the-hijackers-of-the-energy-transition-d98e63b108dc9869.pdf

This report by Trend Asia examines the implementation of biomass co-firing in Indonesia's coal-firing power plants (PLTU), arguing that the energy transition is being 'hijacked' by powerful conglomerates and politically connected elites. The document details how these actors utilize energy wood plantations (HTE) to profit from government incentives while causing deforestation and land conflicts with indigenous and local communities.

• The energy transition industry in Indonesia is dominated by corporations owned by large capital owners and business owners with strong ties to ruling elites, including those who previously supplied coal to power plants now supplying wood biomass to PT PLN.
• There is a significant gap between current energy wood plantation (HTE) allocations and the land required to meet the biomass needs of coal-firing power plants. While 188,772 hectares are currently allocated, Trend Asia estimates that at least 2.3 million hectares would be required to sufficiently supply wood biomass for co-firing.
• PT Perusahaan Listrik Negara (PLN) aims to implement 10-percent biomass co-firing in 107 Coal-firing Power Plants across 52 locations by 2025 to increase the new and renewable energy (EBT) mix to 23 percent.
• Large conglomerates are utilizing 'shadow companies' or unclear vertical structures to hide beneficial ownership and evade sustainability commitments. For example, PT Muara Sungai Landak (PT MSL) is linked to the Sinarmas Group/Asia Pulp and Paper (APP) despite denials, and PT Permata Nusa Mandiri (PT PNM) is linked to the Salim Group.
• The development of HTE is linked to deforestation and land grabbing. Trend Asia notes that 38% of existing industrial timber plantation (HTI) areas as of 2022 were gained from deforestation, and 35.3% of the 31 HTE concession areas (491 thousand hectares) are natural forest areas.
• Biomass co-firing projects have led to severe social conflicts and human rights issues. In Merauke, Papua, PT Selaras Inti Semesta (PT SIS) is accused of using 'manipulation, intimidation, and money game tactics' to grab land from the Marind people, resulting in malnutrition and stunting among local children.
• Field monitoring of PLTU Rembang, PLTU Indramayu, and PLTU Adipala Cilacap revealed that these plants use sawdust with high water content (over 25%) sourced from small-scale woodworking businesses, contradicting PT PLN's official plan to use wood pellets.
• State-owned enterprises (SOEs) are heavily involved in biomass development. Perhutani targets 64 thousand hectares for biomass plantations and has signed agreements with PLN to supply wood chips to PLTU Pelabuhan Ratu and PLTU Rembang.
• The report identifies a 'carbon debt' associated with burning forest biomass. Trend Asia estimates that land clearing for HTE will result in a carbon debt of 26.48 million tons of carbon emissions.

APA

Trend Asia (n.d.). the-hijackers-of-the-energy-transition-d98e63b108dc9869.pdf. https://trendasia.org/wp-content/uploads/2024/10/The-Hijackers-of-the-Energy-Transition.pdf

Chicago

Trend Asia. the-hijackers-of-the-energy-transition-d98e63b108dc9869.pdf. n.d. https://trendasia.org/wp-content/uploads/2024/10/The-Hijackers-of-the-Energy-Transition.pdf.

Wikipedia

{{cite report |author=Trend Asia |title=the-hijackers-of-the-energy-transition-d98e63b108dc9869.pdf |url=https://trendasia.org/wp-content/uploads/2024/10/The-Hijackers-of-the-Energy-Transition.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trendasiandthehijackersoftheenergytransitiond98e63b108dc9869pdf, author = {{Trend Asia}}, title = {{the-hijackers-of-the-energy-transition-d98e63b108dc9869.pdf}}, institution = {Trend Asia}, url = {https://trendasia.org/wp-content/uploads/2024/10/The-Hijackers-of-the-Energy-Transition.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }