Abstract
<p>This study aims to develop renewable energy policy models concerning biomass for rural electrification; to identify factors that influence price of feed in tariff determination, in particular wood-based biomass,; and designing the role of social forest as raw materials for bio-pellet industry in sustainable supply chain. Research method using soft systems methodology is the application of Interpretative Structural Modeling (ISM) and Strategic Assumption Surfacing and Testing (SAST). The results showed that key elements of development policy model are feasible biomass energy tariff, competent human resources, coordination among related local government offices and community participation. It requires support regulatory from local governments, inventory of land use and forest area, and support of community leaders.</p><p><strong>Keywords</strong>: bio-pellet industry; feed in tariff; Interpretative Structural Modeling ; SAST; social forest</p>
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