The Ambition Of Co-firing Co-firing Co-Coal PLTU Is Considered Ancam Forest In Kalimantan

Coal (photo: dock. intermediate)

JAKARTA - The Indonesian government continues to encourage the development of biomass as an alternative fossil fuel, with various policies to support biomass expansion.

To explore the plan, CelIOS conducted a study related to the implications of the plan to develop the Energy Plant Forest (HTE) in Indonesia, especially for biomass purposes, as well as its impact on forest management, regulatory capacity, land access, and agrarian reform in the forestry sector.

Executive Director of the Center of Economic and Law Studies (CELIOS) Bhima Yudhistira said that the large need for PLTU co-firing from wood pellets is not only for domestic needs but also for exports, one of which is to Japan.

"The biggest buyers of wood pellets from Indonesia are Japan and South Korea with 10 million tons and 64 million tons each throughout 2023", said Bhima.

Bhima added, in the ambition to achieve lower carbon emissions, his party sees the expansion trend of Japanese companies in particular controlling the plantation forest industry in Central Kalimantan through companies that manage from upstream to downstream, with loose certification that ignores environmental problems, agrarian conflicts, and ecology. Japan's ambition has triggered deforestation in Kalimantan.

Japan's decarbonization commitment through standards such as the Japanese Agricultural Standard (JAS), the Green Purchasing Act (GPA), and the Eco Mark Program (EMP) proved less effective in dealing with supply chain issues at PT. Korintitih Hutani, because this certification is voluntary and non-binding, "explained Bhima

He continued, the Japanese government only relies on Indonesia's problematic Kayu Legality Verification System (SVLK). Meanwhile, Indonesia's market-driven legal framework makes certification more as a marketing tool than a form of substantial compliance.

Meanwhile, Muhamad Saleh, a BELIOS Legal Researcher, explained that there is a vulnerability to HTE regulations referring to the circumstances in which the rules that cover all aspects related to HTE, from the level of law to implementing regulations, have loopholes that can cause various problems.

For example, regarding the arrangement of Forestry Multi-Employment, he assessed that he had leeway in supervising concession holders, starting from the reporting process, performance evaluation, and conflicts that were still happening. This condition is also exacerbated by the government's weak ability to carry out surveillance.

Saleh also revealed in the study findings that there were strong indications that the election of PT Mutagung Lestari (Mutu International) as an auditor was driven by an interest relationship with Japan. Korintigan, as a joint venture company between Korindo (Korea-Indonesia) and Oji Holdings (Japan), seems to have taken advantage of this relationship. For the record, PT Mutuagung Lestari (Mutu International) has long been involved in drafting Plywood standards and certifying companies for the Japanese market since 1991.

According to him, National Strategic Projects are provided with convenience in the management of Forest Areas with priority in the Inauguration of Forest Areas, allowing exceptions to common procedures. PSN is not required to follow the Forest Area Boundary Arrangement procedures and is allowed to release in the Conversable Production Forest Area or Permanent Production Forest Area.

"The proposal to change the function of the Forest Area is fully determined by the central government without the involvement of the local government. In addition, PSN is exempt from the obligation to pay Non-Tax State Revenue (PNBP) for the use of forest areas, exemption from compensation, and rehabilitation of Watersheds (DAS)," said Saleh.