Lampung Bioethanol Project Enters New Phase
The government, through the Ministry of Investment and Downstreaming/BKPM, continues to promote the formation of strategic agreements in the development of the Bioethanol Project in Lampung Province as part of efforts to accelerate the national energy transition. Construction of the project, expected to start in the third quarter of 2026, involves Toyota, PT Pertamina New & Renewable Energy (PNRE), and 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, 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 (20/04).
Deputy Minister Todotua explained that the project will first be built in the Lampung region. Lampung was chosen because it is one of the provinces with a very strong supply of feedstock, such as sugarcane, cassava, sorghum, and others.
Specifically, the Ministry of Investment and Downstreaming/BKPM has been escorting the project since the end of 2025 to early 2026 through a series of concrete steps, including cross-ministry/institution and SOE coordination, facilitation of meetings with Japanese technology partners, to direct assistance in field visits and project site identification.
This development also includes gradual sorghum cultivation, starting from a 10-hectare pilot in 2026 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 strengthened its commitment through a mandatory biofuel blending roadmap, namely 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 commitment of the mandatory roadmap to E10, so that our country is also ready,” said Deputy Minister Todotua.
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 coconuts that have the potential to become 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.
“We appreciate the constructive and progressive discussions with related 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 to carbon neutrality,” said CEO of Toyota Motor Asia Masahiko Maeda.