Indonesia Goes All-In on Timber Plantations to Fix Its Energy Mix

Millions of hectares of acacia and eucalyptus will fuel biomass power, boosting energy security, diversifying renewables and supporting the 2030 FOLU Net Sink target.


Mon 22 Sep 25

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Indonesia wants to dramatically scale up industrial timber plantations as it seeks to integrate wood-based biomass into its national energy portfolio, the Forestry Ministry announced late last week. In an effort to reduce fossil fuel imports and meet its 2030 Forestry and Other Land Use (FOLU) Net Sink target, Jakarta has designated millions of hectares of severely degraded land for the cultivation of fast-growing acacia and eucalyptus species.

Tony Rianto, head of the Sub-Directorate for Forest Product Certification and Marketing, described the initiative as transformative. “Expanding timber plantations for biomass is a game-changer,” Rianto told reporters in Jakarta, emphasising that, under strict management protocols, plantations would rehabilitate landscapes impacted by past logging and wildfires.

According to ministry forecasts, the newly established estates will play a pivotal role in bolstering Indonesia’s energy security. Biomass power plants fueled by plantation wood are expected to supplement intermittent solar and hydropower with reliable baseload generation. Officials project that the program will generate tens of thousands of rural jobs, stimulate domestic and foreign investment in wood-pellet manufacturing, and position Indonesia as a leading exporter of certified biomass fuel, particularly to energy-hungry markets in Europe.

“With proper management, timber plantations for biomass can continue to protect the ecological, social and economic roles of forests,” Rianto added. He noted that both the Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) standards would apply to ensure full traceability from plantation to power plant.

And whilst environmental advocates have sounded alarms over potential land grabs and the displacement of local villagers, the ministry has rolled out several new safeguards. These include advanced, satellite-based monitoring systems, mandatory sustainability certification under the SVLK scheme, community consultation requirements, and expedited enforcement actions against operators found in violation of land-use or labour regulations. “These safeguards will ensure that scaling up biomass not only powers clean energy but also protects Indonesia’s forests and the rights of communities,” Rianto said.

The forestry ministry’s announcement follows President Joko Widodo’s directive to source 23% of the nation’s electricity from renewable resources by 2025. Analysts observe that while solar and hydroelectric projects have garnered the bulk of investment and publicity, biomass offers a dispatchable power solution capable of running continuously, smoothing out fluctuations in supply and stabilising the grid.

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