Lampung Bioethanol Project Enters New Phase, Construction Expected to Begin in Q3 2026

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. This step is part of efforts to accelerate the national energy transition. The construction of the project, expected to begin 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,” said 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 on Monday (20/4). In addition, continued Deputy Minister Todotua, it will be supported by other technology partners from Japan, such as RaBIT (a research consortium of several Japanese automotive and energy companies). Deputy Minister Todotua explained that this project will be built for the first time 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 providing guidance since the end of 2025 to early 2026 through a series of concrete steps, including cross-ministerial/institutional and SOE coordination, facilitating meetings with Japanese technology partners, to direct assistance in field visits and project site identification.