Community Based Bioenergy

Overseeing bioenergy policies so they are not damaging forests and peatlands, while pushing for a fair and sustainable renewable energy transition at the community level.

Why ?

Indonesia has set ambitious targets for bioenergy development, particularly palm oil-based biodiesel. Since the biodiesel policy was launched in 2006, the biodiesel blend ratio has been steadily increased from B2.5 in 2008 to B35 in 2023, with a target of reaching B40 in the Enhanced NDC document. With this achievement, Indonesia has become the country with the highest biodiesel blend ratio in the world.

This policy was initially designed to support energy transition, enhance national energy independence, and reduce emissions from the transportation sector. However, in practice, the abundance of palm oil production has instead driven the use of biodiesel as a tool for stabilizing CPO prices rather than as a clean energy strategy. As a result, the effectiveness of biodiesel in reducing emissions is questionable, especially if the raw material comes from the expansion of palm oil plantations on forest or peatlands.

Amidst criticism of industrial-scale bioenergy, opportunities are emerging from community-based approaches. Small-scale bioenergy managed by local communities with non-palm oil raw materials such as agricultural waste or local biomass can support a more equitable, low-emission energy transition rooted in local needs and capacities.

To ensure that bioenergy development is in line with climate and social justice goals, MADANI Berkelanjutan works in three main areas:

Advocating for strict sustainability standards for biodiesel feedstocks, to prevent palm oil expansion in vulnerable areas such as natural forests and peatlands.
Developing bioenergy models based on waste and non-food crops by establishing efficient, low-emission local supply chains that do not compete with food security.
Empowering local communities as small-scale bioenergy producers and managersso that the energy transition is not solely focused on large industries but also creates local economic opportunities and strengthens energy sovereignty at the village level.