Towards Cleaner Fuel in Indonesia Ridwan D Tamin

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

Presidential Decree No. 5 Year 2006 on National Energy Policy § establish security of energy supply § energy elasticity <1 by 2025 § optimal primary energy mix by 2025 for national consumption: oil<20%, gas>30%, coal>33%, biofuel>5%, geothermal>5%, other renewable energies>5%, liquified coal>2% § Energy blueprint: domestic security of supply, public service obligations (PSO), mgmt of energy resources § Stages in pricing policy § incentives

Gasoline & Diesel Consumption in Indonesia 30, 000 25, 000 20, 000 Gasoline (k. L) Diesel (k. L) 10, 000 5, 000 2004 2002 2000 1998 1996 1994 0 1992 k. L 15, 000 Year

Vehicle Emission Standards/Technology Euro 2 emission standards for type approval

Mo. E Decree No. 141 Year 2003: Euro 2 Emission Standards Petrol Light Duty and Diesel light Duty (GVW<3. 5 ton ; Category : M 1 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Enforce to New Model Enforce to Existing Model Idle (Euro-4) ECE 83 -04 (Euro-2) Idle ECE 83 -04 (Euro-2) (Euro-4) Diesel Heavy Duty (GVW>3. 5 ton ; Category : M 2, M 3, N 2, N 3, O 3, & O 4) Year Enforce to New Model Enforce to Existing Model 2003 2004 2005 2006 2007 2008 2009 2010 2011 ECE 49 -02 (Euro-2) Idle ECE 49 -02 (Euro-2) 2012

Cleaner Fuels ©Unleaded gasoline ©Diesel with low sulfur ©Alternative Fuels: CNG, BIOFUEL

Cleaner Fuel Plan Reality Ø Unleaded gasoline to be introduced in phased in Bali, Batam Island, Surabaya and Semarang before 2005, nationally 2005 Ø Nationwide 30% unleaded Ø Open up private sector to provide unleaded gasoline. Ø Downstream regulation recently announced (Govt. Regulation No. 36/2004) Ø Use of additives as gasoline octane booster taking into account health, environment automotive industries views; Ø Requires ERA, at present only preliminary studies carried out Ø Increased use of natural gas for transportation to reduce gasoline market demand Ø Draft Presidential Instruction (Decree) already submitted by Mo. EMR through stakeholders study by Mo. E. Jakarta already use CNG for busway

Unleaded Gasoline July 2001 : Greater Jakarta Oct 2001 : Cirebon Jan 2003 : Bali June 2003: Batam Sept 2005: Surabaya

Unleaded Gasoline in Indonesia MBCD

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 PEKANBARU MENADO SAMARINDA PADANG JAMBI PONTIANAK PALU PALEMBANG PALANGKARAYA BENGKULU LAMPUNG SORONG BANJARMASIN KENDARI AMBON JAKARTA SEMARANG UJUNGPANDANG BANDUNG SURABAYA YOGYAKARTA BALI LOMBOK MERAUKE KUPANG

Diesel Fuel Availability CITIES WITH SULFUR CONTENT < 3500 PPM. CITIES WITH SULFUR CONTENT < THAN 1000 PPM. ACEH CITIES WITH SULFUR CONTENT < 500 PPM. MEDAN PEKANBARU PADANG JAKARTA BATAM MENADO SAMARINDA JAMBI PONTIANAK PALU PALEMBANG PALANGKARAYA BENGKULU SORONG KENDARI BANJARMASIN LAMPUNG AMBON SEMARANG BANDUNG UJUNGPANDANG SURABAYA YOGYAKARTA BALI LOMBOK MERAUKE KUPANG

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

Clean Fuel Availability and Future Plan (Gaikindo, May 2006) RETAIL FUEL COMPANIES P’CIPAL PT. Krida Petra Graha Shell Singapore PT. Petronas Niaga Indonesia Petronas PRODUCT NAME GASOLINE • ULG Super (RON : 92 ) • ULG Super Extra (RON : 95 ) • LG Prima 92 (RON : 92 ) • ULG Primas PX 2 (RON : 95 ) • ULG Petrol Super 95 • ULG Petrol 92. PT. Sigma Rancang Perdana Gulf Petroleum PT. Conoco Phillips Indonesia Conoco Phillips Singapore • ULG Race Power 91 • ULG Super Power 95 PT. Pandu Selaras PT. Elnusa Petrofin PT. Elnusa Harapan PT. Raven Sejahtera • ULG Pertamax (RON: 92 ) Pertamina • ULG Pertamax Plus (RON: 95 ) Available Fuel in the Market Until 2010 D-Xtra (CN=53 ; S. max. 300 ppm) Java (300) Jakarta (6) • ULG Race Power 91 • ULG Super Power 98 PT. Duta Karya Industry Until 2006 Jakarta (18) • Unleaded Gasoline Super 97 PT. Premindo Mitra Kencana DIESEL FUEL PUMP STATION Java (200) Jakarta (12) Java (390) Jakarta (10) Jakarta (2) Jakarta (5) • Pertamina DEX (CEN = 53 ; S max=300 ppm) Java (100) Java (10) Java (60)

Bus way

Trans Jakarta Busway Plan up to 2010 with CNG

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

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

Trial Biodiesel

Alternative Fuel Biofuel Biodiesel Ø Biodiesel Riau Pilot Plant, capacity 8 ton/day Ø Estimate biodiesel need in year 2010 • If 2% of diesel fuel use biofuel~ 800. 000 kl Ø Will require ~ 25 plants w/ capacity of 30. 000 ton/day PERTAMINA recently introduced Biosolar into the market

The Path Ahead The need for a Clean Air Act ? Dominant source

Ø Manage and develop on-line AQMS Ø Bigger role of Mo. E in fuel quality and promotion of alternative fuel for motor vehicles Ø Integration of emission standard requirement to annual vehicle registration Ø Promotion of mass rapid transport Ø Increased public awareness and participation on ü various alternative mode of transportation in urban areas ü health effects of air pollution ü use of environmentally “green” vehicles

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

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

BAQ 2006 speed up the process?

Better Air Quality (BAQ) 2006 Yogyakarta 13– 15 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

BAQ 2006 hosted by 20 March 2006 Sustainable Urban Mobility in Asia A CAI-Asia Program