Jakarta, INTI - State-owned enterprises PT Agrinas Palma Nusantara (Persero) and PT Pertamina Power Indonesia have strengthened their collaboration to accelerate Indonesia's national biofuel development in support of the government's food and energy security agenda.
Collaboration to Build an Integrated Biofuel Ecosystem
President Director of PT Agrinas Palma Nusantara, Mohammad Abdul Ghani, said the partnership marks an important step in accelerating the development of Indonesia's biofuel industry, spanning upstream agricultural production to downstream processing.
"We expect our collaboration with PT Pertamina Power Indonesia to maximize the strengths of both companies, creating an integrated and sustainable biofuel ecosystem that delivers tangible benefits to the national economy," Ghani said.
The initiative follows Presidential Instruction No. 2 of 2026, which mandates Agrinas Palma Nusantara to support food and energy self-sufficiency through agricultural development and downstream industrialization.
As part of the plan, the company will develop a biofuel ecosystem by expanding cassava plantations for bioethanol production and reactivating PT Bayas Biofuels' biodiesel facility.
One of the key projects includes developing approximately 33,000 hectares of cassava plantations in Kutai Kartanegara, East Kalimantan, to supply a bioethanol plant with a production capacity of up to 300 kiloliters per day.
Pertamina Power Advances Feasibility Study
PT Pertamina Power Indonesia said it is ready to move the partnership forward by preparing feasibility studies, defining project responsibilities, and developing a business model to support implementation.
Ghani expressed confidence that the collaboration would accelerate project execution while strengthening renewable energy supplies and increasing the value of Indonesia's agricultural commodities.
President Director of PT Pertamina Power Indonesia, John Anis, described the partnership as a strategic step toward building a stronger national biofuel ecosystem and advancing Indonesia's renewable energy development.
He added that the company is committed to preparing feasibility studies and cooperation frameworks that create value for both companies while supporting the government's strategic priorities.
Conclusion
The partnership between Agrinas Palma Nusantara and Pertamina Power Indonesia is expected to accelerate the development of an integrated and sustainable biofuel industry, supporting renewable energy expansion, agricultural downstreaming, and Indonesia's long-term economic growth.
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