Enviro News Asia, Bekasi — PT PLN Energi Primer Indonesia (PLN EPI) is encouraging local businesses to participate in the biomass supply chain by processing waste and agricultural residues into economically valuable fuel for power generation.
PLN EPI Biomass Director Hokkop Situngkir said the growing bioenergy sector is creating new business opportunities for regional entrepreneurs, particularly through the development of supply chains connecting raw material sources with power plants.
He made the statement during the Regional Working Meeting of the West Java chapter of the Association of Indonesian Indigenous Entrepreneurs (HIPPI) in Bekasi on October 7.
Hokkop said PLN’s coal-fired power plants require substantial biomass supplies to support co-firing programs. A total of 52 coal-fired power plants with combined installed capacity of 18,154 megawatts require approximately 9 million tons of biomass annually.
“This is a business that can involve as many local entrepreneurs as possible,” Hokkop said.
The biomass supply chain can cover the collection of raw materials, processing, storage and delivery to power plants. Under PLN EPI’s planned system, businesses can participate as sub-hub, hub or main-hub operators.
Potential raw materials include sawdust, wood harvesting residues, rice husks, corn cobs, cassava stems and other waste materials. The supply chain can also involve cooperatives, village-owned enterprises, farmer groups and private-sector partners.
Hokkop emphasized that the biomass ecosystem is not limited to large companies.
“Cooperatives, village-owned enterprises, micro, small and medium enterprises, and regional entrepreneurs can all become part of this ecosystem,” he said.
Between 2023 and 2026, PLN EPI recorded 4.77 million tons of biomass supplied to support its programs. However, more than 77 percent of the supply still came from wood-based biomass.
The figure highlights the potential to diversify biomass sources by utilizing agricultural and plantation residues as well as waste that has not been fully utilized.
In West Java, PLN EPI has identified waste from the Gedebage Temporary Waste Disposal Site (TPS) as a potential source for producing Solid Recovered Fuel, known locally as Bahan Bakar Jumputan Padat (BBJP). The fuel could serve as an alternative co-firing fuel and be supplied to several coal-fired power plants.
PLN EPI estimates the distance from the Gedebage facility to the Indramayu power plant at approximately 150 kilometers. The distance to Pelabuhan Ratu is about 170 kilometers, Adipala 185 kilometers and Lontar 240 kilometers.
Such distance mapping is important in designing an efficient biomass supply chain because transportation costs directly affect the economic viability of biomass fuel.
HIPPI Chairman Erik Hidayat said greater participation from local businesses requires concrete access and opportunities. He said regional entrepreneurs need more than encouragement to participate in the energy transition.
“We need access, capacity building, supportive policies, concrete programs and synergy with regional governments,” Erik said.
West Java Regional Secretary Herman Suryatman also emphasized the importance of greater private-sector participation in driving regional economic growth.
He noted that West Java’s economic growth stood at around 5.73 percent, with household consumption serving as one of the main drivers, followed by investment, government spending and exports.
PLN EPI said a more inclusive biomass supply chain could transform waste from an environmental burden into a source of energy and a new source of income for local communities.
The company expects cooperation among regional entrepreneurs, cooperatives, village-owned enterprises, small and medium-sized businesses and farmer groups to create a bioenergy ecosystem based on local resources.
The initiative also highlights a broader dimension of the energy transition. Beyond replacing fossil fuels with more sustainable energy sources, biomass development can create new economic chains by turning waste into energy, local resources into business opportunities and community participation into a foundation for sustainable economic independence. (*)
