Indonesia must accelerate regulatory reform and develop a clearer policy framework if it hopes to unlock the full potential of biomethane as a clean energy source, a leading regional energy developer warned during a high-level discussion in Jakarta this week.
Petrus Gunarso Pushes Biomethane Regulations
Petrus Gunarso, a veteran project developer active in both Indonesia and Malaysia, shared his views during a recent Focus Group Discussion (FGD). The event was hosted by Indonesia’s Directorate of Bioenergy under the Ministry of Energy and Mineral Resources (ESDM), in collaboration with Germany’s GIZ through the ExploRE initiative.
The forum brought together policymakers, industry stakeholders, and international partners to assess what’s needed to scale up the biomethane industry in Southeast Asia’s largest economy.
“Regulatory clarity is critical and long overdue,” Gunarso said during the session. “The Indonesian government needs to expedite the development of enabling policies —especially in taxation and import duties— to make biomethane projects more viable and globally competitive.”
He pointed to the need for exemptions on value-added tax (VAT) for biomethane sales and reductions on tariffs for importing essential equipment. “Without these reforms, we’re slowing down what could be a transformative energy transition,” he added.
Gunarso also cautioned against comparing Indonesia’s journey to Europe’s mature biomethane markets.
“The socio-economic context, fiscal capacity, and regulatory readiness here are vastly different,” he said. “We need time to build the necessary ecosystem —both in awareness and technical capability.”
Export Push, Policy Reform, Biomethane Urgency
One of his key proposals was to permit biomethane exports as a way to stimulate market demand, improve price signals, and attract investment. “Every new project adds value, not just economically but in building institutional knowledge and practical experience. The policy will catch up if the industry can prove its value,” he said.
In a cautionary note, Gunarso warned against relying too heavily on carbon credits to make biomethane projects bankable. “Carbon markets should not be the primary driver. We’ve learned this lesson from past CDM experiences. What matters is that biomethane can play a vital role in helping Indonesia meet its climate targets under the Nationally Determined Contributions (NDCs),” he noted.
Other participants in the forum highlighted the importance of regional cooperation, particularly within ASEAN, to accelerate clean energy deployment and market integration.
The discussion comes as Indonesia faces growing international pressure to decarbonize its energy sector, which remains dominated by fossil fuels despite the country’s vast renewable potential. Biomethane, derived from organic waste, offers a low-emission alternative to natural gas —but the path to scale remains uncertain without stronger institutional support.
The FGD was attended by government officials, energy professionals, and international development agencies, including GIZ. The conversation marked another step in what stakeholders hope will become a fast-evolving clean energy landscape in the region.
-- Rangkaya Bada
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