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Advances in Social Science, Education and Humanities Research, volume 628
Universitas Lampung International Conference on Social Sciences (ULICoSS 2021)
Global Potential Market of Forest Biomass
Wood Pellets
Rahayu Lestari Hadi Prayitno Novrianti
International Relation Sciences Mechanical Engineering Forestry
Lampung University Lampung University Lampung University
Lampung, Indonesia Lampung, Indonesia Lampung, Indonesia
rahayu.lestari@fisip.unila.ac.id hadi88.tm@gmail.com bayudesmon@gamil.com
Fisko Arya Kamandanu Yunia
International Relation Sciences International Relation Sciences
Lampung University Lampung University
Lampung, Indonesia Lampung, Indonesia
fisko.arya1084@students.unila.ac.id yunia.1029@students.unila.ac.id
Abstract—The Industrial Revolution 4.0 and society I. INTRODUCTION
5.0 encourage disruption not only from technology and
business models but also from climate change. The The transition from non-renewable energy to
Growth of energy demand is one of the triggers for renewable energy has driven the growth of the global
increasing greenhouse gas emissions. Proper wood pellets market. The global wood pellet market is
management of forests and plantations can have a growing but with different characteristics in different
multiplier effect, namely conservation, protection of life countries and regions. Indonesia has the opportunity to
support systems, and sources of biomass fuel. The compete in the global market for biomass wood pellets
International Trade Center shows that Vietnam and [1]. The International Trade Center has published data
Indonesia are the main producers of the Southeast Asia showing that Vietnam and Indonesia are the main
region with an export value of US $ 309,220,000 and US producers from the Southeast Asia region with an
$ 26,764,000 respectively in 2019. Meanwhile, Denmark export value of US$ 309,220,000 and US$ 26,764,000
is the world's largest importer with an import value of US respectively in 2019. Meanwhile, the largest importer
$ 542,474. .000. South Korea is the largest importer in in the world is Denmark with a value of US$
Asia with a value of US $ 362,283 in 2019. Lampung 309,220,000 and US$ 26,764,000, respectively.
Province has a forest area with an area of 1,004,735
imports of US$ 542,474,000 and South Korea of US$
hectares of the 94.1 forested land area in Indonesia.
Increasing the function of some forests in Lampung to
362,283 in 2019 (ITC, 2020). Indonesia's potential is
become Energy Plantation Forests can increase the not inferior to Vietnam's, including Indonesia excels in
production of wood pellets. The growth of biomass wood the availability of a large enough planted forest land. In
pellet production will increase the export balance of addition, the characteristics of Indonesia's forests are
Lampung Province. The political will of European Union tropical climates, high rainfall, and fertile soil.
countries, South Korea and Japan in increasing the use Indonesia has a great opportunity to compete in the
of wood pellets as a fuel for electricity generation is an global wood pellets market. Starting with optimizing
export opportunity for wood pellets in Lampung the Asian market share.
Province. The global Wood Pellet market with a value of
US $ 5324 million in 2020 is expected to reach US $ 8095.4
Indonesian forests which have an area of 94.1
million by the end of 2026, growing at a CAGR million hectares have the potential to produce
(Compound Annual Growth Rate) of 6.1% during 2021- sustainable biomass wood pellets. Not all forest wood
2026. Gorontalo Province, with a planted concession area is managed into wood pellets biomass. only wood that
of 15 thousand hectares, can produce wood pellets of 36 has sustainable production characteristics is processed
thousand tons/year. 20% percent of Lampung Forest is into wood pellets as a source of renewable fuel energy.
increased to THE potential to produce 40 thousand Some biomass energy sources are planted and some use
tons/year. existing trees. The characteristics of these new plants,
apart from being a source of wood pellets, also add to
Keywords—Forest Biomass wood Pellets, Wood Pellets the function of the forest as conservation and
market, global market, Indonesia Wood Pellets protection. Meanwhile, wood pellets from existing trees
must not damage forest functions. Optimized energy
Copyright © 2022 The Authors. Published by Atlantis Press SARL.
This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 332Advances in Social Science, Education and Humanities Research, volume 628
plants are useful for reducing the intensity of Trade liberalization is inseparable from the
environmental damage and have a fairly high economic principle of comparative advantage. Where countries
value in international trade activities. Thus, it can must have advantages in terms of lower production
increase national economic growth. Some of the plants costs compared to other countries. For example,
that have the potential to improve forest function and country A has the advantage of natural resources,
can be a source of wood pellet biomass is Kaliandra, namely the production of steel at low prices.
Bamboo, Sengon, and Mangrove. Planting these plants Meanwhile, country B has the advantage of producing
in the Lampung forest can indirectly optimize the cloth at a lower price. So these two countries will trade
function of the forest in reducing carbon emissions, as with each other because both have production
a life support system to regulate water systems, prevent advantages at lower prices than other countries. So that
flooding, control erosion, and maintain soil fertility. the two countries will benefit from the comparative
Planting these trees can reduce the intensity of advantage they have. Therefore, when a country has a
environmental damage that encourages the comparative advantage and liberalizes trade, that
achievement of Sustainable Development Goals country will have the potential for profit [3].
(SDGs) Point 13 regarding climate change actions.
Some of these trees provide a multiplier effect to the B. Demand and Supply of Wood Pellet in Global
community around the 2 forests. Apart from being a Trade
source of energy, it has a fairly high economic value. The global energy transition has spurred the trading
So that it contributes to achieving the SDGs, namely, of biomass wood pellets. The United States is the
increasing inclusive and sustainable economic growth largest producer and consumer [1]. Meanwhile, the
in Indonesia. United Kingdom, Denmark, and the European Union
countries are the export destinations for wood pellets.
II. FORMULATION OF THE PROBLEM The largest exporters of wood pellets are still controlled
Based on the background above, the formulation of by countries with large land areas such as the United
the problem in this research is how the global market States and Canada. Vietnam is the largest exporter in
opportunities for Indonesian wood pellets are. Southeast Asia. Indonesia is still ranked 26th as an
exporter of wood pellets.
III. METHODOLOGY
Indonesia has a forest area of 94.1 million hectares
This study used qualitative research methods. (BPS, 2020). Lampung's forest is 1.4 million hectares
Creswell (in Noor, 2015, p. 33) [2] states qualitative or 1.49% of Indonesia's total area (BPS Lampung
research as a complex picture, examining words, Province, 2020). Forests have the potential to be a
detailed reports of research objects, and conducting source of renewable fuel-based on wood pellets. Forests
studies in natural situations. The source of data used in that are almost 50% reduced in quality need to be
this study is secondary data related to the object of improved. Forests as a source of biomass fuel can be an
research. Data collection techniques used by alternative in optimizing the function of damaged
researchers are document review and literature review. forests. Optimal utilization of forests as a source of
The data collected includes the dynamics of growth in biomass fuel can open up great opportunities for
exports and imports of Biomass Wood Pellets in the Indonesia to take market share of wood pellet-based
world, data on the production capacity of Wood Pellets biomass in Asia to the Global region.
in Indonesia and Lampung. Identifying Indonesia's
position in the global Wood Pellet market. Furthermore, Indonesia has at least 137 village forests and in
identifying and analyzing the potential of the addition, there is cooperation assistance between the
Indonesian Wood Pellet market at a global level. ICCTF project and the Directorate of BPDASPS
(Directorate of Social Forestry and Cooperatives). The
IV. RESULT AND DISCUSSION collaboration in 2014 has successfully built 214
hectares of community forest with calliandra plants, to
A. Trade Liberalization support the construction of a wood pellet factory [4].
Trade liberalization is the removal of barriers to the Wood pallet production has reached 36.1 in 2016 and
flow of goods and services across national borders [3]. has experienced an average growth of 21%, where the
Elimination of these barriers can be in the form of tariffs target for wood pellet production in 2026 is to reach 2
or non-tariff. Tariff barriers such as customs duties and million. The target of million wood pellets is 8.4 million
additional costs in transactions, while non-tariff barriers per year.
are in the form of quota regulations, licensing, and other
trade terms. Trade liberalization also has a goal, namely Based on BPS data, Indonesia's biomass product
a free market which will ultimately have an impact on exports to Japan in January-April 2020 reached USD
economic growth. Through trade liberalization, it will 15.27 million, an increase of 0.7 percent from the
also have a fairly good impact, namely making it easier previous year. [5] This is one of the Indonesian wood
for foreign investment to enter countries that implement pellet markets in Asia. By optimizing forests as the
it. main source of raw materials for wood pellets,
Indonesia has the opportunity to enter the market in
various developed countries of the world.
333Advances in Social Science, Education and Humanities Research, volume 628
In 2016 - 2020, the global export value of wood increasing every year. This can be seen in the table
pallets increased by 17 percent, consisting of 45 below
exporting countries with an average export value
TABLE I. PERCENTAGE OF EXPORT VALUE OF 10 WOOD PALLET EXPORTING COUNTRIES IN 2016 – 2020
Rank Exporters 2016-2017 (%) 2017-2018 (%) 2018-2019 (%) 2019-2020 (%) 2016-20120(%)
1 United States of America 8 21 16 4 13
2 Canada -1 24 0 8 7
3 Vietnam 44 110 -15 25 41
4 Latvia -5 23 32 2 13
5 Rusian Federation 32 31 43 8 29
6 Denmark 73 137 51 27 72
7 Austria 15 33 -4 -3 10
8 Estonia 27 2 -10 11 7
9 Germany 36 38 9 -4 20
10 Lithuania 33 36 23 -4 22
a.
Source: ITC calculations based on UN COMTRADE and ITC statistics, processed
From table 1.1 it can be seen that there are the 10 export value of 13 percent (USD thousand 981.593).
largest wood pallet exporting countries in the world Then followed by Canada which occupies the second
which are calculated on a percentage basis which have position, Vietnam in the third position with each
a significant increase in the last five years. The United percentage increase in the value of exports by 7 percent
States became the largest exporter in the first position (USD thousand 406.123) and 41 percent (USD
in the world with an average percentage increase in thousand 387.302) in the last five years.
TABLE II. PERCENTAGE OF EXPORT VALUE OF 10 WOOD PALLET EXPORTING COUNTRIES IN 2016 – 2020
Rank Exporters 2016-2017 (%) 2017- 2018 (%) 2018- 2019 (%) 2019- 2020 (%) 2016-2020 (%)
21 Ukraine 56% 96% 13% -2% 41%
22 Slovenia 37% 12% 1% -8% 10%
23 Slovakia 23% 33% 21% 8% 21%
24 Bulgaria 22% 21% 10% -10% 11%
25 Indonesia 76% 224% -34% 21% 72%
26 Sweden -13% -15% -15% 11% -8%
27 France 12% 19% -40% -26% -9%
28 Spain 15% 17% -21% -1% 2%
29 Australia 2484% 20% -69% 466% 725%
30 Serbia -5% 119% -18% -20% 19%
b.
Source: ITC calculations based on UN COMTRADE and ITC statistics, processed
Then from table 1.2 shows that there are 10 wood of Indonesia's exports has increased or decreased
pallet exporting countries globally which are calculated significantly. Seen in 2016 increased to 226 percent and
on a percentage basis, experiencing ups and downs in decreased by 34 percent in 2017. Globally, the export
the last five years. Indonesia occupies the 25th position value of wood pallets in the last five years has reached
in wood pellet exports with an average percentage 17 percent with an export value in 2020 of US$
increase in export value reaching 72 percent in the last 4,185,869,000.
five years. When viewed from 2016 - 2020, the value
TABLE III. PERCENTAGE OF IMPORT VALUE FROM 10 COUNTRIES IMPORTING WOOD PALLETS IN 2016 – 2020
Rank Importers 2016-2017 (%) 2017-2018 (%) 2018-2019 (%) 2019-2020 (%) 2016-2020 (%)
1 United Kingdom 0% 21% 12% 3% 9%
2 Netherlands 42% 100% 129% 157% 107%
3 Denmark 50% 37% -11% -22% 14%
4 Italy 13% 32% 18% -34% 7%
5 Japan 38% 123% 46% 21% 57%
6 Korea, Republic of 63% 86% -31% -9% 27%
7 Belgium 16% 12% 5% 13% 11%
8 France 4% 22% 48% -8% 17%
9 Austria 9% 2% -14% 2% 0%
10 Germany 6% 0% -16% -17% -7%
c.
Source: ITC calculations based on UN COMTRADE and ITC statistics, processed
From table 1.3, it can be seen that 10 countries are increase in the last five years. The United Kingdom is
the largest importers of wood pallets in the world which the largest exporter in the first position in the world with
are calculated as a percentage which have a significant an average percentage increase in export value of 9
334Advances in Social Science, Education and Humanities Research, volume 628
percent (USD thousand 1.715.047). Then followed by increase in the value of exports by 107 percent (USD
the Netherlands which occupies the second position, thousand 518.402) and 14 percent in the last five years
Denmark in the third position with each percentage (USD thousand 425.748).
TABLE IV. PERCENTAGE OF IMPORT VALUE FROM 10 COUNTRIES IMPORTING WOOD PALLETS IN 2016 – 2020
Rank Importers 2016-207 (%) 2017-2018 (%) 2018-2019 (%) 2019-2020 (%) 2016-2020 (%)
21 Finland 75% 28% 11% 7% 30%
22 Canada 0% 17% 23% 27% 17%
23 Ireland -64% 59% 55% -16% 9%
24 Greece 27% 34% -25% 2% 10%
25 Croatia 16% 87% 34% 25% 40%
26 Romania 155% 3% 7% 7% 43%
27 Serbia 313% -57% -10% 76% 81%
28 Czech Republic 28% 9% -7% -4% 6%
29 Norway 9% 69% 31% -60% 12%
30 Slovakia -8% 42% 48% -22% 15%
d.
Source: ITC calculations based on UN COMTRADE and ITC statistics, processed
Then from table 1.4 shows that there are 10 wood wood chip variant (wood in the form of shards or
pallet importing countries globally which are calculated fragments) is subject to a selling price of US$ 61/Ton
on a percentage basis, experiencing ups and downs in in 2019 To boost the production of wood pellets [9], the
the last five years. It can be seen that these 10 countries government makes regulations to provide flexibility in
experienced a fairly high average increase in the value the production of wood pellets, namely the issuance of
of imports, such as Israel, Serbia, and Uruguay. Regulation of the Minister of Environment and Forestry
Globally, the import value of wood pallets in the last No. P.83/MENHLK/SETJEN/KUM.10/2016 social
five years has reached 14 percent with an import value forestry. The Social Forestry Program itself aims to
of US$ 4,565,501,000 in 2020. improve the welfare of the community through a pattern
of empowerment and by remaining guided by the
Based on Government Regulation No. 79 of 2014 sustainability aspect.
concerning national energy policy that Indonesia
targets efforts to increase the contribution of new and With the target of achieving the contribution to new
renewable energy to reach 23 percent by 2025.[6] The and renewable energy, there has been an umbrella
target is described in Presidential Regulation Number regulation in the development of wood pellet
22 of 2017 concerning the General National Energy production based on the Kaliandra forest plant.
Plan. Representatives of the Indonesian Forest Furthermore, it only requires political will and initiation
Entrepreneurs Association (APHI) delivered by the as well as collaboration between the government and
Deputy Chair of Natural Forest Production, Bambang the private sector in realizing it.
Widyantoro, said that the plan to develop wood biomass
energy from production forests (non-perhutani) is an C. Potential of Indonesian Technology in Wood
area of 800,000 ha of Plantation Forests (HTI) for Pellet
energy based on calculations on the Development Road Wood pellets are a type of fuel derived from wood
Map. Production Forest 2019 – 2045. Wood/biomass pellets/wood waste, which are more environmentally
production is produced as raw material for energy from friendly. Wood pellets are made from wood/hardwood
Biomass Power Plants (PLTBM). Therefore, the waste such as calliandra wood, which is then processed
potential for wood pellets in Indonesia is still being into powder and then shaped like pellets with a size of
achieved in the target of meeting domestic needs. 1-3 cm. Wood pellets are intended as an alternative fuel
to replace coal because wood pellets come from plants
Apart from these targets, in Indonesia, it has also which means they have absorbed more carbon dioxide
been developed in one of the provinces, namely and become solid carbon so that in the process of
Bangkalan, Madura. There is 1 hectare belonging to burning wood pellets it does not damage the
Mat Juri which is planted with calliandra plants in the atmosphere. CO2 emissions produced by wood pellets
Kaliandra Energy Garden planting program. The are eight times lower than coal and fuel oil [5].
industrial project also involves other parties such as the Calliandra plants can be grown in a variety of soil types,
ICCTF and the Ministry of Agriculture, so that funding are fast-growing, and produce good quality wood.
and empowerment of local communities can be carried Calliandra plants usually live at an altitude of 150 to
out. Until the end of this wood pellets project by CV 1,500 meters above sea level with rainfall of 1,000 mm
Pintu Lestari, 15 tons have been stored in the production per year.
warehouse [7].
This wood pellet industry can be produced from
Indonesia's wood pellet export policy sets the export energy plantation forests. Energy plantation forest itself
price of wood pellets at US$ 119/Ton in 2017.[8] One is a forest that is developed commercially and
of the variants or wood pellet raw materials, namely the
335Advances in Social Science, Education and Humanities Research, volume 628
optimized to produce wood biomass with a high implements a Green Growth policy related to the
productivity target and a short period. In the world's agenda to tackle climate change. Upon the
development of the energy plantation forest, there are implementation of this policy, the South Korean
two types of plants, namely (short rotation coffee - government took steps to increase energy use by using
SRC) and short rotation wood crops (SWRC). In Wood Biomass. However, the need for Wood Biomass
principle, the two types of plants are intended to get a raw materials is not fulfilled in South Korea, thus
lot of production with a dense planting system and a requiring South Korea to cooperate with other
short rotation cycle. However, it is very unfortunate that countries.
both the SRC and SRWC energy concepts in Indonesia
have not been carried out commercially (Rudianto, Along with the Green Growth policy, South Korea's
2018). Until now still using conventional methods with demand for wood biomass energy sources has
the aim of only for national construction needs. increased. In 2009 the demand for wood pellets
Indonesia now only knows a few types of stem plants increased by 200%. This is the main trigger for the
such as Calliandra calothyrsus, Symplocos fasciculata, South Korean government to collaborate with countries
Vernonia amygdalina, Grilicidia sepium, Piper that have the potential to produce wood pellets, one of
aduncum, Bauhinia purpurea, Vitex pinnata, and which is Indonesia. Indonesia is one of the countries
Melastoma malabthricum as well as several other that supply wood pellets. In addition, Indonesia has a
species. fairly large area of land to develop wood pellets.
Indonesia is also blessed with biodiversity that can be
The potential of technology in wood pellet used as a source of raw material for wood pellets with
processing can optimize the production of wood pellets. quality that is not less competitive. Based on these
The technology that needs to be developed is still at a considerations, South Korea and Indonesia made a
simple level, it is predicted that Indonesia and cooperation agreement through the MoU.
Lampung, in particular, can still reach it.
In this collaboration, the governments of South
There are three steps of wood pellet processing : Korea and Indonesia signed an MoU of cooperation on
the development of the wood biomass energy industry
a) Process recognized (chipping & milling): The in 2009 which was signed by the Ministry of Forestry
process goes through the process of counting material, of the Republic of Indonesia, namely DR. (H.C) H.M.S
drying, grinding, and forming pellets. Kaban and the Ministry of Forestry of the Republic of
b) Drying (drying): The new raw material South Korea, namely DR. Chung Kwang Soo. The
contains water vapor, therefore the drying process is agreement is carried out with the agreement of mutual
important. The raw material requirements are only assistance and investment in the production and
around 6-18% water vapor. development of wood biomass energy fuels, exchange
c) Pellet molding (pelleting): After the drying of experts, researchers, and officials. In addition, South
process, the biomass raw material is stamped. Korea ensures the availability of funds from possible
Generally, pellet sizes are 6mm, 8mm, or even more. sources in the Republic of Korea for biomass activities,
providing access to Indonesian authorities in the
In this process, there is a high pressure and causes the
planning, implementation, and evaluation of activities
temperature of the wood to increase and is followed by
decided together within the framework of the MoU
the plasticization process of lignin (softening). Then [10].
the softening process will form glue or adhesive.
There are two types of pellets used in the wood The agreement was carried out with the agreement
pellet industry in the world today, namely flat die (flat of mutual assistance and investment in the production
type, stationary/static) and ring die (ring type, and and development of wood biomass energy fuels,
rotating) (Rudianto, 2018). exchange of experts, researchers, and officials. In
addition, South Korea ensures the availability of funds
a) Cooling and Storage (cooling): The wood from possible sources in the Republic of Korea for
pellets that come out of the mold will have a curvature biomass activities, providing access to Indonesian
of about 80-80 degrees Celsius. Therefore, a cooling authorities in the planning, implementation, and
process is needed which aims to harden the wood pellet evaluation of activities decided jointly within the
product. framework of the MOU. Based on the cooperation
b) Packaging and Distribution: Product contained in the MOU in 2009, then the cooperation
packaging usually uses plastic or paper bags. between the two parties was followed up.
Generally, it weighs around 10-15 kg and is on the In this cooperation, the two countries have agreed to
market desirability. cooperate in the development of wood pellet energy.
Through this cooperation, South Korea has invested 6
D. Potential Scheme of Wood Pellet Cooperation
trillion in funds. The program that will be carried out in
1) Indonesia and South Korea this collaboration is forest and wood waste. In this
The reason the South Korean government uses collaboration, the Indonesian government directly
Wood Biomass is that the South Korean government appointed Perhutani while South Korea itself chose PT.
336Advances in Social Science, Education and Humanities Research, volume 628
Solar Park as the executor. Then it was followed up One of biomass cooperation between Indonesia-
again by holding another meeting in Korea in 2013 Japan is a collaboration in the field of technological
where the Indonesian government again appointed research for sustainable development. The SATREPS
Perhutani while South Korea appointed the Korean project as a capacity building for research, training, and
Green Promotion Agency. This meeting agreed on an conferences in the field of biomass development
MOU on planting Biomass trees and a wood pellet technology in 2018 was conducted by Indonesia
manufacturing plant for bioenergy purposes. Where the Institute for Sciences (LIPI) and Kyoto University
executor who will be responsible later is Perhutani and Japan. That project was leading to develop sorghum as
the Korean Green Promotion Agency. With this biomass energy like a plant that can grow in dry
cooperation in planting and managing waste for the marginal lands [12].
manufacture of wood pellets, South Korea hopes to
suppress and replace 5 percent of the use of coal for The Indonesian government's efforts, namely the
power generation fuels with alternative energy, namely Indonesian trade representatives in Japan through the
wood biomass made from wood pellets. Trade Attaché of the Indonesian Embassy in Tokyo,
collaborated with the Indonesian Trade Promotion
2) Indonesia-Japan Cooperations Center (ITPC) in Osaka to provide Indonesian exporters
Japan has a green energy policy that prioritizes the with updated information on the Japanese biomass
use of biomass as renewable energy. This policy market, especially in the era of the Covid-19 pandemic.
includes providing incentives for renewable energy Based on BPS data, Indonesia's biomass product
entrepreneurs. By 2030, Japan projects the utilization of exports to Japan in January-April 2020 reached USD
biomass energy to reach nine million tons. This policy 15.27 million, an increase of 0.7 percent from the
was used by Indonesia to continue to encourage exports previous year [13].
of biomass products, including wood pellets, to Japan. In January 2021, Indonesia through the Foundation
Japan considers Indonesia as one of the potential of Indonesian Institute for Energy Economics (IIEE) in
suppliers of wood pellets with a more efficient cost
collaboration with the Ministry of Economy, Trade, and
ratio. Industry (METI) Japan held a workshop aimed at
The Japan-Indonesia Economic Partnership promoting the integration of variable renewable energy
Agreement (JIEPA) was signed in 2007 and took force (VRE), hydrogen, and low carbon technology in the
in 2008. The JIEPA agreement in the energy and Indonesian electricity system. From this workshop,
mineral sector aimed to promote, facilitate investment, several collaborations and collaborations that can be
and secure the energy and mineral supply of both carried out between Indonesia and Japan in new and
countries. Indonesia and Japan also cooperated in the renewable energy technologies and energy
biomass sector. Indonesia exported palm shell biomass conservation were discussed [14].
to Japan in 2016 reached 450 thousand tons, and to Japan and Korea are the fifth and seventh wood
Korea reached 400 thousand tons. Total export value to pellet importing countries in the global, which are two
Japan and Korea is worth more than Rp 1 trillion (OG countries in Asia. This shows the confidence of Japan
Indonesia, 2017). Japan has targeted up to 4 % from and Korea in cooperating with Indonesia to support the
bio-energy to their renewable energy (targeted up to fulfillment of their domestic wood pellet needs.
25% in 2025). This upcoming demand will be a Meanwhile, the United States is the first exporter of
significant opportunity for Indonesia to export biomass wood pellets in the global market. From the existing
to Japan. In addition, Indonesia and Japan also cooperation, Indonesia has the opportunity to continue
cooperate in energy technology from waste [11]. the development of the wood pellets industry and take
up the global market to export.
E. Data of Energy Forest in Lampung and Indonesia
TABLE V. PRODUCTION FOREST AREA
Production Forest
Year Limited Production Forests Permanent Production Production Forests that can be
(Ha) Forests (Ha) conserved (Ha)
Lampung 2017-2019 33.358,00 191.732,00 -
Indonesia 2017 26.787.910,70 29.220.318,67 12.822.778,99
2018 26.787.910,70 29.202.047,67 12.847.548,99
2019 26.772.377,04 29.215.611,55 12.840.981,68
Based on Government Regulation Number 104 of being multiplied by a weighing number having a total
2015 concerning procedures for changing the value between 125-174, outside protected areas, nature
designation and function of forest areas, limited reserve forests, nature conservation forests, and hunting
production forest is a forest area with the factors of parks. Meanwhile, production forests still have the
slope class, soil type, and rainfall intensity after each same factors but the total value is 125 [15].
337Advances in Social Science, Education and Humanities Research, volume 628
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