Harmonizing Biomass Co-Firing with the Green Economy Paradigm: A Sustainable Approach for Indonesia's Energy Landscape

Abstract

Objective. To explore the implementation of Biomass Co-Firing in Indonesia, the objective encompasses an analysis of how policies, practices, and investments in Biomass Co-Firing can support desired sustainable development goals. Design/Methodology/Approach. This research utilizes the Library Research methodology, which examines literature, legal documents, and other textual sources to investigate the integration of Biomass Co-Firing into the Indonesian Green Economy. Results/Discussion. The development of renewable energy using biomass and co-firing in power plants offers significant potential for reducing carbon emissions and addressing challenges in clean energy development in Indonesia. With a strong legal foundation as outlined in Article 2 of Law No. 30 of 2007 concerning Energy, the government has provided a solid basis for renewable energy development. However, implementation still faces challenges in permitting regulations and cross-sector coordination. A significant drawback is the lack of specific incentives from the government for biomass co-firing projects, along with uncertainties regarding biomass certification and standardization. To overcome these challenges, concrete steps are needed, such as providing fiscal and financial incentives for industry players and enhancing coordination among the government, private sector, and other stakeholders. Conclusions. The development of renewable energy with biomass and co-firing in power plants promises a reduction in carbon emissions and supports clean energy development in Indonesia, despite facing challenges in permitting and cross-sector coordination. Originality/Value. The harmonization of Biomass Co-Firing projects with the Green Economy paradigm in Indonesia emphasizes resource efficiency, environmental impact reduction, and sustainable economic growth.