Pertamina and Toyota Prepare to Build Bioethanol Plant, This is its Capacity
Jakarta, CNBC Indonesia - Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu stated that Pertamina New & Renewable Energy (Pertamina NRE) and Toyota will develop a bioethanol processing facility in Indonesia.
This project is expected to support national energy needs while reducing dependence on imports of fuel oil (BBM).
He revealed that the initial bioethanol production capacity to be developed is 60,000 kilolitres (kl) per year. This also serves as preparation to meet future fuel requirements.
“For the initial stage, the production capacity for the plant is 60,000 kilolitres per year. We know that the total consolidated ethanol plant capacity in Indonesia is around 120,000, and possibly only effectively 80,000,” he said at the BKPM building in Jakarta on Monday (20/4/2026).
As is known, the government is providing full support for bioethanol development, including through mandatory blending policies for bioethanol in petrol, with a roadmap of 5% blend (E5) in 2026-2027, rising to 10% (E10) in 2028-2030, and a long-term target towards E20.
“Of course, we are doing this within the framework of preparing if we enter the E10 mandate, our country is also ready to provide the ethanol needs,” he explained.
He admitted that regarding the investment amount, the cost calculations are still ongoing.
“The budget is still being calculated because a feasibility consultant has already been appointed,” he added.
The cooperation between Pertamina and Toyota focuses on developing a bioethanol plant with 2G or second-generation technology based on multi-feedstock, utilising domestic resources such as palm kernel biomass, corn, and sorghum.
According to him, the collaboration between Pertamina and Toyota creates synergy between the state-owned enterprise and global investors in building the future energy ecosystem in Indonesia. With this agreement, the cooperation process has progressed from the exploration stage to a more concrete and measurable phase, providing clearer direction for project realisation.
“This programme has actually been running since last year. But we have been silent on its development. There is already a cooperation plan between Pertamina New Renewable Energy and the Japanese Group. In this case, Toyota Tsusho will be appointed as the partner,” he revealed.
He mentioned that the bioethanol construction plan will be carried out in the Lampung region. Because Lampung is one of the provinces with strong availability of feedstock for ethanol.
“Because in Lampung, as we all know, there is large-scale sugarcane planting. There is also cassava planting and other feedstocks. So, the plan is not only for building the plant but also for planting one of the supporting feedstocks, namely sorghum,” he explained.