Jakarta, INTI - PT PLN Energi Primer Indonesia (PLN EPI) is strengthening the development of the national bioenergy ecosystem by providing market certainty for biomass suppliers through a five-year purchase contract scheme. This policy is part of the company's strategy to encourage investment, improve the quality and continuity of biomass supply, and accelerate the energy transition to a cleaner and more sustainable electricity system. This was conveyed by Hokkop Situngkir, PLN EPI’s Director of Biomass, at the AgriWaste to Value forum in Jakarta on Wednesday, July 22.
The forum brought together stakeholders from the bioenergy, plantation, industrial, government, investors, and technology providers to discuss the utilization of agricultural waste into biofuel, biomethane, biomethanol, Sustainable Aviation Fuel (SAF), biochar, and various biomass-based decarbonization solutions.
In the forum, Hokkop stated that contract certainty is a crucial factor in building a healthy and sustainable biomass supply chain. With long-term purchase guarantees, businesses have the certainty to invest, increase production capacity, and maintain the quality of 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 for up to five years. This way, businesses have certainty about investing and increasing their production capacity," said Hokkop.
Hokkop explained that PLN EPI implements a biomass procurement scheme in accordance with applicable regulations, prioritizing product quality. Biomass with a higher calorific value and a consistent supply will receive more competitive pricing opportunities, providing incentives for businesses to continuously improve their production quality.
A Foundation to Improve National Bioenergy Ecosystem
Hokkop said that the market certainty not only benefits biomass suppliers but also serves as an important foundation for building a national bioenergy ecosystem that involves farmers, cooperatives, village-owned enterprises (BUMDes), and the biomass processing industry 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 demand must also be guaranteed to ensure a sustainable national energy transition," added Hokkop.
As part of the PLN Group's energy transition strategy, PLN EPI had implemented biomass utilization in 52 Steam Power Plants until June 2026, with actual utilization reaching 932,906 tons. As the biomass quality improves, the average calorific value utilized also increases to 3,263 kcal per kilogram, utilizing 16 types of biomass derived from agricultural and forestry waste.
Going forward, PLN EPI targets biomass utilization to reach 3.7 million tons by 2026 and increase to 10 million tons by 2030. This achievement is projected to generate economic value of approximately Rp5.1 trillion, reduce emissions by up to 12 million tons of CO2 equivalent per year, utilize approximately 20 million tons of biomass waste annually, and create approximately 150,000 green jobs in various regions.
To support this target, PLN EPI continues to strengthen the biomass ecosystem through the development of a network of biomass hubs and main hubs, the development of production facilities, supply chain digitalization, and partnerships with cooperatives, farmer groups, village-owned enterprises (BUMDes), and business actors across Indonesia. These steps are taken to ensure a reliable, high-quality biomass supply capable of meeting the growing demand for electricity generation.
By strengthening market certainty and developing a 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. This step also supports the implementation of Environmental, Social, and Governance (ESG) principles, promotes a circular economy through the utilization of biomass waste, and contributes to achieving the 2060 Net Zero Emissions (NZE) target.
Conclusion
PT PLN Energi Primer Indonesia (PLN EPI) is strengthening the national bioenergy ecosystem by providing market certainty for biomass suppliers through purchase contracts of up to five years. This scheme aims to encourage investment, improve the quality and continuity of supply, and strengthen the biomass supply chain. Biomass utilization is targeted to reach 3.7 million tons in 2026 and 10 million tons in 2030. This initiative is supported by the development of biomass hubs, production facilities, supply chain digitalization, and partnerships across various regions to support national energy transition.
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