Asian Agri, through its business unit PT Indo Sepadan Jaya (PT ISJ), has signed a Commercial Operation Date (COD) agreement with PT PLN (Persero) North Sumatra Distribution Unit (PT PLN North Sumatra). Under the agreement, Asian Agri has begun supplying electricity 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. The agreement was signed by PT ISJ Authorised Representative Sulaiman Halim and PT PLN North Sumatra General Manager Ahmad Syauki and was witnessed by senior management from both companies.
The PLTBg facility at PT ISJ has a surplus of methane gas that had not been fully utilised. Asian Agri after the technical and feasibility studies allocated the excess gas to a gas‐fuelled generator to produce an additional one megawatt of electricity. Under a three-year power purchase agreement, the power will be supplied to PT PLN Sumatra Utara.
In his remarks, Asian Agri Managing Director Sumith Fernando said the collaboration between Asian Agri, a member of the Royal Golden Eagle (RGE) group of companies founded by Sukanto Tanoto, and PT PLN North Sumatra is testament that partnerships between the private sector and public service providers can not only deliver clean-energy solutions but also create a broad impact on communities. “Through this facility, we are not only converting waste into electricity, but are also supporting energy resilience and local decarbonisation efforts,” he said.
The clean electricity generated from this facility will be supplied to PT PLN North Sumatra’s grid in the Rantau Prapat area. Asian Agri, PLN signs agreement that will strengthen the distribution system and improve the reliability of power supply for surrounding communities.
General Manager of PT PLN North Sumatra, Ahmad Syauki, welcomed the initiative. He explained that the power plant is favoured by PLN, as its presence will increase the percentage of power generated from clean energy sources.
“The biogas power plant will contribute to the mix of environmentally friendly energy in North Sumatra,” Syauki said. “PLN also favours this type of plant because it can be controlled to enter the system according to demand.”
Syauki said he hopes that, after signing of the agreement, more power plants with clean-energy mixes will come online, in line with the master plan outlined in the 2025-2034 RUPTL.
Asian Agri continues to strengthen its commitment in driving the transformation of the palm oil industry toward a more responsible, low-carbon future. The company will leverage appropriate technology and integrate cross-sector collaboration.
Asian Agri, PLN Signs Agreement that represents Asian Agri’s commitment to sustainability through its AA2030 vision, particularly the Climate Positive pillar. The goal of the company is to optimise methane-capture technology across all palm-oil mills to curb greenhouse-gas emissions. This will cut the dependency on fossil fuels.
