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The Indonesian Market

Introduction

Facing a massive increase in energy demand as well as challenges with both energy security and increasing the electrification rate, Indonesia’s energy sector is facing big developments. As of today Indonesia is heavily dependent on fossil fuels despite the existence of an abundance of renewable energy resources, especially bioenergy. Bioenergy – understood in a broad sense as energy stored in biomass, regardless the type of feedstock and fuel produced – will in all probability play an essential role in the breakthrough of renewable energy in Indonesia that is inevitably going to happen. In order to gain access to the nascent, but potentially large, Indonesian bioenergy market, the Danish Bioenergy Alliance will exploit benefits of both B2B and G2G collaboration.

Relevant Indonesian Policies & Commitments
Commitment to cut GHG emissions 29% by 2030 compared to business as usual as part of the Paris Agreement.

Minimum target of 23 % new and renewable energy in the energy mix by 2025 (National Energy Policy / KEN).

Target to utilize minimum 5.5 GW of the bioenergy potential for power production by 2025 – and 26 GW of bioenergy by 2050 (National Energy General Plan / RUEN).

Over the next few years, PLN is projected to develop 794 MW of biomass plants and 2,415,000 KL of biofuel plants (RUPTL).

Target for the transportation sector to utilize a minimum of 11 million KL (9.6 MTOE) biofuel – understood as liquidised fuel derived from biomass – by 2025 and 36.6 million KL (31.2 MTOE) by 2050 (RUEN).

Target of a 30% utilization of biofuel by 2025 in all sectors, including transport, industry and power plants (RUPTL).

Proper treatment and energy recovery from organic waste will contribute to Indonesia’s target to properly treat 70% of all household waste before 2025.