Towards E10, Bioethanol as a Solution to Overcome Indonesia's Fuel Import Dependency

Indonesia’s dependence on imported fuel remains high, reaching around 61% over the past decade. Meanwhile, the volatility of global oil prices due to geopolitical dynamics increasingly underscores the urgency of an energy transition.

On the policy side, the government has strengthened its commitment through a mandatory biofuel blending roadmap, namely E5 in 2026–2027, increasing to E10 in 2028–2030, and heading towards E20 in the long term.

To realise this, Toyota, together with Pertamina NRE and Danantara, will begin constructing a bioethanol plant in Lampung. The project is designed in two phases, with the first phase targeting a capacity of 60 kilolitres per year in the third quarter of 2027, followed by a commercial phase of 60,000 kilolitres per year in the fourth quarter of 2028.

The development will adopt a multi-feedstock approach, including the utilisation of palm oil biomass waste, corn, and sorghum, supported by second-generation (2G) technology to increase supply flexibility while ensuring long-term sustainability.

This development also includes the gradual cultivation of sorghum, starting from a 10-hectare pilot in 2026 to commercial development reaching 6,000 hectares in 2027. The project will be located in Lampung with land support from PTPN.

“We are promoting this project to prepare for the mandatory roadmap commitment to E10, so that our country is also ready,” said Deputy Minister of Investment Todotua Pasaribu on Monday (20/4/2026).