Indonesia's plans for renewable energy may endanger forests

Indonesia plans to increase renewable energy generation

Biofuels are touted as a way to reduce emissions

Environmentalists prefer other renewable energy sources

By Adi Renaldi

Indonesia, which is heavily dependent on coal for electricity, needs to move away from fossil fuels. It aims to generate 75 gigawatts from renewable sources over the next fifteen years. This compares with the 13 gigawatts it produces today.

This push will be based on the use of biofuels that burn cleaner, i.e. organic material converted into liquid fuel.

The government claims that biofuels will reduce Indonesia's dependence on costly fuel imports and greenhouse gases, while increasing palm oil production. This will in turn spur economic growth. Biofuels, while primarily used in the transportation industry, are also found at diesel-powered plant.

Plantations are needed to grow the palms and sugarcane required for biofuel production.

The rainforests of Indonesia could be threatened.

Forest Watch Indonesia estimates deforestation in Indonesia could reach 4,56 million hectares within the next few decades if the government mandates biofuels for all industries, including power plants.

Anggi Prayogo is a Forest Watch researcher. She said that "new land is needed to establish energy plants to meet bioenergy requirements." To reduce greenhouse gases, the government should instead invest more in other renewables like solar and wind.

Forests in Indonesia are crucial to reducing climate change. According to the United Nations, Indonesian trees can store up to 300 billion tonnes carbon.

Cleaner Fuel?

Bhima Yudhistira is the executive director of Centre for Economic and Law Studies. She noted that increased production may require more land to be converted.

Indonesia is the largest producer of palm oil in the world. This versatile oil can be used for food, cosmetics, and fuel. In 2010, the country produced 47 millions tonnes of palm oil, including more than 10,000,000 tonnes for biodiesel.

In Indonesia, palm oil production is linked to deforestation. 3.3 million of 17 million hectares in the country are plantations.

In 2011, the government imposed a moratorium against new plantations. Nusantara Atlas tracks Indonesia's deforestation and found that 52,000 hectares were converted into plantations between 2022-2023.

Biofuels are designed to replace dirty fossil fuels and release less carbon directly into the air. Studies have shown that when the emissions from land-use changes are taken into account, biofuels emit more CO2 than petrol.

Indonesia has increased its biofuel production in the last decade. It aims to increase it by 32% next year, from 2023. In 2019, diesel power plants used 660,000 kilolitres biodiesel.

In 2025, the government will mandate that producers make biodiesel blends that contain 40% palm oil and 60 % diesel fuel. Currently, 35% palm is used.

This will require about 18 million kilograms of crude oil palm, an increase of 50% from 2023.

A bioethanol derived from cane sugar is also being produced to be mixed with gasoline. To reduce sugar imports, the government has set aside 2 million hectares in South Papua forest for sugar cane planting.

In a report published by the Institute for Essential Services and Reform, a Jakarta-based think tank in 2021, it was projected that Indonesia's potential demand for biofuels could reach 190 millions oil equivalent tonnes by 2050.

WEANING COAL

According to the International Energy Agency, more than 45% (or 450 million tons) of Indonesian CO2 emissions will come from electricity production in 2022. This is followed by transportation and industry.

Natural gas, with 13.6%, and hydro, with 7.2%, are the next most common fuel sources for power plants.

Since at least 2021, the government has attributed the failure to reach its renewable energy goals to a lack private investment. Analysts said that Indonesia had only used a fraction its geothermal energy potential, which is considered to be the largest in the world. Solar, wind, and water were also underutilised.

According to the Institute for Energy Economics and Financial Analysis (a U.S. think tank), it produced only 0.017% its potential solar energy of around 3 gigawatts in 2013.

The Ministry of Energy and Mineral Resources didn't immediately respond to an inquiry for comment.

Researchers argue that biofuels will continue to play a role in the energy mix of the country, but the government should first encourage the replanting or unproductive plantations and then reduce exports.

Fabby Tumiwa is the executive director of IESR. He said that Indonesia exports more than 50% of its palm oil production.

(source: Reuters)