The Republic of Indonesia's (Indonesia) National Medium Term Development Plan (RPJMN) projects an annual economic growth rate of at least 7% by 2014. This current growth trajectory will have direct and significant implications on the energy sector. To ensure the sustainability of Indonesia's long-term growth trajectory, it is imperative that newly employed sources of energy be low in greenhouse gas emissions (GHG), as well as domestically sourced to bolster the country's energy security. The Government of Indonesia has confirmed these priorities by committing to lowering its carbon emissions by 26% using domestic resources by 2020 relative to business-as-usual, or up to 41% using international climate funds, as stipulated in the Presidential Decree No. 61, Indonesia's National Action Plan for GHG Emission Reduction (RAN-GRK).
|Project Name||Planning a Pilot Carbon Capture and Storage Activity|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Energy / Energy efficiency and conservation
|Gender Equity and Mainstreaming|
|Description||The Republic of Indonesia's (Indonesia) National Medium Term Development Plan (RPJMN) projects an annual economic growth rate of at least 7% by 2014. This current growth trajectory will have direct and significant implications on the energy sector. To ensure the sustainability of Indonesia's long-term growth trajectory, it is imperative that newly employed sources of energy be low in greenhouse gas emissions (GHG), as well as domestically sourced to bolster the country's energy security. The Government of Indonesia has confirmed these priorities by committing to lowering its carbon emissions by 26% using domestic resources by 2020 relative to business-as-usual, or up to 41% using international climate funds, as stipulated in the Presidential Decree No. 61, Indonesia's National Action Plan for GHG Emission Reduction (RAN-GRK).|
|Project Rationale and Linkage to Country/Regional Strategy||Carbon capture and storage (CCS) is an emerging technology which could help Indonesia to limit its GHG emissions from the energy and industrial sectors while also increasing Indonesia's national energy security. CCS could be particularly effective in Indonesia given Indonesia's several large high-CO2 natural gas fields, and the possibility of using Enhanced Oil Recovery (EOR) to extract more oil from Indonesia's existing fields, making CCS an attractive possibility for reducing the country's GHG emissions and strengthening domestic energy security. This S-CDTA will evaluate technical viability for a pilot CCS activity in Indonesia. PT PERTAMINA, Indonesia's state-owned oil and gas company will be the executing agency (EA).|
|Impact||Strengthened capacity within PT PERTAMINA and the Government of Indonesia to design and plan CCS pilot activities.|
|Description of Outcome||Technical viability analysis completed.|
|Progress Toward Outcome|
|Description of Project Outputs||
1. Preliminary engineering design and cost estimates developed.
2. Financial analysis of the CCS pilot activity
3. Advice on legal and regulatory framework for pilot CCS activities provided
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||All key stakeholders including the Director General, Oil and Gas, Ministry of Energy and Mineral Resources, and BAPPENAS, bilateral and multi-lateral donors, and PLN, the power company, were consulted with during project design. A memorandum of understanding was signed between ADB, the government, PERTAMINA and the Government of Japan (co-financier of the proposed pilot activity) to spell out key implementation arrangements, the envisaged project outcome, impact and outputs, and roles and responsibilities of the various stakeholders.|
|During Project Implementation||A steering commitee comprised of the Director General, Oil and Gas, Ministry of Energy and Mineral Resources, and BAPPENAS, the planning ministry, were periodically consulted with on TA implementation proposals and progress.|
|Consulting Services||ADB contracted through single-source selection (SSS). ADB's guidelines on firm recruitment will be followed in the selection of the consultant. The implementation of the small-scale technical assistance will require the services of a multidisciplinary team comprised of international and national consultants. Eight consultants will be recruited through a domestic firm in accordance with the ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time). The consultant will be responsible for administering the workshops and knowledge events envisioned under this technical assistance program.|
|Procurement||No procurement envisaged for this project.|
|Responsible ADB Officer||Tharakan, Pradeep J.|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Energy Division, SERD|
|Concept Clearance||30 Apr 2013|
|Fact Finding||02 Jul 2012 to 31 Jul 2012|
|Approval||18 Jul 2013|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Jul 2013||-||18 Jul 2013||15 May 2014||15 Nov 2015||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||225,000.00||0.00||0.00||0.00||0.00||225,000.00||18 Jul 2013||203,219.46|
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|Title||Document Type||Document Date|
|Planning a Pilot Carbon Capture and Storage Activity: Technical Assistance Completion Report||TA Completion Reports||May 2016|
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