Lampung Bioethanol Development Centre Links Agricultural Potential with Renewable Energy
The Indonesian government, through the Ministry of Investment and Downstream Industry/BKPM, continues to encourage strategic agreements for the development of a Bioethanol Project in Lampung Province as part of efforts to accelerate the national energy transition.
Lampung Governor Rahmat Mirzani Djausal is optimistic that Lampung can become the centre of the national bioethanol ecosystem.
He made the remarks at the launch and groundbreaking of the Lampung Bioethanol Development Centre in Kota Agung Village, Tegineneng Sub-district, Pesawaran Regency, on Monday (14/9/2026).
The bioethanol development centre marks a first step in connecting Lampung’s agricultural potential with biomass-based renewable energy. The government is therefore encouraging cross-sector collaboration to build a sustainable bioethanol ecosystem.
The development of the Lampung Bioethanol Development Centre involves the Ministry of Investment and Downstream Industry/BKPM, PT Pertamina New & Renewable Energy, the Toyota Group, the University of Lampung, local government and a number of strategic partners.
In his address, Governor Mirza said Lampung has long been known as an agrarian province and one of the nation’s food bowls. However, the government needs to develop that potential further.
Through downstream processing, the agricultural sector will not only produce foodstuffs, but can also supply raw materials for energy and create value-added industries.
“Agriculture is no longer just about producing food, but also energy. It is not only about selling harvests, but also about creating industries. And it is not only about driving Lampung’s economy, but also helping to strengthen national energy resilience,” said Governor Mirza.
For this reason, the Governor considers the Lampung Bioethanol Development Centre to be more than just a new facility. The centre is a starting point for connecting agriculture, research, technology, industry and energy.
He also expressed appreciation to all parties involved, noting that a project of this scale requires trust and cooperation between government, business, universities and strategic partners.
The bioethanol development is also in line with national policy direction. The government is encouraging the use of bioethanol blends, moving from E5 towards E10 and eventually E20 in the future.
Meanwhile, Deputy Minister of Investment and Downstream Industry Todotua Pasaribu explained four pillars of bioethanol development in Lampung.
These pillars comprise energy security, downstream processing, energy transition and mix, and national economic resilience.
According to Todotua, the government has previously promoted energy sovereignty through the B50 programme based on crude palm oil (CPO). Now, the government sees bioethanol as one solution to reduce dependence on petrol.
National petrol consumption reaches approximately 36 million kilolitres per year. Bioethanol development could therefore help the government ease the pressure of energy subsidies on the state budget.
In addition, fluctuations in global crude oil prices also affect national energy costs. The government hopes that biofuels can strengthen Indonesia’s energy resilience.
The choice of Lampung as the location for the national bioethanol centre is also linked to biomass technology research in Fukushima, Japan.
During a visit to Japan, Todotua discovered that research into enzymes and superior sorghum seedlings for Japan’s automotive industry had connections to Lampung.
The groundbreaking was also marked by the signing of a cooperation agreement between PT Pertamina New & Renewable Energy (Pertamina NRE) and the Lampung Provincial Government.
The agreement covers agribusiness development to support energy and food security. The two parties also signed a memorandum of understanding (MoU).
The MoU addresses the assessment of the technical and commercial potential of producing and utilising sustainable bioethanol in Indonesia.
The event continued with a symbolic first cement-pouring ceremony. Todotua Pasaribu and the Governor of Lampung attended the construction ceremony of the Bioethanol Development Centre.
Afterwards, the delegation planted superior sorghum seedlings on a 10-hectare demonstration plot.