Agrinas and Pertamina Power Strengthen National Biofuel Development
State-owned enterprises PT Agrinas Palma Nusantara (Persero) and PT Pertamina Power Indonesia are strengthening synergy in national biofuel development as part of efforts to support the government’s food and energy security priorities.
President Director of PT Agrinas Palma Nusantara, Mohammad Abdul Ghani, said collaboration between state-owned enterprises is an important 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 real benefits for the national economy,” Abdul Ghani said in Jakarta on Thursday.
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 sector 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 biodiesel facilities owned by PT Bayas Biofuels.
Meanwhile, PT Pertamina Power Indonesia has expressed readiness to follow up on cooperation opportunities through the preparation of feasibility studies, role distribution, and business model development 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 Subdistrict, Kutai Kartanegara Regency, East Kalimantan. This 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.
Additionally, the relatively flat terrain allows for modern cassava cultivation with mechanisation, from land preparation to harvesting. This approach is expected to increase productivity, reduce operational costs, and strengthen the bioethanol supply chain.
Agrinas Palma Nusantara holds a mandate to support the government’s strategic programmes in food and energy security. “Through this collaboration, we hope the process from feasibility study preparation to project implementation can proceed more quickly, thereby strengthening 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 said his company welcomes the collaboration opportunity as part of efforts to strengthen new and renewable energy development in Indonesia.
“We see this synergy as a strategic step in building a national biofuel ecosystem. PT Pertamina Power Indonesia is ready to follow up on discussions with Agrinas Palma Nusantara through the preparation of feasibility studies and cooperation schemes that provide added value for both companies,” John Anis said.
Through this synergy, PT Agrinas Palma Nusantara (Persero) and PT Pertamina Power Indonesia are expected to accelerate the development of an integrated and sustainable national biofuel sector. The collaboration between the two companies is also expected to support food security, energy security, and agricultural downstream processing programmes, while contributing to national economic growth.