Pertamina Signs Cooperation With Sinergi Sugar Nusantara Develops Etanol Factory

Pertamina NRE signed a cooperation in developing ethanol with PT Sinergi Sugar Nusantara (SGN). (Doc. Pertamina NRE)

JAKARTA - Pertamina New & Renewable Energy (Pertamina NRE) signed a cooperation in developing ethanol with PT Sinergi Sugar Nusantara (SGN) and with the East Nusa Tenggara (NTT) Provincial Government, on Thursday 5 September.

With SGN, the signing of the cooperation framework agreement was carried out by the Chief Executive Officer of Pertamina NRE, John Anis, and the President Director of SGN, Mahmudi. Meanwhile, with the province of NTT, the signing of the cooperation agreement was carried out by the Chief Executive Officer of Pertamina NRE, John Anis, and the Acting Governor of NTT, Ayodhia GL Kalake.

"This collaboration is a good strategic step in the bioethenol development plan in Indonesia. We are optimistic that the collaboration between Pertamina NRE and SGN and the NTT Provincial Government will have a positive impact in accelerating the national energy transition. Pertamina NRE has been focusing on providing new and renewable energy, one of which is through bioethenol," said Pertamina NRE CEO John Anis, Saturday, September 7.

Pertamina NRE and SGN agreed to work together to build a bioethenol factory in Glenmore, Banyuwangi Regency, East Java, by utilizing the raw material for the molase which is a side product of sugar cane processing at the Glenmore sugar factory. The bioethenol plant is planned to have a production capacity of 30,000 kilo liters per year or the equivalent of 100 kilo liters per day (KLPD). This project is part of a short-term plan for the development of the bioethenol business.

"We welcome the cooperation plan from PNRE, this is in line with SGN's commitment to continue to support the government's efforts to develop bioethenol production as stated in Presidential Decree 40/2023," said the President Director of PT Sinergi Sugar Nusantara, Mahmudi.

Meanwhile, with the NTT Provincial Government, Pertamina NRE agreed to develop bioethenol in the NTT Province. This collaboration is included in Pertamina NRE's medium-term strategy.

This collaboration is expected to explore the potential for bioethenol development through the identification of land potential that can be utilized for energy plants in NTT such as sugar cane, corn, cassava, and others. Not only supporting the Indonesian government's energy transition program, this program will provide benefits for regional progress and community welfare and support increased agricultural productivity.

"Thank you for the good initiative. We hope that bioethenol development efforts in NTT can be a strategic step to provide benefits for regional progress and the welfare of local communities in NTT, especially since NTT is geographically known to be suitable for energy plants such as corn needed by PNRE," said Acting Governor of NTT, Ayodhia G. L. Kalake.

The implementation of bioethenol as a mixture of fuel oil (BBM) has been started by Pertamina through the launch of Pertamax Green 95 products in 2023.

This step is in line with the government's plan to reduce greenhouse gas (GHG) emissions in the transportation sector through the provision of Nabati Fuel (BBN). The government encourages the use of bioethenol as a transportation fuel in the hope that this step can reduce national fuel imports, create new jobs, increase GDP, and contribute to reducing emissions in the long term. This step is in line with Presidential Regulation Number 40 of 2023 concerning the Acceleration of National Sugar Self-Sufficiency and Provision of Bioethenol as Nabati Fuel (Biofuel).