Pioneering Bioenergy in Indonesia’s Energy Transition

21 March 2025

Written by Nayla Karima, Strategic Exploration of Economic Mitigation Potentials through Renewables (ExploRE), [email protected] 

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© GIZ Indonesia/ASEAN 2023 – © Biomass utilization for heat production
© GIZ Indonesia/ASEAN 2025 – Dissemination meeting on biomass and biogas direct use 

Bioenergy utilization was set at 69,58% in the national energy mix target, significantly higher than any other renewable energy utilization. This huge number was resolved considering the massive potential of the country’s agroindustry, specifically the palm oil sector.  

Shifting away from “bioenergy=biofuel” paradigm, GIZ supported the Indonesian government to have an ameliorate outlook on bioenergy utilization by facilitating mapping and formulation of enhanced calculation methodology of biomass and biogas direct utilization. These two sectors are central to secure sustainability of agro-industry in Indonesia, taking into account that they use the byproducts i.e. solid and liquid waste, instead of the end-products (fruits, seeds, etc.).  

In February, GIZ and the Ministry of Energy and Mineral Resources (MEMR) concluded a comprehensive mapping and identification of biomass and biogas direct use in 3 key agroindustry sectors: palm oil, sugar, and pulp and paper. Results of this activity are momentous, contributing up to 214% of biomass use target as stipulated in the National Energy General Plan (RUEN). As a context, biomass utilization shares a 17.56% of the national energy mix target.  

Among the 3 agro-industry sectors, pulp and paper contributes the highest number of 10.8 million tons biomass utilization, followed by sugar and palm oil industry at 3.6 million tons and 3.5 million tons respectively. These 3 key agro-industry sectors were chosen considering their large production capacities.  

“The study on bioenergy utilization has significantly contributed to the national bioenergy achievement status. In the coming years, we hope to see this figure continue to grow, further supporting Indonesia’s energy transition efforts,” stated Edi Wibowo, Director of Bioenergy, at the “Dissemination on Direct Bioenergy Utilization in the Industrial Sector” agenda on Tuesday, February 25, 2025. Results of this study enable significant achievements in the national energy mix target as well as provide eye-opening data to assess bioenergy beyond biofuel. 

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