Competitiveness of Biomass as Bioenergy in Indonesia

The energy transition to renewable sources is a strategic step in reducing greenhouse gas (GHG) emissions and addressing global climate change. Biomass, as a renewable energy source, has significant potential to support the decarbonization of the energy sector. This study analyzes the competitiveness of biomass as bioenergy in Indonesia compared to other Asian countries, namely Thailand and India, by considering four key dimensions: (1) biomass availability, (2) biomass contribution to Total Energy Supply (TES), (3) the price of biomass as an energy source, and (4) bioenergy support policies, including the legislative framework, fiscal incentives, and market mechanisms. The analysis shows that although Indonesia has a high diversity of biomass sources, it is still less competitive compared to other Asian countries (Thailand and India), particularly in terms of contribution to TES and policy support. This study recommends reinforcing environmental pricing policies and incentive scheme to enhance the competitiveness of biomass implementation in Indonesia.