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Opportunities in production of wood pellets for of Environment and Forestry (KLHK) is requesting support
renewable energy and involvement from organisations, institutions, ministries
Several companies are considering the commercial potential and local communities to achieve this goal.
in the wood pellet industry. This sector is expected to grow The Director of Inland Water and Mangrove Rehabilitation
due to the global movement toward renewable energy sources at the Ministry of Environment and Forestry, Inge Retnowati,
and in Indonesia several companies are investing in wood said that this target is contained in Presidential Regulation

pellet factories. (Perpres) Number 120 of 2020 concerning the Peat and
For example, PT Indika Energy Tbk (INDY) is allocating Mangrove Restoration Agency (BRGM).
US$21 million for its factory project this year. The factory is The Decree aims to accelerate implementation of mangrove
expected to be operational by year end with a production rehabilitation in North Sumatra, Riau, Riau Islands, Bangka
capacity of 10 tonnes per hour. Belitung, West Kalimantan, East Kalimantan, North Kalimantan,
Also, PT Maharaksa Biru Energi Tbk (OASA) is developing Papua and West Papua.
renewable energy projects by constructing biomass-based
factories in Bangka, Blora, and Banten. Diversifying export markets
Another company, PT Sumber Global Energy Tbk (SGER) The government is encouraging companies to target new

has diversifed its business by selling processed wood pellets markets such as India, ASEAN, Africa and Latin America to
to the energy industry. In other news, PT Mitra Biomass boost export growth.
International, a joint venture company between PT Mitra Trade Minister, Zulkifi Hasan, explained that a task force
Investindo Tbk, PT Pima Aset Lestari and Interra Resorts on this issue has been established. Hasan explained that the
Limited are also in the wood pellet business. task force is also responsible for accelerating the completion
of negotiations on comprehensive economic partnership
Ministry aims to achieve 8 million hectares of social agreements, especially the Indonesia-European Union Economic

forestry by 2024 Partnership.
The Ministry of Environment and Forestry (KLHK) is optimistic
that it can realise eight million hectares of social forestry wirestock
approvals by 2024.
Bambang Supriyanto, the Director General of Social
Forestry and Environmental Partnerships at the Ministry of
Environment and Forestry, stated that as of September 2023,
social forestry approvals have been granted for 6.3 million
hectares, approximately half of the 12.7 million hectare target.

Bambang explained that social forestry, a national strategic
project, had been progressing slowly due to a 35 percent
budget cut during the three-year Covid-19 pandemic.

Rehabilitation of 600,000 hectares of mangrove forest
The Indonesian government has set a target to restore 600,000
hectares of mangrove forest by the end of 2024. The Ministry