Asian Agri Signs Agreement to Supply Renewable Energy to PLN in North Sumatra
- Written by Viw Magazine
SINGAPORE - Media OutReach Newswire - 26 August 2025 - 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) to begin 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.
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 PLTBg facility at PT ISJ has a surplus of methane gas that had not been fully utilised. After technical and feasibility studies, Asian Agri allocated the excess gas to a gas‐fuelled generator to produce an additional one megawatt of electricity. That power will be supplied to PT PLN Sumatra Utara under a three-year power purchase agreement.
The clean electricity generated from this facility will be supplied to PT PLN North Sumatra's grid in the Rantau Prapat area, strengthening the distribution system and improving 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.
This partnership underscores Asian Agri's commitment to sustainability through its AA2030 vision, particularly the Climate Positive pillar. The company aims to optimise methane-capture technology across all palm-oil mills to curb greenhouse-gas emissions and reduce reliance on fossil fuels.
Through the use of appropriate technology and cross-sector collaboration, Asian Agri continues to strengthen its commitment to driving the transformation of the palm oil industry toward a more responsible, low-carbon future.
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https://www.asianagri.com
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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 over 20,000 people.
As a pioneer of the Indonesian Government's Smallholder Transmigration Core Plantation Programme (PIR-Trans), Asian Agri has partnered with 30,000 scheme smallholders in Riau and Jambi, who collectively manage 60,000 hectares of oil palm plantations. The company also fosters partnerships with independent smallholders to enhance their welfare and drive socio-economic growth.
Committed to sustainable practices, Asian Agri upholds a zero-burning policy and implements plantation best management practices to help smallholders boost productivity, increase crop yields, and improve supply chain traceability while supporting their journey towards certification. Asian Agri's mills leveraged advanced technology and self-generated green energy to minimise greenhouse gas emissions.
Asian Agri's plantations, as along with their scheme smallholder plantations, are full Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certified, underscoring the company's commitment to responsible and sustainable palm oil production.
Please visit Asian Agri's website for more information.
