Indonesia: Environmental Issues 2

Energy Use and Carbon Emissions
In 2001, Indonesia consumed 4.6 quadrillion Btu (quads) of energy and released 87.1 million metric tons (mmt) of carbon dioxide, accounting for 1% of the world's total energy consumption and 1% of the world's total energy related carbon emissions. In the past two decades, Indonesian energy consumption and carbon emissions grew very rapidly. Between 1980 and 2001, they increased 315% and 271%, respectively. This rapid growth reflects Indonesia's industrial development during the period.
Indonesia derives the vast majority of its energy consumption from fossil fuels. Oil accounts for 47% of energy consumption (2.2 quads); natural gas contributes 30% (1.4 quads); and coal makes up 20% (0.9 quads). Together, hydroelectric and non-hydroelectric renewables (e.g. geothermal, wind, solar) account for the remaining 3% (0.15 quads) of Indonesian energy consumption.

Energy and Carbon Intensity
Indonesia's energy consumption per dollar of GDP (energy intensity) increased significantly during the 1980s and 1990s. In 1980, Indonesia consumed 5,760 Btu per $1995-PPP. In 2001, Indonesia's energy intensity had risen to 8,250 thousand Btu per $1995-PPP. Compared to other Asian nations, Indonesia's energy intensity is fairly low.
Relative to other Asian nations, the level of Indonesia's carbon emissions per dollar of GDP (carbon intensity) is moderately high. This likely reflects Indonesia's almost complete dependence on fossil fuels. Between 1980 and 2001, Indonesia's carbon intensity grew from 0.12 metric tons of carbon per thousand $1995-PPP to 0.16 metric tons of carbon per thousand $1995-PPP. In 2001, Indonesia's carbon intensity was higher than India's (0.09 metric tons per thousand $1995-PPP), Japan's (0.1), and Thailand's (0.14), but less than China's (0.18) and South Korea's (0.18).
Per Capita Carbon Emissions and Energy Consumption
Indonesia's per capita energy consumption and carbon emissions remain low, especially in comparison to more industrialized countries. In part, this reflects the large proportion of Indonesia's population that continues to live in areas with little or no electricity. In 2001, Indonesia's per capita energy consumption was 21.5 million Btu. This was significantly less than the most economically developed areas in the region like South Korea (170.2 million Btu per capita) and Taiwan (181.5), but higher than India (12.6) and Vietnam (9.6).
Indonesia's per capita carbon emissions grew significantly between 1980 and 2001, rising from 0.16 metric tons per person to 0.41 metric tons per person. Much of this growth likely stemmed from the rapid increase in motor vehicles. Despite their rapid growth, Indonesia's 2001 level of per capita carbon emissions was still significantly lower than in South Korea (2.55), Taiwan (3.18), and Thailand (0.77). Indonesia's per capita carbon emissions are higher than India's (0.25), however.
Renewable Energy
Because Indonesia is a large oil and natural gas producing country, most of its energy needs are met through fossil fuel combustion (77%). However, economic crisis, depletion of oil reserves and environmental needs are leading Indonesia towards greater exploitation of renewable energy sources.
The World Bank has contributed to several large-scale renewable energy projects, including the "Solar Home System" project that aims to electrify remote areas through renewable energy. Solar/PV technology is an attractive option in Indonesia because the country is fragmented among numerous small islands, making a comprehensive grid difficult to construct.
Indonesia possesses significant hydroelectric potential, but has done little to exploit it. There is a government-built, 5,600-megawatts (MW) hydropower plant in Irian Jaya to support economic development. Java also has several hydropower facilities. Their combined installed capacity is 2,550 MW.
Indonesia has significant geothermal energy potential. The "Ring of Fire," the world's most active volcanic zone, stretches along the southern coast of the islands of Sumatra and Java. Exploitation of geothermal resources remains highly tentative, however. According to a February 2002 report by the U.S. Embassy in Jakarta, Indonesia had developed 787 MW of geothermal capacity. This represented only 4% of its estimated geothermal potential of 20,000 MW. About 40% of this potential is located in Java and Bali, the two most populous islands in the Indonesian archipelago.
Prior to the financial crisis, the Indonesian government awarded contracts for 11 geothermal projects that would have had a generating capacity of 3,400 MW. Due to the tight fiscal constraints imposed by the crisis and the political change that followed, 7 of these projects were suspended. One possible source of the funds necessary to develop Indonesia's geothermal resources may be the Kyoto Protocol's Clean Development Mechanism (CDM) or other initiatives aimed at reducing greenhouse gas (GHG) emissions. Should Kyoto come into force, the CDM would allow energy providers from developed countries to invest or purchase "GHG emission reductions" credits from renewable projects in developing countries as a way of offsetting GHG emissions elsewhere.
Environment Outlook
Indonesia possesses a remarkable and valuable natural environment. The country is home to the world's largest reef system and one of the world's largest rain forests, both of which are home to thousands of unique species. Moreover, Indonesia's huge forests function as one of the world's main "carbon sinks" (natural means of sequestering world carbon emissions). The preservation of such sinks is an important aspect of avoiding climate change.
Two decades of rapid economic development, significant population expansion, and regulatory neglect have placed much of Indonesia's environment in jeopardy. As the country recovers from the economic and political turmoil of the late 1990s and early 2000s, the Indonesian government faces the challenge of enacting and enforcing stricter environmental legislation. The legal system in Indonesia will have to improve enforcement of environmental regulations against the intentional setting of forest fires and the use of leaded gasoline. While the Indonesian government already has had some environmental, such as the elimination of leaded gasoline in Jakarta, considerable scope for improvement remains. In particular, Indonesia will have to address the infrastructure-related problems of deforestation, renewable energy, and inadequate sewerage.