Jakarta, INTI - Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, announced that Pertamina New & Renewable Energy (NRE) and Toyota will collaborate to build a bioethanol plant in Indonesia.
The initiative aims to support the government’s strategic program mandating a 10% bioethanol blend (E10) in gasoline by no later than 2028.
The partnership will focus on developing second-generation (2G) bioethanol using multi-feedstock technology, leveraging domestic resources such as palm biomass, corn, and sorghum.
“Ethanol is one of the renewable energy sources we are planning to develop as part of the national energy mix. The government has set a mandatory target to be achieved by 2028,” he stated at the BKPM office in Jakarta on Monday, April 20, 2026.
He emphasized that the collaboration between Pertamina and Toyota represents a strong synergy between a state-owned enterprise and a global investor in building Indonesia’s future energy ecosystem.
With this agreement in place, the cooperation has progressed from initial exploration into a more concrete and measurable stage, providing clearer direction for project realization.
“This program has actually been underway since last year, though development has been relatively quiet. There is already a cooperation plan between Pertamina NRE and a Japanese group, with Toyota Tsusho set to be appointed as the partner,” he explained.
Lampung Selected as Key Production Hub
He added that the bioethanol plant is planned to be developed in Lampung, a region known for its strong availability of feedstock.
“As we know, Lampung has extensive sugarcane plantations, as well as cassava and other feedstock sources. In addition to building the plant, there are also plans to develop supporting feedstock cultivation, particularly sorghum,” he noted.
Project Timeline and Production Capacity
In its initial phase, the plant is expected to have a production capacity of 60,000 kiloliters per year.
Construction is targeted to begin in the third quarter, or at the latest in the fourth quarter of 2026.
“The budget is currently being finalized, and a feasibility consultant has already been appointed. The study is nearly complete, so we aim to start construction this year, targeting Q3 or at the latest Q4,” he added.
At the same event, CEO for Asia, Masahiko Maeda, stated that the partnership is closely linked to the company’s automotive business, noting that ethanol can also be used in existing vehicle models.
“Together with the government, we can provide ethanol-compatible solutions for the vehicles we already have,” he concluded.
The government has expressed strong support for bioethanol development through biofuel blending mandates, with a roadmap targeting E5 implementation in 2026–2027, E10 in 2028–2030, and a long-term goal of reaching E20.
Conclusion
The collaboration between Pertamina NRE and Toyota reflects a strategic move to accelerate Indonesia’s transition toward renewable energy. By leveraging local resources, advancing bioethanol technology, and aligning with national fuel mandates, the project is set to strengthen energy security, support sustainable industrial growth, and position Indonesia as a key player in the regional biofuel ecosystem.
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