2X 10 kL BioDiesel Plant Project
Project Description:
To promote sustainable development and fossil oil reduction by producing BioDiesel from a nonproductive land in a selected province in Indonesia. This project consists of 3 components which
can not be separated.
1. Minimum of 3,000 Hectares of Jatropha L. Curcas plantation project
2. 2 x 10 kL BioDiesel plants, and
3. Marketing the product and side-product
Goal/ Purpose:
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Improving revenue of the province where the project is located.
Producing final-energy alternative while shifting dependencies of fossil oil consumption.
Reducing National final fuel consumption and reduce fuel-subsidies
Reducing numbers of non-productive land through Jatropha plantation
.
Expected Results
The project will support and complement GOI ( Ministry of Energy ) efforts to:
 Shifting the consumption of Fossil fuel to bio-fuel (renewable energy)
 Reducing national final-fuel subsidy and let the price of final energy goes through the economic
price of oil
 Increase community awareness to reduce fossil fuel dependencies
 Increase the province revenue.
 Increase the knowledge and skills of community groups through the training that will be given
Location
South – East Sulawesi, East Nusa Tenggara and North Sulawesi.
Sector
Agriculture & Natural Resources /Agriculture Production, Trading & Industry, Energy, Private
Sector
Rationale
1. To reduce dependencies of fossil fuel, Indonesia must find out alternative energy as soon as
possible. Alternative final-fuel must be found out. Producing bioDiesel is our main goal to
answer the question. This objective in parallel will also reduce the oil subsidy that seems
increasing drastically from year by year.
2. To increase revenue of selected province, means that selected province has to be able to
use their non-productive land and innovate in agricultural production and marketing of
alternative fuel in response to increase of fossil oil price. However, there are constrained from
doing so because of a lack of appropriate technologies, level of investments in public goods,
and access to information. While the Government is taking steps to fill the gaps in providing
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public goods support for agriculture, and increasingly for non-rice crops, additional support is
needed to target village-level public investments to the needs of farmers, to increase the
access of farmers to information, and to increase the availability of technologies needed by
farmers.
Objectives and Scope
The long-term development goal is reducing fossil-oil dependencies. Reducing national final - oil
subsidies. Increased of agriculture production and marketing. The immediate objectives of the
Project are (i) improved of province-level investments, (ii) increased access of farmers to
information, and (iii) a reorientation of the focus of agriculture production. The Project will
comprise 3 components to be implemented over 5 years: (i) farmer empowerment, (ii) Reducing
national fossil-fuel dependencies, (iii) Increasing revenue by reducing oil subsidy and bioDiesel
marketing, and (iv) project management.
Current Status and Issues
As fossil fuel price increases to USD 60 per Barrel, national subsidy jumps from Rp 40 Trillion (
2003) to almost Rp 80,000,000,000,000 in 2005. With the current exchange USD 1 ~ Rp 9,500,
means we spent USD 8.4 Billion just for fossil oil subsidies. 63% of subsidies went to final-fuel for
transportation and Industrial sector. This condition must be cut-out. Subsidy must be reduce,
energy saving must be disseminated and energy alternative shall be proposed. Based on the
Blueprint of National Energy planning 2005 - 2025, BioDiesel plant must be developed and
produced to replace Diesel fuel by 1% of consumption. The project must be started as soon as
possible. This comprehensive project will be introduced to GOI with the scheme as follows; (i)
Starting from land-use till Jatropha production to be funded by GOI through selected province. (ii)
Engineering-Procurement-Construction-Commissioning (EPCC) of bioDiesel plant shall be funded
by Donator country or 3rd party involvement (iii) Product off-taker can be long term contract with 3rd
party or GOI or Donator country.
Environment Category: B ( ADB stabdard )
Social Aspects and Remedies ; n.a.
Benefits and Beneficiaries
The Project will benefit to selected province in which more than 3 million people population and
reduce towards overall (national) oil subsidy by 1% in 5 years totally. The components for farmer
empowerment, development of bioDiesel national and local information resources, and support for
agricultural innovation development and dissemination are expected to benefit these people by
facilitating the project and marketing innovations, and finally increasing province incomes. The
Project will target 3 provinces in which a large part of percent of the fuel subsidy goes to. Typical
project beneficiaries will be farmers (province) who have low productive landholdings and nonproductive land belong to province authority. The province investments will directly raise the
incomes or producing alternative fuel for their transportation/industrial final-energy consumption.
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Public Consultation (in process)
a. Arranged by
Willy Widyanto
Rekayasa Industri Malaysia Sdn Bhd
Ph 60 12 479 7000
b. Date for Consultation :
c. Groups Consulted :
Beneficiary Participation in Formulation (in progress)
Identified during project appraisal.
Beneficiary Participation in Implementation (in Progress)
Consulting Services
A team of 10 consultants for a total input of 480 person-months of the following international
and domestic consulting services will be required to prepare a detailed implementation plan
and procedures for the Project during the first year, and support the subsequent 4-year
implementation phase. Person-months are given in parentheses. The international experts
(110) will be specialists in (i) project implementation (team leader) (36); (ii) Jatropha L Curcas
expert (36); (iii) participatory planning (4); (iv) agricultural marketing (4); (v) economics/financial
analysis (4); and (vi) project management (36). The domestic experts (220) will be specialists
in (i) project implementation (98); (ii) liaison officer (48); (iii) participatory planning (36); (iv)
national monitoring and evaluation (72); (v) Province monitoring and evaluation 2 person (96);
(vi) economics/financial analysis (6); (vii) Marketing 1 person (12) An international consulting
firm in association with domestic consultants will be selected. The quality and cost-based
selection method will be used for engaging consultants. Province will be selected based on the
more-advantage offer namely extensive experience in agriculture and other procurements will
be proceed through competitive bidding based on eligibility and evaluation criteria established
by the Project to supervise and coordinate with selected province or community organizations
under subcontracts.
Procurement
Procurement under the Project will follow a normal Guideline for Procurement, while Contracts
for EPCC-BioDiesel will be carried out using International competitive bidding procedures
acceptable by Donator country. The Project will also be responsible for procurement of office
furniture through local competitive bidding. Province / Local Communities shall provide labor
and appropriate technologies. Materials and services for such civil works shall be procured
through direct purchase.
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Cost and Financing Plan (in US$ million)
Source
Foreign Cost Local Cost
Total
Bank
56.00
0.00
56.00
Cofinancing
0.00
0.00
0.00
Borrower
0.00
0.00
0.00
Beneficiaries
0.00
0.00
0.00
Others
0.00
0.00
0.00
Project/Program Cost
56.00
0.00
56.00
OCR
ADF
Total
0.00
56.00
56.00
Loan Amount
Contact List
REKAYASA Industri Malaysia Sdn Bhd:
Willy Widyanto
Project Team Leader
Wisma UOA II - Jalan Pinang – Kuala Lumpur 50450 - MALAYSIA
Ph: (603) 2161 7418 Fax ; (603) 2161 8418
Mobile: (6012) 479 7000
E-mail: willy.siswohardjono@gmail.com
Executing Agency :
Farnow Environmental Solutions Group
Mr. Desmond Knipe
Regional Manager - Indonesia
Ariobimo Sentral Lt.4, Jl. H.R. Rasuna Said, 12950, Jakarta INDONESIA
Mobile: +62 815 850 222 51
Email desmondknipe@mail.farnow.com.au
Indonesian Partner :
PT KONEBA (Energy Conservation Center of Indonesia)
Mrs Magda Tumbol
Finance Director
Jl. Wolter Monginsidi No. 4&6
Kebayoran Baru, Jakarta Selatan DKI JAKARTA – 12160
Phone 021-7268881, 7268882
Fax 021-7268880
Remarks :
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