Potential forest biomass resource as feedstock for bioenergy and its economic value in Indonesia

Indonesia has abundant forest biomass resource, which should not be considered as a low economic value resource. This forest biomass resource can be converted into bioenergy through various technologies and it becomes one of sources in Indonesia's energy mix. This paper focuses on forest residues generated primarily from the harvesting of natural production forests and industrial forest plantations; and wood processing mill residues. The estimated total potential forest biomass in Indonesia for bioenergy in the year 2013 was 132 PJ. About 50.4% resulted from harvesting residues and 49.6% from wood processing residues. Riau province has the largest potential bioenergy followed by Central Kalimantan, East Kalimantan, East Java, South Sumatera, Central Java and Jambi, which all together accounted for 87% of total potential bioenergy. Moreover, three major islands accounted for 95% of total potential bioenergy. Using a conversion return approach, the economic value of forest biomass when it was pelletized was estimated to be about US$ 5.6 per ton wood residues. The economic value of forest biomass is more sensitive to changes in the price of wood pellet than to changes in the collection and hauling cost of wood residues.