Accelerating ESG Implementation, PTPN IV and reNIKOLA Develop Compressed Biomethane Gas (CBG)

Jakarta, September 13, 2023 – Holding Perkebunan Nusantara through its subsidiary, PTPN IV, established a partnership in the development of Compressed Biomethane Gas (CBG) with reNIKOLA SDN BHD, one of the renewable energy companies from Malaysia. This cooperation is carried out in order to accelerate the implementation of Environmental, Social, and Governance (ESG) in PTPN Group. This partnership is contained in a Memorandum of Understanding (MoU) signed by PTPN IV Director Sucipto Prayitno and Director of reNIKOLA SDN BHD, Lim Beng Guan on June 30, 2023. In this collaboration, the development of CBG from palm oil processing liquid waste (POME) which will be carried out by PTPN IV and reNIKOLA, focuses on four palm oil mills (PKS) owned by PTPN IV, namely Tinjowan PKS, Pulu Raja PKS, Dolok Sinumbah PKS and Pabatu PKS, which are located in North Sumatra.

PTPN IV Director Sucipto Prayitno said that the cooperation is an initiative of PTPN IV as one of the subsidiaries of PTPN III (Persero) which is engaged in oil palm plantations. According to him, this cooperation is in line with the Greenhouse Gas (GHG) reduction roadmap launched by PTPN Group to reduce emissions in Business As Usual (BAU) plantation activities. “This also supports the government’s program to reduce GHG emissions by 29 percent (own capability) or 41 percent (with international assistance) by 2030 in accordance with the NDC (Nationally Determined Contribution),” Sucipto said, during the ceremony held online on Tuesday (12/09/2023).

Meanwhile, Lim Beng Guan, Director of reNIKOLA SDN BHD, said that his company is currently committed to reducing global carbon emissions (decarbonization), with one of its focuses being the development of CBG through the utilization of palm oil processing liquid waste (POME) into something more valuable and usable. “We are targeting 50 CBG projects in Indonesia with an estimated cost of 300 million USD, and hope to collaborate with PTPN Group,” Lim said. Meanwhile, Marketing Director of Holding Perkebunan Nusantara PTPN III (Persero), Dwi Sutoro, said the cooperation plan between PTPN IV and reNIKOLA was in line with the PTPN Group’s carbon emission reduction plan. “The presence of reNIKOLA as a partner in CBG development by utilizing palm oil processing liquid waste (POME) into something of economic value, especially in PTPN IV, is something good. This is expected to provide added value for PTPN Group and reNIKOLA,” Dwi added. Dwi hopes that in the future the development of EBT in Indonesia will get more support from the government, so that it can attract potential investors to develop EBT in Indonesia. “Of course, to realize the fulfillment of national energy needs now and in the future,” he said.