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he Energy and Mineral Resources Ministry hopes to increase the electricity generating capacity of biogas power plants in the country to 14.8 megawatts (MW).

The ministry'€™s director of bioenergy, Sudjoko Harsono Adi, said on Wednesday that the current installed capacity of biogas power plants had reached 3.6 MW, paving the way to reach the government'€™s goal of having 23 percent of the country'€™s energy coming from renewable sources by 2025.

'€œThe expected capacity will increase significantly because there are currently 25 companies that have applied for permits for the installation of biogas power plants,'€ he said during the 2016 Biogas Indonesia Forum held by the Indonesian Chamber of Commerce and Industry (Kadin).

The Energy and Mineral Resources Ministry has emphasized the importance of the development of new and renewable energy sources as the country currently imports around 800,000 barrels of fuel a day.

However, the ministry had also stated that it needed Rp 1.6 quadrillion (US$121.6 billion) to achieve a power portfolio consisting of 23 percent renewable energy by 2025. The large sum has pushed the government to set up an energy security fund, the management body of which is set to be established this year.

Sudjoko said that the government has undertaken several efforts to stimulate investment in the biogas energy sector, including the revision of biogas feed-in tariffs, which are currently described in a 2014 ministerial decree on electricity purchases by state-owned electricity companies from biogas and biomass power plants.

The current regulation sets the minimum price at Rp 1,050 per kilowatt hour (kWh).

Meanwhile, Kadin'€™s vice chairman of renewable energy and the environment, Halim Kalla, said that renewable energy sources still only provided about 5 percent of energy consumed and bioenergy was even lower at little under 1 percent.

However, he shared his optimism that biogas could make up a large part of the country'€™s ambitious plan to develop an additional generation capacity of 35,000 MW of electricity within five years as biogas could be easily procured from organic materials, including manure and human waste.

The government had aimed for 25 percent of the 35,000 MW to be produced by renewable sources.

'€œWe have around 800 palm mills that also produce palm oil mill effluent [POME], which can be processed to be used as biogas,'€ Halim said.

He added that since the 800 palm mills processed approximately 100,000 tons of fresh fruit bunches (tbs), the resulting process could eventually produce about 1,300 MW of electricity.

Furthermore, Halim added that the utilization of biogas as an energy source could assist in providing electricity in remote areas that cannot be reached by the national grid since biogas could be procured locally almost anywhere.

Although the ministry has not announced the new feed-in tariff, Indonesian Biogas Association secretary-general Trio Chadys said that he heard the new prices would be listed in dollars.

'€œThe last we heard, the prices would be set in dollars. The previous price was Rp 1,050, [and it is rumored] the new price will be $11.75 for biogas. If it is true, it will probably be more economically feasible for investors,'€ he said.