- In 2014 the Indonesia National Energy Policy targeted to increase the use of renewable energy to reach 25% by 2025.
- One of the renewable energies that the government is intensively optimizing is biomass.
- The development of the biomass industry has many influences on Indonesia, one of which is the economic impact.
Indonesia is one of the biggest nation in ASEAN and the fourth biggest country in the world in terms of population, with land area of 1.86 million square kilometers and a population of over 270 million. With this population size, and a variety of both industrial and household activities, Indonesia requires a large supply of energy. As reported by Worldometer in 2016, Indonesia source 87% of its energy from nonrenewable energy, and only 13% from renewable energy. To address this, in 2014 the Indonesia National Energy Policy targeted to increase the use of renewable energy to reach 25% by 2025.
One of the renewable energies that the government is intensively optimizing is biomass. As stated by the General Directorate of Agriculture-Based Industries, Indonesia is a key supplier of raw materials for the bioenergy and biomass industries, including palm oil, sugar cane, paddy, corn, cassava, and wood waste. Biomass energy has the potential to generate 32,6 GW and 200,000 barrels per day if the biomass facility is properly operated and maintained. Of course the development of the biomass industry has many influences on Indonesia, one of which is the economic impact.
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Economic Growth
The use of biomass energy can greatly contribute to Indonesia’s economic growth. Biomass energy is obtained from organic resources found in abundance in Indonesia, such as agricultural and forestry waste. As a result, the development of biomass energy would generate a new industry in the country, creating jobs and boosting economic progress. It would also reduce the country’s dependency on fossil fuels, improve energy security, and minimise reliance on imports. This would result in foreign exchange savings and a reduction in the country’s balance of payments imbalance. Furthermore, the expansion of biomass energy would support the growth of adjacent businesses, such as equipment and technology production, which would create additional job opportunities and enhance the economy.
Economic Sustainability
Biomass energy has the potential to contribute to Indonesia’s economic sustainability. The country is extremely vulnerable to the effects of climate change, which is exacerbated in part by the usage of fossil fuels. Biomass energy is a renewable energy source, which means it has less of an environmental impact than fossil fuels. Biomass energy is a type of green energy, according to the International Energy Agency (IEA). Using and promoting a green economy is the best way to improve Indonesia’s economic stability. Green energy is described as the generation of energy from renewable sources that does not affect the environment or people. Biomass energy can assist to mitigate climate change, improve air quality, and alleviate the negative effects of environmental degradation by lowering the country’s dependency on fossil fuels. Furthermore, biomass energy can help limit the quantity of organic waste that ends up in landfills, lowering pollution risks and boosting the circular economy. The promotion of the circular economy, in which garbage is reused and recycled, can aid in the conservation of natural resources and the development of more sustainable economic practises.
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- Raw Material Constraints in Biomass Cofiring PLTU Indonesia
Economic Opportunities
The use of biomass energy can open up new economic potential for Indonesia. Indonesia has a big agricultural sector and abundant natural resources. Biomass energy development may take advantage of these resources and open up new doors for farmers and rural communities. Using agricultural waste as a biomass energy source can give farmers with additional revenue while also reducing deforestation and land degradation. This would aid in the promotion of sustainable agricultural methods while also providing new opportunities for rural populations.
Furthermore, the development of a biomass energy industry might attract investment and offer new business prospects for the country’s entrepreneurs and small and medium-sized enterprises (SMEs). The development of a biomass energy sector can lead to the creation of new markets for goods and services used in biomass energy production, such as the development of energy-efficient equipment or the supply of biomass transportation services. This would result in new commercial prospects and economic prosperity.
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Editor: Himatul Azqiya
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