Toyota Plans Ethanol Plant in Indonesia as Bahlil Targets 10% Biofuel Blend by 2027
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JAKARTA, Investortrust.id — Japanese automaker Toyota plans to build an ethanol plant in Indonesia to secure biofuel supplies for its vehicle lineup, aligning with the government’s plan to implement E10 gasoline blending by 2027, Deputy Minister of Investment and Downstreaming and Vice Head of the Indonesia Investment Coordinating Board Todotua Pasaribu said on Tuesday, Oct 28, 2025.
Todotua explained that Toyota’s move reflects the company’s strategy to localize ethanol production and ensure a stable feedstock supply for its hydrogen and bioethanol-powered vehicles.
“One of the private companies planning to build such a facility is Toyota. Why? Because Toyota already has a lineup that uses hydrogen with bioethanol. They are among those interested in building an ethanol plant,” Todotua told reporters in Jakarta.
He noted that several Toyota models already support gasoline blended with ethanol, and some can even operate entirely on ethanol fuel.
“Toyota already has products that can run on E100, or 100 percent ethanol. Our discussions with them show their commitment to securing upstream feedstock supply, which is why they are serious about joining the ethanol project,” he said.
The government’s forthcoming E10 policy, which mandates gasoline with 10 percent ethanol blend, aims to reduce Indonesia’s reliance on imported gasoline and strengthen national energy security. Domestic gasoline consumption currently reaches around 40 million kiloliters (KL) per year, meaning the E10 rollout will require approximately 4 million KL of ethanol annually.
“Bioethanol sources include sugarcane, cassava, sorghum, and corn — all commodities we already have in abundance. What matters now is our seriousness in developing production plans and executing the E10 policy,” Todotua said.
To ensure sufficient feedstock, the government is partnering with regions rich in agricultural output, particularly Lampung Province. The region already has nearly 900,000 hectares of farmland suitable for sugarcane, cassava, corn, and sorghum cultivation, with an additional 200,000 hectares under planned development.
“And the total development area in Lampung is almost one million hectares, with another 200,000 to be managed soon,” Todotua added.
Government Targets E10 by 2027, Learns from Brazil’s Ethanol Success
Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that Indonesia aims to implement mandatory gasoline blending with 10 percent ethanol (E10) by 2027 — a first step toward E20 — as part of the nation’s drive to boost energy resilience and reduce fuel imports.
Speaking at the Presidential Palace in Jakarta on Friday, Oct 24, 2025, Bahlil said the plan draws lessons from Brazil, one of the world’s most advanced adopters of ethanol fuel, where blends reach up to E30 nationally and E100 in some states.
“I just met with Brazil’s Minister of Energy and signed a memorandum of understanding. Brazil has reached E30, even E100 in some regions. Moving forward, we will aim for E20, starting with E10 in 2027–2028,” Bahlil said.
The Indonesia–Brazil cooperation agreement, witnessed by President Prabowo Subianto and Brazil’s President Luiz Inacio Lula da Silva at the Merdeka Palace, marks a new chapter in energy collaboration between the two countries. It will serve as a foundation for advancing Indonesia’s renewable fuel capacity and downstreaming efforts.
Bahlil explained that ethanol development is critical for the energy transition and reducing the nation’s gasoline imports, which total around 40–42 million tons per year, while domestic production stands at only 14 million tons.
“We still have a deficit of around 27–28 million tons. This program is part of the solution,” said Bahlil, who also serves as Chairman of the Golkar Party.
He added that ethanol feedstock will come from corn, cassava, and sugarcane — a strategy expected to benefit local farmers and boost rural economies.
“This will increase farmers’ income, strengthen downstreaming in plantation sectors, and create new regional growth centers. We can reduce imports, raise people’s incomes, and cut pollution with higher-quality fuel,” Bahlil said.