Business · Energy & Commodities · 16 hrs ago
Indonesia plans to restart plant to support B50 biodiesel supply
Agrinas Palma Nusantara and Pertamina Power Indonesia agreed to restart a biodiesel plant in Indragiri Hilir, Riau, after four years out of operation.
The Bayas Biofuels facility produces FAME, a plant-based component mixed with diesel to make biodiesel.
The plant has capacity to produce 600,000 tons of FAME a year and is linked to assets seized in a corruption case involving palm oil company Duta Palma.
Indonesia’s B50 fuel blend contains 50 percent FAME, and the government says it needs about 19 million kiloliters of FAME for the program.
That is more than the 17 million kiloliters needed for B45, while current biodiesel production is below the country’s total installed capacity.
Producers make 16.7 million tons against 22 million tons of installed capacity, with output potentially rising to 18 million tons.
The companies have yet to set out concrete steps to restart the plant, which is intended to help increase FAME supplies.
Agrinas Palma Nusantara and Pertamina Power Indonesia have agreed to reactivate the Bayas Biofuels plant in Riau after four years of inactivity.
The plant produces fatty acid methyl ester (FAME), a feedstock used in biodiesel, and has installed capacity of 600,000 tons a year.
The planned restart is intended to increase FAME supply in support of Indonesia’s B50 biodiesel policy.
B50 contains 50 percent FAME, and the government estimates the mandate requires about 19 million kiloliters of FAME.
Indonesia’s biodiesel plants have combined installed capacity of 22 million tons, but actual production is 16.7 million tons.
- Who
- Agrinas Palma Nusantara and Pertamina Power Indonesia agreed to reactivate the Bayas Biofuels plant.
- What
- The plant is planned to resume producing FAME after four years of inactivity.
- When
- The agreement was reported on November 9, 2026; Agrinas Palma’s business director referred to the cooperation on October 27, 2026.
- Where
- Indragiri Hilir Regency, Riau, Indonesia.
- Why
- To boost FAME supplies for the government’s B50 biodiesel policy.
This story does not have two clearly opposing sides.
The government’s mandatory B50 program was launched, increasing demand for FAME.
Agrinas Palma Business Director Nurhidayat said he hoped the cooperation would lead to concrete steps.
Tempo reported that Agrinas Palma Nusantara and Pertamina Power Indonesia had agreed to reactivate the plant.
- Plant location
- Indragiri Hilir Regency, Riau
- Inactive period
- Four years
- Installed capacity
- 600,000 tons a year
- B50 FAME requirement
- Approximately 19 million kiloliters
- Indonesia biodiesel capacity
- 22 million tons combined installed capacity
- Actual production
- 16.7 million tons
What people are saying
We hope this cooperation can be followed up with concrete steps