JAKARTA, RAKYAT NEWS – PT Pertamina New & Renewable Energy (PNRE) has announced a significant investment plan, allocating USD 6.3 billion (approximately IDR 98 trillion) for the development of renewable energy in Indonesia over the next five years. This budget marks a substantial increase from the current allocation of USD 700 million.

Iin Febrian, the Director of Risk Management at Pertamina NRE, emphasized that this funding is detailed in the company’s Long-Term Corporate Plan (RJPP). The plan aims for nearly IDR 100 trillion annually to be dedicated to renewable energy initiatives.

A significant portion of the budget, approximately 63%, will be invested in enhancing geothermal power capacity. This effort aims to increase output from 672 megawatts (MW) to 1.4 gigawatts (GW), reflecting a strong commitment to expanding Indonesia’s geothermal energy resources.

18% of the funds will focus on developing low-carbon solutions. This strategic allocation highlights Pertamina’s commitment to sustainability and reducing greenhouse gas emissions as part of its broader environmental goals.

Another 11% of the budget is earmarked for biomass and bioethanol projects. Pertamina plans to leverage its existing success in biodiesel to drive this initiative forward, further diversifying its renewable energy portfolio.

In 2026, a new bioethanol plant is set to be established in Banyuwangi, with a production capacity of 30,000 kiloliters per year. This facility will collaborate with PT Sinergi Gula Nusantara for raw material supply, ensuring local resources are utilized effectively.

Iin highlighted the importance of local agricultural products, such as corn and sorghum, for bioethanol production. This approach is expected to benefit local farmers and communities, creating economic opportunities and enhancing regional development.