C Lombok, NTB (ANTARA) - On a hillside surrounded by rice fields in Beber Village, Batukliang sub-district, Central Lombok District, West Nusa Tenggara, stands a company supplies biomass for power plants.
That morning, Syamsul Hadi was busy answering his constantly ringing phone. The 34-year-old entrepreneur was arranging a meeting with a vehicle dealer to discuss the planned purchase of eight new trucks and one sport utility vehicle.
Hadi is the founder of PT Syahroni Rizki Mandiri, a company that supplies biomass for the co-firing program at the Jeranjang Steam Power Plant (PLTU) and the West Sumbawa Steam Power Plant.
As biomass substitution gains traction in line with the Indonesian government’s efforts to reduce greenhouse gas emissions from the power generation sector, Hadi has seen rising demand for biomass supplies. The increase has prompted him to expand his fleet from 11 to 19 trucks to support business operations.
Biomass substitution, which typically uses plant materials, wood, and various forms of organic waste, has become increasingly adopted due to its relatively simple application, lower cost, and efficiency compared with introducing new clean coal technologies or carbon capture systems.
The co-firing program does not require major modifications to existing power plant boilers, resulting in significantly lower investment costs while supporting emissions reduction efforts.
Villages as economic hubs
The biomass industry is helping transform villages into new economic centers by creating jobs and offering prospects of higher incomes for rural communities.
Materials once considered waste, such as sawdust that previously contributed to environmental pollution, are now used as fuel in power plant furnaces. Tree felling residue, including branches, is also processed into woodchips to support biomass supply.
Syamsul Hadi, who began his career as a timber entrepreneur in 2006, said the biomass sector has opened market opportunities for village communities while ensuring a steady flow of economic activity at the local level.
“When I was still running a timber business, I only employed around 10 workers. Now, the number of workers directly employed by our company has reached 50,” he said during an interview in mid-November.
Despite operating in a rural area, workers earn an average monthly income of about Rp5 million, or roughly 300 US dollars. The jobs include woodchipping machine operators, loader operators, truck drivers, and loading and unloading workers.
The wages are significantly higher than the minimum wage in Central Lombok District as well as the provincial minimum wage of West Nusa Tenggara, which stands at Rp2.6 million per month.
In September 2022, Hadi decided to fully focus on becoming a biomass supplier for power plants. His interest grew after researching the sector online and holding discussions with the West Nusa Tenggara office of state-owned electricity company PLN.
He secured his first three-month contract in February 2023 to supply 100 tons of biomass. The company has since expanded its capacity to supply up to 2,500 tons of biomass per month and has obtained a long-term cooperation contract with the state-owned utility spanning 10 years.
The biomass substitution program has also encouraged technological adaptation and innovation in villages. Hadi initially built his first woodchipping machine using a diesel engine, but it proved insufficient for the workload. He later purchased damaged dump truck engines, repaired them, and converted them into woodchippers.
The company now operates 33 woodchipper units, most of which are assembled from refurbished dump truck engines. It also manages 40 biomass storage warehouses and employs more than 500 workers across its operations.
Recognizing the need for long-term sustainability, Hadi has begun promoting energy tree cultivation to ensure a stable supply of biomass raw materials.
The initiative is carried out in collaboration with the Wanna Lestari Community Forest, which comprises 530 member families managing a 420-hectare social forestry area in Dara Kunci Village, Sambelia sub-district, East Lombok District.
In January 2025, at least 50,000 seedlings of various tree species, including sengon and eucalyptus, were planted across a 76-hectare area on the western slope of Mount Rinjani. A follow-up planting of another 50,000 seedlings is scheduled for December 2025.
The biomass substitution program is encouraging villages to become energy producers rather than merely consumers. It has created a local supply chain involving energy tree farmers, sawmill waste collectors, woodchip processors, suppliers, and power plants.
Thousands of people now depend on the biomass co-firing program for their livelihoods. As Indonesia faces climate challenges and continued reliance on fossil fuels, biomass is increasingly viewed as a transitional solution that supports energy security while strengthening village economies.
Sustainable future
Population growth, rising mobility, and digitalization have driven up energy demand in Indonesia. In response, the government is promoting energy self-sufficiency and accelerating the transition to renewable energy as part of its commitment to reducing carbon emissions and lowering reliance on coal-fired power.
Achieving the net zero emissions (NZE) target will require a clean, stable, and domestically sourced energy supply. In this context, biomass is seen as playing a strategic role as a transitional solution toward national energy independence.
Manager of the Jeranjang Power Plant Business Unit, Yunisetya Ariwibawa said the use of biomass has increased steadily each year in line with the country’s energy transition agenda.
The Jeranjang PLTU in West Lombok District used 28,675 tons of biomass in 2024, with a green energy output target of 22,940 megawatt-hours. Actual biomass utilization reached 29,009 tons, generating 25,043 megawatt-hours of green electricity.
In 2025, the power plant is targeting the use of 35,200 tons of biomass, which is expected to produce 28,847 megawatt-hours of renewable electricity.
Economist Muhammad Firmansyah from Mataram University said wood processing waste used as biomass feedstock can be considered “brown gold,” noting that its potential has yet to be fully explored.
According to him, the biomass sector is supported by a stable supply of waste materials, growing demand for renewable energy, and relatively low raw material costs. Integrating factories, village cooperatives, and energy off-takers could help ensure the long-term sustainability of the biomass industry.
“Once the supply chain is well established, biomass will no longer be just a factory-based project, but a value-added ecosystem with continuous economic circulation,” he said.
Firmansyah added that biomass processing does not require large capital investment but has strong potential to create jobs for local communities. With proper governance, he believes the biomass co-firing program can gradually contribute to poverty reduction.
Often overlooked, wood waste is emerging as a promising resource as Indonesia moves toward a more sustainable and resilient energy future.
