Indonesia bioethanol investment continues to gain momentum as Toyota moves to support the country’s shift toward cleaner energy. Rising fuel demand and the upcoming E10 mandate create an urgent need for large-scale bioethanol production, and Toyota sees this as a strategic opportunity.
Indonesia Bioethanol Investment Driven by E10 Mandate
Indonesia’s upcoming E10 fuel-blending policy accelerates the nation’s transition toward renewable energy. Annual domestic fuel consumption exceeds 40 million kiloliters, and the government expects demand for bioethanol to rise sharply in the next two years. Deputy Minister of Investment and Downstreaming Todotua Pasaribu explained this urgency, stating, as reported by Metrotvnews.com, “At present, domestic fuel demand exceeds 40 million kiloliters per year. With the E10 mandate, Indonesia will need at least four million kiloliters of bioethanol by 2027. To avoid losing momentum, preparations for supporting plant construction must start now.”
He emphasized that Toyota recognized this emerging opportunity early, adding that the company already develops bioethanol-powered vehicles in several countries.
Toyota’s Strategic Entry Into the Biofuel Market
Toyota aims to strengthen its regional position by supporting Indonesia’s clean energy goals. Todotua recently met with Masahiko Maeda, CEO of Toyota Motor Corporation Asia Region, during a visit to Japan. Their discussion focused on Toyota’s plan to help develop a national bioethanol ecosystem aligned with Indonesia’s long-term vision.
According to Todotua, “We see huge potential for collaboration with Toyota to make Indonesia the bioethanol production hub of the region.” The company’s strategy includes securing bioethanol supplies for flex-fuel vehicles while supporting Indonesia’s commitment to reduce reliance on imported fossil fuels.
Toyota and Pertamina NRE plan to begin a joint study and conduct a site visit in Lampung soon. As Todotua noted, “After returning from Tokyo, both Toyota and Pertamina will immediately carry out a joint study and site visit in Lampung. The target is to establish a joint venture by early 2026.”
Read More: Indonesia–Japan Partnership Drives Clean Energy Plans
Advancing Second-Generation Bioethanol Technology
Toyota’s partnership with Japan-based RABIT strengthens its technological capabilities in second-generation bioethanol. This process uses non-food biomass, including agricultural waste and sorghum, offering a sustainable alternative to traditional feedstocks.
Todotua highlighted Indonesia’s advantages, noting that its climate and agricultural diversity support a continuous biomass supply. During his visit, he learned that RABIT’s technology accepts multiple types of waste. He explained, “Second-generation bioethanol plants can utilize various types of agricultural waste (multi-feedstock). This fits Indonesia well, as the country not only has sorghum potential but can also use sugarcane, rice, cassava, palm oil waste, aren palm, and more.”
Lampung Prepared as a Biofuel Production Hub
Lampung stands out as a key location in Indonesia’s Strategic Investment Downstreaming Roadmap. The region has abundant feedstock sources, including sugarcane, cassava, and sorghum, and offers suitable infrastructure for large-scale production.
Todotua revealed early plans with Pertamina NRE to support a pioneer project in the region. He stated, “As a pioneer project, we have discussed collaborating with Pertamina NRE in Lampung. Raw materials will come not only from companies but also from local farmers and cooperatives to stimulate the regional economy.” Lampung’s integration with geothermal and hydrogen facilities further strengthens its role in Indonesia’s clean energy supply chain.
Read More: Pertamina NRE, HyET Partnership Boosts Clean Energy Transition
New Investment Opens Domestic and Export Opportunities
Toyota’s plan includes developing a facility with a production capacity of 60,000 kiloliters per year. The estimated investment reaches IDR 2.5 trillion, marking a significant step toward the large-scale industrialization of bioethanol.
Todotua described the broader potential of this investment, explaining, “This investment is a first step that is expected not only to meet domestic demand but also to open export opportunities to other countries.” Indonesia’s position in the regional biofuel market could strengthen as new supply chains expand.
Key benefits of the initiative include:
- Lower dependence on imported fossil fuels
- Increased clean energy production
- Expanded industrial opportunities for local communities
- Stronger regional trade prospects
Indonesia Bioethanol Investment Signals a New Energy Era
Indonesia’s push toward bioethanol accelerates with Toyota’s commitment and government support. The collaboration reflects broader national goals to strengthen energy independence, empower rural communities, and establish Indonesia as a regional biofuel leader. Toyota’s investment marks a turning point, signaling new momentum for Indonesia’s clean energy future.
Source: metrotvnews.com
Image: Getty Images
