To Boost E20 Target, Pertamina Strengthens Collaboration on Domestic Bioethanol Development

Pertamina (Persero) supports President Prabowo Subianto’s Asta Cita vision in realising national food self-sufficiency and energy independence through the development of bioethanol based on domestic resources.

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 through PT Medco Intidinamika, on Monday, 27 April 2026 in Jakarta.

The signing covers the revitalisation of the 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 signing was conducted by CEO of PNRE John Anis, Director of Business PTPN III Ryanto Wisnuardhy, and Director of PT Medco Intidinamika Aradea Z. Arifin, and witnessed by representatives from relevant ministries and agencies.

“The implementation of bioethanol cannot be delayed any longer. The E20 target in 2028 requires a significant leap, both in terms of supply and infrastructure. Therefore, collaborations like the one carried out 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,” stated 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 the construction of a new bioethanol plant in Bone Regency, South Sulawesi, with support for land development and raw material supply chain based on cassava, maize, and sugarcane.