Lampung Bioethanol Project Enters New Phase
The government, through the Ministry of Investment and Downstreaming/BKPM, continues to promote strategic agreements in the development of the bioethanol project in Lampung Province. This step is part of efforts to accelerate the national energy transition while strengthening energy resilience.
The project involves several parties, from Toyota and PT Pertamina New & Renewable Energy (PNRE) to Danantara Investment Management. Construction of the project is targeted to begin in the third quarter of 2026, involving Toyota, PT Pertamina New & Renewable Energy (PNRE), and Danantara Investment Management.
Deputy Minister of Investment and Downstreaming Todotua Pasaribu stated that the programme has been running for a year in development and coordination between PNRE and the Japanese Group.
“This programme has actually been running since a year ago, 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),” said Todotua Pasaribu in a written statement on Tuesday (21/4/2026).
Todotua explained that the initial stage of the project construction will be carried out in Lampung. This province was chosen because it has strong potential as a supplier of feedstock, such as sugarcane, cassava, and sorghum.
Since the end of 2025 to early 2026, the Ministry of Investment and Downstreaming/BKPM has provided guidance through various steps, from cross-ministry/institution and SOE coordination, facilitating meetings with Japanese technology partners, to direct assistance in field visits and project site identification.
The bioethanol project being explored with Toyota, PNRE, and Danantara Investment Management is designed in two phases. The initial or pilot project phase is targeted to have a capacity of 60 kilolitres per year in the third quarter of 2027. Subsequently, the commercial phase is targeted to reach 60,000 kilolitres per year in the fourth quarter of 2028.
Development is carried out with a multi-feedstock approach, utilising various raw materials such as palm oil biomass waste, corn, and sorghum. Second-generation (2G) technology will be used to increase supply flexibility while maintaining long-term sustainability.
In addition, the development also includes gradual sorghum cultivation, starting with a 10-hectare pilot in 2026 up to commercial development reaching 6,000 hectares in 2027. The project will be located in Lampung with land support from PTPN.
On the policy side, the government has prepared a mandatory bioethanol blending roadmap in fuel, starting from E5 in 2026-2027, increasing to E10 in 2028-2030, and heading towards E20 in the long term.
“We are promoting this project to prepare for the commitment of the mandatory roadmap to E10, so that our country is also ready,” said Todotua.
He also highlighted Indonesia’s high dependence on fuel imports, reaching around 61% over the last decade. This condition is exacerbated by global oil price volatility due to global geopolitical dynamics.
In line with President Prabowo Subianto’s directives, the government is focusing policies on three main pillars: energy self-sufficiency, food security, and downstreaming of natural resources. Indonesia is considered to have strong comparative advantages, including the world’s largest nickel reserves (42%), as well as its position as a major global producer of palm oil and coconut, which have potential as bioenergy raw materials.
The government also appreciates Toyota’s involvement in developing the electric vehicle battery industry in Indonesia. However, opportunities for cooperation are still wide open, especially in multi-feedstock bioethanol development.
CEO of Toyota Motor Asia, Masahiko Maeda, said Toyota appreciates the constructive and progressive discussions with relevant stakeholders in exploring collaboration potential in the bioenergy ecosystem.
“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. This collaboration will strengthen a strong local supply chain, supporting Toyota’s Multi-Pathway approach towards carbon neutrality,” said Masahiko Maeda.
This meeting is part of the government’s ongoing efforts to strengthen international collaboration to encourage quality investment and accelerate the transformation of a downstreaming-based and sustainable energy economy in Indonesia.