THE GREENING OF INDONESIA
An MMI’s INFRASTRUCTURE Initiative Endorsed by:
The Coordinating Ministry of Economic Affairs, Republic of Indonesia
A component of MMI’s INFRASTRUCTURE Initiative
Brought to you by a leading organiser of global trade fairs – Messe München International (MMI Asia Pte Ltd), Renewables Indonesia will be launched in 2011 as a part of MMI’s INFRASTRUCTURE Initiative to support the country in meeting their energy directions and demands.
This conference-led event will provide platform for renewables and green technological exchange to facilitate the country’s transition into a green economy. The event will encompass a trade fair platform that focuses on the latest state-of-the-art technologies, concepts and sustainable solutions in renewable energy, clean & environmentally friendly technology and green resources.
As a crucial platform that targets to be the gathering place for the energy sector, government bodies, international organizations, financial institutions and green business communities in Indonesia and within the region, MMI’s Renewables conference / trade event is the touchstone and standard bearer of the industry that will bring tremendous opportunities and benefits to your business.
WORLD’S NEXT BIGGEST ENERGY MARKET
Indonesia’s central bank has raised its economic growth rate for 2010 and 2011 with an expected growth of 6 percent, an impressive economic growth rate amongst developing economies.
Besides being the greatest energy producer Indonesia is also at the same time the regions’ greatest energy consumer. The nation’s exceedingly high carbon emissions, is due to its current reliance on primarily carbon-fuel energy. Energy is a crucial element in fuelling economic recovery, R & D innovations and manufacturing growth and together with population growth, the nation’s energy demand will increase. By 2030, Indonesia is predicted to import 1.3 million barrels of oil per day.
The country is under growing pressure to curb emissions. According to a World Bank report, Indonesia is now the world’s third-biggest emitter of greenhouse gases. At the G-20 Leaders Summit in Pittsburgh, Indonesia declared that it is prepared, by 2020, to reduce emissions by 26 percent, target a billion ton CO2 reduction by 2050 and work at making forestry a net sink sector by 2030. Indonesia would also continue its fuel efficiency policy and strive to make public transportation more environmentally friendly, over the next 10 years.
Aim: World’s Largest Geothermal Energy User
Indonesia aims to become the world’s largest geothermal energy user; a realistic and justifiable goal as the country now ranks as 3rd in terms of geothermal energy consumption after the United States and the Philippines. Indonesia is in possession of 40 percent of world’s geothermal resources while energy utilisation is only five percent. The wealth of renewable energy resources, especially geothermal, hydropower and biomass, remains largely unexploited or under developed. In a recent report released by the Ministry of Energy and Mineral Resources, statistics revealed that renewable energy accounts for only 3.4 percent of total potential reserves.
“Indonesia has the world’s largest geothermal power potential. Some $400 million in support from the Clean Technology Fund (CTF) will help mobilise some $2.7 billion in public and private sector financing to help Indonesia nearly double its geothermal capacity and transform the country’s use of renewable energy. The CTF plan for Indonesia is designed to transform the country’s development pattern while supporting its continued economic growth and the plan allocates extensive co-financing to expand large-scale geothermal electricity generation.” (Source: The Jakarta Post, 24th March 2010)
At the opening of the 4th World Geothermal Congress (WGC) at the Nusa Dua resort of Indonesia’s tourist resort province of Bali on April 27, 2010, President Susilo Bambang Yudhoyono said “To accelerate the development of geothermal plants, the government could not work alone but will cooperate with international financial institutions and donor countries.” The government has set a target of attracting approximately US$12 billion in new investment for the geothermal sector and a geothermal energy production capacity of 3,977 megawatt (MW) as a part of its second phase 10,000 MW power project.
TARGET 2025: Use of more Renewable Energy
On this note, the government has backed up an initiative to implement the use of more renewable energy by 2025, with the induction of tax oriented incentives, aimed to invite more global investment in the region and in turn, optimally exploit the expanse of natural resources available for this purpose.
The Energy and Mineral Resources Ministry in Indonesia also announced that “we will optimize energy which has not been used so far, such as geothermal and nuclear energy, as well as coal up to ten folds, so that we could cut the emission by 16 percent.” At a seminar by Bogor Institute of Agriculture (IPB), Chief Economic Minister remarked “the government had to build power generators to increase the capacity of its electricity and to boost its economic growth to seven percent before 2014 so that it would be able to increase the competitive edge of its industrial products in the world market”.