United NationsDepartment of Economic and Social Affairs Sustainable Development

Indonesia

Statement by
The Indonesian Delegation
On
Meeting Growing Needs for Energy Services Through
Increase Use of Renewable Energy, Greater Reliance on
Advance Energy Technology Including Advance
And Fossil Fuel technologies
The 14th Session of Commission on Sustainable Development
New York, 3 May 2006
Mr. Chairman,
For the delegation of Indonesia, this fourteenth session of the Commission on Sustainable
Development, is timely and critical, given the obvious difficulties that have become
attached to the world?s energy supplies. Taken in that light, our discussion about energy
are vital for continued sustainable development. Indonesia recognizes that these are rather
challenges times for most countries. With inadequate oil supplies internationally and
increasing demand for energy, it is clear that appropriate conservation measures must be
adopted to ensure that the future is not energy deficient.
To decrease the high growing rate of energy demand, government promoting the change
of paradigm toward the use of energy more efficiently. In the meantime, the demand for
fossil fuels continues to increase as Indonesia has to pursue the industrial development
goals and to meet the energy-consuming population grow in number. However, the
statistic shows that dur ing the last three decades (1970-2004), while Indonesia?s
consumption of oil has increased in absolute terms, as a percentage of its total energy
consumption, oil share in the energy mixed fell gradually from 88 % in 1970 to 52 % in
2004. On the other hand, natural gas, coal and renewable energy sources namely
geothermal and hydro have grown in importance over the same period.
As part of its thrust to increase people?s accessibility mainly in rural or isolated areas to
electricity based on renewable sources of energy, the government has committed itself to
the construction of such facilities as Solar Home Systems along with Microhydro, Wind,
and Small Geothermal power plants. Its rural electrification policy also promotes best
practices in these remote areas. The renewable power plants will be financed by central
and regional government budgets with assistance from international donor agencies.
Mr. Chairman,
To support plants connected to the grids produced by renewable sources of energy, we
would like to share with you that the Government has issued Decrees concerning
purchasing tariffs for plants using renewable energy for small plants with a capacity of up
to 1 MW and the medium with capacity range of more than 1 up to 10 MW. Through the
Decrees, some small renewable energy power plant such as micro hydro have been
constructed and interconnected to the grid. Another Government initiative is that in the
next 2 years, all small power plants in rural areas will be replaced by renewable energy
power plants. In transportation sector, bio-diesel and bio-ethanol are being promoted.
In addition to the use renewable energy, the Government has also promoted the broader
utilization of natural gas domestically although a big effort have to do to overcome the
lack of infrastructure. Clean coal techno logy has also developed namely Upgrading
Brown Coal, coal liquefaction and coal gasification.
With the increasing price of crude oil and growing concern about creating a clean
environment, it is expected that the momentum generated by these changes will facilitate
popular expectance of clean energy particularly renewable energy and the need of using
energy efficiently. However, we have realized that all the technologies related require
high investment. Therefore, partnership program are needed in making the technology to
be commercially at affordable price.
Thank you.
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