Indonesian state-owned energy company Pertamina, through its subsidiary PT Pertamina Gas (Pertagas), has signed a memorandum of understanding (MoU) with Malaysian renewable energy developer reNIKOLA Holdings.
The companies will collaborate on the development of biogas and biomethane projects in Indonesia.
The partnership aims to convert organic waste, particularly from palm oil production, into renewable gas for local and regional energy supply.
The agreement was formalised during the Pipelines and Energy Summit in Jakarta.
Under the MoU, the companies will jointly explore opportunities to build and operate biogas facilities in Sumatra and Kalimantan, two regions with significant palm oil processing activity and existing infrastructure challenges.
The planned facilities will use palm oil mill effluent (POME) and other organic waste streams to produce biogas, which will then be upgraded into biomethane and distributed through Pertagas’s pipeline network.
Pertagas President Director Gamal Imam Santoso said the partnership reflects Pertamina's ongoing commitment to expanding the use of alternative energy sources and decarbonising Indonesia’s energy mix.
He noted that the collaboration aligns well with Pertagas’s infrastructure capabilities and reNIKOLA’s experience in renewable project development, especially in compressed biogas systems.
Dr Mohd Amran Mohd Yusof, CEO of reNIKOLA Primer Energi, the company’s Indonesian unit, highlighted that the joint projects are designed to create new energy options for communities in remote and semi-rural areas.
He added that leveraging biogas production from palm oil waste could simultaneously advance environmental goals and support economic development in agricultural regions.
The MoU builds on recent regional momentum in biogas development.
In May 2025, reNIKOLA signed a similar agreement with Japan’s Sumitomo Corporation, targeting biomethane production in both Malaysia and Indonesia.
Earlier in the year, the company also entered into a build-own-operate-transfer agreement for a compressed biogas facility in North Sumatra, representing a US$6 million investment with the potential to offset approximately 40,000 tonnes of CO₂ emissions annually.
reNIKOLA has publicly committed to investing over US$240 million to develop as many as 40 compressed biomethane projects across Indonesia in the coming years.
The initiative is part of a broader strategy to contribute to the country’s goal of reaching 26 percent renewable energy in its national mix by 2030.
Although regulatory and logistical challenges remain - particularly around feedstock sourcing, permitting and integration with national gas infrastructure - both parties expressed confidence that this partnership represents a meaningful step forward in Indonesia’s renewable energy transition
Pertamina and ReNikola partner to develop biogas projects in Indonesia
