State-owned energy company PT PLN Energi Primer Indonesia (PLN EPI) has signed a Memorandum of Understanding (MoU) with PT Biomassa Energi Group (BEG) and G7 Group SP.Z.O.O from Poland to strengthen Indonesia’s biomass supply chain and export capabilities to global markets, particularly in Asia and Europe.

The signing ceremony, held in Jakarta on Monday, October 13, 2025, marks a strategic step in expanding biomass business cooperation − covering palm kernel shell trade to the development of export-scale Empty Fruit Bunch (EFB) pellet plants.

PLN EPI Biomass Director, Hokkop Situngkir, said the partnership represents a new chapter in PLN EPI’s transformation to support Indonesia’s energy transition and enhance the country’s role in the global renewable energy market.

“Indonesia has around 130 million tons of biomass potential per year, but only a small portion is utilized. Through this collaboration, we aim to turn that potential into real opportunities − both for decarbonizing the national power system and meeting global green energy demand,” Hokkop said.

He emphasized that PLN EPI is now evolving beyond its traditional role as a domestic energy supplier by expanding into Beyond kWh businesses, such as biomass trading and sustainable fuel exports.

“We will continue to ensure domestic biomass supply security to support PLN’s cofiring program, while also contributing to the global low-carbon economy,” Hokkop said.

Meanwhile, Rogowski Wojciech Marek, Legal Advisor of G7 Group SP.Z.O.O, expressed optimism about the collaboration’s future, noting Indonesia’s vast potential to become a major player in the global biomass market.

“Global demand for biomass continues to grow, and Indonesia has all the right factors to lead the market. Even before this MoU was signed, we had already prepared strategic steps to secure market share,” Rogowski said.

He revealed that the first jointly developed EFB pellet plant is expected to begin operations in February 2026, with an initial production capacity of 120,000 tons per year. This will be followed by five additional plants with similar or larger capacities.

“I believe the total export capacity − including EFB pellets, Palm Kernel Shells (PKS), wood pellets, and other biomass types − could reach 3 million tons per year in the coming years. Partnering with a state-owned company like PLN EPI gives this project great trust and credibility in international markets,” Rogowski concluded.