Strategy to Pursue Indonesia’s 83-Million-Ton National Biomass Potential

Indonesia currently stands at a crucial crossroads in its energy transformation. As an agrarian nation with vast stretches of forests and plantations, the Archipelago holds a hidden treasure that has yet to be optimally utilized: biomass. According to the latest data, Indonesia’s biomass potential for the bioenergy sector is projected to reach a staggering 83.4 million tons per year. However, reality on the ground shows a wide gap; realization to date has only reached approximately 22 million tons.

This significant gap is not just a figure on paper, but a golden opportunity waiting to be managed. Optimizing the remaining potential of over 60 million tons will be vital in strengthening national energy sovereignty while drastically reducing carbon emissions in the power sector.

A New Pillar of Energy Transition: The Strategic Role of PLN EPI

PT PLN Energi Primer Indonesia (PLN EPI), as the sub-holding company playing a key role in the primary energy supply chain, is currently accelerating bioenergy utilization. This step is taken with good reason; bioenergy has been designated as one of the main pillars in the company’s energy transition roadmap toward a greener future.

Hokkop Situngkir, Director of Biomass at PLN EPI, explained in mid-December 2025 that the transition toward bioenergy has become a massive movement on the global stage. Developed countries in Northern and Central Europe—such as Finland, Sweden, and Austria—have successfully proven that bioenergy can serve as the backbone of their renewable energy systems. Their success in converting forestry and agricultural waste into electricity and domestic heating should serve as an inspiration for Indonesia.

Hokkop emphasized that the current utilization rate of biomass in Indonesia remains very low, at around five percent of total national potential. This condition indicates vast room for growth. However, the greatest challenge lies not in the availability of raw materials, but in building a resilient and sustainable supply chain ecosystem to ensure consistent supply to power plants.

Regional Mapping: Sumatra as the Biomass Granary

Through intensive collaboration between PLN and the government, biomass resource mapping has been conducted across the country. The results show that the largest potential contribution lies in Sumatra. As a global hub for the palm oil industry, Sumatra has an abundance of solid waste in the form of empty fruit bunches (EFB), shells, and old palm trunks that have not been fully absorbed for energy needs.

Beyond palm oil waste, other dominant biomass sources include wood waste from the timber industry and agricultural residues such as rice husks and corn cobs. Traditionally, most of this waste has been viewed merely as industrial residue with little economic value—often becoming an environmental burden as it is left to rot or burned openly.

Decarbonization Strategy Through the Co-firing Program

The utilization of bioenergy is an inseparable part of PLN’s decarbonization strategy to achieve Net Zero Emissions (NZE) by 2060. One of the fastest and most efficient methods being implemented is through the co-firing program. This program allows coal-fired power plants (PLTU) to replace a portion of their fuel with biomass.

This step is considered highly strategic because it does not require building new plants from scratch; instead, it optimizes existing infrastructure. Through the Enhanced Nationally Determined Contribution (NDC) document, the Indonesian government has set an ambitious target: the utilization of 9 million tons of biomass by 2030. This target is set to support the success of co-firing programs at various PLN Group power plants across Indonesia.

Building a Sustainable Future

The task ahead for PLN EPI and other stakeholders is to ensure that the biomass economy provides a positive impact on local communities. By building a strong supply chain, the biomass industry has the potential to create new jobs in rural areas—from collection and processing to the distribution of raw materials.

Overall, biomass-based bioenergy is not just about replacing one fuel with another. It is about building a new economic ecosystem that aligns with environmental preservation. With a potential of 83.4 million tons, Indonesia has more than enough capital to stop relying on fossil fuels. It is time for Indonesia to lead on the global green energy stage.