Japanese automotive company Toyota Motor Asia is reportedly exploring an investment partnership with a subsidiary of PT Pertamina to develop bioethanol in Indonesia. The project is estimated to be worth USD 200–300 million, equivalent to around IDR 3.4 trillion to IDR 5.1 trillion. 

Citing Reuters, Deputy Minister of Investment Todotua Pasaribu said discussions are taking place between a Pertamina subsidiary and Toyota Tsusho. If an agreement is reached, construction of a bioethanol plant with a capacity of 60,000 kiloliters is expected to begin in the second half of this year, with production targeted to start in 2028. 

The plant is planned to use sorghum as its feedstock, cultivated on approximately 6,000 hectares of land in the same area. 

Toyota Motor Asia Executive Vice President Pras Ganesh said discussions are still ongoing and have not reached a final stage. However, Toyota Motor Asia Regional CEO Masahiko Maeda indicated a positive outlook, stating that Toyota vehicles could utilize bioethanol produced at the planned facility in Lampung. 

In addition to Toyota, the discussions also involve Japan’s Biomass Innovation Research Association for Next Generation Automotive Fuels. 

The planned investment aligns with the Indonesian government’s target to implement a 10% bioethanol blending policy (E10) by 2028. Domestic bioethanol production is expected to utilize local biomass such as palm oil, corn, and sorghum, while reducing dependence on fuel imports. 

This article is published in partnership with Katadata 

Original article here