Article

The Energy Task Force of HIPMI highlights the need for breakthrough financing to support sustainable biomass energy projects in Indonesia. The main challenge faced is not resource availability but inadequate funding structures.

Indonesia has significant biomass potential from agricultural waste, palm oil residues, and organic materials for biofuels and biogas. Effective financing ecosystems are essential to reduce project risks, enhance financial viability, and provide certainty for investors.

A proposed National Bioenergy Investment Fund with blended finance is critical for risk mitigation, especially in biomass-producing regions with underdeveloped energy infrastructure. The government prioritizes strengthening energy supply chains for both fossil and renewable energy to ensure national energy security. HIPMI and Aspebindo view bioenergy as an economic opportunity that can foster job creation and support rural economies, emphasizing the importance of targeted collaborative financing.