Development of a biomass supply chain ecosystem to support co-firing in Indonesian CFPPs for energy transition success

Biomass, as a renewable energy resource, plays a strategic role in Indonesia’s energy transition, particularly in achieving the Enhanced Nationally Determined Contribution (ENDC) 2030 and the Net Zero Emissions (NZE) 2060 targets. One of the key strategies is the co-firing program in coal-fired power plants (CFPPs), which allows partial substitution of coal with biomass without requiring large investment costs or long implementation times. However, the success of this program depends on the establishment of a biomass supply chain ecosystem, a collaborative, multi-actor network involving suppliers, processors, end-users, regulators, and supporting institutions that interact with each other to create sustainable value. Unlike traditional linear supply chains, this ecosystem requires interdependence, co-creation, and value-based coordination among heterogeneous actors. In the Indonesian context, this approach is critical to address the complexities of governance, logistics, and sustainability while aligning cross-sectoral interests. Current regulatory frameworks remain insufficient compared to more established energy sectors, leading to gaps in coordination, pricing mechanisms, and long-term supply security. Developing a biomass supply chain ecosystem supported by effective regulatory policies could generate significant multiplier effects, particularly for smallholders and micro-enterprises, and is essential for the success of Indonesia’s energy transition.