Transcript Document

Palm oil Plantation Development in Indonesia
and the Market Demand on Bio Fuel “
Presentation By :
Rudy Lumuru
Sawit Watch
Fighting Spirit
Following Issue Related to Bio Fuel
Demands:
1. Energy security and the peaking of oil supplies globally
2. Biofuels as tested substitutes for fossil fuels;
3. Abundance of land for producing energy crops in tropical
countries;
4. Biofuels’ potential to reduce fuel import bills and fossil fuel
dependence;
5. Biofuels production is a rural industry and can promote social
inclusion;
6. Countries with even low levels of science and technology can
get a start in biofuels, and they can create thereby a
‘development bloc’ that can drive industrial development;
7. Biofuels are greenhouse gas neutral and can earn countries
carbon credits;
8. Developing countries can develop their own distinctive
latecomer institutional innovations to capture benefits
Biofuels promote South-South cooperation; and Biofuels
represent simply the first step on a clean technology
development trajectory.
Policy of the Government of
Indonesia
• The development applies large-scale plantation system;
• Conversion of forests for plantations, planting
unproductive forestlands (Presidential Instruction No. 1
Year 2006)
• Presidential Regulation 5/2006 states biofuel production
should be achieved more than 5% of national energy
production;
• Presidential Regulation 10/2006 about The national
Team of BioEnergy
• Bio fuel latest development issues, only commodity of
palm oil, ethanol and jatropha are most promoted
Government STRATEGY
1. Developing investment and finance scheme to support biofuel
program
2. Developing price mechanism, starting from feedstock up to
biofuel product.
3. Increasing domestic potential
4. Increasing availability of feedstock and production needs
5. Establishing biofuel trading system
6. Accelerating land availability
7. Developing Special Biofuel Zone and Self Sufficient Energy
Village
8. Improving local Government and community participation in
Biofuel business
9. Biofuel security of supply
STRATEGY ON BIOFUEL FEEDSTOCK SUPPLY
STRATEGIC PLAN UNTIL 2015
BIOFUEL DEVELOPMENT PROGRES
• Availability of Biofuel Development Blue Print
• Availability of Biofuel Development Regulations
• Biodiesel (B-5), has been sold in 201 gas stations in
Jakarta and 12 gas stations in Surabaya
• Bioethanol (E-5), which is known as Bio-Premium
has been sold in Malang and
• Jakarta. Started December 2006 Bio-Pertamax has
been sold in 1 gas station in Jakarta
• Started of Energy Self Sufficient Village using
Biofuel
• Commitments of Investor to develop Biofuel
(January 2007)
Indonesian Oil palm Industry and the
Biofuel Development Planning
• Oil palm is non-native plant imported from West Africa by the
Dutch in 1848 and 4 seedlings grown in Bogor botanical
garden;
• First large-scale and commercial plantation established in 1911
• 30 big groups (national/multinational) control more than 600 oil
palm plantation subsidiaries
• Within five years (1999-2004) an annual planting rate to have
reached 400,100 hectares
• Cultivate 7.3 MHa planted oil palm (Dec 2007)
• Estimated 600,000 to 1 Mha (palm oil used for biodiesel
production) future expansion annually
• Abundant land available for biodiesel development
– Critical land reaches 22 million hectares (Statistic Indonesia
2004, BPS)
– Planning of 20 million hectares for oil palm plantation
development (Sawit Watch, 2006)
Biodiesel Producers in Indonesia
Producer
Current Capacity (MTPY)
Eterindo Group
Additional Capacity
(MTPY)
120.000
120.000
Platinum Industry
50.000
-
Indo biofuel Energy
20.000
180.000
Energy Altrenative IND
3.000
-
Rekayasa Industry
5.000
-
Wilmar BioEnergy
350.000
700.000
Sumi Asih Group
100.000
100.000
643.500
1.100.000
Total
Note : Bioethanoel Produscer : Molindo 50.000 ,Medco Chemichal 50.000
Source : APOBRI 2007
Biodiesel Producers in Indonesia (Cont’d)
Producer
Capacity
Asian Agro
150.000
Darmex Oil
200.000
Sampurna/PTPN XI
160.000
Monopoly
150.000
Sinar mas Group
100.000
Musi Mas
100.000
Sari Dumai Sejati
100.000
Indo Biofuel
200.000
Bakrie Sumarekin
100.000
Energy Indo Pratama
100.000
Karya Prajonanly
100.000
Rekin/PTMN
5.000
Artha Trans Jaya
1.200
Rejeki Anugrah
1.650
Total
1.667.850
Source : APOBRI 2007
Concern of The Parties
• The Development Bio Energy sector in Indonesia just
Based on the Market Demand
• Palm Oil is Commodity That Priorities by Indonesian
Government for Competition in Bio Fuel market
• The Financial Mechanism from Investor Require the
Huge Amount of Forest Land for New Development of
Palm oil Plantation for Bio Fuel Project : e g. Kalimantan
Border Project, Papua Bio fuel Project .
• Deforestation, conversion, drainages and cultivation of
peat land, foods for peoples vs cars, social and humananimal conflicts, and ongoing consequences make
climate change mitigation and adaptation almost
impossible!!!!
RSPO : The Commitment of
Sustainability in Palm Oil Sector
Vision
RSPO ensures palm oil contributes to
a better world
Mission
• RSPO promotes the production,
procurement and use of sustainable
palm oil, through development,
implementation and verification of
credible global standards,
supported by engagement of and
communication to stakeholders
along the supply chain
www.rspo.org
RSPO Principle & Criteria
• Principle 1. Commitment to transparency
• Principle 2. Compliance with applicable laws and regulation
• Principle 3. Commitment to long term economic and financial
viability
• Principle 4. Use of appropriate best practices by growers and
millers
• Principle 5. Environment responsibility and conservation of
natural resources and biodiversity
• Principle 6. Responsible consideration of employees and
individuals and community affected by growers and
mills
• Principle 7. Responsible development of new planting
• Principle 8. Commitment to continuous improvement in key areas
of activity
www.rspo.org
RSPO Bio-energy Position
• The palm oil market is open and not within scope of RSPO todecide upon
allocation based on end use.
• Our mission - provide certified sustainable palm to the market in clear and
transparent manner.
• The new demand for renewable fuels increasesimportance of
deliveringsustainably produced feed stocks from all sources including
palm,rapeseed, soybean, sugar cane, corn and sugar beet.
Based on the RSPO position:
•
First generation feed stocks should provide clear greenhouse gas benefits
considering life cycle of raw material.
• recognise potential need for additional criteria specific to greenhouse gas.
• We welcome all in both the traditional and the renewable fuel sectors to join
RSPO in our efforts .
www.rspo.org
Thanks You