Indonesia’s bioenergy sector is gaining strategic importance in the country’s energy transition, driven by abundant agricultural and forestry residues and growing policy support. Agroindustries such as pulp and paper, sugar, and palm oil are the largest biomass contributors, generating byproducts like husks and shells that can be converted into electricity or biofuels. Forestry-based biomass, including wood pellets and lignocellulose, also holds promise, with demand projected at 60 million tons annually. Government initiatives such as co-firing programs in 52 coal plants and the planned B50 biodiesel blend by 2026 aim to reduce coal dependency and increase biofuel use. President Prabowo’s recent visit to Brazil further strengthened international cooperation, particularly in second-generation bioethanol development, aligning Indonesia’s energy goals with global best practices. Despite its potential, the sector faces structural and policy challenges. Biomass supply chains are fragmented and costly, conversion technologies are still maturing, and land competition limits feedstock availability. Investment hurdles include permitting delays, feed-in tariff uncertainties, and slow power purchase agreement processes. However, opportunities remain in both domestic and export markets, especially with rising demand for wood pellets in East Asia and growing interest in small-scale biomass and biogas systems across Indonesia. With steady global investment growth and domestic trials like Pertamax Green 95, Indonesia’s bioenergy sector offers diverse entry points for investors—from feedstock supply to technology solutions—making it a key pillar in the country’s renewable energy strategy.Source: https://business-indonesia.org/news/indonesia-s-bioenergy-industry-prepares-for-growth-in-2025  (ICE GIACARTA)

Fonte notizia: Business-indonesia.org, 12 August 2025