Lampung Poised to Become National Bioethanol Hub as Government Accelerates Green Energy Investment

The central government, together with the Provincial Government of Lampung, is accelerating the development of the bioethanol industry as part of efforts to support national energy security and the transition towards renewable energy. This commitment was marked by an inspection of the proposed site for a bioethanol plant and a development area for sorghum feedstock in Lampung Province on Tuesday. The visit was led by the Deputy Minister for Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, alongside Lampung Governor Rahmat Mirzani Djausal, following a Coordination and Synergy Meeting for the Bioethanol Plant Development at Radin Inten II Airport in South Lampung. The delegation, comprising representatives from the Ministry of Investment and Downstreaming/BKPM, Pertamina New & Renewable Energy (PNRE), Toyota Tsusho Corporation, Toyota Motor Manufacturing Indonesia, PTPN, academics, and various stakeholders, inspected the prospective location for a bioethanol pilot plant in Tegineneng District, Pesawaran Regency, and a sorghum cultivation area in Rejosari District, South Lampung Regency. During the coordination meeting, Todotua Pasaribu stressed that Lampung is a priority region for national bioethanol development due to its advantages in raw materials, infrastructure, and local government support. He explained that national bioethanol demand is expected to rise steadily with the planned implementation of the E10 bioethanol blending programme for petrol, which is targeted for a phased rollout starting in 2028. ‘We must not stop at planning. What is needed now is execution so that the benefits can be felt immediately by the community,’ asserted Todotua. Governor Rahmat Mirzani Djausal stated that the development of the bioethanol industry is a strategic move to strengthen agricultural downstreaming while improving farmer welfare. According to him, Lampung possesses significant capital to become a national bioethanol hub, supported by abundant agricultural production, including cassava, which reaches approximately 7.5 million tonnes per year. ‘The bioethanol industry will create new markets for farmers, maintain commodity price stability, and increase the added value of Lampung’s agricultural products,’ said the Governor. He added that Lampung also has vast potential for new and renewable energy, ranging from solar and geothermal to biomass and bioenergy derived from agricultural and industrial waste. Meanwhile, PNRE CEO John Anis explained that bioethanol development in Lampung is being carried out through cooperation with Toyota Tsusho Corporation and Japan’s Green Earth Institute (GEI).