Government Accelerates 60,000-Kilolitre Bioethanol Project in Lampung
The government is accelerating the development of the bioethanol industry to strengthen energy security, including an integrated bioethanol development project in Lampung. Lampung was chosen as the initial development location due to its advantages in raw materials, infrastructure support, and strategic geographical position.
Deputy Minister for Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu conducted a field visit to Lampung, accompanied by representatives from PT Pertamina New and Renewable Energy (PNRE) and PT Toyota Motor Manufacturing Indonesia (TMMIN).
“Moreover, its position is very strategic as it can supply the needs of Sumatra and parts of Java, which are the largest energy consumption centres in Indonesia. Therefore, we have designated Lampung as the initial location for developing the national bioethanol ecosystem,” Todotua stated in a written release on Wednesday (10 June 2026).
During field visits to Tegineneng District, Pesawaran Regency, and Rejosari Village, South Lampung Regency, the delegation inspected the readiness of locations projected to become integrated bioethanol development areas.
The results of the review indicated that Lampung has strong raw material potential, including sugar cane molasses, sorghum, and biomass waste that can be utilised for the development of first-generation and second-generation bioethanol.
Todotua added that this project opens partnership opportunities between industry and local farmers through the development of sorghum cultivation as an additional raw material source. The Lampung Provincial Government expressed its full support for the project’s development.
The planned bioethanol project in Lampung Province will adopt a multi-feedstock concept, utilising various raw materials such as molasses, sorghum, and biomass waste. In the initial phase, the pilot project is planned to include the planting of 10 hectares of Enryu sorghum variety and the construction of a bioethanol facility with a capacity of 60 kilolitres per year.
The commercial phase will involve planting 6,000 hectares of Enryu variety sorghum in Lampung and the construction of a bioethanol plant with a capacity of 60,000 kilolitres per year, targeted to commence in the third quarter of 2027 and become operational in the fourth quarter of 2028.
As a follow-up to the joint declaration and field visit, the parties will accelerate the implementation of a joint feasibility study, project planning, development of pilot sorghum cultivation, and finalisation of the financing scheme and strategic partnerships to ensure comprehensive project implementation readiness.
During the occasion, a Joint Declaration titled ‘Collaboration in Establishing Bioethanol Ecosystem Development in Lampung Province’ was signed by the Lampung Provincial Government, PNRE, TMMIN, and PT Toyota Tsusho Indonesia (TTI). This declaration serves as a foundation for collaboration across the parties in developing the raw material supply chain, constructing bioethanol production facilities, strengthening partnerships with the agricultural sector, developing technology, and accelerating investment realisation to support national energy security.