{"id":8413,"date":"2025-10-09T13:38:01","date_gmt":"2025-10-09T06:38:01","guid":{"rendered":"https:\/\/ligaasuransi.com\/?p=8413"},"modified":"2025-10-09T13:38:01","modified_gmt":"2025-10-09T06:38:01","slug":"biomassa-harta-karun-energi-hijau-indonesia-yang-mulai-jadi-rebutan-investor","status":"publish","type":"post","link":"http:\/\/ligaasuransi.com\/en\/biomassa-harta-karun-energi-hijau-indonesia-yang-mulai-jadi-rebutan-investor\/","title":{"rendered":"Biomass: Indonesia’s Green Energy Treasure That Investors Are Starting to Scramble for"},"content":{"rendered":"

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Liga Asuransi <\/b>– In the effort to realize the energy transition towards a more sustainable future, biomass has emerged as one of the most promising green energy sources in Indonesia. With abundant natural resources, ranging from agricultural and plantation waste to forestry, Indonesia has enormous biomass potential to be utilized as an alternative energy source to replace fossil fuels.<\/span><\/h3>\n

This enormous potential not only supports the 2060 Net Zero Emissions (NZE) target but also opens up extensive investment opportunities for the private sector, state-owned enterprises, and foreign investors who view biomass as a strategic sector with long-term growth. As energy demand and global demand for clean energy increase, biomass is slowly transforming from a “dormant resource” into a hot commodity, highly sought after by many.<\/span><\/h3>\n

However, despite these significant opportunities, biomass project development also presents its own challenges, ranging from raw material supply availability, logistics, regulations, to the need for comprehensive financial support and risk protection. This is where renewable energy project insurance plays a crucial role in providing certainty and confidence to all stakeholders.<\/span><\/h3>\n

Biomass Potential & Current Trends in Indonesia<\/b><\/h3>\n

Biomass utilization in Indonesia is increasingly receiving serious attention, particularly as part of the clean energy transition strategy and carbon emission reduction. Here are some key facts and trends that can form the basis of this article:<\/span><\/h3>\n
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    Target of 3 million tons of biomass by 2025<\/b>
    \n<\/span>PT PLN Energi Primer Indonesia (PLN EPI) has set a target of using up to 3 million tons of biomass this year, as part of its efforts to support a clean energy mix and reduce emissions. (plnepi.co.id)<\/span><\/h3>\n<\/li>\n<\/ul>\n

    From 2021 to 2024, the volume of biomass utilization increased from approximately 312,000 tons to 1.8 million tons. (Liputan6)<\/span><\/h3>\n
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      Potential of agricultural waste & palm oil<\/b>
      \n<\/span>Indonesia has enormous biomass potential from agricultural, plantation, and industrial waste. For example, global biomass production from oil palm plantations is estimated at 424 million tons per year, including empty fruit bunches, fronds, stems, and shells.haisawit.co.id)<\/span><\/h3>\n<\/li>\n<\/ul>\n

      Indonesia’s biomass industry is also beginning to penetrate the export market: biomass products such as palm kernel shells (PKS) and wood pellets have generated approximately Rp 1.04 trillion in transactions in Japan. (Kontan)<\/span><\/h3>\n
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        Implementation of Co-Firing & Energy Policy<\/b>
        \n<\/span>Biomass has been used as a blended fuel (co-firing) in coal-fired power plants (PLTU) to reduce the proportion of coal. By 2024, PLN (State Electricity Company) implemented biomass co-firing in 47 PLTUs, with a total biomass consumption of approximately 1.62 million tons and emission reductions of approximately 1.87 million tons of CO\u2082. (Forest Watch Indonesia)<\/span><\/h3>\n<\/li>\n<\/ul>\n

        With this scheme, the contribution of non-variable renewable energy from biomass increases to 1.86% of the coal-fired power plant’s energy mix. (Forest Watch Indonesia)<\/span><\/h3>\n
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          Corporate & Investor Initiatives<\/b>
          \n<\/span>Some companies are also taking concrete action: for example, PTBA (the Indonesian Coal Company) is conducting a trial of wood pellet co-firing at the Tanjung Enim coal-fired power plant as part of its move towards clean energy. (ptba.co.id)<\/span><\/h3>\n<\/li>\n<\/ul>\n

          Perum Perhutani also plans to build three biomass factories in energy plantation forest areas with an investment of around Rp 133.6 billion, targeted for operation by the end of 2025. (joss.co.id)<\/span><\/h3>\n
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            Deforestation Risk & Legality<\/b>
            \n<\/span>Despite its enormous potential, biomass utilization also faces criticism regarding its impact on deforestation and the sustainability of the raw materials. For example, imports of wood pellets from Indonesia have increased sharply, and there are concerns that this production is driving the conversion of natural forest land to biomass production. Forest Watch Indonesia<\/span><\/h3>\n<\/li>\n<\/ul>\n

            Economic Impact & Investment Opportunities of Biomass in Indonesia<\/span><\/h3>\n

            Biomass utilization is not only a solution for the clean energy transition, but is also beginning to demonstrate significant economic multiplier effects, both at the national and regional levels. From job creation and export opportunities to the involvement of local businesses, biomass is increasingly becoming a strategic sector worth considering.<\/span><\/h3>\n

            1. Driver of Local Economic Growth<\/b><\/h3>\n

            Biomass is often sourced from agricultural waste, plantations, and energy plantations, which are widely distributed throughout Indonesia. This opens up significant opportunities for local farmers and cooperatives to participate in the supply chain, from raw material collection to wood pellet or palm kernel shell (PKS) production.<\/span>
            \n<\/span>According to data from the Ministry of Energy and Mineral Resources, the implementation of biomass co-firing at coal-fired power plants (PLTU) by 2024 has created more than 10,000 new jobs in the biomass collection and processing sector, particularly in Java, Sumatra, and Kalimantan.<\/span><\/h3>\n

            2. High Value Exports to International Markets<\/b><\/h3>\n

            International markets\u2014particularly Japan, South Korea, and Europe\u2014are beginning to look to Indonesian biomass as an alternative energy source to coal. Japan, for example, is the largest buyer of Indonesian palm oil mills, with export transactions reaching IDR 1.04 trillion in 2024. This presents a golden opportunity for local producers to expand production scale, quality standards, and export legality.<\/span>
            \n<\/span>Furthermore, European countries are starting to look for alternative supplies following the global energy crisis, so Indonesia has the potential to become an Asian biomass hub if it can ensure the sustainability and stability of supply.<\/span><\/h3>\n

            3. Attraction of Large Investment for Power Plant Projects<\/b><\/h3>\n

            PLN has mapped more than 50 potential coal-fired power plant (PLTU) locations for sustainable biomass co-firing programs. This has led to the emergence of new business schemes, ranging from Power Purchase Agreements (PPAs) for Biomass Power Plants (PLTBm) to long-term partnerships between PLN and biomass producers.<\/span><\/h3>\n

            Perum Perhutani, for example, is currently building three biomass plants with a total production capacity of around 130,000 tons\/year, which are targeted to be operational in 2025. The investment value reaches IDR 133.6 billion, and this project is expected to absorb local labor and support the supply of raw materials for co-firing the Java-Bali PLTU.<\/span><\/h3>\n

            4. Policy Support & Incentives<\/b><\/h3>\n

            The Indonesian government, through its National Energy Master Plan (RUEN), is targeting a 23% share of renewable energy by 2025, with biomass expected to be a significant contributor. Support is provided through:<\/span><\/h3>\n