Indonesia is in discussions with Toyota Motor Asia regarding a potential joint investment in bioethanol production in the country, according to a government official and company executives who spoke to reporters on 20th April.

A renewable energy subsidiary of Indonesia's state-owned energy company Pertamina is in discussions with Toyota Tsusho on a potential joint investment in a bioethanol plant in Lampung province, located at the southern tip of Sumatra, according to Deputy Investment Minister Todotua Pasaribu.

If an agreement is reached, construction of a plant with a capacity of 60,000 kilolitres of bioethanol per annum could commence in the second half of 2026, with production targeted for 2028, Pasaribu stated.

A new 14,826 acres sorghum plantation is planned to supply the feedstock, he further added.

The total estimated investment is between US$ 200 million and US$ 300 million, according to Pasaribu.

Research Association of Biomass Innovation for Next Generation Automobile Fuels (RABIT) is also involved in the discussions, he said.

RABIT is a Japanese research organisation established on July 1st, 2022, as a collaborative initiative involving companies from the automotive and energy sectors to develop next-generation fuels derived from biomass. Its primary focus is on advancing technologies for producing bioethanol from non-edible plant materials, particularly through research into cellulosic bioethanol, improving conversion efficiency, and examining the utilisation of by-products such as CO2 and oxygen generated during production. The association also supports the practical application of biomass-based fuels in automobiles, with the broader aim of contributing to reduced carbon emissions in the transport sector.

Speaking alongside Pasaribu, Masahiko Maeda, Chief Executive for the Asia region at Toyota Motor Asia, stated that Toyota vehicles could utilise the bioethanol produced at the Lampung facility.

Pras Ganesh, Executive Vice President of Toyota Motor Asia, stated on the sidelines of the press conference that discussions are ongoing and that no agreement has been finalised.

Indonesia has set a target to produce bioethanol using domestically available sources, including biomass derived from palm oil, corn, and sorghum, to reduce reliance on imported fuels. The government plans to implement a mandate requiring a 10% bioethanol blend in petrol by 2028.