Through Strategic Sector Cooperation, Indonesia and Denmark have agreed to carry out intergovernmental cooperation. One of them is developing a power plant using biomass from husks and corn. Denmark is among the developed countries with decades of experience committed to developing renewable energy systems. This development is one form of support for the Government of Indonesia which is committed in 2010 to reduce emissions by 26% under the business-as-usual scenario.in 2020. In the national energy mix (oil, coal, gas and renewable energy), Indonesia has targeted to increase the share of renewable energy by 20% (from 6% to 26%) between 2011 and 2025. This commitment is officially stated at COP21 Paris. The Indonesian government is committed to increasing the share of renewable energy in the total energy mix by 2025 to 23%.

The Strategic Sector Cooperation Program is embedded in the Ministry of Foreign Affairs with technical support from various ministries and agencies in Denmark. Denmark's partners in the Strategic Sector Cooperation program are the Danish Energy Agency (DEA) and the main partners in Indonesia are the Ministry of Energy and Mineral Resources (ESDM) and the National Energy Council (DEN), both of which are represented on steering committees. At the same time, the Danish Energy Agency also cooperates with the state-owned State Electricity Company (PLN).

In dialogue between the Danish Embassy, ​​DEA and the Indonesian authorities, it was decided to prioritize Lombok for the selection of potential projects to be financed. DEA and NEC have agreed to select Lombok as a pilot area to study how the expected increase in electricity demand can be met in a cost-effective and sustainable manner. Danida Sustainable Infrastructure Finance (DSIF) provides concessional loans for non-commercial projects with substantial social or environmental benefits and is currently interested in funding renewable energy projects in Indonesia.

The use of agricultural residues is currently not well understood although it has been informed that brick making, chicken farming, tofu production, tobacco drying and other food production activities use residues. Stakeholders in Lombok have further developed a biomass power plant project and have presented it to DSIF. The project will be a 20-40 MW plant based on residues from rice and maize and will be established in West Lombok Province near the Jeranjang power plant, PLN's coal-fired power plant. However, it has not yet been decided which of the two technologies will be chosen, whether the combustion, boiler and steam turbine generator or the anaerobic digester-based, biogas reactor and gas engine generator.

This study will cover the assessment of production residues, especially the most important residues from rice and maize agriculture. The term agricultural residue is used to describe all organic matter produced as a by-product of the harvesting and processing of agricultural crops (Zafar, 2020). Residues come from harvesting and processing activities. This study will be supported by informed stakeholder consultation and social and environmental impact analysis.