PLN EPI Offers Up to Five-Year Purchase Contracts to Secure Biomass Suppliers
“We want to build a healthy biomass industry”
Jakarta (ANTARA) — PT PLN Energi Primer Indonesia (PLN EPI) is strengthening the development of the national bioenergy ecosystem by providing certainty for biomass suppliers through purchase contract schemes of up to five years.
Hokkop Situngkir, Director of Biomass at PLN EPI, said in a statement in Jakarta on Wednesday that contract certainty is an important factor in building a healthy and sustainable biomass supply chain.
With long-term purchase guarantees, businesses have the confidence to invest, increase production capacity, and maintain the quality of the biomass supplied to power plants.
“If biomass quality can be maintained, both in terms of calorific value and continuity of supply, PLN EPI can provide purchase contracts of up to five years. That way, businesses have the certainty to invest and increase their production capacity,” Hokkop said at the AgriWaste to Value forum in Jakarta.
At the forum, Hokkop explained that PLN EPI applies biomass procurement schemes in accordance with applicable regulations, prioritising product quality.
Biomass with a higher calorific value that can be supplied consistently will have the opportunity to obtain more competitive pricing schemes, providing an incentive for businesses to keep improving the quality of their output.
According to him, market certainty not only benefits biomass suppliers but also serves as an important foundation for building the national bioenergy ecosystem, involving farmers, cooperatives, village-owned enterprises (BUMDes), and biomass processing industries as part of the national primary energy supply chain.
“We want to build a healthy biomass industry. Exports remain an opportunity, but at the same time domestic needs must also be guaranteed so that the national energy transition can proceed sustainably,” Hokkop added.
As part of the PLN Group’s energy transition strategy, as of June 2026 PLN EPI has implemented biomass utilisation at 52 coal-fired power plants (PLTU), with realised usage reaching 932,906 tonnes.
As biomass quality has improved, the average calorific value utilised has also risen to 3,263 kilocalories per kilogram, using 16 types of biomass derived from agricultural and forestry waste.
Going forward, PLN EPI is targeting biomass utilisation of 3.7 million tonnes by 2026, increasing to 10 million tonnes by 2030.
This achievement is projected to generate an economic value of around Rp5.1 trillion, reduce emissions by up to 12 million tonnes of CO2 equivalent per year, utilise around 20 million tonnes of biomass waste annually, and create around 150,000 green jobs across various regions.
To support these targets, PLN EPI continues to strengthen the biomass ecosystem through the development of biomass hub and main hub networks, production facility development, supply chain digitalisation, and partnerships with cooperatives, farmer groups, BUMDes, and businesses across various regions of Indonesia.
These steps are being taken to ensure that biomass supplies remain reliable, of high quality, and capable of meeting the ever-increasing needs of power plants.
“Through strengthening market certainty and developing the biomass ecosystem from upstream to downstream, PLN EPI affirms its commitment to building a resilient bioenergy supply chain as part of efforts to strengthen national energy security,” Hokkop said.