Toyota Motor Corporation − via PT Toyota Motor Manufacturing Indonesia (TMMIN) − plans to invest in developing a bioethanol ecosystem in Indonesia through a joint venture (JV) with State energy giant PT Pertamina.

Deputy Minister of Investment and Downstream Industry/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu announced the plan during a working visit to Japan, where he met with Masahiko Maeda, CEO of Asia Region, Toyota Motor Corporation, and visited the Research Association of Biomass Innovation for Next Generation Automobile Fuels (RABIT) research facility in Fukushima.

In the meeting, which focused on Toyota’s planned investment in Indonesia’s bioethanol ecosystem, Todotua expressed appreciation for the Japanese company’s commitment to supporting the government’s energy security and green transition agenda.

Indonesia has mandated a 10 percent bioethanol blend (E10) in gasoline starting in 2027, a policy aimed at reducing dependence on imported fuels. Todotua noted the significant potential for collaboration with Toyota to make Indonesia a regional bioethanol production hub.

Through RABIT, Toyota is developing second-generation bioethanol derived from non-food biomass sources such as agricultural waste and sorghum.

Todotua emphasized that this technology aligns with Indonesia’s strong agricultural potential and favorable agroclimatic conditions.

“During our visit, RABIT explained that second-generation bioethanol plants can utilize various agricultural residues (multi-feedstock). This technology suits Indonesia, which has abundant resources such as sorghum, sugarcane, rice, cassava, palm oil, and sugar palm,” Todotua said on Monday, November 10, 2025.

According to the Strategic Investment Downstream Roadmap of the Ministry of Investment/BKPM, regions like Lampung have been designated as bioethanol industry centers, supported by feedstock from sugarcane, cassava, and sorghum. The investment is expected to strengthen clean energy supply chains, create new jobs, and improve local farmers’ welfare.

“As a pioneer project, Toyota and Pertamina NRE (New Renewable Energy) will collaborate in Lampung, involving local farmers and cooperatives as feedstock suppliers. The project will also integrate with Pertamina’s geothermal and hydrogen plants,” Todotua cited.

TMMIN confirmed Toyota’s interest in investing in Indonesia’s bioethanol industry as part of its global strategy to secure fuel supplies for flex-fuel vehicles and support Indonesia’s policy to reduce reliance on imported fossil fuels.

“This collaboration could be a milestone in developing next-generation biofuels. Indonesia has abundant natural resources and farmland, while Japan brings advanced technology. Together, these strengths can bolster energy security and the green economy,” Todotua said.

Following the meeting, Toyota and Pertamina plan to conduct a joint feasibility study in Lampung, targeting the formation of the joint venture by early 2026.

“To support the E10 policy, we are studying a facility with an annual production capacity of 60,000 kiloliters and an estimated investment of Rp2.5 trillion (US$150 million). This project is expected to meet domestic demand and potentially open export opportunities,” he said.

Indonesia’s domestic fuel consumption exceeds 40 million kiloliters per year. The E10 mandate would require about 4 million kiloliters of bioethanol by 2027, making early preparation essential.

“This is the opportunity Toyota is seizing, given its experience developing bioethanol-powered vehicles in many countries,” Todotua concluded.