JAKARTA – Officials from Indonesia and Toyota Motor Asia announced Monday they are exploring a significant partnership to develop bioethanol production capabilities in the Southeast Asian nation.
Deputy Investment Minister Todotua Pasaribu revealed that Pertamina’s renewable energy division is negotiating with Toyota Tsusho about establishing a bioethanol facility in Lampung province, located at Sumatra’s southern end.
According to Pasaribu, the proposed facility would have annual production capacity of 60,000 kiloliters of bioethanol. Should negotiations succeed, plant construction could begin during the latter half of 2026, with operations potentially starting in 2028.
The project would include developing a 6,000-hectare sorghum plantation – approximately 14,800 acres – to supply raw materials for the facility. Investment costs are projected between $200 million and $300 million, Pasaribu stated.
Japan’s Research Association of Biomass Innovation for Next Generation Automobile Fuels (raBit) is participating in the discussions, according to the deputy minister.
Masahiko Maeda, who serves as Toyota Motor Asia’s regional chief executive, indicated that Toyota vehicles would be able to utilize bioethanol from the proposed Lampung facility.
However, Toyota Motor Asia executive vice president Pras Ganesh emphasized that negotiations remain ongoing and no final agreement has been established.
The discussions align with Indonesia’s strategy to develop domestic bioethanol production using locally available resources including palm oil biomass, corn, and sorghum. This initiative aims to decrease the country’s dependence on imported fuels.
Indonesian officials have established a mandate requiring 10% bioethanol content in gasoline beginning in 2028.
