Investment Ministry Accelerates Integrated Bioethanol Project in Lampung
The Ministry of Investment and Downstreaming/the Investment Coordinating Board (BKPM) is continuing to accelerate the development of the national bioethanol industry as part of its downstreaming and energy transition strategy to strengthen Indonesia’s energy security. One of the efforts currently being undertaken is exploring integrated bioethanol development in Lampung Province. This initiative is expected to become a model for renewable energy development based on agriculture and domestic resources.
The exploration of this bioethanol development is a follow-up to Deputy Minister of Investment and Downstreaming Todotua Pasaribu’s meeting with Toyota Motor Corporation, as well as a visit to a research facility in Fukushima owned by Japan’s Research Association of Biomass Innovation for Next Generation Automobile Fuels (raBitt). Deputy Minister Todotua stated that Lampung was chosen as the initial development location due to its advantages in terms of raw materials and infrastructure support.
According to Todotua, Lampung possesses the most capable feedstock for national bioethanol development. Furthermore, its position is highly 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,” he said.
In addition to being supported by a strategic geographical position and adequate logistical infrastructure, this bioethanol project will also open up partnership opportunities between industry and local farmers through the development of sorghum cultivation as a source of additional raw materials. The planned bioethanol project in Lampung Province will utilise a multi-feedstock concept by harnessing various raw materials such as molasses, sorghum, and biomass waste.
In the initial phase, the pilot project is planned to include the planting of the Enryu sorghum variety on 10 hectares of land and the construction of a bioethanol facility with a capacity of 60 kilolitres per year. The commercial phase involves planting the Enryu sorghum variety on 6,000 hectares in Lampung, as well as the construction of a bioethanol plant with a capacity of 60,000 kilolitres per year, targeted to commence construction in the third quarter of 2027 and begin operations in the fourth quarter of 2028.
“What we want to build is not just a factory, but an economic ecosystem. The feedstock is here, the logistics are here, the agricultural community is also here. We just need to maximise it. So let us just start. The important thing is that this project runs and provides benefits for the community, farmers, supporting industries, and strengthens national energy security,” he explained. Through collaboration between the central government, regional governments, state-owned enterprises, business actors, and international partners, the integrated bioethanol project in Lampung is expected to become an important step in accelerating the development of a competitive, sustainable national bioethanol industry that supports downstreaming targets and Indonesia’s energy resilience.