PALMOILMAGAZINE, JAKARTA – State-owned enterprise PT Agrinas Palma Nusantara (Persero) has strengthened its commitment to supporting Indonesia’s renewable energy transition by signing a Memorandum of Understanding (MoU) with PT Pertamina Power Indonesia (PPI). The partnership marks a strategic step toward accelerating the development of domestic bioenergy while reinforcing the country’s energy security and food self-sufficiency agenda.
The MoU was signed by PT Agrinas Palma Nusantara Business Director Nurhidayat and PT Pertamina Power Indonesia Director of Strategic Planning and Business Development Harsono Budi Santoso. The agreement establishes a framework for both companies to jointly explore renewable energy opportunities that support Indonesia’s long-term national development priorities.
The collaboration aligns with Agrinas Palma Nusantara’s mandate under Presidential Instruction (Inpres) No. 2 of 2026 on Accelerating Agricultural Food Self-Sufficiency to Strengthen National Resilience and Independence.
Also Read: Agrinas Sets New Sustainable Palm Oil Strategy to Increase Indonesia’s Production
President Director of PT Agrinas Palma Nusantara, Muhammad Abdul Ghani, described the partnership as a significant milestone in unlocking Indonesia’s bioenergy potential while creating greater value from the country’s agricultural resources.
“This collaboration represents a strategic effort to optimize Indonesia’s bioenergy potential. By reactivating biodiesel production facilities and developing cassava-based bioethanol plants, we aim to create greater added value for agricultural commodities, strengthen national energy security, and support the government’s food self-sufficiency program,” Ghani said in a statement received by Palmoilmagazine.com.
He added that stronger collaboration among state-owned enterprises would accelerate the establishment of a sustainable national bioenergy ecosystem capable of delivering long-term economic and social benefits.
Also Read: Agrinas Palma Nusantara Targets 500,000 Hectares for Palm Oil Replanting Push
Under the agreement, Agrinas Palma Nusantara and Pertamina Power Indonesia will prioritize the development of renewable energy projects based on Indonesia’s domestic resources. Key initiatives include the reactivation of a Fatty Acid Methyl Ester (FAME) biodiesel plant, the construction of two cassava-based bioethanol facilities, and the evaluation of additional renewable energy projects identified by both parties.
The biodiesel plant is expected to restore production capacity to approximately 600,000 metric tons annually, significantly contributing to Indonesia’s biodiesel supply while expanding the share of biofuel within the national energy mix.
Meanwhile, the proposed bioethanol development will consist of two processing facilities, each designed to produce 300 kiloliters per day (KLPD), bringing the combined production capacity to 600 KLPD. The project is expected to enhance the value of cassava as an agricultural commodity, strengthen domestic bioethanol supply, and support both the nation’s clean energy transition and food security objectives.
Also Read: Indonesia Cuts July 2026 CPO Reference Price to USD 1,000.90 per Ton Amid Weak Global Demand
As a follow-up to the MoU, the two companies will conduct a series of feasibility studies and technical assessments to identify commercially viable renewable energy projects. These studies will evaluate technical, market, economic, environmental, legal, business, and risk management aspects to ensure each initiative can be implemented efficiently and sustainably.
Beyond project evaluation, the partnership will facilitate cooperation on strategic, technical, and commercial matters through knowledge sharing, technology exchange, and the joint utilization of facilities, equipment, and materials to improve project execution.
Through this strategic alliance, Agrinas Palma Nusantara reaffirmed its commitment to strengthening cooperation with Pertamina Power Indonesia in advancing Indonesia’s renewable energy sector. The companies expect the collaboration to accelerate the development of the national bioenergy industry, maximize the utilization of domestic resources, increase value creation across the agricultural sector, reinforce national energy resilience, and support the successful implementation of Presidential Instruction No. 2 of 2026. (P3)
