PLN EPI Targets 10 Million Tonnes of Biomass Absorption by 2030

PT PLN Energi Primer Indonesia (PLN EPI) is targeting the absorption of 10 million tonnes of biomass by 2030 as part of efforts to establish bioenergy as a pillar of national energy security. Director of Biomass at PLN EPI, Hokkop Situngkir, stated that bioenergy will become a crucial component of national energy resilience while supporting the 2060 net zero emissions (NZE) target. “We are targeting the absorption of 10 million tonnes of biomass by 2030, an increase from the 3.65 million tonnes target in 2026,” he said during a hearing with the National Energy Council (DEN). Achieving this target is estimated to generate nearly Rp4 trillion in economic value and reduce emissions by up to 11 million tonnes of carbon equivalent. Hokkop explained that Indonesia has a biomass potential from agricultural waste reaching 80 million tonnes per year. However, current utilisation is only around 20 million tonnes, with the majority absorbed by export markets and industry. In 2025, PLN absorbed only 2.35 million tonnes of biomass for its power plants, while exports reached approximately 8.5 million tonnes and the remainder was used by the industrial sector. “This shows that the national bioenergy potential is still very large and can be optimised for domestic interests,” he said. DEN member Johni Jonathan Numberi stated that biomass will become an energy source that plays an important role in the national energy mix towards NZE 2060. According to Johni, the government, through Government Regulation Number 40 of 2025, has established new and renewable energy as the backbone of the future energy system. In this scenario, the utilisation of biomass is projected to continue increasing alongside solar energy and natural gas. “Our coal-fired power plants generally have long economic lifespans. Therefore, biomass co-firing is an important step to reduce emissions while maintaining the reliability of the national electricity supply,” Johni said. Beyond biomass, PLN EPI is accelerating the development of compressed biomethane gas (CBG), derived from palm oil mill effluent (POME). Indonesia has nearly 3,000 palm oil mills that produce around 130 million metric tonnes of POME annually. According to Hokkop, CBG utilisation trials have been conducted at a power plant owned by PT Nusantara Power and have shown promising results. “We hope that if biomass can replace about 10 percent of coal-fired power plant energy needs, then CBG can also replace about 10 percent of energy needs in gas-fired power plants, gas engine power plants, and combined-cycle power plants,” he said. PLN EPI is also beginning to develop biohydrogen as part of its long-term strategy. With the increasing global demand for clean energy, biohydrogen presents significant opportunities to serve both domestic and export markets. “We see biohydrogen as a major opportunity going forward, as global demand is starting to rise. Its potential comes from biomass and organic waste, which are very abundant in Indonesia,” Hokkop said. Bioenergy development also delivers significant economic impact to communities. According to PLN EPI calculations, every 100,000 tonnes of biomass utilised per year can involve around 500 farmers and 18 farmer groups, while increasing community income by up to Rp450,000 per month. Currently, PLN EPI has developed biomass production facilities in Tasikmalaya and Ciamis through collaboration with farmers, cooperatives, village-owned enterprises, MSMEs, regional-owned enterprises, and private partners. To meet last year’s biomass target, PLN EPI cooperated with around 150 partners across various regions. Overall, PLN EPI estimates that bioenergy development up to 2030 could generate revenue of approximately Rp5.1 trillion, additional state revenue of Rp670 billion, waste utilisation of up to 20 million tonnes, and the creation of around 150,000 green jobs. Despite its significant prospects, bioenergy development still faces several challenges, particularly regarding price certainty and strengthening the industrial ecosystem. To address this, PLN EPI is proposing the establishment of an Indonesian Bioenergy Index (IBI) as a national bioenergy price reference. “We hope that in the future there will be an IBI, so that the market becomes more stable, investors have greater confidence, and the bioenergy industry can develop more rapidly,” Hokkop concluded.