Pertamina NRE Ready to Build Bioethanol Plant, Optimizing Domestic Resources

Jakarta, September 6, 2024 – Pertamina New & Renewable Energy (Pertamina NRE) demonstrates its commitment to developing the bioethanol business. This commitment was shown through two cooperation agreements, one with PT Sinergi Gula Nusantara (SGN) and the other with the provincial government of East Nusa Tenggara (NTT), on Thursday, September 5.

With SGN, a framework agreement was signed by the Chief Executive Officer of Pertamina NRE, John Anis, and the President Director of SGN, Mahmudi. Meanwhile, with the NTT provincial government, a cooperation agreement was signed by the CEO of Pertamina NRE, John Anis, and the Acting Governor of NTT, Ayodhia G. L. Kalake.

“This cooperation is a strategic step in our plan to develop bioethanol in Indonesia. We are optimistic that the collaboration between Pertamina NRE, SGN, and the NTT Provincial Government will have a positive impact on accelerating the national energy transition. Pertamina NRE has been focusing on new and renewable energy provision, including bioethanol,” said John Anis, the CEO of Pertamina NRE.

Pertamina NRE and SGN agreed to collaborate to build a bioethanol plant in Glenmore, Banyuwangi Regency, East Java. The plant will utilize molasses (a by-product of sugarcane processing) from the Glenmore sugar mill. The plant is planned to have a production capacity of 30,000 kiloliters per year, equivalent to 100 kiloliters per day (KLPD). This project is part of a short-term plan for the bioethanol business development.

“We welcome this cooperation with PNRE, as it aligns with SGN's commitment to continue supporting the government’s efforts to develop bioethanol production as stipulated in Presidential Regulation 40/2023,” said Mahmudi, the President Director of PT Sinergi Gula Nusantara.

Meanwhile, with the NTT Provincial Government, Pertamina NRE agreed to develop bioethanol in the NTT region. This cooperation is part of Pertamina NRE’s medium-term strategy. The collaboration is expected to explore the potential for bioethanol development by identifying suitable land for energy crops in NTT, such as sugarcane, corn, cassava, and others. This initiative not only supports Indonesia’s energy transition program but also aims to benefit regional development, enhance community welfare, and boost agricultural productivity.

“Thank you for this positive initiative. We hope the bioethanol development efforts in NTT will become a strategic step toward benefiting the region's progress and improving the local community's well-being, particularly since NTT is geographically suited for energy crops like corn, which is essential for PNRE,” said Ayodhia G. L. Kalake, the Acting Governor of NTT.

Bioethanol implementation as a fuel blend has already been initiated by Pertamina with the Pertamax Green 95 product launch in 2023. It aligns with the government's plan to reduce greenhouse gas (GHG) emissions in the transportation sector by providing biofuels. The government encourages bioethanol utilization as a transportation fuel to lower national fuel imports, creating new jobs, boosting GDP, and contributing to long-term emission reductions. This effort aligns with Presidential Regulation No. 40 of 2023 on the Acceleration of National Sugar Self-Sufficiency and Bioethanol Provision as a Biofuel.

The Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, added that Pertamina plays a pivotal role in leading the energy transition, including developing the ecosystem to ensure a comprehensive energy transition implementation. The collaboration between business entities like Pertamina NRE and SGN with the NTT Provincial Government is part of this effort to accelerate the energy transition.

“To achieve energy transition targets, Pertamina cannot work alone. Partnerships with various stakeholders, including government agencies and private entities, will help achieve the Indonesian government’s Net Zero Emissions target by 2060, or even sooner,” Fadjar explained.

In bioethanol business development, Pertamina NRE will become a bioethanol supplier to be processed and marketed through PT Pertamina Patra Niaga. As part of the Pertamina Group, Pertamina NRE remains committed to promoting clean energy initiatives as an integral part of implementing environmental, social, and governance (ESG) principles, supporting the Sustainable Development Goals, and advancing the energy transition to achieve the aspiration of net-zero emissions (NZE).**