Renewable Energy Report
Asian and Pacific Centre for Transfer of Technology
Of the United Nations – Economic and Social
Commission for Asia and the Pacific (ESCAP)
This report was prepared by Dr. Syahrul Aiman Manaek Simamora MBA Dr. Sunit Hendrana
Indonesian Institute of Sciences (Lembaga Ilmu Pengetahuan Indonesia, LIPI)
under a consultancy assignment given by the Asian and Pacific Centre for Transfer of
The views expressed in this report are those of the author and do not necessarily reflect the views
of the Secretariat of the United Nations Economic and Social Commission for Asia and the
Pacific. The report is currently being updated and revised. The information presented in this
report has not been formally edited.
The description and classification of countries and territories used, and the arrangements of the
material, do not imply the expression of any opinion whatsoever on the part of the Secretariat
concerning the legal status of any country, territory, city or area, of its authorities, concerning the
delineation of its frontiers or boundaries, or regarding its economic system or degree of
development. Designations such as ‘developed’, ‘industrialised’ and ‘developing’ are intended
for convenience and do not necessarily express a judgement about the stage reached by a
particular country or area in the development process. Mention of firm names, commercial
products and/or technologies does not imply the endorsement of the United Nations Economic
and Social Commission for Asia and the Pacific.
List of table
List of figure
1.1. Country Overview
1.2. National Energy Summary
1.3. A Short backround of the development and utilization of
renewble energy in the country
Renewable Energy Resources , Markets and Industries.
2.1. Renewable energy Resources Available
2.2. Renewable energy markets and major industries
Leading R&D institutions and national/international agencies working
in the area of renewable energy, particularly those working on
capacity building and information dissemination and R&D and
3.1. Leading Universities and R & D Institutions
3.2. International Agencies in the RE Promotion
Institutional Infrastructure for the Development, Promotion and
Utilization of Renewable Energy
4.1. Policy Development.
4.2. Technology Development.
4.3. Production, Product Distribution and Selling.
Policies, policy instruments, and incentives for the promotion,
utilization and development of renewable energy technologies.
5.1 Policies and Policy Instruments
5.2 Incentives for the promotion and utilization of renewable energy
financial institutions supporting RE projects and brief
illustrative examples and status of the projects funded
6.1. Government Funding for Energy Research.
6.2. Local Institutions/Companies.
6.3. International Institutions.
Scope for Utilizing Renewable Energy Technology.
7.1 Solar Energy
7.2. Geothermal Energy.
7.3. Wind Power
7.4. Hydro Power.
7.5. Bio-diesel and Bio-ethanol
Indigenously developed RETs and Selected Case Studies on
Dissemination/ Utilization/ Transfer of RETs .
8.1. Indigenously Developed RET
8.2. Selected Case Studies on Dissemintaion/ Utilization/ Transfer of
8.3. Indigenous Technology Patented and Patent Filling.
Barriers faced in transferring RETs.
9.1. Dependency on the fossil oil.
9.2. Policy Barrier.
9.3. Technological Barriers
Strategies and future development of renewable energy.
References / Data Sources.
Renewable Energy Resources Available
Potency and Utilization of Renewable Energy Resources (GW)
Potential and Installed Capacity of Geothermal Energy (Mwe0
Potential of Hydro Power for > 20 kV (15 kW)
Potential of Biomass Energy
Potential of Biogas Energy
Potential of Wind and Solar Energy
Statistics of Renewable Energy Consumption
Renewable Energy Consumption for Different Purposes
Biomass Energy Consumption
Utilization and Scenario for 2025
Name of Company of APROBI Member
List of Universities and R & D Institutions and their Activities on
Progress of the Government S & T Budget
The amount of R & D Budget on New and Renewable Energy
Resources for each Category in 2005
Research Budget for Energy in Selected Public R & D
List of Figures
The progress of total energy cosumption and the target
Typical distribution of energy source
Distribution of potential geothermal location in Indonesia
Target Energy Mix by 2025
IMIDAP Project Sites in the Country
An Example of Stove Solar Collector for Household Use
2 kWp Solar Panel for Household Use
80 kW p Solar Panel in Bandung
Presentation of Existing Geothermal site in Indonesia
Low Speed Wind Turbine Combined With PV panel at LIPI's
Installation of a 2.5 kW Wind Power Electricity Generation unit,
an example of DEMR activity on RE at Sukabumi, West Java
Wind Power Electricity Generation, 80 kW system, at Nusa
Penida, Bali built by DEMR
A Fixed Dome Small Scale Biogas Digester for a Household
uses Introduced by Muhamadiah University, Malang, East Java
Effluent of Cassava Processing Industry goes to Biogass Process
an Example of System of Biogas to Electricity Utilized by
We wish to extend our gratitude to our colleagues from LIPI, BPPT, DESDM who has
supported and provided us with information and data during the preparation of this Report.
We also thank to all secretariat staff who have support us to manage this report.
I also wish to express my sincere thanks to Dr. K. Ramanathan, Head of the Asian and Pacific Centre
for Transfer of Technology (APCTT), Ms. Rosemarie Saldanha, Dr Krishnan for their support and
excellent cooperation during the preparation oh this report.
Indonesia is the largest archipelago country with more than 17,500 island and the fourth
populous country in the world located in the equator, between Asia and Australia continents. The
population in 2008 was roughly 225 millions people. The country is blessed with abundant natural
resources which can be used for energy resources. Geothermal, biomass, hydropower, solar energy,
wind power and ocean wave are renewable energy resources that could be utilized to fulfill domestic
energy needs. So far, petroleum oil, natural gas and coal are the major energy resources. Increasing
number of population simultaneously with growing of the economic condition cause increasing
demand of fossil energy. The shortage of petroleum oil production and concurrently with the emerge
of global warming issues have caused Indonesia government and community to search alternative
energy sources. Utilization alternative energy sources should not cause negative impact to
environment. Under such circumstances, effective utilization of renewable energy resources is really
The government of Republic of Indonesia has planned to reduce utilization of non
renewable energy, and to replace it with renewable energy. In 2007, the role of renewable
energy in domestic energy consumption is less than 5 % of total consumption. It is targeted in
2025, the role becomes three times higher, explicitly 15 % of total consumption. Geothermal
energy, bio-fuels, and hydropower are expected to fulfill 5 %, 5 % and 2 % respectively.
Utilization of renewable energy resources have been known since many years,
unfortunately the increasing of use of these energy resources were very limited. The main
reason is that the people and industry have got used to receive huge energy subsidy from the
government since many years ago. The energy subsidy has supported development of the
country, but it has also caused inefficiently use of fossil energy resources.
In order to develop and promote utilization of renewable energy, the government has
revealed several regulations and incentives to invite investment on renewable energy
production, to drive current industry to utilize RE, and to promote the development of
renewable energy technology. It is believed that the policies would result a significant impact
on renewable energy utilization in several years to come.
The challenges for enhancement utilization of renewable energy in Indonesia are :
• the energy subsidy from the government has become ‘needs’ for most of the
people. The influence of the subsidy to community life style is significant.
• Proven local renewable energy technologies, especially for the big scale
commercial use, are very limited. Most of R&D budget in the country so far
depend on the government budget, while the government R&D budget was
Involvement of private industries, professional associations, universities and NGO in
development renewable energy technology and promotion of its utilization is expected would
encourage people to utilize the energy sources and increase the community awareness.
This report presents an overview of renewable energy sector such as potency, market,
policy, R&D institutions, indigenous technology and current renewable energy
development, financial institutions, and renewable energy (RE) community in Indonesia. The
report is prepared for the Asian and Pacific Center for Transfer of Technology (APCTT) to
formulate a regional project for the development and promotion of Renewable Energy
Technology (RET). Through the project, APCTT intends to develop institutional
collaboration mechanism to create and enhance the cooperation among the countries in the
region in promotion and utilization of renewable energy.
This report is prepared mostly by desk study through collecting reports and published
information /data from related government and non governmental institutions included
electronics publications. The format of this report mostly follows the guidance received from
1.1. Country Overview
Indonesia is a vast archipelago located in the equator and fertilized islands. It is the
largest archipelagic country in the world, cover 1,906,240 km2 land area. It consists of
17,506 islands, and more than 80,000 kms beach line. It is located at 95o to 141o eastern
longitude, and latitude between 6o North and 11o 8’ South. The length of the country from
east to west is more than 5400 km. About 2/3 of the country is covered by sea. Its population
in year 2008 was around 225 Millions  and GDP per capita in 2008 was around USD
2,360. Indonesia is the third largest democratic country in the world.
1.2. National Energy Summary
Indonesia has abundant renewable energy resources such as geothermal, hydropower,
solar energy, biomass, wind power, and tidal and ocean wave. Renewable energy sources in
Indonesia offer huge amounts of sustainable energy to people in the country.
So far most renewable energy technology in Indonesia work at small scale, excluded hydro
power and the production of bio-diesel. An advantage of utilization of renewable energy resources,
especially for bio-fuels, is that the activities to produce bio-fuels would require lot of worker,
especially for plantation areas. . So, it could open job opportunity for many people. In addition to
that, most of equipment needed could be produced domestically, it could reduce the country
dependency on imported technology. It is believed that renewable energy sources could contribute
substantially to fulfill domestic energy demand, when a sustained commitment to enhance further
research and development and to promote its utilization supported by suitable policy, could be
implemented for this potential to be fully realized in near future.
Utilization of various kinds renewable energy are still in limited fraction. Their role in
national energy are less than 5 % total energy consumption. Until now, primary energy
sources are petroleum oil, natural gas, and coal. The oil role in national energy mix was
decreased, while gas and coal are increased as shown in figure 1.1 and figure 1.2 (adopted
from various sources).
Figure 1.1. The progress of total energy consumption and the target.
( in % of total energy consumption in indicated year).
(Source : various sources and Presidential regulation no /2006.)