Toyota to Invest Rp 2.5 Trillion in Bioethanol Plant to Support Indonesia’s Green Energy Drive
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JAKARTA, Investortrust.id — Toyota Motor Corporation has announced plans to invest Rp 2.5 trillion to develop a bioethanol production plant in Lampung, reinforcing Indonesia’s energy self-sufficiency agenda, transition toward greener fuels, and achieving its net zero goal.
The plan was conveyed during a meeting between Deputy Minister of Investment and Downstream Industry and Deputy Chairman of the Investment Coordinating Board Todotua Pasaribu and Toyota’s Chief Executive Officer for Asia Region Masahiko Maeda in Japan on Friday, Oct. 7, 2025.
The initiative will be carried out through PT Toyota Motor Manufacturing Indonesia (TMMIN) and aims to support the government’s mandatory E10 policy — blending 10 percent bioethanol into gasoline — which will take effect in 2027. The plant, scheduled for groundbreaking in 2026, is designed to produce up to 60,000 kiloliters annually using advanced second-generation bioethanol technology derived from agricultural waste.
“Collaboration with Toyota could become a milestone for Indonesia’s next-generation biofuel development,” Todotua said in a written statement on Monday, Nov. 10, 2025. “Indonesia has abundant natural resources and farmland, while Japan has cutting-edge technology. Combining both strengths will have a real impact on energy security and the green economy.”
During his visit, Todotua toured the Research Association of Biomass Innovation for Next Generation Automobile Fuels (RABIT) facility in Fukushima, Japan. The consortium, supported by Toyota, focuses on developing bioethanol and hydrogen fuel technologies from non-food biomass such as sorghum and agricultural residues.
He emphasized that the project aligns with President Prabowo Subianto’s Asta Cita vision to achieve energy independence, green economic transformation, and resource value-added industries.
Following the meeting, Toyota and Pertamina agreed to conduct a joint study and site visit to Lampung, aiming to establish a joint venture by early 2026.
“In support of the E10 policy, we are preparing a facility worth about Rp 2.5 trillion. This project will not only meet domestic demand but also open export opportunities,” Todotua said.
Indonesia currently consumes over 40 million kiloliters of fuel annually. To meet the 10 percent bioethanol blending target, the country will require about 4 million kiloliters of bioethanol by 2027. The country plans to make biofuel use mandatory by 2045, as part of its net-zero goal.
Several nations — including Brazil, the United States, China, India, France, Thailand, and the Philippines — have already implemented blending mandates between E10 and E20. “At the upcoming COP 30 in Brazil, global discussions will again center on energy transition and transport decarbonization. Toyota’s planned investment in Indonesia fits squarely within these objectives,” Todotua added.
Through RABIT, Toyota is developing second-generation bioethanol that utilizes multiple feedstocks, making it suitable for Indonesia’s agricultural diversity. “This technology can process various types of waste — from sugarcane, rice, cassava, palm, and even aren — which perfectly matches Indonesia’s conditions,” Todotua said.
The Ministry of Investment has designated Lampung as a key bioethanol hub within its Strategic Downstream Investment Roadmap, leveraging local supply chains of sugarcane, cassava, and sorghum. The initiative is expected to enhance clean-energy resilience while creating rural employment and boosting farmers’ incomes.
“This pioneering project will be developed with Pertamina NRE (New Renewable Energy) and will actively involve local farmers and cooperatives as feedstock suppliers,” Todotua explained. “The plant’s operations will also be integrated with Pertamina’s geothermal and hydrogen facilities to strengthen local energy ecosystems.”