BKPM Partners with Toyota to Build Bioethanol Plant in Lampung
The Ministry of Investment and Downstreaming/BKPM is accelerating national bioethanol development as part of a strategy to strengthen the renewable energy mix. One concrete step being prepared is the construction of a bioethanol plant in Lampung.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, stated that this project is the result of strategic cooperation with Japanese partners, including Toyota Motor Corporation.
He conveyed that his side has held a meeting with Toyota Motor Asia CEO, Masahiko Maeda, to discuss the continuation of the project.
This meeting is a follow-up to communications that have been ongoing since last year, including a visit to Tokyo and President Prabowo Subianto’s state agenda in Japan.
“Of course, this is the second follow-up. Previously, last year we went to Tokyo to meet Mr. Maeda,” Todotua said, quoted from Antara, on Monday (20/4/2026).
He emphasised that bioethanol development is an important part of the national energy transition, particularly to support fuel blending policies, including plans for E10 implementation.
Lampung Chosen Due to Feedstock Potential
According to Todotua Pasaribu, bioethanol has advantages over biodiesel because its raw materials are more diverse.
In addition to sugarcane, bioethanol can be produced from cassava, sorghum, to aren palm. This is seen as capable of strengthening energy resilience while opening opportunities for the agricultural sector.
“Ethanol is one of the renewable blending energies we plan to develop. The government has set a maximum mandatory target by 2028,” he said.
Lampung was chosen as the project location because it is considered to have abundant feedstock supply.
“The plan is to build the bioethanol plant for the first time in the Lampung region. Why Lampung? Because Lampung is one of the provinces that is very strong in feedstock supply for ethanol,” he explained.
In addition to plant construction, the government will also develop the plantation sector to ensure sustainable raw material availability.
Target Operation 2028, Involving Pertamina and Japan
This bioethanol project will be carried out through cooperation between Pertamina New Renewable Energy and Japanese partners, including Toyota Tsusho.
In addition, research and development support will involve institutions from Japan supported by the local government.
Plant 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 this facility to be operational no later than 2028.
“If it runs smoothly, it should be producing maximally by 2028,” Todotua said.
He also added that technologically, Toyota vehicles are currently capable of using ethanol fuel up to 100 percent. However, its implementation will still depend on future market policies and prices.
This step is expected to strengthen national energy resilience while promoting the use of clean energy in Indonesia.