Palembang – The Chamber of Commerce and Industry (Kadin) of South Sumatra Province has announced plans to establish a biomass plant in Sungai Lilin District, Musi Banyuasin Regency (Muba). The facility will process palm oil empty fruit bunch (EFB) waste into black pellets, an alternative energy source similar to coal.

The plan was unveiled during a meeting between representatives of Kadin South Sumatra and the Musi Banyuasin Regency Government, held at the Muba Representative Office in Palembang on Thursday, July 3, 2025.

Chairman of KADIN South Sumatra, Affandi Udji, explained that the selection of Sungai Lilin as the location was based on the availability of raw materials and a supportive business environment.

“Sungai Lilin is highly strategic. The potential for palm oil EFB in this area is substantial and has yet to be optimally utilized. We aim to transform this into a source of renewable energy,” he stated.

According to Affandi, the plant is projected to have an initial production capacity of 24,000 tons of black pellets per year and is scheduled to begin operations in early 2026.

In response to the initiative, the Regional Secretary of Musi Banyuasin Regency, Apriyadi, expressed full support from the local government. He noted that such biomass investments could open new economic opportunities and add value to agricultural waste.

“The availability of raw materials is highly favorable. If managed properly, this project could become a driver of regional economic growth while reinforcing Muba’s commitment to alternative energy development,” he said.

The Musi Banyuasin Regency Government also reaffirmed its readiness to collaborate in accelerating the realization of the project. The meeting was attended by several technical officials from various agencies, including the Investment and One-Stop Services Agency (DPMPTSP), the Communication and Information Office (Kominfo), the Housing and Settlement Office (Perkim), the Plantation Office, the Trade and Industry Office (Disdagperin), the Public Works and Spatial Planning Office (PUPR), and the Environmental Office.

The development of this biomass plant is expected not only to promote industrialization based on local potential but also to enhance Muba’s contribution to the national energy transition agenda.

Source: rri.co.id