Indonesia is broadening its role in the global renewable energy sector by exporting biomass-based energy products—derived from agricultural and forestry waste—to markets in Asia and Europe. PLN Energi Primer Indonesia (PLN EPI) is collaborating with PT Biomassa Energi Group (BEG) and Poland’s G7 Group SP.Z.O.O to trade materials like palm kernel shells, empty fruit bunch (EFB) pellets, wood pellets, and other biomass waste. A flagship EFB pellet plant is set to begin operations in February 2026 with an initial output of 120,000 tons per year, and five more plants of similar or larger scale are planned. The country has a huge biomass potential—around 130 million tons annually—though only a small fraction is currently utilized.
This effort ties into Indonesia’s energy transition strategy, where PLN EPI aims not only to supply domestic energy but also to engage in “Beyond kWh” business lines—such as sustainable fuel trading and international export. Biomass will also support coal substitution in coal-fired power plants (a process known as co-firing), reducing reliance on fossil fuels. Financial institutions, notably BNI, are providing end-to-end financing to biomass suppliers to ensure supply chain stability, transparency, and standards. The overall ambition is to capture a significant share of the global biomass market—potentially up to 3 million tons per year in exports—while enabling low-carbon economic growth and contributing to national decarbonization.
