Government Accelerates Integrated Bioethanol Industry Development in Lampung

The government is accelerating the strengthening of national energy security through the development of an integrated bioethanol industry in Lampung Province, which was selected due to its advantages in raw materials, infrastructure, and strategic geographical position on Wednesday (10/6/2026). The site readiness in Tegineneng District, Pesawaran Regency and Rejosari Village, South Lampung Regency was directly inspected by the Deputy Minister for Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu. The field visit was also attended by representatives from PT Pertamina New and Renewable Energy (PNRE) and PT Toyota Motor Manufacturing Indonesia (TMMIN) to ascertain the potential of local commodities. Lampung is considered to have strong raw material potential, ranging from sugarcane molasses and sorghum to biomass waste, for the development of first and second-generation bioethanol. “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 (10/6/2026). The Lampung Provincial Government is providing full support for this commodity project, which opens partnership opportunities between industry players and local farmers through sorghum cultivation. The development uses a multi-feedstock concept and begins with a pilot project planting the Enryu variety of sorghum on 10 hectares and the construction of a bioethanol facility with a capacity of 60 KL per year. The next commercial phase is targeted to begin in the third quarter of 2027 and commence operations in the fourth quarter of 2028, expanding the Enryu sorghum land to 6,000 hectares and building a factory with a capacity of 60,000 KL per year. This collaboration is strengthened by the signing of a Joint Declaration entitled Collaboration in Establishing Bioethanol Ecosystem Development in Lampung Province by the Lampung Provincial Government, PNRE, TMMIN, and PT Toyota Tsusho Indonesia (TTI). The relevant parties are now scheduling the acceleration of feasibility studies, project plan preparation, pilot cultivation, and the finalisation of financing schemes to ensure comprehensive implementation readiness.