PalmCo Leads Green Revolution in Agribusiness with Decarbonization and Clean Energy Push

Palm Oil Magazine
Through an integrated decarbonization strategy, PalmCo positions itself as a low-emission agribusiness pioneer committed to environmental stewardship. Photo by: Special

PALMOILMAGAZINE, JAKARTA – PT Perkebunan Nusantara (PTPN) IV PalmCo, a subholding of PTPN III (Persero), is redefining the role of plantation industries—evolving beyond crop production to become a key player in the fight against climate change. Through an integrated decarbonization strategy, PalmCo positions itself as a low-emission agribusiness pioneer committed to environmental stewardship.

In a statement marking Earth Day 2025, PalmCo President Director Jatmiko Santosa highlighted that this transformation is not just a vision—it’s already underway. The company has taken two strategic paths: sustainable land management and the development of renewable energy.

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“By applying nature-based decarbonization practices, we sustainably manage crops like palm oil, tea, coffee, and rubber. We preserve conservation areas, avoid open burning, and minimize pesticide use,” Jatmiko explained. These efforts have resulted in a significant carbon capture—873,395 tons of CO₂ equivalent per year—across more than 600,000 hectares of land.

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PalmCo’s environmental governance is backed by international standards, including ISO 14001, ISO 45001, RSPO, ISPO, ISCC, and compliance with the EU Deforestation Regulation (EUDR), ensuring a deforestation-free supply chain.

Beyond sustainable farming, PalmCo is also breaking ground in clean energy within agribusiness. It operates seven biogas power plants (PLTBg) using palm oil mill effluent and one biomass facility processing solid waste. These initiatives have reduced emissions by 191,107 tons of CO₂ equivalent annually.

“With new clean energy facilities in Sei Mangkei and Pagar Merbau coming online, our impact continues to grow. This year, we’re also targeting a 10% reduction in energy consumption across operations through efficiency measures,” Jatmiko added.

PalmCo’s Director of Strategy and Sustainability, Ugun Untaryo, emphasized that sustainability is not just about environmental protection—it’s about building a resilient, inclusive business future. “Cross-sector collaboration is key. We’re shaping a business model that’s fair, sustainable, and beneficial for all stakeholders,” he said.

Looking ahead, PalmCo aims to build dozens of clean energy facilities—including biogas, BioCNG, and co-firing plants—by 2030. These steps form part of the company’s roadmap toward net zero emissions and represent a concrete contribution to Indonesia’s global climate commitments.

“From plantation waste to clean electricity, from land conservation to carbon sinks—this is more than just an energy transition. It’s a green revolution in the plantation sector,” Ugun concluded. (P3)

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