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The term “biofuel” includes among others biogas, biodiesel and bioethanol. The last two are the main kinds of biofuel (Lim et al. 2016). But biofuel can be also produced out ot wood inf form of wood pellets. There exist various technics and methods of production for every kind of biofuel. As agricultural country, Indonesia has a big opportunity to produce biofuel from biomass. With its resources, Indonesia can mainly produce biodiesel (Lim et al. 2016).


In 2006, two biodiesel plants with a production capacity of 215 million liter were established in Indonesia. By 2012, the number of biodiesel plant increased to 26 plants with total production capacity of 3.78 million tons. The production capacity of those plants was only 42%  of the running capacity, since some companies prefer to produce CPO (crude palm oil) for food rather than for fuel purposes. In 2012, the biodiesel production was 1.6 million tons. Roughly, around 5.5% of Indonesias total oil palm area produced CPO for biodiesel. 72% of the CPO production was exported to China, EU, and US (Casson et al. 2014).

Wood pellet production is relatively new in Indonesia. Indonesia tried to fulfill at least 2 million tons of wood pellet to Korean market in 2015. But Thrän et al. (2017) reported that even when Indonesia and Malaysia combined, the wood pellet exported in 2014 and 2015 was less than 150 and 60 thousand tons respectively. Most of the wood came from wood industry waste, while the rest are expected to be fulfilled by utilizing abandoned land. Wood pellet companies from South Korea with Indonesian state-owned forestry enterprises are trying to utilize several million hectares abandoned land

Descriptions of Policy measures


Perkasa A. 23 March 2018. Perusahaan Sawit 'Pengemplang' Pajak Mulai Ditelusuri. CNN Indonesia. [available from:], lass access: 27.01.2019. (For which passage?) 

Taylor M. 26 April 2013. Indonesia cuts crude palm oil tax to 9% for May. Reuters News. [available from: http://], last access: 27.01.2019.


Thrän et al. 2017. Global Wood Pellet Industry and Trade Study 2017. Task 40. IEA Bioenergy. [available from:], last access: 27.01.2019.

yes you are right, It was my fault. I want to address that there is emerging use of wood pellet as bioenergy source in Indonesia. But its not a fit to put in this context (of biofuel). Thank you very much Jana Schultz

I added again because i thought it is importen for you? I looked it up and biofuel can be produced from wood pellets, are you sure that Indonesia uses the pellets for fuel ?

No, I guess its better if this only about palm oil. I could only found two references about production of wood pellet in Indonesia. Its on very early stage (plantation pilot program), and all the production (unknown amount) is exported to Korea. If I may say, the consumption of wood-pellet in Indonesia is nearly zero. Thank you for your suggestion.