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Toyota, Pertamina to begin bioethanol plant construction in Q3

Deputy Investment and Downstream Minister Todotua Pasaribu stated that the facility is expected to begin production in 2028, with a capacity of 60,000 kiloliters per year.

Deni Ghifari (The Jakarta Post)
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Mon, April 20, 2026 Published on Apr. 20, 2026 Published on 2026-04-20T14:17:00+07:00

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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, Banten. 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, Banten.

J

apanese automaker Toyota and state-owned energy company Pertamina are looking to start the construction of a bioethanol plant in the second half of this year to achieve production in 2028.

Deputy Investment and Downstream Minister Todotua Pasaribu said in a press conference following a meeting with Toyota on Monday that the facility would be located in Lampung and that the construction would commence in this year’s third quarter or fourth quarter at the latest.

“Other than the [bioethanol] plant, the plan is also to grow one of the feedstocks, namely sorghum,” said Todotua, before saying that the longer-term plan was to build multi-feedstock sources that might include sugarcane and cassava.

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The deputy minister said the detailed investment figure was still being calculated and that the production capacity would reach 60,000 kiloliters (kl) per annum. Indonesia is aiming for 4 million kl of bioethanol production by 2027.

Todotua said the project was initiated to support the country’s upcoming E10 policy, which seeks to make it mandatory for gasoline to have a blend of 10 percent ethanol derived from renewable biomass.

The project would be developed via a joint venture involving PT Pertamina New & Renewable Energy (NRE) and Toyota Tsusho Corporation.

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Todotua mentioned that the Japanese Research Association of Biomass Innovation for Next Generation Automobile Fuels (raBIT) will be involved but did not clarify whether it would be part of the joint venture.

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