PT KIS Biofuels Indonesia has secured an investment of US$23 million (approximately Rp 377 billion) from Swiss asset manager responsAbility Investments AG to support the development of Bio-Compressed Natural Gas (BioCNG) in Indonesia.
The company, affiliated with India-based clean energy player KIS Group, plans to use the funding to expand its BioCNG footprint following the construction of its first two plants. The next phase involves the development of seven new Biogas/BioCNG projects across the country.
PT KIS Biofuels Indonesia is the first BioCNG developer in the country. It aims to build five new projects in 2026, followed by 25 more in 2027, and a total of 100 BioCNG plants by 2029.
“To achieve this target, we need about US$32 million,” said K.R. Raghunath, Founder and CEO of KIS Group, at the agreement signing ceremony with responsAbility on Thursday in Jakarta, as reported by Kontan.co.id. “This is a milestone. We need US$32 million, and the rest of the funding will come from our own equity,” he added.
Most of the BioCNG produced by KIS will be supplied to PT Unilever Oleochemical Indonesia. “We are still open to partnerships with other industries,” Raghunath noted.
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Also present at the event was Edi Wibowo, Director of Bioenergy at the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), Ministry of Energy and Mineral Resources (ESDM). He emphasized the broader potential of BioCNG to support Indonesia’s energy transition.
“The use of BioCNG can serve industrial needs, and it can also replace LNG and LPG,” Edi said.
He also noted Indonesia’s advantage as the world’s largest crude palm oil (CPO) producer, providing a large supply of raw materials for BioCNG. “Waste from palm oil companies can be processed and purified into biogas, and then compressed into BioCNG,” he explained.
BioCNG is a purified and compressed form of biogas that can serve as a direct substitute for LPG, LNG, or diesel in industrial and transportation applications. It can be stored, transported, and used efficiently, while offering significant reductions in methane and CO₂ emissions.
Globally, KIS Group has completed more than 60 high-tech Biogas and BioCNG projects in countries such as India, Malaysia, Papua New Guinea, the United Arab Emirates, Nigeria, Côte d'Ivoire, and other emerging markets.
Editing by Reiner Simanjuntak
