Lampung Drives Green Energy Investment Through Bioethanol Project Development
The central government together with the Lampung Provincial Government is accelerating the development of the bioethanol industry through a direct inspection of a proposed plant site and a sorghum feedstock development area in Lampung Province on Tuesday, 9 June 2026. The inspection was led by Deputy Minister for Investment and Downstreaming/Deputy Head of BKPM RI Todotua Pasaribu together with Lampung Governor Rahmat Mirzani Djausal, following a Coordination and Synergy Meeting on the Bioethanol Plant Development held in the VVIP Lounge of Radin Inten II Airport, South Lampung.
The entourage comprised officials from the Ministry of Investment and Downstreaming/BKPM, representatives from Pertamina New & Renewable Energy (PNRE), Toyota Tsusho Corporation, Toyota Motor Manufacturing Indonesia, PTPN, academics, and other stakeholders. They inspected the proposed site for a bioethanol pilot plant in Tegineneng District, Pesawaran Regency, and the sorghum cultivation development area in Rejosari District, South Lampung Regency.
The inspection was carried out to ascertain land readiness, feedstock availability, infrastructure support, and area integration that will form part of the bioethanol industrial ecosystem development in Lampung. During the coordination and synergy meeting for the Lampung bioethanol project, Todotua Pasaribu asserted that Lampung is one of the priority regions for national bioethanol development. According to him, the province possesses various strategic advantages, ranging from abundant feedstock 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 rising in line with the implementation of the E10 bioethanol blending programme for petrol, which is targeted for a phased introduction starting in 2028. Therefore, the government is pushing to accelerate the construction of the bioethanol industry 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 felt immediately by the community,” Todotua stressed.
Meanwhile, Lampung Governor Rahmat Mirzani Djausal stated that building the bioethanol industry is a strategic step to boost downstreaming in the agricultural sector while improving farmer welfare. He noted that Lampung has substantial capital to become a national bioethanol hub because it is one of Indonesia’s food baskets, with very 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 the governance of agricultural commodities in recent years have had a positive impact on farmer welfare and regional economic growth. In 2025, Lampung’s economic growth even managed to surpass the national average. Nevertheless, he considered that increased agricultural production must be accompanied by the development of processing industries so that the commodities produced are not sold solely 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 feedstock. 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,” he said.
He also added that Lampung has enormous new and renewable energy potential, ranging from solar and geothermal power to biomass and bioenergy derived from agricultural and industrial waste. This potential is important capital in supporting the national energy transition agenda. From the industrial side, PNRE CEO John Anis explained that the bioethanol development in Lampung is being carried out through collaboration with Toyota Tsusho Corporation and Green Earth Institute (GEI) from Japan. He stated that Lampung holds a strategic position because it is supported by abundant feedstock availability, particularly cassava, which has been the region’s flagship commodity.
John revealed that the bioethanol development will not only utilise molasses and cassava as first-generation bioethanol feedstock but will also utilise sorghum biomass and palm oil plantation waste as second-generation bioethanol feedstock. “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 commence operations in 2027. In addition, the company is assessing the reactivation of an existing bioethanol facility with a production capacity of around 60,000 kilolitres per year.
The area in Tegineneng District inspected during the visit is projected to become the development site for bioethanol processing facilities, while the area in Rejosari District is planned as a centre for sorghum cultivation development that will support the second-generation bioethanol industry feedstock supply. As part of strengthening the feedstock supply chain, PNRE will also cooperate with the University of Lampung to carry out sorghum planting trials on 10 hectares as the initial stage of cultivation development in Lampung.
Through synergy between the central government, the Lampung Provincial Government, the business community, academics, and international partners, this bioethanol project is expected to become an important milestone in realising Lampung as a national centre for agricultural downstreaming and renewable energy, whilst creating jobs, improving farmer welfare, and strengthening Indonesia’s energy security. As a form of shared commitment to accelerating the project, the activity concluded with the signing of a Joint Declaration.