Email : ade@menlh.go.id

Ahmad Safrudin
AhmadSafrudin
KPBB

3rd Ranuza Building,


Jalan Timor 10 Menteng Jakarta 10350
INDONESIA
Ph: +62-21-3190 6807, F: +62-21-315 3401,
e-mail: puput@kpbb.org; www.kpbb.org
ahmadsafrudin.blogspot.com
Mobile: +62
+62-816897959
816897959

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