Amid Indonesia’s ambition to achieve net-zero emissions targets and transition to renewable energy, Energy Plantation Forests (HTE) have been proposed as a controversial solution. Behind this promise of green energy, Indonesia’s natural forests are overshadowed by massive deforestation and alarming environmental impacts. In order to meet the ambitious target of reducing emissions by 31.89% (43.2% with international support) by 2030, the forestry and land use (FoLU) sector along with energy will be boosted by up to 97%. Forests, which should serve as carbon shields, are instead under threat of being sacrificed. The report of Forest Watch Indonesia (2023) serves as a clear warning. The development of HTE has been revealed to seize 55,000 hectares of natural forests. It even comes with an additional threat for 420,000 hectares of other natural forests that function as life support systems.
Indonesia, through its National Energy Policy, has set the targets for national energy mix as stipulated in Government Regulation No. 79/2014 on National Energy Policy. To achieve the national energy mix target of 23% by 2025, the Government, through the Ministry of Environment and Forestry (KLHK), plans to release 6.91 million hectares of forest areas, 78.39% of which will be for oil palm plantations, a primary source of non-electric bioenergy. Additionally, KLHK has allocated 0.44 million hectares of forest areas for HTE in the form of borrow-to-use forestry permits. The Ministry of Agrarian and Spatial Planning (ATR/BPN) also plans to develop 4 million hectares of specialized energy plantation land from 2016 to 2025, exacerbating the already bad forest and land management. The energy transition has become a new driver of deforestation in Indonesia.
Instead of protecting the remaining natural forests to achieve emission reduction targets by 2030, KLHK is targeting the development of 1.29 million hectares of forest areas for HTE among 31 forestry entrepreneurs. Strangely enough, to achieve the net sink 2030 target from the forestry and land use sector, KLHK aims to develop 6 million hectares of new plantation forests, bringing the total area of plantation forests in Indonesia to 11 million hectares. Although the FoLU Net Sink 2030 policy driving the expansion of plantation forests is intended as a rehabilitation effort, the practice of forest plantation companies involves deforesting natural forests. Without mitigation to protect natural forests, FWI projects that 4.65 million hectares of natural forests will disappear due to plantation forest development (especially for energy) within HPH, HTI, and Social Forestry (PS) concessions.
Asia Trend Research (2023) adds that the energy transition through HTE has the potential to plunge Indonesia into “emission debt” due to biomass burning. Ambitious targets coupled with damaging practices are feared to be counterproductive to climate change mitigation efforts.
Energy Plantation Forests: Targeting the Bangka-Belitung Islands
Environmental damage due to irresponsible HTE practices has always been highlighted. Massive deforestation, loss of biodiversity, and confiscation of indigenous lands are just a few examples of the visible negative impacts. Not only that, unsustainable HTE practices also have the potential to exacerbate carbon emissions release and hinder environmental conservation efforts.
In Bangka Island, Bangka Belitung Province, the ambition for energy transition and net-zero emissions targets are disrupted by controversial Energy Plantation Forest (HTE) practices. At least PT Bangkanesia, with its 51,269-hectare permit under SK.639/Menhut-II/2009, and PT Istana Kawi Kencana, with its 14,116-hectare permit under SK.20/Kpts-II/1998, have committed to such practices.
Within PT Bangkanesia and PT Istana Kawi Kencana’s concessions, significant deforestation has been recorded. FWI data shows that 2,758 hectares of natural forest were lost from 2017 to 2021. Meanwhile, it is also noted that there are still remaining natural forests within both concessions as much as 4,332 hectares, which are expected to be the target for planned deforestation to meet future HTE development needs.
PT Bangkanesia’s license status is already inactive. The company’s business license was revoked in 2022 by KLHK. There is no further information regarding PT Bangkanesia’s future business continuation.
PT Istana Kawi Kencana’s licensing status is also in jeopardy. Its license is at risk of revocation due to compliance issues. In 2023, the Bangka Belitung Regional House of Representatives (DPRD) recommended the revocation of licenses for six industrial plantation forest management companies, including PT Istana Kawi Kencana, to the Ministry of Environment and Forestry (KLHK). This recommendation is based on findings of violations and environmental damage by these companies.
These facts indicate that the energy transition ambition through HTE in Bangka is rushed and shrouded in practices that potentially damage forest and environmental resources. Natural forests, which should be preserved, are instead being cleared for energy crops, triggering an endless cycle of emission debt.
This situation makes the efforts for energy transition which should be aimed to be reducing emissions, potentially worsening the climate crisis instead. It shows that more responsible and sustainable policies are needed. Without policy review and corrective measures from the government, efforts for energy transition risk leading Indonesia into a deforestation abyss and failure to achieve net-zero emissions targets.
Editor's Notes:
- HTE or the Energy Plantation Forest is being allocated to 31 forestry concessions in Indonesia by the Ministry of Environment and Forestry (KLHK).
- Energy plantation forest allocation in Bangka Belitung Province reaches 6,000 hectares from both concessions, PT Bangkanesia and PT Istana Kawi Kencana. There is no information or report yet on the types of trees to be planted in these concessions.
- Based on FWI field findings, HTE companies are clearing natural forests for operational activities, contradicting claims that HTE is part of rehabilitation efforts.
- Deforestation projections for energy plantation forests are based on concession accessibility to co-firing PLTU and how easy it is to apply for a permit in the forestry sector.
5. HTE can also originate from the release of forest areas intended for oil palm plantations. FWI has identified two companies transforming permits from oil palm plantations to energy plantation forests, which are PT Banyan Tumbuh Lestari and PT Inti Global Laksana.
FOREST WATCH INDONESIA CORRESPONDENCE
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Sempur Kaler Street No 62 Sempur Village, Bogor, Indonesia
+62 857-2034-6154
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