When the Wood Pellet Industry is 100% Foreign Owned

Wood pellet has bright prospects in the future and is very well developed in Indonesia. Wood pellet whose application for energy is very strategic for the development of the nation. Even Europe in the Renewable Energy Directive (RED) program is part of their large bioeconomy program. The RED (Renewable Energy Directive) has targeted the use of renewable energy to reach a minimum of 20% in 2020 with biomass consumption reaching 70% of the total renewable energy and by 2030 to be a minimum of 27%. For biomass energy, Europe is the largest wood pellet producer, with an estimated 13.5 million tons / year while consumption is 18.8 million tons / year, meaning that there is still a shortfall of 5.3 million tons / year. America and Canada are the main suppliers of wood pellet needs of European countries with the majority of the use of wood pellets for electricity generation. Indonesia as a tropical country and rich in various biomass, especially woody biomass, has the potential to become the world's leading producer of wood pellets.

In 2024, wood pellet needs are projected to reach 50 million tons while the current production of 20 million tons and Indonesia's wood pellet production is also still small, which is around 80 thousand tons / year. The increasing need for wood pellets is mainly driven by a number of policies to reduce the use of fossil fuels and substitutes with renewable energy, one with biomass and especially wood pellets. Fossil fuels produce CO2 gas which is increasingly heating up the earth's temperature (global warming) and climate change that have a negative impact on life on earth. Counted 24 earth conferences held almost every year and attended by hundreds of heads of state in the world to address global warming and climate change. The Earth Conference was first held in Rio de Janeiro in 1992, last year (2018) in Katowice, Poland. Whereas in the Asian region there are at least 2 countries that need wood pellets of up to tens of millions of tons, namely South Korea and Japan.

Indonesia has great potential for wood pellet production and is even a major player in the world due to its tropical climate and vast and fertile land. With its tropical climate, it only takes 1 year to produce biomass equivalent to 4 years in sub-tropical countries such as Europe and America, which are fast rotating plants (Short Rotation Coppice / SRC) such as calliandra. But when the wood pellet industry was controlled by 100% foreign according to what the Indonesian government announced some time ago, it is certainly very unfortunate, this is because it will also be very possible that the land will be controlled by foreigners as well as producing wood for wood pellet production, citizens only have a role very minimal even just as an audience. In addition, the contribution that the state receives is also very minimal and will not provide welfare for citizens. No less important is that it is projected that in the next 10 years Indonesian petroleum will run out, then wood pellets can be a very potential replacement energy source. The development of wood pellets with wood raw materials from energy plantations and integrated with livestock is expected to make Indonesia self-sufficient in energy and even environmentally friendly and self-sufficient renewable energy. Integration of large plantations such as energy plantations and large farms for more details can be read here.

Energy is clearly a strategic sector even very closely related to state sovereignty. If a country is not sovereign in its energy sector, it is very easy to make a shock in that country. This should be realized together so that it does not easily provide control of the strategic business sector to foreigners. Indonesia should also develop its bioeconomy with its biomass potential, more details can be read here. Although the tropical country and rich in oceans turned out to make Indonesia a lot of rain and cloudiness, even Indonesia's rainfall is higher than the world average, so the development of solar photovoltaic energy becomes expensive and not an option, and biomass returns to the right choice and solution for the condition of Indonesia, more details are read here.

"The Muslims are syirkah (sharia business cooperation) in three ways, in terms of grasslands (land), water and fire (energy) "(Hadith Narrated by Sunan Abu Daud).

Syirkah is an effort to capture the great opportunity of wood pellets. Muslim fellow in particular must cooperate with each other to prosper the earth by making lands that are not or underutilized into productive land such as the hadith instructions above. If don't do syirkah it will be very difficult to capture this great opportunity. Landowners, capital owners and managers can work together to seize this opportunity and not become foreign property. Of course pro-people policies will increasingly support the wood pellet business that conducts syirkah.

Wood Pellet Demand Crawling Up?

The fall of wood pellet market some time ago is also greatly influenced by the price of oil. The low oil price touched $ 30/barrel in early 2016 also lowered the selling price and demand for wood pellets. This condition even to shift the position of wood pellet as the cheapest fuel for the heating sector. At that time the energy price per calorie of oil which is a liquid fuel better quality and much in demand cheap, so that solid fuel that lower quality and less desirable also become cheaper. There are even many industries switching to using oil fuels than before using solid fuels such as coal. Wood pellets as one of the solid fuels (although from renewable sources) are also affected by the world oil price, because of the basis of calculating the price per calorie or heat of the fuel.

After almost 3 years of oil prices falling gradually, the current price of oil has risen drastically at the price of $ 70 / barrel. Some analysts say if crude oil prices more than $ 63 / barrel then the demand for wood pellets will rise again with prices that are also more attractive. Oil prices to be one of three causes of the decline in the wood pellet market in the world market in the last 3-4 years. The other two causes are the first, because a number of policies for the use of wood pellets have not been effectively implemented because the power plants have not yet been completed or in the development stage, and some power plants are still in the co-firing trial stage with wood pellets. And the second ,climate change then the winters in Europe in recent years been warmer or less as cold as those earlier times. Logically when the above conditions can turn out otherwise the wood pellet market will improve. And what we are witnessing today is a significant increase in oil prices, as it has exceeded $ 63/barrel.

As the wood pellet industry begins to wiggle and excite, it should also spur wood pellet production in Indonesia. Export market or world wood pellet market more ready and attractive prices need to be filled soon, so if need be dominated. Unused land even barren ones can be greened with energy plantations. Stages of designing energy plantation for wood pellet production can be read here. Furthermore, the domestic market is also need immediately created and developed, because in the short term we will also run out of petroleum, with the current conditions have become nett importers of petroleum. What if we just just sit there like a spectator? Certainly will aggravate our energy condition. We should participate to encourage the energy sovereignty of our country especially with renewable energy such as wood pellets because it provides many benefits.