Indonesia-Japan Collaboration: Lampung Bioethanol Project Targets E10 to E20
A major step towards energy independence is being planned more seriously. The government, through the Ministry of Investment and Downstreaming/Coordinating Agency for Investment (BKPM), is now pushing to accelerate the bioethanol project in Lampung Province, an initiative that is not only about energy but also a long-term strategy to address fuel import dependency.
Behind the scenes, this project is not new. It has been underway for a year but developed quietly until now entering a concrete stage. Several major players have entered the collaboration radar, from Toyota and PT Pertamina New & Renewable Energy to Danantara Investment Management.
“This programme has actually been running for a year, but we have been silent in its development. Currently, there is coordination between PNRE and the Japanese Group, in this case Toyota Tsusho will be appointed as the partner, and supported by other technology partners from Japan such as RaBIT (a research consortium of several Japanese automotive and energy companies),” explained Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu after leading a meeting with the CEO of Toyota Motor Asia in Jakarta on Monday (20/4/2026).
Lampung was chosen for good reason. The region is considered to have abundant raw material supplies—from sugarcane, cassava, to sorghum, which form the main foundation of bioethanol production.
The government is fully committed to steering this project. From late 2025 to early 2026, various strategic steps have been taken, from cross-ministry and SOE coordination, establishing communication with Japanese technology partners, to direct site surveys.
By design, the bioethanol development will proceed in two phases. The initial stage is a pilot project targeted at a capacity of 60 kilolitres per year in the third quarter of 2027. After that, the project will be upgraded to a commercial stage with capacity surging to 60,000 kilolitres per year in the fourth quarter of 2028.
Interestingly, the approach does not rely on a single type of raw material. This project embraces a multi-feedstock concept utilising biomass waste from palm oil, maize, to sorghum with support from second-generation (2G) technology that is more efficient and sustainable.
Not only industry, but the agricultural sector is also mobilised. Sorghum cultivation will start on a small scale of 10 hectares in 2026, then expanded to 6,000 hectares in 2027 to support raw material needs.
This step aligns with the national energy roadmap targeting gradual ethanol blending in fuel from E5 in 2026-2027, increasing to E10 in 2028-2030, up to E20 in the long term.
“We are pushing this project to prepare for the mandatory roadmap commitment to E10, so our country is also ready,” explained Todotua.
The urgency is clear. Over the past decade, Indonesia has still relied on fuel imports by around 61 per cent. On the other hand, fluctuations in world oil prices due to geopolitical dynamics make energy resilience a crucial issue.
In line with Prabowo Subianto’s directives, the government is now focusing on three main pillars: energy self-sufficiency, food security, and downstreaming of natural resources.
With the world’s largest nickel reserves and status as a major palm oil producer, Indonesia is seen to have strong capital to develop bioenergy based on domestic resources.
On the other hand, collaboration with Toyota also opens broader opportunities. Besides bioethanol, this partnership has the potential to strengthen the electric vehicle industry supply chain domestically.
“We appreciate the constructive and progressive discussions with relevant stakeholders to explore collaboration potential in the bioenergy ecosystem. In addition, through our strategic partnership with CATL (Contemporary Amperex Technology Co., Limited) in Indonesia, we aim to expand our capabilities from battery pack assembly to battery manufacturing from cells and modules,” said CEO of Toyota Motor Asia Masahiko Maeda.
“This collaboration will strengthen a robust local supply chain, supporting Toyota’s Multi-Pathway approach to carbon neutrality,” he added.
With this project, Lampung is not only an industrial location but also a symbol of a new direction in Indonesia’s energy transformation that is more independent, sustainable, and based on domestic strengths.