Towards Cleaner Fuel in Indonesia

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Towards Cleaner Fuel in Indonesia

• Ridwan D. Tamin
• Assistant Deputy for Mobile Source Emission
  Pollution Control
• Deputy Minister for Environment Pollution
  Control
• Ministry of Environment
• Manila, 22 May 2006

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• Presidential Decree No. 5 Year 2006 on National
  Energy Policy
• establish security of energy supply
• energy elasticity lt1 by 2025
• optimal primary energy mix by 2025 for national
  consumption oillt20, gasgt30, coalgt33,
  biofuelgt5, geothermalgt5, other renewable
  energiesgt5, liquified coalgt2
• Energy blueprint domestic security of supply,
  public service obligations (PSO), mgmt of energy
  resources
• Stages in pricing policy
• incentives

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Gasoline Diesel Consumption in Indonesia
30,000,000
25,000,000
20,000,000
Gasoline (kL)
15,000,000
Diesel (kL)
10,000,000
kL
5,000,000
0
1992
1994
1996
1998
2000
2002
2004
Year
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Vehicle Emission Standards/Technology
Euro 2 emission standards for type
approval
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MoE Decree No. 141 Year 2003 Euro 2 Emission
Standards
Petrol Light Duty and Diesel light Duty
(GVWlt3.5 ton Category M1
2003
2004
2005
2009
2012
2006
2007
2008
2010
2011
2013
2014
2015
Year
Enforce to New Model
Idle
(Euro-4)
ECE 83-04 (Euro-2)
Enforce to Existing Model
Idle
ECE 83-04 (Euro-2)
(Euro-4)
Diesel Heavy Duty (GVWgt3.5 ton Category
M2,M3,N2,N3,O3, O4)
2003
2004
2005
2006
2009
2010
2011
2012
2007
2008
Year
Enforce to New Model
ECE 49-02 (Euro-2)
Idle
Enforce to Existing Model
ECE 49-02 (Euro-2)
Idle
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Cleaner Fuels

• Unleaded gasoline
• Diesel with low sulfur
• Alternative Fuels
• CNG, BIOFUEL

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Cleaner Fuel

• Plan
• Unleaded gasoline to be introduced in phased in
  Bali, Batam Island, Surabaya and Semarang before
  2005, nationally 2005
• Open up private sector to provide unleaded
  gasoline.
• Use of additives as gasoline octane booster
  taking into account health, environment
  automotive industries views
• Increased use of natural gas for transportation
  to reduce gasoline market demand

• Reality
• Nationwide 30 unleaded
• Downstream regulation recently announced (Govt.
  Regulation No. 36/2004)
• Requires ERA, at present only preliminary studies
  carried out
• Draft Presidential Instruction (Decree) already
  submitted by MoEMR through stakeholders study by
  MoE. Jakarta already use CNG for busway

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Unleaded Gasoline

• July 2001 Greater Jakarta
• Oct 2001 Cirebon
• Jan 2003 Bali
• June 2003 Batam
• Sept 2005 Surabaya

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Unleaded Gasoline in Indonesia
MBCD
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Unleaded Gasoline Fuel Availability
CITIES WITH ULG PREMIUM, ULG PERTAMAX AND ULG
PERTAMAX PLUS.
CITIES WITH LEADED PREMIUM, ULG PERTAMAX AND ULG
PERTAMAX PLUS.
ACEH
CITIES WITH LEADED PREMIUM.
MEDAN
BATAM
MENADO
PEKANBARU
SAMARINDA
PADANG
SORONG
JAMBI
PONTIANAK
PALU
PALEMBANG
PALANGKARAYA
BENGKULU
KENDARI
AMBON
BANJARMASIN
LAMPUNG
JAKARTA
SEMARANG
UJUNGPANDANG
BANDUNG
SURABAYA
BALI
MERAUKE
YOGYAKARTA
LOMBOK
KUPANG
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Diesel Fuel Availability
CITIES WITH SULFUR CONTENT lt 3500 PPM.
CITIES WITH SULFUR CONTENT lt THAN 1000 PPM.
ACEH
CITIES WITH SULFUR CONTENT lt 500 PPM.
JAKARTA
MEDAN
BATAM
MENADO
PEKANBARU
SAMARINDA
PADANG
SORONG
JAMBI
PONTIANAK
PALU
PALEMBANG
PALANGKARAYA
BENGKULU
KENDARI
AMBON
BANJARMASIN
LAMPUNG
SEMARANG
UJUNGPANDANG
BANDUNG
SURABAYA
BALI
MERAUKE
YOGYAKARTA
LOMBOK
KUPANG
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Further developments

• Open up private sector to provide cleaner fuel
  (unleaded gasoline and clean diesel)
• Draft Presidential Instruction on gas usage
  submitted in Oct 2005
• Request to Mo State Coys to reduce automotive gas
  price from Rp.3000/ Premium Eq. Lt. (PEL) to Rp.
  2200/PEL
• Jakarta introduced CNG for Jakarta busway,
  recently launched by President
• Jakarta to introduce three wheelers with CNG,
  initially 180

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Clean Fuel Availability and Future Plan
(Gaikindo, May 2006)
FUEL PUMP STATION
PRODUCT NAME
RETAIL FUEL COMPANIES
PCIPAL
GASOLINE
DIESEL
Until 2006
Until 2010
ULG Super (RON 92 ) ULG Super Extra (RON
95 )
PT. Krida Petra Graha
Shell Singapore
Jakarta (18)
Java (300)
PT. Petronas Niaga Indonesia
LG Prima 92 (RON 92 ) ULG Primas PX2
(RON 95 )
Jakarta (6)
Petronas
Java (200)
Gulf Petroleum
D-Xtra (CN53 S. max.300ppm)
ULG Petrol Super 95 ULG Petrol 92.
PT. Sigma Rancang Perdana
Jakarta (12)
Java (390)
Unleaded Gasoline Super 97
PT. Conoco Phillips Indonesia
Conoco Phillips
Jakarta (10)
Java (100)
ULG Race Power 91 ULG Super Power 98
PT. Premindo Mitra Kencana
Singapore
Jakarta (2)
Java (10)
PT. Duta Karya Industry
ULG Race Power 91 ULG Super Power 95
Singapore
Jakarta (5)
Java (60)
PT. Pandu Selaras
ULG Pertamax (RON92 ) ULG
Pertamax Plus (RON95 )
Pertamina DEX (CEN 53 S
max300ppm)
PT. Elnusa Petrofin
Pertamina
PT. Elnusa Harapan
PT. Raven Sejahtera
Available Fuel in the Market
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Bus way
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Trans Jakarta Busway Plan up to 2010 with CNG
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Biofuel Development

• Resources and production the case of Jatropa
  Curcas
• Specification and standards
• Technology automotive issue, biofuel (abundant
  source) vs. hybrid (reduced fuel consumption)
• Pricing policy and incentives vs existing
  subsidy on diesel fuel
• Distribution mechanism
• Socialization and communication

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• Presidential Instruction No.1/2006 on the Supply
  and Usage of Biofuel as Alternative Fuel
• Coordinating Minister for Economics mandated to
  coordinate acceleration for the supply and
  utilization of biofuel
• 12 ministeries, governors and regents/city mayors
  to execute specific related measures

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Trial Biodiesel
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Biofuel
Alternative Fuel
Biodiesel

• Biodiesel Riau Pilot Plant, capacity 8 ton/day
• Estimate biodiesel need in year 2010
• If 2 of diesel fuel use biofuel
• 800.000 kl
• Will require 25 plants w/ capacity of 30.000
  ton/day

PERTAMINA recently introduced Biosolar into the
market
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The need for a Clean Air Act ?
The Path Ahead
Dominant source
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• Manage and develop on-line AQMS
• Bigger role of MoE in fuel quality and promotion
  of alternative fuel for motor vehicles
• Integration of emission standard requirement to
  annual vehicle registration
• Promotion of mass rapid transport
• Increased public awareness and participation on
• various alternative mode of transportation in
• urban areas
• health effects of air pollution
• use of environmentally green vehicles

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• Proposed new Indonesia Clean Air Act
• address stationary and mobile sources, air
  quality, transboundary air pollution (haze),
  climate change, acid rain, ODS issues
• Coordination meeting with multi stakeholders
• Justification on needs of Clean Air Act, 5-7 July
  2006
• Academic draft
• Revision of Environment Act No. 23 Year 1997

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Institutional Capacity

• MoE to enlarge its mandate and be more
  instrumental in facilitating enforcement through
  local government
• Environmental institutions in local government
  to be empowered based on the autonomy law No. 32
  Year 2004
• MoE instrumental in the establishment of a
• multi-stakeholders forum (MEB, Clean
  Emission Partnership) to address issues on air
  pollutions
• Draft of national action plan (NAP) to reduce air
  pollution from vehicles
• Development of National Action Plan and local
  Strategic Action Plan by ADB

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BAQ 2006 speed up the process?
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Better Air Quality (BAQ) 2006 Yogyakarta1315
September, 2006
A CELEBRATION OF EFFORTS
to pay tribute to what has been achieved in air
quality management in Asia while highlighting the
efforts that are still required to improve air
quality in Asia
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BAQ 2006 hosted by
20 March 2006
Sustainable Urban Mobility in Asia A CAI-Asia
Program
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Thank you