News and Insight

Indonesia’s sustainable biomass industry is experiencing a global boom. Driven by surging demand from nations like Japan and South Korea, our exports of wood pellets and palm kernel shells (PKS) have skyrocketed. This is a remarkable success story, bringing in valuable foreign exchange and positioning Indonesia as a key player in global decarbonization.

But this success has raised a critical and fair question at home: are we prioritizing exports at the cost of our own clean energy goals? As our international shipments grow, is Indonesia’s energy transition being left behind?

The Indonesian Biomass Energy Producers Association (APREBI) wants to address this concern head-on, not with defensiveness, but with data and a clear strategy. We are not just exporters; we are a foundational partner in Indonesia’s energy transition. Our vision is not a zero-sum game of “domestic use or exports,” but a “win-win” strategy that scales up our vast potential to power Indonesia and the world. This is a critical moment for Indonesia’s energy transition, and we are ready to meet the challenge.

The Challenge in Plain Sight: Acknowledging the Data

We must be transparent about the current situation. The Indonesian government, through PLN, has mandated an ambitious co-firing program at coal-fired power plants, a cornerstone of Indonesia’s energy transition. This program requires a massive, reliable supply of biomass.

Let’s look at the 2023 data. The domestic target for biomass utilization was 10.2 million tonnes. However, total domestic production for this purpose was only 991,000 tonnes, with total utilization reaching 2.2 million tonnes (including imports or other sources). This left a significant domestic shortfall of approximately 1.2 million tonnes.

During that same period, an amount equivalent to 121% of Indonesia’s domestic biomass production was directed to export markets.

APREBI acknowledges this imbalance. This is not a sustainable path for Indonesia’s energy transition. It highlights a critical policy challenge that we must solve collectively. However, the answer is not to halt exports, which would stifle the very growth and investment the sustainable biomass industry needs. The answer is to dramatically expand the pie.

The “Win-Win” Strategy: Unlocking 146 Million Tonnes of Potential

The problem is not that we are exporting; the problem is that we are not yet producing enough for everyone. The export market provides the valuable demand and foreign exchange that drives investment in our sector. This investment is exactly what we need to scale up capacity for both domestic and export needs.

The true key to solving this challenge lies in Indonesia’s massive, largely untapped potential: agricultural residues.

Indonesia’s biomass potential is estimated at over 146 million tons annually. This isn’t from forests; it’s from agricultural “waste” like PKS, rice husks, and corn stalks. This is the low-hanging fruit for Indonesia’s energy transition.

By developing policies that prioritize and incentivize the collection and processing of these residues, we can:

1. Dramatically Scale Production: Create a new, massive supply of biomass to easily meet both PLN’s domestic targets and our export contracts.
2. Champion the Circular Economy: Solve a national waste-management problem, turning agricultural byproducts into a high-value energy source.
3. Drive Rural Development: Create thousands of new jobs in rural areas focused on biomass collection and processing.

This is the “bigger pie” strategy. It ensures that Indonesia’s energy transition is not compromised; it is accelerated by a strong, export-capable, and innovative sustainable biomass industry. We can and must meet the needs of Indonesia’s energy transition first.

A Partnership for Policy: How We Get There Together

APREBI is not just a collection of producers; we are a committed partner to the government and PLN. To make this “win-win” strategy a reality, we advocate for a clear and supportive policy framework. The success of Indonesia’s energy transition depends on it.

Our policy recommendations are clear:

1. Balance Domestic & Export Needs: We support a clear policy framework that ensures a minimum allocation of biomass for domestic co-firing programs before export licenses are granted. This is a “Powering Indonesia First” policy that balances national needs with market realities, providing a stable foundation for Indonesia’s energy transition.
2. Prioritize Agricultural Residues: We need government incentives and support to build the infrastructure required to unlock the 146 million tonnes of agricultural biomass potential. This is the most sustainable path to scaling up production for Indonesia’s energy transition.
3. Support R&D and Innovation: We must invest in advanced biomass technologies like torrefaction and gasification to increase the value and efficiency of our products for both domestic and international markets.
4. Strengthen a National Registry: We support a centralized, digital registry of all biomass producers and sources to enhance transparency and ensure all biomass used in Indonesia’s energy transition is legal and sustainable.

Conclusion: A Partner for Indonesia’s Future

The global demand for Indonesian biomass is a sign of our quality and potential. It is not a threat to Indonesia’s energy transition, but a catalyst for it.

APREBI’s commitment is firm: we are partners in building a green future for our nation. We are committed to working with PLN and the government to implement policies that scale our industry responsibly, unlock our vast waste-to-energy potential, and ensure that our national clean energy goals are met.

We can power Indonesia first while also powering the world. By working together, we can build a thriving sustainable biomass industry that is a cornerstone of Indonesia’s energy transition and a model of sustainable development for the globe. This is our commitment to Indonesia’s energy transition.