In a statement on Monday, Deputy Minister of Investment and Downstreaming Todotua Pasaribu said Indonesia's annual fuel demand exceeds 40 million kiloliters, with around 4 million kiloliters of bioethanol needed for the 2027 launch of the E10 policy.
"To capitalize on the momentum, Indonesia must prepare supporting facilities now. This is the opportunity Toyota seeks to seize," he remarked, adding that the company already produces bioethanol-compatible vehicles for various countries.
The investment opportunity was discussed during Pasaribu's meeting with Toyota Motor’s Asia Regional CEO Masahiko Maeda on November 7.
Pasaribu said the plan aligns with President Prabowo Subianto's directives to achieve energy self-sufficiency, promote a green economy, and enhance the added value of natural resources through downstreaming.
"We see vast potential for cooperation with Toyota in positioning Indonesia as a regional hub for bioethanol production," he stated.
He also mentioned his visit to the Research Association of Biomass Innovation for Next Generation Automobile Fuels (RABIT) facility in Fukushima, where Toyota and RABIT are developing second-generation bioethanol using non-food biomass.
"RABIT’s technology can convert various types of agricultural waste into bioethanol," Pasaribu said, emphasizing Indonesia's abundant potential feedstock resources.
He added that Toyota plans to conduct a joint on-site review with Indonesia's state-owned energy firm Pertamina in Lampung, which the government envisions as a future bioethanol production hub.
"The target is to establish a joint venture by 2026," he said.
According to Pasaribu, the plan includes developing a facility capable of producing 60,000 kiloliters of bioethanol annually, with an investment value of Rp2.5 trillion (around US$150 million) to support the E10 policy.
He expressed confidence that the investment would help Indonesia meet domestic demand and open new export opportunities.
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Translator: Ahmad M, Tegar Nurfitra
Editor: Anton Santoso
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