Indonesia's Biomass Co-firing Program Faces Implementation Challenges

Suboptimal Implementation Highlighted by Ombudsman

Indonesia's biomass co-firing program for coal-fired power plants (PLTU) remains suboptimal and unevenly implemented, according to a recent Ombudsman report ¹

. The program, aimed at supporting the country's energy transition, faces significant hurdles that threaten its effectiveness.

Key Challenges Identified

The Ombudsman's quick study revealed five primary issues hampering the program's success:

1. Unreliable biomass supply: Inconsistent availability of biomass feedstock
2. Quality variations: Non-uniform biomass quality affecting performance
3. Technological limitations: High costs associated with retrofitting existing PLTUs
4. Economic inefficiencies: Current implementation not economically viable
5. Poor coordination: Lack of effective governance and incentive structures

Government Response and Future Plans

The Ministry of Energy and Mineral Resources (ESDM) acknowledges these challenges and has developed a comprehensive roadmap for co-firing implementation from 2021 to 2030 ²

. The roadmap, included in Ministerial Regulation 12/2023, outlines guidelines for PLTU-PLN co-firing operations. However, implementation must be adjusted based on technical capabilities and biomass availability.

Regulatory Considerations

Lana Saria, Special Staff to the Minister of ESDM for Economic Affairs of Natural Resources, noted that biomass is currently not classified as a commodity requiring specific licensing. This classification is under review as biomass plays an increasingly important role in Indonesia's national energy mix. The government recognizes the need for better coordination across sectors, particularly between energy and agriculture/forestry, to ensure stable biomass supply chains.

Path Forward

The successful implementation of Indonesia's biomass co-firing program will require addressing these multifaceted challenges through improved supply chain management, technological advancements, and regulatory adjustments. The energy transition agenda depends on overcoming these obstacles to achieve the program's environmental and energy security objectives.