Agrinas and Pertamina Assess Bayas FAME Plant; 600,000-Tonne Capacity Not Yet B50 Supply

Jakarta — Agrinas Palma Nusantara and Pertamina signed two memoranda of understanding and a preliminary agreement on 27 October 2026 to explore bioenergy development. The proposed work includes an assessment of a fatty acid methyl ester (FAME) facility owned by PT Bayas Biofuels in Indragiri Hilir, Riau. Agrinas describes its installed capacity as an indicative 600,000 tonnes per year. The signatures do not establish that the facility is operating, has changed hands, or is already adding biodiesel to Indonesia's fuel supply.

What the agreements cover

In a statement published on 28 October, Agrinas says its memorandum with PT Pertamina (Persero) concerns bioenergy and renewable-energy cooperation. A second memorandum with PT Pertamina Power Indonesia addresses renewable-energy development. A Heads of Agreement (HoA) concerns the management and use of a FAME production facility.

The documents were signed during the Danantara Technology Innovation Investment Forum 2026. Rakyat Merdeka's report also details the three agreements and identifies Bayas Biofuels as the facility's owner. This is therefore news of a proposed partnership and due diligence, not an announcement of completed production or a final investment decision.

FAME is the biodiesel component blended with petroleum diesel under Indonesia's mandate. Agrinas's figure of 600,000 tonnes annually is an indicative installed capacity, not verified output for 2026. Neither source provides a current utilisation rate, transaction value or start date for production under the prospective partnership.

Technical review and asset status remain open

Agrinas says its HoA with Pertamina Power Indonesia provides for joint technical, operational, commercial, financial and legal assessments. Possible arrangements include operating, maintaining, revitalising or expanding the facility. Each would depend on the review, the legal status of the asset and approval from the relevant authorities. The proposed capacity cannot yet be counted as guaranteed additional FAME supply for Indonesia's B50 biodiesel programme.

Agrinas business director Nurhidayat described the signing as a step toward developing the national bioenergy industry. The company says it will assess prospective cooperation on technical, commercial and governance grounds. Its stated energy-security benefits are objectives, not measured results of a project already in service.

Rakyat Merdeka reports that the next stages involve coordination, a feasibility study and discussions over the cooperation model. The sources reviewed announce no final investment, financing amount or biodiesel offtake contract. That distinction matters to readers tracking the capacity available to support the country's biodiesel mandate.

What to watch next

If the assessment eventually produces a viable operating structure and the necessary approvals are secured, the facility could contribute to the bioenergy supply chain. For now, this remains conditional. Feedstock sourcing, plant operations and commercial terms are not settled merely by signing an MoU and an HoA; no additional volume or commissioning date can be inferred from these documents.

The relevant milestones for those following Indonesia's biodiesel mandate and the palm-oil market are the feasibility findings, the asset's legal position, a decision on its operator and actual production. Until verifiable follow-up is announced, Bayas's capacity should be treated as Agrinas's indicative figure rather than delivered B50 supply.