Deputy Minister of Investment: Toyota Sees Opportunities to Develop Bioethanol in RI

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Jakarta, hitclubapk3 Indonesia

Deputy Minister (Wamen) of Investment and Downstreaming and Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu said Toyota took investment opportunities by meeting needs
bioethanol
in Indonesia, considering that the mandatory policy of mixing 10 percent (E10) into fuel will be implemented immediately.
“Currently, domestic fuel needs reach more than 40 million kiloliters per year, with the E10 obligation, Indonesia needs at least around 4 million kiloliters of bioethanol in 2027 and in order not to lose momentum, preparations for the construction of supporting plants must start now,” said Todotua.
“This opportunity was seized by Toyota, which has also developed bioethanol fueled cars in many countries,” he said then quoted from
Between
, Monday (10/11).
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Todotua met Toyota Motor Corporation CEO of Asia Region Masahiko Maeda on Friday (7/11), and visited the biofuel research facility in Fukushima belonging to the Research Association of Biomass Innovation for Next Generation Automobile Fuels (RABIT).

This meeting discussed Toyota’s investment plans in developing the bioethanol ecosystem in Indonesia, which is in line with President Prabowo’s Astacita to encourage energy self-sufficiency, green economy and downstreaming to increase the added value of natural resources in the country.

“We see great potential for collaboration with Toyota to make Indonesia a bioethanol production base in the region,” said Todotua.

In its research collaboration in Japan through RABIT, Toyota is developing second generation bioethanol sourced from non-food biomass, such as agricultural waste and sorghum plants.

This technology is considered very relevant to Indonesia’s abundant agricultural potential and agro-climatic conditions that are suitable for sustainable cultivation.

“Yesterday, during our visit, we also discussed with RABIT that this second generation bioethanol factory technology can utilize various types of agricultural waste (multi feedstock), so that the technology is suitable for Indonesia, which not only has the potential for sorghum plants, but can also be made from sugar cane, rice, cassava, oil palm, sugar palm and others,” he concluded.
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Based on the Strategic Investment Downstream Roadmap owned by the Ministry of Investment and Downstreaming/BKPM, a number of regions such as Lampung have been prepared to become centers for the development of the bioethanol industry, with the support of raw materials from sugar cane, cassava and sorghum.

Investment in this sector is projected to not only strengthen the clean energy supply chain, but also open up new jobs and encourage the welfare of local farmers in the region.

“As a pioneer project, it was discussed earlier that we would collaborate with Pertamina NRE (New Renewable Energy) in Lampung, for the raw materials not only from the company but also involving local farmers and farming cooperatives so that it can also drive the economy in the region, later the energy supply will also be integrated with Pertamina’s geothermal and hydrogen plants,” said Todotua.
Toyota expressed interest in developing bioethanol in Indonesia
On the same occasion, PT Toyota Motor Manufacturing Indonesia (TMMIN) expressed interest in investing in the development of the bioethanol industry in Indonesia.
This step is part of Toyota’s global strategy to secure fuel supplies for bioethanol-based flex-fuel vehicles, as well as supporting the Indonesian Government’s policy of reducing dependence on imported fossil fuels.

“After returning from Tokyo, both Toyota and Pertamina will immediately carry out a joint study and site visit to a location in Lampung. The target is that by early 2026 a joint venture company (JV) will have been formed,” he said.
According to him, in order to support the E10 policy, plans are currently being studied to develop facilities with a production capacity of 60,000 kiloliters per year and an investment value of IDR 2.5 trillion.
“This investment is the first step which is expected to not only meet domestic needs, but also open up export opportunities to other countries,” concluded Todotua.
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