Partial oxidation reaction of bio-methane as a source of methane using ZSM-5 heterogeneous catalyst modified with iron oxide has been carried out. In this study, the ZSM-5 catalyst was synthesized using the double template method using kaolin and natural zeolite as silicate and aluminate sources. The as-synthesized ZSM-5 nat and the Fe 2 O 3/ZSM-5 nat catalysts were analyzed using XRD, XRF and BET. The characterization reveals that the synthesis of ZSM-5 was successful and the amount of iron (III) loaded was 2.98%. The application test of Fe 2 O 3/ZSM-5 nat as a catalyst was carried out in stainless steel batch reactor with a certain CH 4: N 2 feed ratio at 150 C for 120 min. The reaction products were then analyzed with GC-FID to measure the% yield of methanol product. It is found that Fe 2 O 3/ZSM-5 nat catalyst could give 54.93% yield of methanol. Although the use of bio-methane as feed with lower CH 4: N 2 ratio, this catalyst was also active and produced 12.26% yield of methanol.