Toyota to Build Bioethanol Plant in Lampung
Toyota Motor Asia will build a bioethanol factory in Lampung province this year. Deputy Minister of Investment Todotua Pasaribu stated that the Lampung region is considered suitable due to its proximity to sugarcane plantations and as one of Indonesia’s largest producers. “In addition to the plant construction, there are also plans for planting one of the supporting feedstocks, namely sorghum,” he said during a press conference at his office in Jakarta on Monday, 20 April 2026.
Todotua said the factory construction is estimated to begin this year and will be completed in 3-4 years. Although the investment value has not yet been determined, consultants have been appointed to conduct a feasibility study.
The bioethanol produced from sugarcane and sorghum at this factory is estimated to reach 60,000 kilolitres per year. “If it proceeds as planned, production should be possible by a maximum of 2028,” he stated.
Todotua revealed that the current bioethanol factories in Indonesia are estimated to produce 120,000 kilolitres. The construction of this facility utilises various food crops that can be processed into new energy, in line with the government’s objective to implement a 10% bioethanol mixture or E10 in fossil fuels for motor vehicles.
The plan to build the bioethanol factory was first discussed between Toyota and the Ministry of Investment in 2025. Further discussions today are to prepare the construction planning and targets to be achieved.
For sorghum crops, Todotua said the land to be utilised will cover 6,000 hectares. For sugarcane, he did not disclose whose land will be absorbed. “The plan is to make it multi-feedstock, both from first-generation and second-generation sources,” he explained.
Chief Executive Officer of Toyota Motor for the Asia region, Masahiko Maeda, stated that the company can develop viable solutions for vehicle fuels. Moreover, Toyota has invested for decades in Indonesia’s automotive industry, and various car product segments have been provided to the public.
“However, ultimately, together with the government, we can provide all types of cars that we already have. That is one of our foundations,” Maeda said on the same occasion.
The meeting between both parties is a follow-up to President Prabowo Subianto’s visit to Japan on 29-31 March 2026. One of the important meetings was Prabowo’s discussion with 13 leaders of Japanese companies, one of which was Toyota, to encourage investment in Indonesia.