Indonesia is the largest palm oil producer in the world. The palm oil mills process fresh fruit bunches (FBB) and produce two main products: Crude Palm Oil (CPO) and Palm Kernel Oil (PKO). The process generates abundant waste water called palm oil mill effluent (POME). The POME is then converted into biogas through a gasification process. The biogas is used to fuel gas engine and generates electricity. This article presents the technical and economic analysis of a biogas power plant in Indonesia. Also, it analyzes waste heat recovery potential from biogas engine.