Pertamina and Toyota Develop 2G Bioethanol from Domestic Waste

PT Pertamina New & Renewable Energy, together with Toyota Motor Asia, officially began a collaboration to develop second-generation (2G) bioethanol based on biomass waste in Jakarta on Monday (20/4/2026). This partnership aims to build a sustainable energy ecosystem through the utilisation of various non-food domestic resources.

According to Kompas, this strategic project will employ a multi-feedstock approach by processing palm oil waste, corn, and sorghum into liquid fuel. The initiative is expected to reduce national fuel import figures while optimising the economic value of agricultural waste.

Deputy Minister of Investment and Downstreaming/BKPM, Todotua Pasaribu, stated that this synergy represents a tangible form of collaboration between State-Owned Enterprises (BUMN) and global investors. The government targets for this agreement to promptly proceed to the physical construction phase in accordance with the set schedule.

“We see the collaboration between Pertamina and Toyota as a real example of synergy between BUMN and global investors in building Indonesia’s future energy ecosystem,” said Todotua Pasaribu, Deputy Minister of Investment and Downstreaming/BKPM.

CEO of Toyota Motor Asia, Masahiko Maeda, revealed that meetings with the Indonesian government have yielded significant progress. This agreement encompasses economic feasibility studies, project structure formulation, and the establishment of a comprehensive implementation timeline.

Maeda emphasised that this collaboration has entered a more concrete and measurable phase compared to previous exploratory stages. This strategic step is taken to mature the entire investment plan so that the project realisation has a clear direction.

The Indonesian government provides full support through mandatory biofuel blending policies. Based on the national energy roadmap, the blending target is set starting from E5 in 2026-2027, increasing to E10 in 2028-2030, and reaching E20 in the future.

The utilisation of 2G technology is considered crucial because it focuses on non-food raw materials, thus not disrupting food sovereignty. The use of sorghum in this production chain is even seen as adding value to national food security overall.