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KEBI: Indonesian Biomass Energy Cooperative for Energy Security and Sustainable Economy

Wood pellet illustration, source: Pixabay.com
  • KEBI or the Indonesian Biomass Energy Cooperative is a legal cooperative entity that focuses on the utilization of biomass in bioeconomic development oriented to domestic and export markets.
  • KEBI was established on January 21 2021 by MEBI or the Indonesian Biomass Energy Society.
  • KEBI has a vision to become a leading cooperative in the development of biomass energy to support energy security and the national economy in a sustainable manner.

KEBI or the Indonesian Biomass Energy Cooperative is a legal cooperative entity that focuses on the utilization of biomass in bioeconomic development oriented to domestic and export markets. KEBI was established on January 21 2021 by MEBI or the Indonesian Biomass Energy Society. KEBI is purely business-oriented, focusing on the field of industry, trade and services of biomass energy in Indonesia. The formation of KEBI is one manifestation of MEBI’s organizational mission, namely the utilization of biomass for economic growth and welfare of the Indonesian people. KEBI has a vision to become a leading cooperative in the development of biomass energy to support energy security and the national economy in a sustainable manner.

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KEBI Business Model

Illustration of KEBI Business Model, source: kebi.co.id

In realizing its vision, KEBI applies a cooperative-based business model. One example is the business of establishing a Sawdust Block Factory for Animal Bedding (Animal Pad) and Planting Media, where the capital for the business establishment was obtained from Voluntary Savings deposits of members of the cooperative with the distribution of 70% share ownership owned by the voluntary savings shares and 30% golden shares that is given to the Operator as the party running the business. The total profit for the business will be distributed in accordance with the Sharing Profit determined by KEBI.

KEBI Business Sector

KEBI has various businesses in multiple sectors, including; The Forestry and Logging Management Sector which consists of Sengon or Albasia Forest Concession, Alkasia Forest Concession, Eucalyptus Forest Concession, and Timber Gathering Business. The Industrial Sector, which produces several product, namely; sawdust blocks, woodchips, wood pellets, cocopeat, palm shells, coconut charcoal, rice husk pellets, briquette charcoal, and dry mix. The Procurement of Electricity, Gas, Steam/Hot Water and Cold Air Sector, which consists of Power Plant and Procurement of Biogas.  The Collection, Treatment and Waste Disposal and Trash Material Restoration Activity Sector, which include Management and Disposal of Harmless Waste, and Non-Metal Goods Recycling. The Trade Sector which consists of 11 business. And lastly, The Service Sector which consists of 8 consultant services. When accumulated, KEBI has a total of businesses in more than 150 sectors related to biomass, and has produced more than 250 product.  

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KEBI Wood Pellet Production Plant Project 2023-2027

Illustration of Wood Pellet Production, source: biofuelsmachines.com

In 2022, KEBI launched the “KEBI Wood Pellet Production Plant Project 2023-2027”. This project has the objective to build and increase wood pellet production in Indonesia so as to promote the use of sustainable bio energy both internationally and domestically for a greener environment for now and the future generation. According to KEBI, the global wood pellets market size was estimated at USD 8.23 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2022 to 2030. Because wood pellets are a clean, environmentally beneficial, sustainable, and renewable biomass, the increasing global demand for renewable energy is driving the demand for wood pellets in order to decrease the use of fossil fuels, which adds to global warming. This is anticipated to contribute to the industry’s growth over the forecast period.

In this project, KEBI has determined 5 places to produce wood pellets, namely; KEBI 001 which is located in Banyuwangi, and is planned to produce wood pellet output of 5000 tons per month. KEBI 002 which is located in Madiun, and is expected to produce wood pellet output of 2000 ton per month. KEBI 003 located in Makassar, Sulawesi, which is planned to produce 5000 ton worth of wood pellet per month. KEBI 004 which is located in Semarang, and is expected to produce 2000 tons of wood pellet per month. Lastly is KEBI 005 located in Lampung, Sumatra, which is planned to produce 10000 ton of wood pellet output per month.

KEBI is a cooperative based on renewable energy, namely biomass, which is a new breakthrough in the use of biomass energy in Indonesia. KEBI has a very inspiring goal, to develop biomass energy to support energy security and the national economy in a sustainable manner. KEBI has established and developed various businesses in various sectors to produce biomass products. In addition, the “KEBI Wood Pellet Production Plant Project 2023-2027” is a very significant breakthrough in developing the Indonesian biomass industry. KEBI’s approach to renewable energy and sustainable development could serve as a model for other communities and cooperative looking to transition to a low-carbon economy.

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Editor: Himatul Azqiya

References

[1] Koperasi Energi Biomasa Indonesia

[2] Proposal Bisnis KEBI 2023-2027

[3] MEBI – Masyarakat Energi Biomasa Indonesia

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Ni Luh Putu Diah Raspadewi

A motivated english language education student who has a passion for writing, and raises topics on renewable energy.

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