Sekayu, Musi Banyuasin - The South Sumatra Chamber of Commerce and Industry (Kadin) has officially entered into a partnership with the Musi Banyuasin (Muba) Regency Government to develop renewable energy based on palm oil waste.

This collaboration was formalized through the signing of a Memorandum of Understanding (MoU) between the Chairman of KADIN South Sumatra, Affandi Udji, and Muba Regent, Toha Tohet, held in the Muba Regent’s Audience Room, South Sumatra Province, on Thursday (September 4, 2025).

Affandi Udji emphasized that this partnership marks a historic milestone, not only for Muba but also for the province of South Sumatra.

"Today, we are making history. For the first time in South Sumatra, Muba has taken the initiative to build a renewable energy plant utilizing palm oil empty fruit bunches. From an investment perspective, we are fully committed to supporting this effort. A guaranteed supply of raw materials is a critical component, and this is where the strategic role of regional-owned enterprises (BUMD) becomes vital," he explained.

He further emphasized that this MoU is not a standalone agreement, but rather a direct derivative of the MoU between KADIN Indonesia and the Ministry of Home Affairs (Kemendagri), signed in Kendari some time ago.

"This MoU stems from the broader agreement between KADIN Indonesia and the Ministry of Home Affairs in Kendari, where local governments and the private sector come together to explore regional potential. The ultimate goal is to increase local government revenue (PAD) while also ensuring business profitability for the private sector. KADIN South Sumatra has moved swiftly to bring this agreement to life, making KADIN South Sumatra and the Muba Regency Government the first in the country to implement this national-level MoU," he added.

Affandi also stated that the collaboration is expected to generate a broad economic impact—from increasing local revenue, strengthening the business sector, to accelerating the growth of micro, small, and medium enterprises (MSMEs). In fact, within the next three years, production from the renewable energy plant is expected to be ready for export.

"We aim for this renewable energy investment to open new job opportunities and bring long-term benefits to the people and businesses across South Sumatra," he asserted.

Meanwhile, Regent Toha Tohet described the partnership as a strategic step to maximize Muba’s vast potential, particularly in turning palm oil waste into value-added products.

"Today, we are signing an extremely important MoU. My hope is that the existing potential in Muba can be more optimally utilized. Waste that was once considered worthless can now be transformed into valuable and economically beneficial products," said Toha.

"The Muba Regency Government is open to collaborating with various stakeholders, including BUMD, to foster new business opportunities that can improve the welfare of our community," he affirmed.

The MoU signing ceremony was also attended by several key figures from KADIN South Sumatra, including Vice Chairman for Industry Ishak Yulian Yusuf, Vice Chairman for Social Affairs and Disaster Management Darmawan, and Vice Chairman for Transportation Edwin Aldjoefri.

Also present were several regional officials and notable figures, including Muba Regional Secretary Assistant I Ardiansyah, Head of Muba Investment and One-Stop Integrated Services Agency (DPMPTS) Riki Junaidi, Acting Head of Muba Communications and Informatics Office Daud Amri represented by Head of Public Communications Kartiko Buwono, and President Director of PT Petro Muba, Khadafi.