Assessment and key findings of the current National Technology
Innovation Ecosystem for sustainable Energy
Consultative Workshop on ‘Indonesia National Strategy to Increase Affordability of Sustainable
Energy Options and South - South Cooperation’
12-13 May 2014 Jakarta, Indonesia
Sustainable Energy Technology Options Suitable
for Indonesia
1.
Geothermal energy for heat and electricity application
2.
Bio-fuel based energy for transport, electricity and Industry
applications
3.
Biomass energy for heating and electricity applications
4.
Solar PV and solar thermal energy for electricity and heating
applications
5.
Small and micro-hydro power technologies for electricity
generation.
6.
Wind energy for electricity generation.
7.
Municipal solid waste / animal waste resource for electricity /
Key Actors Responsible for Technology Innovation
Technology
Innovation
Ecosystem
Government
Industry
R&D Institutions Universities
and Academic Institutions Facilitating
Technology Innovation Ecosystem
Government Policies
Assessment of Key Actors Facilitating Technology
Innovation
Government R&D
National Long term Development Plan (NLDP), 2005-25, focusing
on 7 areas of R&D, including energy sector.
NLDP emphasises on R&D in energy sector, aiming at developing
ways for extracting energy from renewable energy sources.
‘Master Plan: acceleration and expansion of Indonesia, economic
development 2011-
2025’ lists seven steps for improving the
innovation system, which ultimately helps in promoting a
technology innovation ecosystem.
The Master Plan proposes to establish an R&D fund equal to
about 1% of GDP until 2014 to go up to 3% by 2025.
Assessment of Key Actors Facilitating Technology
Innovation
Government Industry
Exemption on import duty for capital goods and machinery
VAT exemption for investors in renewable energy projects
Government Infrastructure
Basic infrastructure including road, rail, sea, communication, etc., is created by the
government. Recently, the government has been encouraging public-private partnership in infrastructure development.
Infrastructure Guarantee Fund – A move for providing loan guarantee for infrastructure projects.
Identification of Special Biofuel Zone ensures adequate infrastructure support.
Solo Techno Park set up under the Indonesian National Innovation System Resource Centre is aimed at developing human resource for technology innovation as per international standards.
Business incubation centers established at the university level.
Assessment of Key Actors Facilitating Technology
Innovation
R & D Institutions
R&D Centers (RDCs) under the Department of Energy and Mineral Resources
RDCs under non-departmental research institutes
Public Universities
Name of the Institute Focus Areas
Department of Energy & Mineral Resources Geothermal, biomass, wind power, solar energy, biogas, bio-diesel derived from palm oil and micro algae.
Indonesian Institute of Sciences (LIPI) Wind power, solar cell and modules, concentrated solar power, micro & pico hydro, green transport.
Assessment and Implementation Technology Agency (BPPT)
Assessment of Key Actors Facilitating Technology
Innovation
Name of the Institutes Focus Areas
National Institute of Aeronautics and Space (LAPAN)
Wind power (low speed wind turbine technology), solar energy, wind-solar hybrid systems.
Institute Technology, Bandung (ITB) Municipal solid waste for electricity generation, wind power, biomass for bio-fuel, ocean wave power.
Universities active in conducting R&D in Renewable Energy
Gadjah Mada University (GMU)
Surabaya Institute of Technology
Airlangga University
University of Indonesia (UI)
Sebelas Maret University
North Sumatra University
Bogor Institute of Agriculture
Assessment of Key Actors Facilitating Technology
Innovation
Academia
Collaboration with industries to develop capacity
Institute of Technology, Bandung, developed software packages for technical
and economic studies, and evaluation activity in the area of geothermal
energy.
• Collaborated with two state-owned companies PT Pertamina and PT Rekayasa to conduct non-
academic training programs in geothermal energy.
ITB, GMU and UI
• Collaborated with the University of Twente of Netherlands to develop expertise in geothermal resource.
Assessment of Key Actors Facilitating Technology
Innovation
Manufacturing
Industry imports components of large-scale
renewable projects.
Photovoltaic systems and components for
Key Findings
Government contribution to R&D is low and growing slowly (about 0.08% of GDP in 2009 from 0.07% of GDP in 2007).
However, some state bodies involved in R&D financing such as Directorate for Higher Education have increased their spending by large amounts.
Limited budget in R&D hinders domestic technology development and increased dependence on foreign technology.
System of annual budget allocation for R&D distracts researchers as they cannot plan long-term research projects .
Weak overall infrastructure increases transport and logistic costs, and obstructs technology dissemination .
Dependence on imported commodities for large-scale projects.
Banks are not sensitized towards importance of sustainable energy, and are reluctant to lend for sustainable energy projects.
Suggestions
Increase budget share in sustainable energy research as proposed in the
‘Master Plan: acceleration and expansion of Indonesia, economic development
2011-
2025’.
Strengthen facilitating infrastructure (S&T parks, technology incubators)
through various financial instruments with special focus on sustainable energy
technologies.
Promote domestic manufacturing through various financial and fiscal
incentives.
Increase private sector participation in infrastructure development by
providing appropriate incentives.
Take concerted policy approaches to ensure proper commercialization of new
