Retail giant PT. Sumber Alfaria Trijaya, Tbk (Alfamart) is backing sustainable innovation with a $1 million investment in noovoleum, a startup turning used cooking oil into renewable energy.
Indonesia’s leading convenience-store chain, Alfamart (PT Sumber Alfaria Trijaya Tbk.), has injected US $1 million into Singapore-based used-cooking-oil (UCO) collector Noovoleum, marking a major vote of confidence in the country’s circular-economy ambitions. The minority-stake investment will deepen the partnership between Alfamart’s extensive retail network and Noovoleum’s automated “UCOllect” system, which aims to transform household waste oil into renewable energy feedstock.
Indonesia’s leading convenience-store chain, Alfamart (PT Sumber Alfaria Trijaya Tbk.), has injected US $1 million into Singapore-based used-cooking-oil (UCO) collector Noovoleum, marking a major vote of confidence in the country’s circular-economy ambitions. The minority-stake investment will deepen the partnership between Alfamart’s extensive retail network and Noovoleum’s automated “UCOllect” system, which aims to transform household waste oil into renewable energy feedstock.
RELEVANT SUSTAINABLE GOALS
Automating UCO Collection Across Java, Sumatra and Bali
Founded in 2023, Noovoleum has deployed 100 UCOllect collection boxes in major Indonesian cities, including Java, Sumatra and Bali. Each box features an in-built quality-testing mechanism: households and small producers deposit used cooking oil, upload the box ID to the UCOllect app, and receive cash rewards if their oil meets the monthly quality threshold. “We collect roughly 100 tonnes of UCO each month,” said Noovoleum’s Chief Investment Officer, Egis Rimkus, noting that the oil is sold to domestic aggregators for further processing.
Current buy-back rates stand at 5,500 rupiah per litre (approximately US $0.34), though prices may fluctuate with market conditions. To date, UCOllect boxes have been installed at 12 Alfamart outlets, and last December Noovoleum piloted 10 boxes at Pertamina gas stations. These strategic placements leverage Alfamart’s foot traffic and Pertamina’s fuel infrastructure to boost public engagement in sustainable waste management.
Opportunities in Biodiesel and Beyond
Indonesia halted UCO exports in January 2025, redirecting domestic supplies toward local renewable-energy projects. While Noovoleum’s end-buyer mix remains confidential, market participants suggest significant volumes may be converted into biodiesel. The startup is in advanced negotiations with potential partners in Malaysia, Thailand and Singapore—anticipating at least one regional collaboration by year-end—to ensure that Indonesia’s UCO finds value amid export restrictions.
Alfamart’s investment in Noovoleum aligns with the retailer’s broader 2025 capital expenditure plan of Rp 4.5–5 trillion (US $281–312 million). The funds will underwrite the opening of 1,000 new stores, primarily across Jabodetabek, and the construction of a new distribution centre—part of a Rp 1.5 trillion allocation. By integrating UCOllect stations into its outlets, Alfamart not only expands its environmental footprint but also educates consumers on the benefits of circular-economy practices.
The $1 million infusion underscores that innovative recycling solutions can attract substantial corporate backing. Though not deemed a material transaction under Indonesia’s Financial Services Authority regulations, the deal highlights Alfamart’s commitment to sustainability and waste-to-energy innovation. For Noovoleum, the partnership provides critical distribution channels and the promise of scale: turning a ubiquitous household byproduct into a marketable, eco-friendly commodity.
Regional Expansion and Renewable Fuels
With Indonesia’s UCO export ban persisting, Noovoleum’s regional forays will be key to unlocking new revenue streams and reducing domestic waste. Meanwhile, state-owned Pertamina continues its pilot production of sustainable aviation fuel (SAF)—targeted for Q2 2025—and plans large-scale SAF and hydrotreated vegetable oil (HVO) output by 2029. Together, these developments position Indonesia at the forefront of Southeast Asia’s transition toward renewable transport fuels, anchored by robust local feedstock collection.
As Alfamart and Noovoleum deepen their alliance, Indonesia’s UCO recycling ecosystem is poised for rapid growth—demonstrating that everyday households can play a starring role in the nation’s journey to a greener economy.
Lead image courtesy of Noovoleum.
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