Meanwhile, the Director of Export Cooperation Development Marolop Nainggolan said the Japanese government is building 90 biomass power plants in Japan.
However, the main problem faced is the need for a stable fuel supply for over a long period of time.
Japan’s largest woody biomass power plant operating on Chita peninsula, Aichi prefecture | Sumitomocorp
Derivative products from wood such as palm kernel shell, palm husk, and wood pellets also have the potential in the biomass industry.
Japan is targeting an increase in renewable energy by around 22-24 percent by 2030.
In addition to the enormous opportunity, continued Marolop, the prices given by Indonesian businesses are still less competitive due to the large fluctuating export levies.
This has resulted in difficulties for palm kernel shell exporters to sign sales contracts which are generally long term.
"For this reason, the Indonesian government is committed to finding solutions in making the palm kernel shell sector an export-ready and competitive commodity by eliminating export levies as an alternative solution," said Marolop.
Based on data from the Indonesia Central Statistics Agency that has been processed by the Indonesia Ministry of Trade, the total trade between Indonesia and Japan in 2020 was recorded at US $ 2.32 billion.
Indonesia's exports to Japan were recorded at US $ 1.22 billion and Indonesia's imports from Japan were at US $ 1.09 billion.