Business Opportunity of Biomass Power Plant in Indonesia

Indonesia, one of the richest country in the world, has many potential of biomass energy which has not utilized yet. Palm oil waste is example for biomass energy. Since 2008, Indonesia is the biggest palm oil producer in this world as a matter of fact we only utilized less than 2% palm oil waste. There are more than 98% which can be managed and commercialized then become money.

PTPN III, is the one and only one which produces electricity by using their palm waste. It’s PLTBS Sei Mangkei located in Medan, North Sumatera. It produces 7 MW, using a half for own-use and the other for supplying PLN as excess power.

In the past, excess power is the most uninterested choice for investor because the price is very unworthed. Recently, government has released Feed-in-tariff for biomass price. Feed-in-tariff is standard price validated by government and electricity state electricity of company (PLN) have to offtake it by using that price. Government calculate that price by feasibility of economic. It means government has guaranted economic feasibility of biomassa business even excess power scheme.

According to those potential and feed-in-tariff in Indonesia, many investor has been ready to start and develop biomass business. I have several recommendation for you to involve in biomass business :

1. Find the palm company

There are so many palm company in Indonesia which lack of equity to develop biomass business. You should use this opportunity to get closer with them.

2. Make supply contract agreement

Approach them to build supply contract agreement soon to guarante feedstock for your power plant.

3. Choose the palm company locating nearer with PLN transmission line

Farther from transmission line, higher your investment cost. Using the opportunity of many unutilized palm waste to choose the effective one.

4. Communicate with local citizen.

Local citizen has many couleagues and information which you don’t have, moreover in Indonesia. You could discuss with me as Indonesian citizen when you intend to start biomass business in Indonesia. Do not hesitate to contact me (Andi Hendra Paluseri / +62857 6262 3579/

Tentang andihendra

Andi hendra paluseri adalah perantau asal medan yang menyelesaikan pendidikannya S1 di ITB jurusan teknik elektro (Tenaga Listrik).
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