Asian Agri Partners with PLN for Renewable Energy Supply in North Sumatra

SINGAPORE – Media OutReach Newswire – 26 August 2025 – Asian Agri, via its subsidiary PT Indo Sepadan Jaya (PT ISJ), has concluded a Commercial Operation Date (COD) agreement with PT PLN (Persero) North Sumatra Distribution Unit (PT PLN North Sumatra) to initiate electricity supply from its biogas power plant (PLTBg) to PLN’s distribution network in North Sumatra.

The signing took place at Asian Agri’s headquarters in Uniland, Medan, North Sumatra, with PT ISJ Authorized Representative Sulaiman Halim and PT PLN North Sumatra General Manager Ahmad Syauki in attendance, along with senior management from both companies.

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Asian Agri Managing Director Sumith Fernando pointed out that the partnership with PT PLN North Sumatra exemplifies how collaboration between private entities and public service providers can lead to clean energy solutions and benefit local communities. “With this facility, we are converting waste into electricity while enhancing energy resilience and supporting local decarbonization efforts,” he stated.

The PLTBg facility at PT ISJ generates surplus methane gas which was previously underutilized. After conducting technical and feasibility analyses, Asian Agri allocated this excess gas to a gas-fueled generator, resulting in an additional one megawatt of electricity output, which will be provided to PT PLN Sumatra Utara under a three-year power purchase agreement.

The clean electricity produced by this facility will be supplied to the grid of PT PLN North Sumatra in the Rantau Prapat area, reinforcing the distribution system and improving the reliability of power for local communities.

Ahmad Syauki, General Manager of PT PLN North Sumatra, voiced his support for the initiative, highlighting that the power plant is welcomed by PLN as it will enhance the proportion of electricity generated from clean energy sources.

“The biogas power plant will augment the environmentally friendly energy mix in North Sumatra,” noted Syauki. “PLN values this type of facility for its capacity to effectively respond to system demands.”

Syauki expressed hope that this agreement will pave the way for the activation of more clean-energy power plants, aligned with the master plan outlined in the 2025-2034 RUPTL.

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This collaboration underscores Asian Agri’s commitment to sustainability through its AA2030 vision, particularly emphasizing the Climate Positive pillar. The company aims to enhance methane capture technology across all palm oil mills to reduce greenhouse gas emissions and decrease reliance on fossil fuels.

By using suitable technology and promoting cross-sector partnerships, Asian Agri continually strengthens its resolve to transform the palm oil industry toward a more responsible, low-carbon future.
Hashtag: #RGE #AsianAgri #Indonesia #sustainability #RenewableEnergy #Decarbonisation

https://www.asianagri.com

The issuer is solely responsible for the content of this announcement.

About Asian Agri

Founded in 1979, Asian Agri is one of Indonesia’s foremost companies in crude palm oil production, managing over 100,000 hectares of oil palm plantations and employing more than 20,000 individuals.

A pioneer in the Indonesian Government’s Smallholder Transmigration Core Plantation Programme (PIR-Trans), Asian Agri has partnered with 30,000 smallholders in Riau and Jambi, who together manage 60,000 hectares of oil palm plantations. The company also collaborates with independent smallholders to enhance their welfare and promote socio-economic development.

Committed to sustainable practices, Asian Agri maintains a zero-burning policy and employs best management practices in its plantations to assist smallholders in improving productivity, boosting crop yields, and enhancing supply chain traceability while supporting their certification journey. Asian Agri’s mills utilize cutting-edge technology and self-generated green energy to reduce greenhouse gas emissions.

Asian Agri’s plantations, along with those of their partnered smallholders, possess full Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certifications, emphasizing the company’s commitment to responsible and sustainable palm oil production.

For more information, please visit Asian Agri’s website.

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