Biomass' Role in Achieving Indonesia's Renewable Energy Target

Biomass energy plays a crucial role in Indonesia's energy transition efforts. This transition aims to shift the economy from its dependence on fossil fuels towards the utilization of renewable energy sources, including biomass. As a country rich in natural resources such as oil and natural gas, Indonesia was once one of the largest exporters in this sector. However, excessive exploitation has led to dwindling oil and gas reserves, resulting in a continuous decline in fossil fuel availability.

To address this challenge, the government is now striving to achieve energy independence through the development of renewable energy sources, which still have significant untapped potential. One concrete effort to promote renewable energy utilization is regulated by Presidential Regulation No. 112 of 2022, which aims to accelerate the development of renewable energy, including biomass, to meet electricity needs. This regulation supports the target of achieving a 23% renewable energy mix by 2025, with biomass expected to play a role in replacing coal through co-firing methods in Steam Power Plants (PLTU).

The Indonesian government has set a target to increase biomass consumption for the PLTU co-firing program from 991.000 tons in the previous year to 2,83 million tons by 2024. PT PLN, as the main electricity provider, has already used 1 million tons of biomass throughout 2023 for 42 PLTUs across Indonesia. By 2025, PLN aims to utilize 10,2 million tons of biomass for 52 PLTUs, with co-firing trials at ratios of 5% to 10% of total coal usage. This step is an essential part of the government's efforts to reduce carbon emissions in the energy sector, considering that coal still dominates 67% of the electricity energy mix in 2023.

The growth of domestic biomass consumption is expected to continue increasing in line with the co-firing policy. At the international level, the biomass market also shows a positive trend. The European Union and North America are the largest biomass markets, while the Asian region, particularly Japan, South Korea, and China, is experiencing the fastest growth. Countries such as Vietnam, Indonesia, Thailand, and Malaysia are predicted to increase their biomass pellet exports to meet the growing demand.

With joint support for biomass utilization, Indonesia can achieve its renewable energy targets while reducing dependence on fossil fuels. Biomass not only serves as a sustainable energy source that helps reduce carbon emissions but also supports the transition towards green energy. Through co-firing technology, organic waste such as sawdust and rice husks can be processed into energy, while simultaneously contributing to environmental conservation. This step will lead Indonesia towards a cleaner and more energy-independent future.