Access to energy is an important element of poverty alleviation and economic development. Building on past experiences from the joined Energy Working Group Netherlands-Indonesia, the Embassy is actively involved to help achieve better utilization on substantial sustainable energy in Indonesia. Cooperation exists on the field of biogas, geothermal energy, hydropower, wind energy and biomass.

Promotion of Sustainable Energy in Indonesia

Indonesia is relatively bad endowed in regional electrification. Estimations up to 43% of the total population (about 90 million people) are suffering from a lack of access to electricity. This is especially the poorer rural population. Access to energy is an important part of poverty alleviation. Indonesia has an ambitious plan for electrification and has set itself the target of 90% electrification in 2020. This means that at least 14 million households need to be provided with electric connections, which will cost around 9-13 billion US$.

At the moment, Indonesia is mainly exploiting fossil fuels for its energy needs. However, the country has got great potential for alternative options, such as hydropower, geothermal and biomass. Stimulation of the use of sustainable energy is important as such to reduce the production of greenhouse gasses. At the moment, 3% of Indonesia’s energy demand is provided by sustainable sources.

The Dutch Government has made considerable funding available for the promotion of sustainable energy in developing countries. One of the major points of interest is a substantial sustainable energy programme in Indonesia. There is a long bilateral relation between the Netherlands and Indonesia in the field of energy. The Energy Working Group Netherlands-Indonesia, which function under the Joint Economic Commission, is an active group with annual meetings; one year in the Netherlands, the other in Indonesia.

Mini/Micro Hydro Power Project (MHPP), South Sulawesi (MEMR en GTZ)

Energy Programme 2007-2011

The energy programme of the Embassy of the Netherlands consists broadly of the following parts:

1. Capacity Building

1. Capacity building at the Education and Training Centre for Energy Efficiency and Renewable Energy of the Ministry of Energy an Mineral Resources (MEMR)
2. Capacity building on sustainable energy and planning in 5 provinces
3. Cooperation with universities: Senior vocational Technical High School in Indonesia, SMK’s and provincial multi-stakeholder fora.
4. Several energy-advisors at the central government.
5. Supporting academic research

2. Development and implementation of projects, sub-sector development

1. Geothermal (together with the World Bank and Pertamina Geothermal Energy)
2. Mini/micro hydropower (together with the World Bank and GTZ)
3. Biogas (together with HIVOS/SNV)
4. Wind energy

Mini/Micro Hydro Power Project (MHPP), South Sulawesi (MEMR en GTZ)

The Embassy has requested Senter Novem to implement the capacity building part and to advice the Embassy on the development and implementation part as mentioned above. Moreover, Senter Novem is also involved in the support-programme of the Embassy with regard to Dutch companies which are active in the energy sector in Indonesia.

See also the website on ‘Bilateral Energy Cooperation Indonesia Netherlands’ (BECIN) with clarification on the different part of the energy programme:  www.senternovem.nl/becin