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Japanese carmakers look elsewhere, as RI bioethanol lags behind
Japanese car brands contributed to almost 90 percent of wholesale in Indonesia throughout 2024 and a large part of those sales are fueled with gasoline, which can be mixed with bioethanol.
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Pertamina Technology and Innovation Senior Vice President Oki Muraza is seen on July 24, 2024, at the Pertamina and Toyota Sorghum Bioethanol Prime Filling event held at the Indonesia Convention Exhibition in Tangerang City, Banten.
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apanese automakers once viewed Indonesia as the most prepared nation to be the global south’s hub for biofuel-compatible vehicles, particularly in bioethanol, but regulatory inertia and a lagging industrial base have stalled its momentum, leading companies to seek opportunities elsewhere.
Toyota, the country’s largest carmaker, said that Indonesia is well-positioned to become the bioethanol manufacturing hub for the Global South, tapping into local market potential and export opportunities from Asia to Latin America.
“The Global South has its own market [and] Indonesia had the potential, like Brazil, because we have the crops and the market. What’s missing is policy support to unlock the potentials,” said PT Toyota Motor Manufacturing Indonesia (TMMIN) external relations director Bob Azam on May 9.
Read also: Toyota eyes Indonesia as Global South manufacturing hub, Hashim says
Japanese car brands contributed to almost 90 percent of wholesale in Indonesia throughout 2024 and a large part of those sales are fueled with gasoline, which can be mixed with bioethanol.
Other large portions of the country’s vehicles are fueled with diesel, which the government has successfully pushed to incorporate with a biodiesel mixture containing 40 percent processed palm oil.
In an era of rising geopolitical tensions and protectionist trade policies, Bob stressed the need for “creative” approaches, suggesting that biofuels could boost rural economies and spur a new wave export growth.
