Tuesday, May 28, 2024

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




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