Business Trip to Indonesia

Indonesia pellet production market research from GEMCO

A team of GEMCO -  Biofuel Deparment of ABC Machinery made a 12-day business trip to Indonesia commencing August 19, 2018. It's white and black that Indonesia is potential for wood and oil palm. So, we aimed at having a close look into the processing of wood pelletizing techniques especial sawdust pellets and palm fiber pellets. This regarded to our Indonesian client's requirements. We typically understood that the visit would positively change our clients for the better. (Related Article: How to Make Pellets from Palm Fiber)

business appointment in Indonesia with our Clients
Business Meeting

discussing project plan with our biomass pellets clients
Project Plan Discussing

Indonesia wood pellet manufacturing factory visit
Visiting Local Wood Pellets Manufacturing Factory in Indonesia

Indonesia, a land of a magical experience. The locals are incredibly hospitable, so friendly. Uncovering the mystery of market research, and face-to-face discussion only superseded our expectation. Our clients were so pleased with our visit and experienced our sincerity with them for some time. It doesn't get any better than seeing a great deal out of devoted work. Lots of the client in Indonesia considered our pellet mill business project (solutions for 1~2 ton/hour wood pellet production line). More surprisingly, some of they made an initial payment to ABC Machinery. This promoted the relationship between us. It also took both ABC Machinery and our client's business into a new dimension of world trade.

Biomass Energy Trends in Indonesia

Biomass fuel is a sustainable and renewable form of power. This is because it is made from solid waste of which Indonesia have a constant supply. The fuel is generated from organic material and is used to generate electricity and other forms of power. Some sources of biomass fuel include manure, waste wood and other waste material from plants and animals. For Biomass to be a viable source of fuel, all that is needed is a constant supply of waste and the right equipment and processes.

biomass energy making wood pellets
Various Biomass Resource for Making Wood Pellets

Sources of Biomass fuel in Indonesia

The main sources of Biomass fuel in Indonesia are:

  • Palm Oil Residues
  • Rubber Wood
  • Sugar Residues
  • Rice residues which has the highest energy potential

Biomass fuel can also be obtained in smaller proportions from plywood and veneer residues, log residues, residues from timber, coconut residues, municipal wastes and agricultural wastes. All these sources can be used to provide heat or electricity.

With such a rich supply of biomass sources, Indonesia has the potential to provide for its energy needs as it grows. Specifically, Indonesia has the highest supply of biomass full among all Asean countries. It is important for these sources to be used instead of left to be burnt or othenivise dumped.


Is wood pellets production the way forward for Indonesia?

Global Biomass Pellet Fuel Production: 2010, 2015 and 2020 Outlook

global wood pellets production outlook 2020

Source: Biofuels portal, General Director "Portal Engineering., Ltd"

Compared to Vietnam, the three countries Malaysia, Indonesia and Thailand are small producers and exporters of wood pellets (Argus Media, 2016; Murray, 2015). Indonesia and Malaysia have exported about 150 and 60 kt of wood pellets respectively to South Korea in 2014 and 2015. Palm kernel shells (PKS) are exported from these two to Japan but the supply markets are still rather small (Bioenergy International, 2015). Buyer prices are still high and influenced by the cost of supply/quality, longevity, and quantity trade-off.

wood pellets, charcoal pellets and torrefied wood pellets
Wood Pellets (left), Charcoal Pellets (middle), Torrefied Wood Pellets (right)

Indonesia has a rich supply of three types of pellets namely wood pellets, charcoal pellets and torrefied wood pellets. There are different specifications for the sizes of wood pellets depending on the sector they will be used in. Wood pellets are in high demand worldwide. Countries such as the United States are among the top demanders. China, South Korea and Japan are also among top demanders. The top suppliers presently include North America and Europe. With this increasing demand for wood pellets, there is always room for more suppliers to the market. There is enough demand for wood pellets locally within Indonesia and globally. (Related Project: 1.5 ton per hour Palm Fiber Pellet Plant Built in Malaysia )

Date Palm Farm , a source of palm waste
Palm Farm , a source of Palm Tree Wastes
How to Make Pellets from Palm Empty Fruit Bunches ?

Based on their rich supply of biomass materials, Indonesia can take advantage of a worldwide trend. The growing interest in renewable sources of energy will provide opportunities for the expansion and growth of the Indonesian economy. Renewable sources of energy is a step in the right direction to preserve the environment. They also replace other depleting reserves such as oil and coal and provides a means for continued growth and expansion. Indonesia has begun to make a few changes in the right direction to take advantage of the opportunity. The country has started to put in place the needed laws and regulations to protect the industry. Business in the renewable energy sector are also given incentives. It is evident that wood pellet production is one way for Indonesia to move forward.

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