KBRN, Jakarta: Japan’s automotive giant Toyota Motor Corporation is exploring investment opportunities in Indonesia’s bioethanol sector, responding to the government’s plan to implement a mandatory 10 percent ethanol blend (E10) in fuel by 2027.

The initiative is expected to require at least 4 million kiloliters of bioethanol annually, out of the country’s total fuel demand of over 40 million kiloliters per year.

Deputy Minister for Investment and Downstreaming Todotua Pasaribu emphasized the urgency of preparing supporting infrastructure to meet future demand.

“Toyota sees this as a strategic opportunity, especially since it already produces bioethanol-powered vehicles in several countries,” said Todotua, who also serves as Deputy Head of the Investment Coordinating Board (BKPM), in a statement from Jakarta on Monday, November 10, 2025, as quoted by Antara.

On November 7, Todotua met with Masahiko Maeda, CEO of Toyota Motor Corporation’s Asia Region, and visited the Fukushima research facility of the Research Association of Biomass Innovation for Next Generation Automobile Fuels (RABIT).

The meeting focused on Toyota’s potential investment in developing a bioethanol ecosystem in Indonesia, in line with President Prabowo Subianto’s vision for energy self-sufficiency, green economy, and value-added downstreaming of natural resources.

Toyota is currently developing second-generation bioethanol derived from non-food biomass such as agricultural waste and sorghum. This technology is considered highly compatible with Indonesia’s rich agricultural potential and favorable agroclimatic conditions.

“We discussed with RABIT how this multi-feedstock technology could utilize various agricultural residues, from sorghum and sugarcane to rice, cassava, palm, and aren, making it well-suited for Indonesia,” Todotua explained.

According to BKPM’s Strategic Investment Downstreaming Roadmap, regions like Lampung have been designated as hubs for bioethanol industry development, supported by local crops such as sugarcane, cassava, and sorghum. The investment is expected to not only strengthen clean energy supply chains but also create jobs and improve the livelihoods of local farmers.

Todotua revealed that a pilot project is being discussed in collaboration with Pertamina New & Renewable Energy (Pertamina NRE) in Lampung. The initiative will involve both corporate and community-based sources, including farmer cooperatives, and integrate energy supply with Pertamina’s geothermal and hydrogen facilities.

PT Toyota Motor Manufacturing Indonesia (TMMIN) has expressed interest in joining the effort, as part of Toyota’s global strategy to secure fuel supply for flex-fuel vehicles and support Indonesia’s shift away from imported fossil fuels.

“Following our Tokyo visit, Toyota and Pertamina will begin joint studies and site visits in Lampung, with the goal of establishing a joint venture by early 2026,” Todotua said.

The proposed facility is expected to have a production capacity of 60,000 kiloliters per year, with an estimated investment of IDR 2.5 trillion. “This is a foundational step, not only to meet domestic demand but also to open export opportunities,” he added. ***