Lampung Promotes Green Energy Investment, Bioethanol Project Ready for Development

The central government, together with the Lampung Provincial Government, is accelerating the development of the bioethanol industry through a direct inspection of proposed locations for the construction of a bioethanol plant and sorghum raw material development areas in Lampung Province on Tuesday (9/6/2026). The visit was led by Deputy Minister for Investment and Downstreaming/Deputy Head of BKPM RI Todotua Pasaribu, along with Lampung Governor Rahmat Mirzani Djausal, following a Coordination and Synergy Meeting on the Bioethanol Plant Development held at the VVIP Lounge of Raden Inten II Airport, South Lampung. The delegation, consisting of officials from the Ministry of Investment and Downstreaming/BKPM, Pertamina New & Renewable Energy (PNRE), Toyota Tsusho Corporation, Toyota Motor Manufacturing Indonesia, PTPN, academics, and other stakeholders, 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 ensure land readiness, raw material availability, infrastructure support, and regional integration, which will be part of the bioethanol industrial ecosystem development in Lampung. During the meeting, Todotua Pasaribu emphasised that Lampung is a priority region for national bioethanol development. According to him, the province has various strategic advantages, ranging from abundant raw material availability and adequate infrastructure to a strong commitment from the local government to support investment. Todotua explained that the national demand for bioethanol is expected to continue increasing in line with the implementation of the E10 bioethanol blending programme in petrol, which is targeted to begin gradually in 2028. Therefore, the government is pushing for the acceleration of bioethanol industry development 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 immediately felt by the community,’ Todotua stressed. Meanwhile, Lampung Governor Rahmat Mirzani Djausal stated that the development of the bioethanol industry is a strategic step in promoting the downstreaming of the agricultural sector while improving farmers’ welfare. According to the Governor, Lampung has substantial capital to become a national bioethanol centre as 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. Nearly six million residents of Lampung depend on the agricultural sector for their livelihoods. Rahmat Mirzani Djausal revealed that improvements in the management of agricultural commodities in recent years have positively impacted farmer welfare and regional economic growth. In 2025, Lampung’s economic growth even managed to exceed the national average. However, he assessed that increased agricultural production must be accompanied by the development of processing industries so that the commodities produced are not only sold as raw materials. ‘With cassava production reaching approximately 7.5 million tonnes per year, Lampung has great potential to become the main supplier of raw materials for national bioethanol. 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,’ the Governor said. He also added that Lampung has enormous new and renewable energy potential, from solar power, geothermal, and biomass to bioenergy derived from agricultural and industrial waste. This potential is an important asset in supporting the national energy transition agenda. From the industry side, PNRE CEO John Anis explained that bioethanol development in Lampung is conducted through collaboration with Toyota Tsusho Corporation and Japan’s Green Earth Institute (GEI). According to him, Lampung holds a strategic position because it is supported by an abundance of raw materials, especially cassava, which has been a leading commodity in the region. John revealed that bioethanol development not only utilises molasses and cassava as first-generation bioethanol raw materials but also leverages sorghum biomass and palm oil plantation waste as second-generation bioethanol raw materials. ‘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 for the construction of a second-generation bioethanol pilot plant targeted to begin operations in 2027. Additionally, the company is reviewing the reactivation of existing bioethanol facilities with a production capacity of approximately 60 thousand kilolitres per year. The area in Tegineneng District inspected during the visit is projected to become the development site for a bioethanol processing facility, while the area in Rejosari District is planned as a development centre for sorghum cultivation to support the supply of raw materials for the second-generation bioethanol industry. As part of strengthening the raw material supply chain, PNRE will also collaborate with the University of Lampung to conduct a 10-hectare sorghum planting trial as an initial stage of cultivation development in Lampung. Through synergy between the central government, the Lampung Provincial Government, businesses, academics, and international partners, this bioethanol project is expected to become an important milestone in realising Lampung as a centre for agricultural downstreaming and national renewable energy, while simultaneously creating jobs, improving farmer welfare, and strengthening Indonesia’s energy security.