InfoSAWIT, JAKARTA – State-owned plantation company PT Agrinas Palma Nusantara (Persero) has entered into a strategic partnership with PT Pertamina Power Indonesia (PPI) to accelerate the development of Indonesia's bioenergy industry through biodiesel plant revitalization and cassava-based bioethanol production.
The collaboration was formalized through the signing of a Memorandum of Understanding (MoU) on Wednesday (July 1, 2026), marking another step in supporting the government's renewable energy and national food security agenda.
The initiative is aligned with Presidential Instruction No. 2 of 2026 on accelerating agricultural food self-sufficiency as part of strengthening Indonesia's national resilience and economic independence.
The MoU was signed by Nurhidayat, Business Director of PT Agrinas Palma Nusantara, and Harsono Budi Santoso, Director of Strategic Planning and Business Development at PT Pertamina Power Indonesia.
President Director of PT Agrinas Palma Nusantara, Muhammad Abdul Ghani, described the collaboration as a strategic milestone in maximizing Indonesia's renewable energy potential while supporting the government's broader food and energy programs.
"This partnership represents an important step in optimizing Indonesia's bioenergy resources. Revitalizing biodiesel facilities and developing cassava-based bioethanol production will create added value for agricultural commodities, strengthen national energy security, and support the government's food self-sufficiency agenda," Abdul Ghani said in an official statement received by InfoSAWIT on Thursday (July 2, 2026).
He added that stronger collaboration among state-owned enterprises is expected to accelerate the establishment of a sustainable national bioenergy ecosystem while generating broader economic benefits.
Focus on Biodiesel and Bioethanol Projects
Under the agreement, both companies will prioritize several strategic initiatives, including the reactivation of Fatty Acid Methyl Ester (FAME) biodiesel plants and the construction of two cassava-based bioethanol facilities.
The biodiesel project is expected to restore annual production capacity to approximately 600,000 tonnes, strengthening Indonesia's domestic biodiesel supply and supporting the country's renewable fuel mix.
Meanwhile, the two planned bioethanol plants, each with a production capacity of 300 kiloliters per day (KLPD), will have a combined output of 600 KLPD, increasing the value of cassava while expanding domestic bioethanol production.
Comprehensive Feasibility Studies Underway
As a follow-up to the MoU, Agrinas Palma Nusantara and Pertamina Power Indonesia will conduct a series of feasibility studies covering technical, commercial, economic, environmental, legal, and risk management aspects to identify projects with the strongest development potential.
The partnership will also facilitate knowledge sharing, technology exchange, and joint utilization of facilities, equipment, and materials to improve project implementation efficiency.
Through this collaboration, Agrinas Palma Nusantara reaffirmed its commitment to expanding renewable energy development based on Indonesia's domestic resources. The company believes the partnership will not only accelerate the country's bioenergy transition but also strengthen the agro-industrial sector, enhance national energy security, and contribute to the successful implementation of Indonesia's food self-sufficiency strategy. (T2)
