Sunday, December 3, 2023

West Nusa Tenggara to build Indonesia’s first renewable energy region-owned company

Reading Time: 2 minutes
Audina Nur


Mahinda Arkyasa



The province of West Nusa Tenggara (NTB) is set to pioneer the establishment of Indonesia’s inaugural Regional Owned Company (BUMD) engaging in the renewable energy sector.

This collaboration project between PT Kaltimex Energy and Japan’s PT Mitsui Indonesia as the investor is scheduled to hold a groundbreaking ceremony on August 17, 2023. 

Head of the NTB Industry Agency Nuryanti said that investors would also cooperate with regional-owned PT Gerbang NTB Emas (GNE).

Transforming waste to gas and briquette production

According to NTB Governor Zulkieflimansyah, the establishment of this company is the by-product of efforts of the provincial government which targets net zero emissions in 2050. 

Currently, discussions between the NTB Administration, Kaltimex Energy, and Mitsui Indonesia were focused on the timeline for the Biomethane Compressed Natural Gas (Bio-CNG) factory project in Lombok, on Monday (29/5).

Following the construction of the Bio-CNG factory, the company will produce gas and briquettes from agricultural and forestry waste in NTB. The waste will be processed at the Kebon Bongkok Final Disposal Site (TPA) in West Lombok. 

Indonesia’s push for commercial-scale bio-CNG adoption

Bio-CNG is a highly purified form of biogas consisting predominantly of methane (above 95 percent) that stands out as an environmentally friendly fuel alternative. By eliminating pollutant gas compounds, bio-CNG possesses similar attributes to Compressed Natural Gas (CNG).

Bio-CNG development helps to achieve the biogas targets as renewables. Indonesia has a bio-CNG plant in Muara Wahau, East Kalimantan, operated by PT Dharma Satya Nusantara Tbk (DSNG). 

Currently, the Energy and Mineral Resources (EDM) Ministry is pushing for the development of bio-CNG on a commercial scale as a substitute for liquified petroleum gas (LPG) for industry and transportation.

Collaborating with the Global Green Growth Institute (GGGI), the ministry has diligently conducted comprehensive market studies for the development of bio-CNG in both Central Kalimantan and East Kalimantan. They are also preparing to build a bio-CNG facility.

Back in 2019, the production of biogas fell significantly short at 26.28 million cubic meters (m3), failing to meet the projected target of 95.6 million m3. The biogas target in the National Energy General Plan (RUEN) 2025 is 298.8 million m3.

Audina Nur


Mahinda Arkyasa




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 Joko “Jokowi” Widodo inaugurated the Tangguh Train 3 National Strategic Project (PSN) in Teluk Bintuni regency, West Papua province, on November 24, 2023. The newly inaugurated facility is poised to enhance Tangguh’s annual LNG production to an impressive 11.4 million tonnes.
Contemporary Amperex Technology Co (CATL), a prominent Chinese battery manufacturer, is set to fulfill its investment commitment for an Indonesian battery project in early December 2023.
State-owned mining holding company PT Timah has announced that it is currently conducting a study on the mining of rare earth metal monazite.
Ernst & Young (EY), an international audit institution, assesses that the main obstacles to investing in new renewable energy (NRE) in Indonesia are the lack of viable projects and obstacles in policies and processes.
TikTok is planning joint venture collaboration with a number of companies in Indonesia including Tokopedia, Blibli, Bukalapak, and CT Corp in an effort to re-enter Indonesia.
Independent Power Producers (IPPs) are expressing optimism about the Comprehensive Investment and Policy Plan (CIPP) under the Just Energy Transition Partnership (JETP)