Evaluating the Management Effectiveness of the Biomass Based Independent Energy Village (DME) Program in Supporting Indonesia’s Zero Carbon NDC

INKUBIS: Jurnal Ekonomi dan Bisnis Volume 8, Issue 2, 1-8 e_ISSN: 2775-3913 https://inkubis.polteksci.ac.id/index.php/ink/index DOI: doi.org/10.59261/inkubis.v8i2.255 Evaluating the Management Effectiveness of the Biomass Based Independent Energy Village (DME) Program in Supporting Indonesia’s Zero Carbon NDC Muhammad Taali1* Fredy Susanto2 Lala Hucadinota Ainul Amri3 Politeknik Negeri Madiun, Indonesia Politeknik Negeri Madiun, Indonesia Politeknik Negeri Madiun, Indonesia *Corresponding author: Muhammad Taali, Politeknik Negeri Madiun, Indonesia. 🖂 Article Info : Article history: Received: April 06, 2026 Revised: April 25, 2026 Accepted: May 02, 2026 Abstract Background: Indonesia's updated Nationally Determined Contribution (NDC) targets net zero emissions by 2060, making the transition to renewable energy particularly locally based sources—essential for climate mitigation. Biomass, as a key renewable resource, is utilized through the Energy Independent Village (Desa Mandiri Energi, DME) program, including in Kaliombo Village, Jepara, which uses buffalo dung as a sustainable energy source. Objective: This study evaluates the management effectiveness of a Keywords: biomass-based Energy Independent Village (DME) program in Kaliombo biomass energy; renewable Village, Jepara Regency, Indonesia, and its contribution to the national energy governance; DME zero carbon NDC target by 2060. program; zero carbon NDC; Methods: Using a qualitative case study approach, data were collected energy self-sufficient village; through in-depth interviews with village officials, program managers, and qualitative case study. community members, supplemented by observation and documentation. Data were analyzed using thematic analysis with triangulation to ensure trustworthiness. Result: Findings reveal that while the program demonstrates measurable contributions to local energy security and green energy production, longterm sustainability depends on strengthened managerial capacity, community participation, and policy alignment. Conclusion: This study provides managerial insights for improving renewable energy governance at the village level and offers a replicable framework for developing biomass-based rural energy in support of national decarbonization goals. This study contributes a replicable governance framework for biomass-based rural energy programs, advancing the discourse on decentralized renewable energy management in developing countries. To cite this article: Taali, M., Susanto, F., & Amri, L. H. A. (2026). Evaluating the Management Effectiveness of the Biomass Based Independent Energy Village (DME) Program in Supporting Indonesia’s Zero Carbon NDC. INKUBIS: Jurnal Ekonomi dan Bisnis, 8(2), 1-8. https://doi.org/10.59261/inkubis.v8i2.255 INTRODUCTION Globally, the urgency of transitioning to renewable energy has intensified as countries face escalating climate change impacts and fossil fuel dependency. Energy is widely recognized as a basic human need and a strategic component of national development. In Indonesia, Law No. 30 of 2007 concerning Energy emphasizes the importance of ensuring national energy security to sustainably meet domestic demand (Irena, 2023; Kabeyi & Olanrewaju, 2022). This legal framework is further strengthened by Government Regulation No. 79 of 2014 concerning the National Energy Policy, which sets national energy mix targets and encourages the transition to New and Renewable Energy (NRE) as a safe, environmentally friendly, and sustainable energy source (Fauziah & Hidayatullah, 2023; Ruslan, 2021). Critics note, however, that Indonesia's 1 | INKUBIS: Jurnal Ekonomi dan Bisnis Muhammad Taali, Fredy Susanto, Lala Hucadinota Ainul Amri Evaluating the Management... policy framework, while comprehensive, has been undermined by inconsistent implementation, regulatory fragmentation, and weak enforcement mechanisms at the sub-national level. The translation of national renewable energy targets into village-level outcomes has proven considerably more complex than legislative ambitions suggest. Indonesia has significant renewable energy potential. National policy targets, as outlined in Presidential Regulation No. 5 of 2006 and subsequent policy updates, set ambitious goals to increase the share of renewable energy in the country's primary energy mix (Anggraini, 2022; Chijioke Paul Agupugo et al., 2024). The diversification strategy encompasses biofuels, geothermal energy, biomass, hydropower, solar energy, and wind energy, reflecting the government's long-term commitment to energy transition and decarbonization, while also supporting the development of sustainable transportation (Kementerian ESDM, 2008). This commitment is further strengthened by Indonesia's Nationally Determined Contribution (NDC), which targets net-zero carbon emissions by 2060 and sustainable development (Taali et al., 2024). At the implementation level, one of the government's strategic initiatives to accelerate the adoption of renewable energy is the Independent Energy Village (DME) program. This program encourages the development of community-based renewable energy by utilizing locally available resources. In biomass-based DME initiatives, livestock waste, such as buffalo dung, is a valuable but underutilized resource that can be converted into biogas or other forms of renewable energy (Dessy Ana Laila Sari et al., 2023; Poetro et al., 2019). Despite this potential, the conversion rate of biomass feedstock into operational rural energy programs remains critically low, with less than 5% of identified potential being actively utilized at the village level. This gap between resource endowment and actual program delivery signals a systemic governance and management failure rather than a mere technical constraint. Biomass energy is among the most promising renewable energy sources in Indonesia due to its widespread availability from agricultural residues, plantation by-products, forestry processing waste, and livestock manure (Alper et al., 2020; Senocak & Guner Goren, 2022). Prior studies have examined biomass energy programs with mixed conclusions. Ha & Kumar (2021) found that community-based renewable energy projects in rural Nepal and Indonesia failed due to weak governance structures, in which the exclusion of local authorities and beneficiaries from decision-making was a key factor in the projects' collapse. Budiman & Smits (2020) documented that governance fragmentation in biogas programs in Indonesia involving various actors with differing interests impacted program effectiveness and resulted in structural dependence on external support, including government subsidies. Budiman (2021) identified that seven national biogas programs in Indonesia share similar governance weaknesses, including program overlap, the absence of adequate monitoring and evaluation, and weak management capacity at the community level as the primary barriers to the sustainability of rural biogas progr (...truncated)