Lampung Becomes National Priority for Bioethanol Development with Toyota and PNRE

The central government together with the Lampung Provincial Government is accelerating the development of the bioethanol industry through a direct inspection of potential sites for a bioethanol plant and sorghum raw material development areas in Lampung Province on Tuesday, 9 June 2026. The visit was led by Deputy Minister for Investment and Downstreaming/Deputy Head of BKPM RI Todotua Pasaribu alongside Lampung Governor Rahmat Mirzani Djausal after attending a Coordination and Synergy Meeting for Bioethanol Plant Development in the VVIP Lounge of Raden Inten II Airport, South Lampung. In this agenda, the government involved several strategic partners, including Pertamina New & Renewable Energy (PNRE), Toyota Tsusho Corporation, Toyota Motor Manufacturing Indonesia, PTPN, academics, and other stakeholders. The group inspected the proposed location for a bioethanol pilot plant in Tegineneng District, Pesawaran Regency, as well as the sorghum cultivation development area in Rejosari District, South Lampung Regency. The inspection was carried out to ensure land readiness, raw material availability, infrastructure support, and area integration that will become part of the bioethanol industrial ecosystem development in Lampung. During the coordination meeting, Todotua Pasaribu emphasised that Lampung is one of the priority regions in national bioethanol development. According to him, this province possesses various strategic advantages, ranging from abundant raw material availability and adequate infrastructure to the strong commitment of the regional government in supporting investment. Todotua explained that national bioethanol demand is expected to continue increasing in line with the implementation of the E10 bioethanol blending programme for petrol, which is targeted to begin gradually in 2028. Therefore, the government is pushing for the acceleration of bioethanol industry development to strengthen national energy security while reducing dependence on fossil fuels. “We must not stop at planning. What is needed now is execution so that the benefits can be immediately felt by the community,” Todotua stressed. Meanwhile, Lampung Governor Rahmat Mirzani Djausal stated that the development of the bioethanol industry is a strategic step in encouraging downstreaming in the agricultural sector while improving farmers’ welfare. According to the Governor, Lampung has significant capital to become a national bioethanol centre because it is one of Indonesia’s food baskets with large production of rice, maize, cassava, bananas, coffee, as well as plantation and livestock commodities. In fact, nearly six million residents of Lampung depend on the agricultural sector for their livelihoods. Rahmat Mirzani Djausal revealed that improvements in agricultural commodity governance in recent years have had a positive impact on farmers’ welfare and regional economic growth. In 2025, Lampung’s economic growth even managed to surpass the national average. Nonetheless, he assessed that increased agricultural production must be accompanied by the development of processing industries so that the commodities produced are not only sold as raw materials. “With cassava production reaching around 7.5 million tonnes per year, Lampung has great potential to become the main supplier of national bioethanol raw materials. The presence of the bioethanol industry will create a new market for farmers, maintain price stability, and increase the added value of Lampung’s agricultural products,” said Governor Mirza. From the industry side, PNRE CEO John Anis explained that bioethanol development in Lampung is carried out through collaboration with Toyota Tsusho Corporation and Japan’s Green Earth Institute (GEI). According to him, Lampung holds a strategic position because it is supported by abundant raw material availability, especially cassava which has been the region’s leading commodity. John revealed that bioethanol development not only utilises molasses and cassava as first-generation bioethanol raw materials but also utilises sorghum biomass and palm oil plantation waste as second-generation bioethanol raw materials. “One of our focuses is developing technology capable of converting agricultural waste into high-value energy while creating a sustainable circular economy,” he said. PNRE is currently preparing the construction of a second-generation bioethanol pilot plant targeted to begin operations in 2027. In addition, the company is also studying the reactivation of existing bioethanol facilities with a production capacity of around 60 thousand kilolitres per year. As part of strengthening the raw material supply chain, PNRE will also cooperate with the University of Lampung to carry out a 10-hectare sorghum trial planting as the initial stage of cultivation development in Lampung. The activity concluded with the signing of a Joint Declaration between the Lampung Provincial Government, Pertamina New & Renewable Energy (PNRE), Toyota Motor Manufacturing Indonesia, and Toyota Tsusho Indonesia as a form of commitment to accelerate the bioethanol project in Lampung.