Pertamina-Toyota Collaboration to Build Indonesia's First Bioethanol Plant
The government, through PT Pertamina New & Renewable Energy (PNRE) and Toyota, is preparing to collaborate on developing the bioethanol industry in Indonesia.
Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, explained that the bioethanol development programme in Indonesia has actually been underway since last year, but the government has not widely publicised it.
“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, along with one from raBit or the Research Development for Bioethanol from Japan,” said Todotua during a press conference at his office on Monday (20/4/2026).
- Construction of the bioethanol plant in Lampung
The cooperation between PNRE and Toyota will be realised through the construction of Indonesia’s first bioethanol plant, located in Lampung. Lampung was chosen because it is considered one of the provinces with strong feedstock supply for ethanol.
“As we all know, Lampung has large-scale sugarcane plantations and also cassava plantations and other feedstocks,” said Todotua.
Todotua added that not only will there be plant construction, but there will also be large-scale planting of one of the bioethanol feedstocks, namely sorghum.
- Timeline for bioethanol plant construction
Before construction begins, research development will first be conducted by raBit (Research Association of Biomass Innovation for Next Generation Automobile Fuels) and Japan’s Ministry of Economy, Trade, and Industry (METI).
Todotua admitted that the government has directly observed how the research is conducted in Japan to support the construction of Indonesia’s first bioethanol plant.
“The planning is around Q3-Q4 this year we will start construction for the ethanol plant, and simultaneously there will be sorghum plantations,” he said.
- Investment value
However, Todotua has not yet detailed the investment value involved by PNRE and Toyota in the joint venture for constructing the bioethanol plant in Lampung.
“The budget is currently underway because a consultant has already been appointed and the visibility is almost done. Therefore, construction will start this year, targeting Q3 at the latest Q4 this year. If it proceeds, it should be able to produce by a maximum of 2028,” he stated.
Todotua added that the production capacity of the Lampung bioethanol plant, once operational, will be 60,000 kilolitres per year.