Policy Brief 03 – Low Carbon Bioenergy Development in Indonesia

The National Energy Policy of 2014 stipulates Indonesia’s plan to increase its share of renewable energy from 6% to 25% by 2025, including an increase of bioenergy from 3% to 10% in 2025. While there is significant potential for bioenergy development in Indonesia, there are also several risks, including the possibility of deforestation caused by the expansion of bioenergy feedstock plantations. To help the Government of Indonesia understand and avoid risks to maximise benefits of this expansion, UNORCID produced a policy brief for the Government of Indonesia that explores existing policies affecting bioenergy development in Indonesia. This brief highlights that provincial and district government engagement is critical in authorising the development of bioenergy feedstock and processing plantations. Noting that only a few sub-national governments fully understand the purpose and implications of Indonesia’s bioenergy policy, capacity building among local governments should be prioritised in the early stages of bioenergy feedstock development. The brief also notes that major feedstocks for bioenergy are agricultural crops, such as oil palm and sugar cane. While there is a need for rapid feedstock development in upcoming years, availability of open degraded lands for agricultural crops is limited. The policy brief thus recommends the utilisation of available degraded lands in state forest zones for the development of feedstock plantations by tree species. A new permission scheme is required to support the conversion of degraded land in state forest zones to be used in this manner, where fuel production comes from harvesting seeds.