State-owned PT Barata Indonesia (Persero) and Malaysia-based Treehouz Asia have stated their intention to form a strategic collaboration to develop biomass fuel facilities in Indonesia through wood usage and wood waste processing. Barata Indonesia seeks to build relationships in order to respond to new business possibilities in the agro-based industry.

The company encourages collaboration possibilities for the building of biomass fuel plants to support the country’s co-firing programmes and to expand the production of pellet mills and sawdust for local and export purposes. Barata Indonesia, as a state-owned manufacturing firm, is fully dedicated to increasing local content in every production and national strategic initiative.

The partnership with TreeHouz is part of the company’s efforts to support the national economic recovery initiative.  Under the terms of the agreement, they will first construct pellet facilities with a capacity of 40 tonnes per hour in the Malaysian state of Pahang. The two companies have decided to work together to develop co-firing with biomass for alternative energy progress in order to enhance the availability of clean and environmentally friendly national energy.

The companies want to achieve these objectives by their dedication to developing import substitute goods, utilising local materials, and providing local labour opportunities, all of which are projected to enhance national industry productivity and competitiveness.