The Indonesian government is currently in negotiations with Toyota Motor Asia regarding a potential joint investment in the country’s renewable energy sector. According to Deputy Investment Minister Todotua Pasaribu, a green energy subsidiary of the state-owned firm Pertamina is discussing a partnership with Toyota Tsusho to establish a bioethanol refinery in Lampung province, Sumatra.
Should the parties reach a definitive agreement, construction of the facility—boasting an annual capacity of 60,000 kiloliters—is slated to begin in late 2026, with operations targeted for 2028. The project, valued between $200 million and $300 million, will utilize feedstock from a newly developed 6,000-hectare sorghum plantation. While Toyota executives noted that their vehicles could easily adopt the locally produced fuel, they emphasized that discussions are ongoing and a final deal is pending. This move aligns with Indonesia’s national goal to mandate a 10% bioethanol blend in gasoline by 2028 to decrease reliance on energy imports.
