Tapping Indonesia s agro-waste potential with innovative technology
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1 Tapping Indonesia s agro-waste potential with innovative technology PEP Information Workshop 10 September
2 Strategies for Market Entry & Support through renewables Made in Germany Irnawati AHK Indonesien (EKONID) Berlin, 10 September
3 Why entering the market? 3 rd biggest democratic country 250 million population, with 86% of inhabitants are moslem Stable economic growth Growing middle class New government = new hope, less corruption & beaurocracy
4 Renewable energy market Bioenergy Sector Strengths & Opportunities High potential of utilizable agricultural waste High Biomass concentration on Java and Sumatra Regulatory frameworks supporting development of Biomass Eergy Tax incentives and exemption Strengths Opportunities Increasing energy demand increasing importance of Renewable Energy Utilization of Biomass Potential not yet optimized Further reduction of subsidy for fossil fuels High demand on REtechnologies
5 Renewable energy market Bioenergy Sector - Weaknesses & Threats Security of supply varies strongly among different types of biomass No specific/financial promotion for biomass utilization yet Weaknesses Threats Grid connection not always feasible Local banks lack knowledge and experience in financing biomass projects Development and success of alternative energy sources Climate change Bureaucracy and corruption Frequent modifications of the Negative List Unfavourable modifications of the political and legal framework Legal uncertainty
6 EKONID Market entry support Who is EKONID? The German-Indonesian Chamber of Commerce and Industry One of 120 AHKsoverseas, present in 60 countries Officially mandated by the German government Supporting trade and investment between Germany and Indonesia Well-established (since 1924, 1970 re-established) Wide network, 500 members Repersentation in Surabaya, Indonesia s 2nd largest city More than 60 employees in Jakarta and Surabaya
7 Market entry support EKONID services Pre-market check Market Study & Analysis Market Access Consultation Delegations & events Business Partner Search Corporate Services Establismentof RepresentativeOffice orcompany, Working/staypermit, Legal consultation, Office-in-Office solution
8 EKONID services Business Partner Search Research for potential business partners based on client s requirements EKONID Business Partner Search Contact initiation with the potential companies for data verification and to introduce the client s profile Screening of the companies and assessing the potential for cooperation Arrangement of individual meetings with the selected companies Accompany and translation during the individual meetings Follow-up of communication, if needed
9 Possible market entry strategies in Indonesia Direct Contacts with Customers Timeconsuming and costintensive Require high initiative from customers Partnership Represen- with Local tative Office Agent Local Presence Market Testing Little control, depence on performance of business partner Limited duration No export & import Limited number of staff No issuance of invoices PT PMA PT PMA Trading & Production After Sales & Trading Open for 100 % ownership (depending on Max 33 % of sectors) ownership Export&Import Import & No limitation export License of number of employees Tax Exemption
10 Market Entry Scheme Renewable Energy Support through renewables Made in Germany Initiative Implementation through EKONID Year Focus Topic of Symposium / Conference 2008 Geothermal German-Indonesian Symposium on Geothermal Energy 2009 Biomass, Biogas Renewable Energy Day on Key to sustainable future 2011 Biomass Energy Conference on Prospects for Biomass Energy Supply in Indonesia-Waste to Energy Potential in Agro Industry 2012 Off-grid Solutions Biomass, Biogas Conference on Harnessing the sun= Potential and Challenges in the Indonesian Solar Photovoltaic Market Conference on Waste to revenue: Energizing Indonesia s Palm Oil Industry 2013 Biomass, Biogas PV Hybrid Workshop on Energy from Biomass and Biogas in the Agroindustry German-Indonesian Forum on PV-Hybrid Systems in Indonesia
11 renewables Made in Germany Initiative Bioenergy 2014 Biomasse Zielmarktanalyse Indonesien Informationsveranstaltung AHK-Geschäftsreise Indonesien:
12 Zielmarktanalyse Indonesien 2014 Optionen der Energiegewinnung aus Biomasse Energieerzeugung aus Biomasse in Indonesien Potentiale für die Erzeugung Erneubarer Energien: Die Verwertung von den Abfällen aus der Landwirtschaft & Plantagenwirtschaft in Indonesien Wirtschaftliche und Politischer Rahmen für Energiezeugung aus Biomasse Energieerzeugung aus Biomasse: Bedarfsanalyse & Geschäftspotential
13 Zielmarktanalyse Indonesien 2014 Published on BMWi website Available for download on B2B Renewables website:
14 Renewable Energy Promotion of Bioenergy (1/2) Promotion measures for biomass utilization in energy production Guaranteed feed-in-tariffs and purchasing guarantees for power plants with capacities below 10 MW (regional ly differentiated) New tariff increases are already in the pipeline Various tax and customs reliefs for bioenergy technology
15 Renewable Energy Promotion of Bioenergy (2/2) Reduction of diesel and fuel subsidies Discontinuation of electricity price subsidies for industry buyers Defined targets for the utilization of biomass in electricity production Government agencies and state owned companies orientate their planning and activities at the fields Renewable Energy and Energy Efficiency for some of them Biomass Energy is a particular field of activity
16 AHK-Geschäftsreise 2014 within the Renewable Energy Export Initiative Nov evening: Briefing Day 1: Conference, Company Biomass Presentation, Networking Day 2-3: Individual Company Visit and Business Meetings Day 4-5: Site Visit
17 Day 1: Conference, company presentation, networking Ca.100 participants: industry players, multipliers, public authorities, financial institutions, end-users Conference programmes Introducing company, technology solutions, sharing best-practice examples Networking Individual meeting
18 Day 2-3: Individual company visit and business meetings Matching your profile individually 6-8 meetings and visits in two days Accompanion through EKONID staffs Assistance in logistic and communication problems Contact establishment with companies which meet your requirements
19 Day 4-5: Visit to project sites Organized by the GIZ 2013, Visit I: of exising Biogas Plant in Belitung Commissioning since: 2010 Installed Capacity: 7.5 MW (grid-connected) Feedstock: Empty Fruit Bunch & Palm Kernel Shell Technology: Boiler, Gas Turbine 2013, Visit II: AANE Biogas Plant Visit to Palm Kernel Shell Syngas Power Plant (60 kw unit)
20 Vielen Dank für Ihre Aufmerksamkeit!
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