Pertamina Partners with Medco and PTPN to Develop New E20 Petrol
PT Pertamina (Persero) supports President Prabowo Subianto’s Asta Cita vision for achieving food self-sufficiency and national energy independence through the development of bioethanol based on domestic resources, specifically Ethanol 20% or E20. For context, E20 is a mixture of 20% ethanol with 80% petrol.
This commitment is realised through the signing of three strategic Memorandums of Understanding (MoUs) by Pertamina New & Renewable Energy (PNRE) with PT Perkebunan Nusantara III (Persero) and PT Medco Energi Internasional Tbk via PT Medco Intidinamika, on Monday (27/04), in Jakarta.
The signing covers the revitalisation of a bioethanol plant in Lampung based on multi-feedstock, the construction of a new bioethanol plant in Bone, South Sulawesi, and the development of a molasses-based bioethanol plant together with PT Sinergi Gula Nusantara (SGN), a subsidiary of PTPN III. This initiative forms part of efforts to accelerate the implementation of the bioethanol mandate towards E20 by 2028 to strengthen national energy resilience.
“The implementation of bioethanol cannot be delayed any longer. The E20 target for 2028 requires a significant leap, both in terms of supply and infrastructure. Therefore, collaborations like the one conducted today are key to ensuring production availability, offtaker certainty, and an integrated ecosystem from upstream to downstream. The government is also continuously simplifying regulations so that business actors can move more quickly,” said the Director General of New, Renewable Energy, and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiya Dewi, in her remarks.
This collaboration unites cross-sector strengths, where PTPN III plays a role in providing and managing feedstock based on plantation commodities, Medco strengthens industrial development and infrastructure, and Pertamina through PNRE promotes downstream processing and the utilisation of bioethanol as clean energy. This synergy is designed to build an integrated ecosystem from upstream to downstream that can be replicated nationally.
The first agreement covers cooperation between PNRE, PTPN III, and Medco for the revitalisation of the bioethanol plant in Lampung with capacity and supply chain based on multi-feedstock, including cassava and other commodities. Next, the second cooperation between PNRE and PTPN III focuses on building a new bioethanol plant in Bone Regency, South Sulawesi, with support for land development and raw material supply chain based on cassava, corn, and sugarcane. The third cooperation between Pertamina NRE and Sinergi Gula Nusantara is directed towards developing a molasses-based bioethanol plant integrated with the national sugar industry.
Pertamina’s Director of Transformation and Business Sustainability, Agung Wicaksono, stated that this collaboration is a concrete step in strengthening national energy resilience amid global dynamics.
“In a global geopolitical situation full of uncertainties, the best energy source is one that comes from within the country. This collaboration opens the way for the utilisation of renewable energy based on domestic potential. Through the synergy of the Pertamina Group with the plantation sector and strategic partners, we are optimistic that the bioethanol programme can drive import substitution and strengthen national energy independence,” said Agung.
Meanwhile, CEO of Pertamina NRE, John Anis, emphasised that bioethanol development is part of the strategic roadmap in supporting the national energy transition agenda.
“The national bioethanol needs to achieve the E20 target by 2028 are estimated to reach 3 to 5 million kilolitres. For this, the construction of several production facilities in various regions is needed with a multi-feedstock and multi-distribution approach, considering the different availability of raw materials in each area as well as local wisdom potential,” he said.
These needs require upstream support to ensure sustainable raw material availability.
President Director of PTPN III, Denaldy Mulino Mauna, emphasised that this collaboration is part of efforts to build an integrated bioethanol ecosystem from upstream to downstream. According to Denaldy, bioethanol development not only impacts the energy sector but also provides economic benefits to society, including market certainty for farmers and supply stability for industry.
“PTPN will ensure feedstock availability, while Pertamina promotes energy downstream processing. This is not just a project, but a joint effort to build a more independent and sustainable future for Indonesia’s energy,” he added.
As part of these efforts, Pertamina has continuously promoted the development of an integrated bioethanol ecosystem, starting from the construction of a bioethanol plant in Glenmore, Banyuwangi, the construction of a bioethanol plant with Toyota Tsusho in Lampung, the development of a pilot project based on aren in Garut involving social forestry groups, to strengthening global collaboration through international partnerships and strategic investments in the renewable energy sector.
Bioethanol development becomes part of Pertamina’s strategic direction going forward. Pertamina will continue to promote integrated bioethanol development through strengthened cross-sector collaboration, to ensure readiness for implementation and provide sustainable added value to the national economy.