Setting a just economic value in Indonesia's biomass program.

This article examines the application of the principle of just economic value in Indonesia's biomass Co-firing Program, which mixes biomass with coal in steam power plants to increase renewable energy use to 23% by 2025. It identifies a significant price gap between the regulated highest purchase price (HPP) for biomass—tied to coal prices—and the actual production costs and international market prices, making the program unattractive for biomass suppliers. The article argues that current regulations do not reflect the broader social, environmental, and economic benefits of biomass, such as carbon emission reductions and energy security, and recommends state intervention through fiscal and non-fiscal incentives and legal reforms to align biomass pricing with just economic value. It suggests that such reforms should incorporate energy justice principles and distributional justice to support sustainable biomass supply and contribute to Indonesia's climate commitments under international agreements.