PENGEMBANGAN MODEL BISNIS PRODUK BIOMASSA BERBASIS HUTAN TANAMAN ENERGI PERUM PERHUTANI

Abstract

The global economic paradigm shift toward a green economy and decarbonization requires every country, including Indonesia, to transform its energy and natural resource management sectors. Dependence on fossil fuels creates severe environmental pressures. The energy transition process in Indonesia demands renewable energy sources that are non-intermittent. In the face of global energy transition challenges and the growing need for low-carbon energy sources, developing an integrated upstream–downstream biomass business becomes a key strategy to strengthen energy security and achieve a greener economy. Biomass, as a renewable energy source with low life-cycle emissions (as determined by Life Cycle Assessment), holds significant market potential—both in the international export market (Japan and South Korea) and in the domestic market through the coal co-firing program in power plants. Perhutani is a forest holding State-Owned Enterprise managing state forests in Indonesia, has a strategic responsibility not only to maintain forest sustainability but also to develop environmentally friendly and sustainable business ventures. The idea of developing a biomass business represents one of the diversification efforts aimed at enhancing revenue streams. High levels of social conflict and the dominance of long-rotation timber species have led to low land productivity due to long investment return periods. The state forests managed by Perhutani are categorized as Common Pool Resources (CPRs)—shared resources characterized by non-excludability and subtractability. Without strong institutional frameworks, CPRs are prone to overexploitation, leading to the depletion of natural resources. Through a multibusiness forestry (MUK) approach and collaboration with local forest communities, Perhutani plays a vital role in creating fair benefit-sharing mechanisms, preserving ecological sustainability, and ensuring economic and social efficiency in forest resource utilization. The broad biomass market opportunity—both export and domestic (co-firing)—alongside participation in renewable energy development, has shifted the company’s portfolio from longterm crops such as teak, pine, and mahogany toward short- to medium-term energy crops. Biomass business development is thus regarded as an environmentally friendly venture aligned with sustainable forest management principles, emphasizing the 3Ps: Planet, Profit, and People. Indonesia’s wood pellet biomass products exhibit strong comparative advantage (DRC and DRCR < 1), yet their competitive advantage in international markets remains limited (RCA for 2016–2023 is generally < 1). Export Product Dynamic (EPD) analysis places Indonesia in a ‘rising star’ position, reflecting export market share growth alongside increasing global demand, albeit still lagging behind Vietnam. This indicates significant potential to enhance competitiveness to a level comparable with Vietnam and Malaysia, particularly through the development of an integrated upstream–downstream biomass industry (HTE–plant) to improve supply continuity, product quality, supply chain efficiency, and economies of scale. Greenhouse gas (GHG) emission analysis— particularly CO2 emissions—based on Life Cycle Assessment (LCA) shows that biomass feedstock in the form of woodchips emits 228 g CO2/kWh, which is four times lower than coal (70% of emissions originate from industrial processing due to electricity sourced from coal-fired plants). Economically, the production cost of biomass—around IDR 995.000/ton—is higher than PLN’s maximum benchmark price (IDR 775.000/ton). Therefore, fiscal policy intervention is required, including increasing the carbon tax from IDR 30.000/ton CO2eq to at least USD 10/ton CO2 eq, part of which can be allocated as green incentives. From a policy perspective, Indonesia’s energy policy has yet to reflect synchronization between ambitious transition targets and practical implementation instruments. Fiscal incentives, pricing policies, and cross-sectoral regulations have not fully supported the acceleration of renewable energy utilization, particularly forest-based biomass from HTE. One key barrier lies in coal subsidies through the Domestic Market Obligation (DMO) policy, the limited economic value of carbon, and overlapping regulations between the energy and forestry sectors that hinder green investment. Therefore, harmonizing cross-ministerial policies emphasizing efficiency, sustainability, and economic equity—through carbonbased energy pricing and strengthened carbon-market mechanisms—is urgently needed. The biomass development process in Perhutani, as a new business (new product development), adopts Burrow’s (2008) New Product Development Theory. The go or not go decision regarding biomass business based on HTE is determined through three main stages: creating product ideas, designing new products, and producing new products. Each stage is evaluated in terms of technical, market, economic, and institutional feasibility to determine whether the biomass project should proceed (go) or be discontinued (not go). Research findings show that overall, this business development falls under the go category, meeting criteria such as: (a) Technical feasibility, including sustainable HTE feedstock supply and environmental benefits (emission reduction up to four times lower than coal); (b) Strong domestic and export market potential—particularly to Japan and South Korea—enhancing Perhutani’s biomass commercialization prospects. However, from an economic standpoint, biomass co-firing prices and related policy frameworks remain conditionally since PLN’s highest purchase price (HPT) is still below the biomass economic price. Moreover, policy gaps in the energy sector continue to hinder competitiveness, especially for renewable energy derived from biomass. In conclusion, vertical integration of the biomass business, the application of the MUK approach, and effective CPRs governance form the essential foundation for achieving sustainable forestry systems, enhancing land value, promoting a circular economy, generating economic value for both the company and forest communities, and supporting Indonesia’s Net Zero Emission 2060 target. Keywords: biomass, cofiring, CPRs, energy plantation forest, multi-forestry enterprise