From Waste to Profit

Jakarta, VIVA - PT Perkebunan Nusantara or PTPN IV PalmCo is relying on renewable new energy (EBT) based on palm oil waste by operating two biogas power plants (PLTBg) in Riau Province to reduce dependence on fossil fuels.

The President Director of PTPN IV PalmCo, Jatmiko K Santosa, stated that the company’s initiative to use palm oil mill effluent (POME) to run the factories is not a short-term response to the surge in energy prices, but part of a long-term strategy that has been underway for some time.

“The current global fluctuations in fossil energy prices actually prove that the development of renewable new energy (EBT) we are undertaking is the right step. The PLTBg helps us reduce dependence on diesel, while also maintaining operational cost efficiency,” he said on Thursday, 16 April 2026.

Currently, he said, PalmCo operates two power plants using palm oil liquid waste, namely PLTBg Terantam and PLTBg Tandun. Both use covered lagoon technology to process the liquid waste into biogas, which is then converted into electricity.

All the energy produced is directly absorbed to support the operations of the Palm Oil Mill (PKS) PPIS Tandun. Based on company data, the utilisation of energy from both biogas plants has significantly replaced the use of diesel-fuelled gensets.

“In the period from 2023 to 2025, diesel consumption was reduced by more than 2.6 million litres. This efficiency directly impacts the company’s expenditure, with energy cost savings reaching around Rp39.5 billion over the past three years,” Jatmiko explained.

Meanwhile, the Director of Strategy and Sustainability at PalmCo, Ugun Untaryo, views the utilisation of POME as an energy source as also reflecting the application of sustainability principles in the palm oil industry.

“This is not just about efficiency, but part of the circular economy. Liquid waste that was previously an environmental challenge is now processed by us into a valuable energy source,” he said.

He explained that both PLTBg facilities are capable of processing more than 293,000 cubic metres of liquid waste throughout 2025. From this process, millions of cubic metres of methane gas are produced, which is utilised as energy while also preventing the release of greenhouse gas emissions into the atmosphere.