Researchers from Indonesia Climate Change Center-ICCC stated that Indonesia could be exporters of biofuels (BBN) in the world, if using the degraded land or critical land properly. However, the development of BBN only work on bio-diesel, whereas bioetanol failed. Whereas, serious implementation of bioetanol may be the solution of the energy deficit in Indonesia, as well as climate change mitigation measures from the transportation sector.
The latest research from the ICCC, titled “Eco-friendly Transportation for Long-term Sustainable Economic Growth” stated that Indonesia could potentially meet the 20% of the global market for BBN. If seen from a global target, estimation of land to meet the needs of the world’s 70 million BBN hectares up to 2050. The projection of the International Energy Agency-IEA pointed out that the drop in plantation in developed countries reaches 50 million ha, while in developing countries will increasing 120 million ha.
Area of critical land in Indonesia is estimated to be approximately 78,43 million ha in which 29,72 million ha outside the forest area. Based on the mandate of bioetanol mixing ratio, Indonesia would need at least 10 million tonnes bioetanol until 2025. This study estimated that minimum of 1.5 million ha of degraded land are suitable enough to meet the mandate by using first generation technology for sugar cane.
“Indonesia could become the world’s largest exporter of BBN only with 1.5 million ha of land for bioetanol. If its potential is done seriously, Indonesia could not use more fossil fuels,” said Artissa Panjaitan, principal researcher and coordinator of ICCC Low Emission Development Strategies Cluster.
Critical land in Indonesia partly derived from deforestation. Data from the National Council on climate change-DNPI, shows that 53% of deforestation and forest degradation in Indonesia has turned the forest into a critical land. The rest, 15% for agriculture, 13% for plantation, 9% for forest plant industry or HTI, 1 % for mining, and 10 % for highway, railway and others. “This shows that the emissions we produce so far for an activity is not productive, then in the future, productivity of degraded land needs to be raised,” said Agus Purnomo, Precident Special Staff for Climate Change as well as the Chairman of the Secretariat of the DNPI. No wonder, ICCC recommends degraded land potential for the production of raw materials of BBN.
The proposed requirement of critical land of the research are minimal from conflict of land disputes and its landed cost is low also in accordance with spatial plan that applied. Degraded areas in Forest Production Conversion (HPK) is an area that is prioritized as bioetanol raw materials plantation. Currently, there are about 14 million ha critical areas in the area of HPK. 1.5 million ha of land required is likely available in six provinces, namely Papua, Central Kalimantan, Riau, Maluku, North Maluku, and Riau Islands. The six provinces did not have a history of sugar cane plantations and the relatively low population density. The main priority is dropped on the province of Central Kalimantan as the beginning of industrial sugar cane bioetanol.
The Energy Deficit
Currently Indonesia suffered an energy deficit caused by the depletion of petroleum reserves so that the import of fuel increases, and a rising electricity consumption continues to drain fuel, especially diesel. Whereas, as a result of subsidy on transportation fuels and electricity, Indonesia in 2013 deficit of more than US $ 9.7 billion and contributed to the acceleration of the greenhouse gas emissions (GRK). “In Indonesia, the growth of gasoline three times faster than the growth of its economy. Something wrong,” said Artissa.
To deal with these problems, the development of BBN is a sure-fire solution. Globally, BBN especially bioetanol is the way to reduce oil imports, distributes fuel demand to reduce price changes, and reduce emissions of GRK, where the production and use of bioetanol are 40-60% lower emissions than gasoline. Unfortunately, the government is considered not serious in BBN. The development of biodiesel is considered successful so far, even its production will be increased 20 %, but the production of bioetanol stagnant.
The Government of Indonesia has actually been mandated to initiate the mixing ratio of bioetanol through Presidential Regulation No. 5 of 2006 formally established a national energy policy to replace the use of petrol and diesel. Ministry of Energy and Mineral Resources (KESDM) Regulation no 32 / 2008 about the target of biodiesel and bioetanol development period 2008-2025. However, since 2010 the bioetanol production stopped because the domestic cost of production is not competitive.
Bioenergy Director of KESDM’s Directorate General of Renewable Energy and Energy Conservation (EBTKE), Dadan Kusdiana said that bioetanol price formulated by the government, unsuitable with the producer. “In 2008-2009 the price still feasible, but in 2010 isn’t feasible, all manufacturers are unwilling to sell at that price, too cheap,” he said. Dadan admitted that KSDM has proposed a revision of the bioetanol formula price to Ministry of finance in May 2011 so that it can be more expensive and the deal subsidy is achieved. “I am always optimistic, but it looks like the deal still long,” said Dadan when asked about when a deal would be reached.
Started from Sugar Cane.
ICCC Research recommends sugar cane as the first generation of bioetanol raw material whose principal developed in indonesia then furnished with cassava and sago. Sugar cane was chosen for bioetanol mainly because it was the cheapest compared to other fuels and consistent in the long-term, at least until 2050. Price per energy content is balanced with gasoline prices, USD 100-110 per barrel. “IEA projections is clear that fuel from sugar cane is the most cheap and keeps flat over time. For two years, production costs can quickly return. Investment land around Rp 50 million per hectare and refinery technology refinery of cane sugar is much cheaper than fossil oil,” Artissa explained.
Besides cheap, the cane bioetanol development and technology has grown globally stable. Artissa explained that since the late 1970’s, Brazil has developed sugar cane into fuel ethanol and 30 years were enough time to solidify the BBN development technology from beginning to end. The other reason is cane economically the most competitive and suitable for rural development, besides the interests of food.
“While this policy retrieval resistance is somewhat more easily overcome if we’re talking about sugar cane because there are also the interests of sugar,” Artissa said.
For cassava, Artissa mentions some of the challenge, the technology has not developed and not yet stable. “Thailand is a country quite seriously expanding it recently. This makes the development of cassava bioetanol will take more effort and investment costs as well as research,” he said. “Therefore, need to be combined where land is planted with sugar cane, which cassava, accordingly. But certainly the cane must be considered.”
Bioetanol raw materials and other potential in Indonesia is Sago. Indonesia has 1.2 million ha out of a total of 2.2 million ha of vineyards of sago in the world, scattered in Riau, Sulawesi, Maluku, and Papua. One hectare of sago can produce 15 tonnes of ethanol per year. This productivity rate is higher than other potential sources. Another advantage of sago is it can be harvested many times over the decades. However, the challenges of development of sago bioetanol is in technology and the sustainability threat.
Energy vs Food.
Problems that frequently appear in the development of bioetanol as the gasoline mixture is competition with the food sector. Car engine manufacturers should be encouraged to produce a flexible machine against mixing bioetanol -gasoline. So, when the price of sugar goes down, manufacturers can increase production of bioetanol and vice versa, so that the mixing ratio can change.
“For example in Brazil, if the price of sugar dropped, the cane is converted into fuel. When the price of sugar goes up, the ratio of ethanol is reduced,” said Artissa. He mentioned that in Brazil there is a governing authority that govern when such a shift needs to be implemented. The mechanism can also occur because the owner of sugarcane ethanol producers as well as producers of the sugar.
If in Indonesia is different, for example failure in Lampung occurs because the producers of ethanol is not the owner of the land, so that when there is competition between land users, raw material price rises. “That’s the issue in Indonesia, so we recommend using land already degraded as the planting of sugar cane,” said Artissa.
The other major obstacle was found is that the institutions that govern industrial bioetanol too much, making it hard for investors to come in. Our advice to simplified through one authority representing all institutions mentioned by the law. Artissa revealed that at the time of the initial discussion with KESDM about the results of this research, so far the response is positive, but they have doubts about the simplification of licensing. In the future, there will be more meetings with government agencies in particular. Ratih Rimayanti.
