Biofuel from Forest Tree Species: Challenges and Opportunities in Indonesia

The government of Indonesia has a clear target to reduce fossil fuel which will be replaced by renewable sources. In meeting its energy demand, reducing reliance on fossil fuel, import and complying with national as well as global commitments for emission reduction, the Government of Indonesia passed mixed energy policies and regulations. It particularly used palm oils as one renewable biodiesel resources. However, concerns over food security and deforestation have arisen recently. On the other hands, there is huge potential in native forest tree species that would produce high yield and non-edible oils. The country's extensive degraded lands amounting to 12.7 million hectares offer an opportunity to develop forest energy plantations while restoring the lands and ecosystems. This review elaborates on the country's biofuel development and its potential for energy transition based on forest tree species using SWOT analysis. We found that implementation of blending policies in Indonesia which tend to be accelerated is favourable for developing non-edible oil for biofuels. Calophyllum inophyllum and Pongamia pinnata have a huge potential to be further developed for plantations. Further research is needed to deeply analyze feedstock capacities, breeding strategies, and promote aviation fuels from forest tree species, making its production cost financially feasible.