Indonesian Political, Business & Finance News

Pertamina Wins Outstanding SDG Innovator 2026 for Bioenergy Breakthrough

| Source: CNBC Translated from Indonesian | Energy
Pertamina Wins Outstanding SDG Innovator 2026 for Bioenergy Breakthrough
Image: CNBC

PT Pertamina (Persero) has won the Outstanding SDG Innovator 2026 award at the SDG Innovation Accelerator for Young Professionals 2026, organised by the United Nations Global Compact (UNGC). The award was granted for its innovation Bioenergy Lestari: Unlocking The Integrated Sustainable Energy Solution, a concept that presents a new approach to managing social forestry areas.

Beyond community empowerment, the concept develops forest areas into productive ecosystems capable of generating renewable energy, strengthening national energy security and opening up sustainable business opportunities. The SDG Innovation Accelerator for Young Professionals is a global UNGC initiative that encourages business innovation in support of the Sustainable Development Goals (SDGs). Bioenergy Lestari was developed through cross-functional collaboration at Pertamina, combining technological innovation, sustainability, communication and community empowerment into a single integrated solution.

Vice President of Corporate Communication at PT Pertamina (Persero), Muhammad Baron, said the award proves that Pertamina’s innovations can integrate sustainability with business value creation.

“The Outstanding SDG Innovator 2026 award shows that Pertamina’s innovation not only delivers social and environmental impact, but is also able to open new business opportunities that support national energy security. We believe innovation is one of the main drivers of the company’s transformation towards a more sustainable business,” Baron said in a written statement quoted on Thursday (30 July 2026).

Through Bioenergy Lestari, Pertamina is developing a bioenergy ecosystem based on social forestry that integrates forest conservation, community empowerment and the development of renewable energy value chains.

This approach opens up opportunities to use social forestry areas as a source of renewable energy feedstock without opening new land or compromising food security. One of the commodities under study is sweet sorghum as an alternative bioethanol feedstock.

Its development is being carried out flexibly, tailored to the potential of local resources in each region. As an initial implementation, Pertamina, through the Pertamina Foundation and together with Universitas Gadjah Mada (UGM), has begun a pilot project cultivating sweet sorghum across three hectares at the UGM Special Purpose Forest Area (KHDTK) in Blora, Central Java.

In addition to producing more environmentally friendly energy feedstock, the Bioenergy Lestari innovation also promotes a circular economy through the use of value-added by-products that open up new business opportunities, increase community income and strengthen the economics of bioenergy development.

Baron said Bioenergy Lestari represents a strategic step for Pertamina in developing social forestry that is oriented not only towards corporate social responsibility, but also forms part of the company’s strategy to build a green economy and support the energy transition.

“Through collaboration with various stakeholders, we want to make social forestry areas part of the national bioenergy ecosystem, capable of supporting energy transition targets, strengthening Indonesia’s energy security and creating sustainable economic value for communities and the company alike,” Baron added.

The Bioenergy Lestari innovation is expected to serve as a model for future bioenergy development, supporting the diversification of national bioethanol feedstock, strengthening the implementation of the renewable energy mix and opening up opportunities for low-carbon businesses based on local potential.

View JSON | Print