BKPM Accelerates Bioethanol Development, Prepares to Build Factory in Lampung
Jakarta (ANTARA) - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is accelerating national bioethanol development by preparing the construction of a factory in Lampung, as part of a strategic partnership with Japanese partner Toyota to strengthen the renewable energy mix.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu in Jakarta on Monday stated that today his side held a meeting with Toyota Motor Asia CEO Masahiko Maeda to discuss the project further.
He said the meeting is a follow-up to the intensive communication that has been ongoing since last year, including the visit to Tokyo and President Prabowo Subianto’s state agenda in Japan.
“Of course, this is the second follow-up. Last year, we went to Tokyo to meet Mr. Maeda,” Todotua said.
He explained that bioethanol is one of the important components in the national energy transition, given the government’s target to develop this energy to support mandatory fuel blending policies, including plans for E10 implementation.
“Ethanol is one of the renewable blend energies we plan to develop. The government has set a maximum mandatory target for 2028,” he said.
He explained that unlike biodiesel based on palm oil (CPO), bioethanol has a more diverse range of raw material sources (feedstock), such as sugarcane, cassava, sorghum, and aren palm.
He assessed that this advantage can strengthen energy resilience while opening opportunities for agricultural sector development.
In the initial stage, the project will be realised through the construction of a bioethanol factory in Lampung, which is considered to have abundant raw material availability. In addition, plantation development will be carried out as part of strengthening feedstock supply.
“The plan is to carry out the first bioethanol plant construction in the Lampung region. Why Lampung? Because Lampung is one of the provinces that is very strong in feedstock supply for ethanol,” Todotua explained.
The project is the result of cooperation between Pertamina New Renewable Energy and the Japanese partner, where Toyota Tsusho is planned to be the partner.
In addition, research and development support will involve institutions from Japan that also receive support from the local government.
He conveyed that the factory construction is targeted to begin in the third to fourth quarter of 2026, with an initial capacity of around 60,000 kilolitres per year. The government targets the facility to start operating no later than 2028.
“If it runs smoothly, it should be able to produce by maximum 2028,” he said.
Todotua also stated that basically Toyota vehicles are already capable of using up to 100 percent ethanol, depending on market conditions and future pricing policies.