Friday, February 23, 2024

Kaltimex Energy pursues investors, bank loans for two renewable energy projects

Reading Time: 2 minutes
Gusty da Costa





Energy company PT Kaltimex Energy is inviting foreign investors and banks to participate in the financing of its two biomass projects in Indonesia.

The company – which also operates in Bangladesh, Singapore, the Philippines and Myanmar – aims to become a leading company to provide distributed power in Indonesia. Kaltimex already obtained an IPP (independent power producer) license to operate a 23 MW (megaWatts) power plant for a textile company in Central Java.

Commissioner Widi Pancono said the company was open to investment and loan offers from banks and investors. 

“It depends on what they offer. The offer can be a loan or a capital injection. We can discuss it, provided that both parties agree on the terms,” he said to Indonesia Business Post on April 20, 2022. 

Kaltimex’s first biomass project is a waste-to-fuel facility in Pangkal Pinang, Bangka Belitung province. The facility can process approximately 100 tons of waste per day and produce about 15,000-kiloliters of biodiesel per year. 

“The facility can convert all kinds of waste that have energy value, including plastic and organic waste, into biofuel,” Pancono said, adding that the technology can extract carbon and hydrogen from any waste containing energy value. 

The project will cost US$20 million. Around 30% of the project’s cost will be funded by the company’s equity, while a bank loan will finance 70%.

“We are seeking loans from foreign banks,” said Pancono, emphasizing that the interest rate should be below 5% and on an eight-year term. 

Kaltimex will use pyrolysis technology that employs non-oxygen heating to produce carbon monoxide and nitrogen. A synthesis process and catalyst will be used to liquefy the gas and produce. The technology will be from South Korea and Japan. The biodiesel produced by the facility will be distributed to foreign and domestic markets.

The engineering, procurement and construction (EPC) phase will begin in the first semester of 2023 and will be completed by 2024.

The second project is a bio-CNG (bio-compressed natural gas) plant in Lombok, West Nusa Tenggara.

“Kaltimex Energy will build a bio-CNG facility that will produce eight tons of bio-CNG each day,” Pancono said. He added that the final product would be a replacement for 50kg industrial LPG cylinders.

The project will cost the company around US$12 million, 30% of which will come from equity and 70% from bank loans. Currently, the company is in discussions with several domestic and foreign banks. 

Using German technology, the facility will enable mass fermentation using organic eating bacteria that consume corn cobs and produce gas. “We take the gas and purify it, leaving only methane behind,” Pancoro said.

The bio-CNG will be sold in the domestic market, including for tourism industry, such as hotels, restaurants, cafeterias, Islamic boarding schools, malls, and other sectors that require LPG.

Construction of the project will begin in the second semester of 2022 and be completed in 2023.

Pancono said the government supports the pilot projects for the transition to renewable energy in Indonesia. The government will provide incentives for these two projects with tax holidays, free import duties and biofuel industry regulations.

This is part of the government’s program to utilize renewable energy sources. As an archipelago, Indonesia is an ideal location for small biomass and renewable energy facilities capable of supplying local needs and demands. There is no need for the government or private sector to transport fuels and other energy sources to thousands of small islands in Indonesia.

Gusty da Costa






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


President Director of State electricity company PT PLN, Darmawan Prasodjo, has suggested that hydrogen fuel cell vehicles as future transportation is much more efficient when compared to fuel-based, even electric vehicles.
Vale Indonesia, a subsidiary of Canadian company Vale, has denied the Indonesian government’s claim that Vale Indonesia and Indonesian state-owned mining holding company MIND ID had reached an agreement with the government on the price of divestment shares.
Pertamina Hulu Mahakam (PHM) has secured the final investment decision (FID) approval to proceed with the implementation of the more than US$ 300 million Offshore Field Development Project (OPLL-3B) in the Mahakam Block.
Vela Alpha, a drone developed by PT Dirgantara Indonesia or PTDI in collaboration with PT Vela Prima Nusantara, also known as Vela Aero, made its appearance at the Singapore Airshow 2024 aviation exhibition.
The Upstream Oil and Gas Regulatory Task Force (SKK Migas), along with Inpex Corporation, is still studying global liquefied natural gas (LNG) market projections to secure long-term gas sales contracts for the Masela Block.
Ministry of Energy and Mineral Resources (ESDM) is unveiling a promising prospect for sustainable energy development mainly in Papua’s hydropower and its potential export.