BKPM and Toyota to Build Bioethanol Plant in Lampung
JAKARTA - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is accelerating national bioethanol development by preparing the construction of a factory in Lampung. This factory is being built 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 (20/04) stated that today his side held a meeting with CEO of Toyota Motor Asia Masahiko Maeda to discuss the project further. The project is the result of cooperation between Pertamina New Renewable Energy and the Japanese partner, with Toyota Tsusho planned as the partner.
“Of course, this is the second follow-up. Previously, last year we went to Tokyo to meet Mr. Maeda,” said Todotua.
He explained that bioethanol is one of the important components in the national energy transition, given that the government is targeting the development of this energy to support mandatory fuel blending policies, including plans for E10 implementation.
Can Produce in 2028
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. This advantage can strengthen energy resilience while opening opportunities for agricultural sector development.
In the initial stage, this 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 that the first bioethanol plant construction will be carried out in the Lampung region. Why Lampung? Because Lampung is one of the provinces that is very strong in feedstock supply for this ethanol,” explained Todotua.
He stated that construction of the factory 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 conveyed that basically Toyota vehicles are already capable of using up to 100 percent ethanol, depending on market conditions and future pricing policies.
PT Pertamina (Persero) is eyeing sugarcane as a raw material for plant-based fuel (BBN) of the petrol type, namely bioethanol, to support the government in realising up to 20 percent ethanol blending in petrol or E20.
“So, besides palm oil, we have started looking at sugarcane, yes, for molasses. We have it for bioethanol in Glenmore, yes,” said SVP Business Sustainability of PT Pertamina (Persero) Wenny Ipmawan when met on the sidelines of the Sustainability Champions event held in Jakarta on Thursday.
Going forward, Wenny stated that Pertamina supports the government in realising E20 or a 20 percent ethanol blend against petrol.
Wenny explained that sugarcane will then be processed into bioethanol, such as 5 percent bioethanol or a 5 percent ethanol blend against petrol. Currently, continued Wenny, Pertamina has implemented it at Pertamina Green.
Regarding the E20 plan, Pertamina is currently researching what plant sources can be used as raw materials. This research also considers factors of raw materials used for food.
“Of course, we must balance between which (raw materials) are food grade and which are fuel grade. This also needs government assistance to balance this,” said Wenny.
Previously reported, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia will accelerate the implementation of mandatory ethanol blending policies into fuel oil (BBM), in response to global oil prices soaring to US$100 per barrel.
Bahlil previously planned to mandate 20 percent ethanol content in fuel oil (BBM) or E20 in 2028 to reduce petrol imports.