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BIOECONOMY
INITIATIVE

Indonesia Bioeconomy Initiative

Nature as a resource.Value for the future.

Connecting biological resources, innovation and communities to build a more resilient, higher-value economy.

Our Values

What guides Indonesia’s bioeconomy.

These values subsequently form the characteristics of Indonesia’s bioeconomy, reflecting the direction of Indonesia’s bioeconomy development objectives that distinguishes it from other economic development frameworks.

01 / Higher value-added
Packaged palm sugar (gula lontar) in jars and pouches — a processed bio-based product

Creation of higher value-added

Value-added in Indonesia’s bioeconomy refers to the improvement in the quality and economic value of biological products through processing that yields products with higher economic value, as well as the fair distribution of benefits within the value chain.

02 / Technology & innovation
A pipette over laboratory glassware above fresh fruit and vegetables

Deployment of technology and innovation

The use of technology and innovation in the development of bioeconomy products, including the utilization of traditional knowledge and the recognition of intellectual property rights.

03 / Well-being
An elder in traditional attire with a beaded, feathered headdress against a blue sky

Promotion of enhanced well-being

Improving well-being in the economic, social, and overall spheres, where communities can actively participate in an inclusive bioeconomy — not only as workers but also as key actors in bioeconomic enterprises.

Definition & the 10 bioeconomy principles →

Bioeconomy Approach

From upstream to downstream.
One connected value chain.

A bioeconomy approach through the value chain. Policy formulation in the bioeconomy must take a holistic view of issues from upstream to downstream.

  1. 01BioprospectingDiscovering superior domestic varieties and species
  2. 02Production & post-harvestQuality, quantity and marketability of harvests
  3. 03ProcessingNew processed products and by-products
  4. 04Logistics & warehousingKeeping quality and safety intact
  5. 05Marketing & commercialisationMarkets for quality bio-based products

Emphasis on the role of local communities

Indonesia’s bioeconomy is committed to preserving the role of community groups and local communities so they can participate and ensure they receive fair benefits.

Explore the value chain by cluster →
  1. 01

    Community Groups as Community-Based Producers

    Direct managers of biological resources — social forestry, agroforestry, small-scale fishers, family farmers and biodiversity-based micro-enterprises.

  2. 02

    Community Groups as Industrial Partners

    Equal partners in the supply chain, as raw-material suppliers or service providers, with transparent and fair benefit-sharing.

  3. 03

    Community Groups as Ecosystem Stewards

    Front-line guardians of biodiversity, supported by legal certainty over land access and innovative conservation finance.

National Development Alignment

The Bioeconomy in the RPJMN 2025–2029.

The Bioeconomy in the 2025–2029 National Medium-Term Development Plan (RPJMN).

PN2National priority
Strengthening the national defense and security system and promoting national self-reliance through self-sufficiency in food, energy, and water, as well as through the Islamic economy, the digital economy, the green economy, and the blue economy
PPPriority programme
Sustainable Forest Management
KPPriority activity
Development of forest bioeconomy products through agroforestry
ProPPriority project
Development of Agroforestry-Based Bioeconomy Pilot Projects

Bioeconomy in Practice

Indonesia’s five priority clusters.

Two high value-added clusters (cosmetics and health), two that meet basic human needs (energy and food), and one that safeguards the biodiversity on which the whole bioeconomy depends — environmental services.

Crates of fresh produce: potatoes, beans, tomatoes and greens
Cluster 01

Food

Sustainable agriculture, fisheries and food

  1. Functional and local food
  2. Downstreaming of agricultural, forestry and fisheries products
  3. Sustainable fisheries and aquaculture
  4. Utilisation of biological residues
Product examples
Food product example: Jawa Ginger Chews ginger candy in tins, a pouch and a box
Laboratory glassware with algae and plant extracts
Cluster 02

Energy

Bioenergy and bio-based fuels

  1. Biofuel: bioethanol, biodiesel, SAF
  2. Biogas and biomethane
  3. Biomass and bioenergy from agricultural, forestry and urban waste
  4. Bio-based fuels and chemicals
Product examples
Energy product examples: biodiesel, bioethanol and biodiesel B35
Capsules, spices, cloves and fresh leaves
Cluster 03

Medicine

Medicinal plants and bio-based health products

  1. Medicinal plants and traditional medicine
  2. Phytopharmaceuticals and biopharmaceuticals
  3. Nutraceuticals
  4. Bioactive compounds and natural-based products
Product examples
Indonesian herbal medicine products: OB Herbal, Curcuma Plus, Kutus Kutus, Kiranti, Antangin, Buyung Upik and Tolak Angin
Coconut, cacao and amber cosmetic bottles
Cluster 04

Cosmetics

Natural ingredients and bio-based cosmetic products

  1. Natural active ingredients
  2. Essential oils
  3. Specialty ingredients
  4. Natural-based cosmetics
Product examples · Tengkawang products
Forest Wise tengkawang bath soaps and natural balms (lavender and peppermint) among green leaves

Priority cluster 05

Environmental
Services.

Natural capital as the foundation of a sustainable bioeconomy.

  1. Mangrove trees standing in shallow coastal water
    01

    Carbon

    • Carbon markets and carbon credits
    • Blue carbon
    • Ecosystem-based approaches for climate mitigation and adaptation
  2. Orangutan sitting on a rock in the forest
    02

    Biodiversity

    • Biodiversity credits
    • Biodiversity finance
    • Genetic resources
    • Habitat and species conservation
  3. Aerial view of a river through dense forest
    03

    Water

    • Payment for Ecosystem Services (PES)
    • Watershed services
    • Water quality and water regulation
  4. Boats moored at a pink-sand beach below green hills
    04

    Tourism

    • Ecotourism
    • High-value, low-impact tourism
    • Local livelihood opportunities
  5. Two people planting mangrove seedlings in water
    05

    Restoration

    • Terrestrial and marine ecosystem restoration
    • Restoration-to-revenue
    • Rehabilitation of degraded ecosystems

The Potential of Bioeconomy

Modeling the economic, social and environmental gains.

Projections to 2045 under the IBI scenario, compared with business-as-usual (BAU). These are modelled scenarios, not measured outcomes.

+24%

Higher National GDP by 2045 vs BAU

IDR 62,380 trillion vs. IDR 50,2 trillion under BAU.

+40%

Value Added by 2045, from total GDP

IDR 24,945 trillion from bioeconomy contribution (5 cluster).

25,2B TonC

Land carbon stock

25,2b ToC with IBI vs 11b ToC without intervention in 2045.

Nature & Climate

Carbon stock increases with sustainable use and restoration of ecosystems.

Economic Value

Higher GDP and value added through sustainable use of biological resources.

People & Well-being

Fair benefit sharing can increase benefits for farmers and fishers.

Fiscal Value

Bioeconomy can generate higher tax and non-tax revenue potential for the government.

IBI scenario

The model compares outcomes under the IBI scenario with a scenario without intervention.

  1. Zero deforestation
  2. Added value oriented
  3. Restore from government income
  4. Agroforest scenario in rehabilitation
Mountain ridge above a sea of clouds and a highland village
Photo: Atik Sulianami

Indonesia’s natural capital

A megabiodiversity country whose potential is not yet fully explored.

million ha of forest cover (2024)
95,5
of the world’s birds
17%
of the world’s fish
25%
Explore Impact & Data →

Field imagery / Bioeconomy in practice

Value begins with people and place.

Biological production and value creation, from harvest to market.

Three young men in traditional attire with feathered headdresses and beaded necklaces
Three packaged chocolate bars, one labelled Sintang Origin

From harvest to higher value.

Post-harvest handling, quality and processing connect biological resources to market opportunities.

Close-up of a pile of whole nutmeg seeds

Spices and forest products.

Cloves, nutmeg and other spices are among the commodities listed in the project records of the Project Map.

Mist over a dense tropical forest canopy on a hillside

Productive landscapes, shared benefits.

Communities and natural systems remain central to sustainable economic development.

Highlights · IBI 2025

Indonesia Bioeconomy Initiative 2025.

A panel discussion and gathering of Indonesia’s bioeconomy stakeholders.

Date
4 December 2025
Location
Jakarta
Group photo
Panel discussion
Deputies and panelists
Group photo of panelists, officials and participants in a hall with chandeliers

Group photo · 1 / 3

NextIBI Annual Summit 20263 December 2026 · Jakarta, Indonesia

RSVP here
Cover of the publication Bioeconomy Initiative: Driving Transformation Towards a Sustainable Economy

Publication

Indonesia Bioeconomy Initiative Document

Bioeconomy Initiative — Driving Transformation Towards a Sustainable Economy. Definition, values and principles of Indonesia’s bioeconomy, value-chain illustrations, challenges and opportunities, and policy direction.

Kementerian PPN/Bappenas
Publisher
2025
Year
English
Language
40 pp.
Length

Ecosystem Partners

Contact us

Connect with the initiative.

Address
Kementerian PPN/Bappenas, Jl. Taman Suropati No. 2, Menteng, Jakarta Pusat, or Menara Bappenas, Jl. HR. Rasuna Said Kav. B-2, Kuningan, Jakarta Selatan.
Deputies and panelists standing in front of the Indonesia Bioeconomy Initiative 2025 screen
Indonesian bio-based commodities: cacao, nutmeg, coconut, coffee, candlenut, seaweed and island landscapes

Save the date

Indonesia Bioeconomy Initiative

Annual Summit 2026

People. Nature. Opportunities.

Join us in Jakarta for the Indonesia Bioeconomy Initiative Annual Summit 2026, a gathering to explore Indonesia’s responsible bioeconomy pathway and connect it with global experience and partnership.

Date
3 December 2026
Location
Jakarta, Indonesia
RSVP here