Agrinas and Pertamina Partner on National Biofuel Development
PT Agrinas Palma Nusantara (Persero) and PT Pertamina Power Indonesia have entered into a partnership to develop the national biofuel sector, a move aimed at supporting the government’s food and energy security programmes. Agrinas Palma Nusantara President Director Mohammad Abdul Ghani stated that the synergy between the two companies is a crucial step to accelerate the development of an integrated national biofuel industry from upstream to downstream. “This collaboration with PT Pertamina Power Indonesia is expected to optimise the potential of both companies to form an integrated and sustainable biofuel ecosystem that provides tangible benefits for the national economy,” Abdul Ghani said on Thursday, 30 July 2026.
The collaboration follows Presidential Instruction Number 2 of 2026, which tasks Agrinas Palma Nusantara with supporting the acceleration of food and energy self-sufficiency through agricultural development and downstream processing. Agrinas Palma Nusantara plans to build a biofuel ecosystem that includes the development of cassava cultivation areas as raw material for bioethanol and the reactivation of PT Bayas Biofuels’ biodiesel facilities. PT Pertamina Power Indonesia stated it will follow up on the partnership by preparing a feasibility study, defining the division of roles, and developing a business model as the basis for project implementation.
One of the projects under discussion is the development of a cassava cultivation area spanning approximately 33,000 hectares in Kembang Janggut District, Kutai Kartanegara Regency, East Kalimantan. The area is projected to supply a bioethanol plant with a capacity of up to 300 kilolitres per day. The location is considered advantageous due to adequate logistical access, being only about 6.5 kilometres from a jetty and having a river route navigable by barges of up to 5,000 tonnes. The relatively flat terrain also allows for modern, mechanised cassava farming, from land preparation to harvesting, which is expected to increase productivity, reduce operational costs, and strengthen the bioethanol supply chain. “Through this collaboration, we hope the feasibility study process and project implementation can proceed more quickly to strengthen the supply of renewable energy while increasing the added value of national agricultural commodities,” Abdul Ghani said. PT Pertamina Power Indonesia President Director John Anis welcomed the collaboration as part of efforts to strengthen the development of new and renewable energy in Indonesia. “We see this synergy as a strategic step in building a national biofuel ecosystem,” John Anis said.