The Indonesian government is advancing the Lampung Bioethanol Project to accelerate the national energy transition, with construction targeted to begin in the third quarter of 2026 (10/04).

The project is being developed through coordination led by the Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM), involving Toyota Motor Corporation, PT Pertamina New & Renewable Energy, and Danantara Investment Management.

Deputy Minister Todotua Pasaribu said the program has been underway for a year but was kept low profile during its development phase.

He stated, “This program has actually been running for the past year, but we have kept its development quiet.”

Lampung Selected for Strong Feedstock Supply

Lampung was chosen as the project location due to its strong availability of feedstock, including sugarcane, cassava, and sorghum.

The ministry has supported the project since late 2025 by coordinating across ministries, facilitating meetings with Japanese technology partners, and conducting site visits to identify suitable locations.

Two-Phase Development and Multi-Feedstock Technology

The project will be developed in two phases, starting with a pilot capacity of 60 kiloliters per year in the third quarter of 2027.

This will be followed by commercial production reaching 60,000 kiloliters per year by the fourth quarter of 2028.

The development uses a multi-feedstock approach, including biomass waste from palm oil, corn, and sorghum, supported by second-generation (2G) technology to ensure long-term sustainability.

Sorghum cultivation will begin with 10 hectares in 2026 and expand to 6,000 hectares by 2027, with project land support from PTPN.

Government Push for Bioethanol Blending Mandate

The government has introduced a roadmap for mandatory bioethanol blending in fuel, starting with E5 in 2026–2027, increasing to E10 in 2028–2030, and targeting E20 in the long term.

“We are pushing this project to prepare for the mandatory roadmap commitment to E10, so that our country is ready,” Todotua said.

Indonesia’s fuel import dependency has reached around 61% over the past decade, while global oil price volatility has increased the urgency of energy transition efforts.

The policy aligns with President Prabowo Subianto’s focus on energy self-sufficiency, food security, and downstream industrialization.

Collaboration with Toyota and Investment Expansion

The government also highlighted Toyota’s involvement in Indonesia’s electric vehicle battery industry and sees further opportunities in bioethanol development.

Coordination has been established with Toyota Tsusho and RaBIT Consortium as technology partners.

CEO of Toyota Motor Asia Masahiko Maeda, said, “We appreciate the constructive and progressive discussions with stakeholders to explore collaboration potential in the bioenergy ecosystem.”

He added that Toyota’s partnership with CATL aims to expand capabilities from battery pack assembly to full battery manufacturing and strengthen local supply chains.

PHOTO: FREEPIK

This article was created with AI assistance.

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