The Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) through the Deputy for Environmental and Forestry Management Coordination together with PT PLN Energi Primer Indonesia (PLN EPI) is strengthening the biomass ecosystem in Indonesia.
Deputy for Environmental and Forestry Management Coordination at the Coordinating Ministry for Maritime Affairs and Fisheries, Nani Hendiarti, said that his party carries out synchronization, coordination and control functions in realizing the national wood-based biomass target in the energy transition.
“So it is necessary to carry out a series of empowerment, dissemination and policy advocacy activities as well as realizing standards for wood biomass products originating from sustainable and sustainable sources,” he said as quoted Between, Sunday (24/3)
Nani said that the Coordinating Ministry for Maritime Affairs and Fisheries was also active in pushing for the issuance of Minister of Energy and Mineral Resources Regulation No. 12 of 2023 concerning the Use of Biomass Fuel as a Fuel Mixture in PLTUs. This Ministerial Regulation was submitted at COP 28 in Dubai in December 2023. This Ministerial Regulation was immediately followed up with the signing of an MoU between PT PLN EPI and one of the biomass material suppliers.
“This shows the international community that the Indonesian government is very serious in its efforts to shift coal-based industries to renewable energy,” explained Nani.
Nani added that the use of wood biomass comes from restoring critical, degraded land, to multi-forestry businesses. Therefore, he said, joint work between the government, BUMN and related associations is needed to develop a circular economy.
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Land revitalization
The Coordinating Ministry for Maritime Affairs and Fisheries together with PLN EPI and the Yogyakarta Special Region Provincial Government held a group discussion forum (FGD) on developing a circular economy through the revitalization of critical land, March 20-23 in Yogyakarta.
PLN EPI President Director Iwan Agung Firstantara said that the use of biomass is a concrete manifestation of PLN’s commitment to increasing the EBT mix in the country by 23% in 2025.
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“Intensive biomass co-firing substitution policy is being implemented in Indonesia as a concrete step in reducing carbon emissions in order to achieve the NZE (Net Zero Emission) target in 2060 or sooner,” said Iwan.
According to Iwan, Biomass co-firing also has a vital role in accelerating the energy transition, where this clean energy will contribute 3.6% of the total NRE mix target of 23% in 2025.
Iwan continued, co-firing biomass has advantages Levelized Cost of Electricity (LCOE) lowest compared to acceleration to other EBT. Not only that, local communities will also play an important role in providing biomass raw materials.
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Meanwhile, Biomass Director of PLN Primary Energy Indonesia (EPI) Antonius Aris Sudjatmiko said, to achieve the 2030 NDC and 2060 NZE emission reduction targets, it is necessary quickwin from a series of programs that have competitive production costs.
Co Firing Biomass at PLTU is one of them quickwin parallel waiting for the readiness of technology and other renewable energy industries. This program opens up the most job opportunities and has value creation green circular economy “by involving many MSMEs compared to other renewable energies,” he said.
Aris explained that the potential for utilizing raw material sources was emerging. Starting from various types of waste, both from agriculture, plantations, carpentry, forestry, garbage, and dry land use.
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“This potential is spread and available for a minimum requirement of 10 million tons of biomass, but it needs to be supported by regulations from the relevant Ministry of Institutions for sustainable and sustainable biomass sources,” said Aris.
He gave an example, PLN EPI has collaborated with the Sultanate of Yogyakarta in developing green economic areas (green economy)to support NZE, ESG to SDG’s. Biomass co-firing, he said, in this case provides the largest portion of value for MSMEs and local companies in the supply feedstock and process biomass raw materials.
“More than 85 percent of production costs revolve around MSMEs and other small businesses which can stimulate economic growth in surrounding communities,” he said.
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Multiplier effect which is significant in biomass development requires the support and cooperation of all stakeholder and elements. Apart from that, there is still a need for standardization of carbon calculations from biomass ecosystems from upstream to downstream.
“The Ministry of Finance’s support for reducing VAT on biomass supplies, including support for the people’s economy, providing subsidies/APBN compensation and funding schemes for micro/small businesses is also needed,” said Aris.
The Governor of the Special Region of Yogyakarta, Sri Sultan Hamengkubuwono
“This initiative initiated by the Coordinating Ministry for Maritime Affairs and Fisheries and PLN Primary Energy Indonesia is very important and strategic. “Collaboration between the government, private sector and society is the key in dealing with this energy crisis,” said Sri Sultan. (Ant/M-3)
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