Written by: Kevin Johanes Ramoski Aritonang & Anisah Fadilah
Designed by: Adinda Nur Aulia
In 2022, Indonesia initiated a significant policy shift by allocating parts of its land for “energy plantation forests.” These areas cultivate fast-growing trees, like Gliricidia sepium and Calliandra calothyrsus, which are harvested and processed into wood pellets as a cleaner alternative to coal. This initiative, centered in Pohuwato Regency, Gorontalo, has positioned the region as the epicenter of an ambitious biomass energy model. Over the past two years, one company alone has exported 230,000 tons of wood pellets, making biomass a significant contributor to Indonesia’s foreign exchange earnings. However, this raises a pivotal question. Is this a race toward a sustainable future or a potential environmental disaster?
Biomass, derived from organic materials like wood, agricultural residues, and animal waste, is often branded as a renewable energy source with the potential to replace fossil fuels. Branding itself as a renewable energy source, biomass presents promising economic opportunities. Indonesia’s vast forested areas provide an edge in meeting the global demand, particularly from countries like Japan and South Korea, which are phasing out coal. According to the International Energy Agency, global bioenergy use grew by 3% between 2010 and 2022, emphasizing the sector’s expanding role in the global energy landscape. However, as the biomass industry expands, so do the costs, economically and ecologically. Rapid growth in biomass production has led to deforestation, biodiversity loss, and escalating environmental degradation. Are these hidden costs of our so-called “green energy” revolution?
The numbers are both impressive and alarming. Biomass energy presents a potentially lucrative opportunity for Indonesia. In 2021, Japan and South Korea accounted for 99% of Indonesia’s biomass exports, generating 16,37 million US dollars in revenue, according to the Central Bureau of Statistics. Yet, as demand grows, the production source has shifted from waste materials to large-scale deforestation. Over 1,100 hectares of tropical rainforest have already been cleared, endangering ecosystems and species such as the dwarf buffalo (Bubalus depressicornis) and babirusa (Babyrousa celebensis). The destruction of vital biodiversity in pursuit of profit is a cost too high to ignore.
Indonesia’s biomass industry is now under global examination. South Korea’s legislators recently called for a suspension on Indonesian wood pellet imports, citing satellite data linking biomass production to deforestation. The warnings are clear: unchecked expansion could destroy over 10 million hectares of tropical forest, equivalent to eight million FIFA football fields. Even more concerning, biomass energy plants can emit 60% more carbon per megawatt-hour than coal. This revelation challenges the narrative of biomass as a clean energy solution, suggesting it might merely be another fossil fuel in disguise.
Faced with these dilemmas, how can Indonesia harness biomass’s potential while mitigating its environmental impact? One effective strategy lies in Environmental Management Accounting (EMA), which integrates environmental considerations into business practices. By tracking ecological costs and optimizing resource use, EMA enables corporations to identify inefficiencies and implement sustainable solutions. For instance, life-cycle costing and activity-based accounting can help industries monitor the actual environmental costs of biomass production, promote responsible practices, and ensure compliance with global sustainability standards.
EMA is more than a theoretical concept; it is a proven tool for transforming industries. By incorporating environmental budgeting and benchmarking against science-based targets, EMA provides a clear roadmap for achieving sustainability goals. Its applications extend beyond biomass, offering insights for sectors like mining and energy. With EMA, companies can minimize risks, enhance resource efficiency, and align operations with the growing global demand for sustainability.
However, industry action alone is not enough. Government intervention is crucial. Policymakers must incentivize sustainable technologies, enforce stricter regulations, and foster public-private partnerships to promote EMA adoption. These efforts would protect Indonesia’s forests and cement the country’s position as a global leader in renewable energy. Under the Indonesia Maju Cabinet and the leadership of Prabowo Subianto, there is an opportunity to turn these challenges into triumphs. The question is: Will the government rise to the occasion?
The stakes are immense, but so are the opportunities. Collaboration between the government, businesses, and conservation organizations is essential to preserve Indonesia’s ecological heritage while contributing to the global energy transition. This is a decisive moment to shift the trajectory of the biomass industry. By adopting innovative approaches like EMA and committing to sustainable practices, Indonesia can lead toward a greener, more sustainable future.
“The future lies in our hands. Will we embrace responsibility or continue down a path that compromises our environment for short-term gain?” The clock is ticking.
References:
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