Toyota Collaborates With Pertamina To Build Bioethenol Factory, Disburses IDR 2.5 Trillion Investment

Cooperation (Photo: unsplash)

\JAKARTA - Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu, revealed that Pertamina will cooperate with Toyota to build a bioethenol factory in Lampung. The factory, which will be built with Pertamina's subsidiary, Pertamina New Renewable Energy, will cost an investment of IDR 2.5 trillion.

Todotua also expressed his appreciation for Toyota's commitment to supporting the Government's program in the energy security sector and the green energy transition.

Todotua explained, as part of a strategy to suppress imports of fuel which is still high, the Indonesian government has set a mandatory blundering policy for bioethanol in gasoline of 10 percent or E10 which will be implemented in 2027.

"We see the great potential for cooperation with Toyota to make Indonesia the basis for bioethanol production in the region," said Todotua in a statement to the media quoted Monday, November 10.

He added that currently the domestic fuel needs reach more than 40 million kiloliters per year, with the obligation of the E10, Indonesia will need at least 4 million kiloliters of bioethanol in 2027. In order not to lose momentum, preparations for the construction of supporting factories must start now.

"This opportunity was captured by Toyota, which has also developed bioethanol-fueled cars in many countries," added Todotua.

He continued, several countries such as Brazil are even reviewing the E100 policy, which means 100 percent of fuel comes from bioethenol. Similar policies were also taken by several countries such as the United States, RRT, India, France, Thailand and the Philippines which have implemented the E10 policy E20.

Toyota itself claims to have succeeded in possessing efficient and environmentally friendly vehicle engine technology with the use of E20 fuel, even from the research developed by green fuel, it has been piloted in Super Formula racing cars.

Todotua continued, based on the Roadmap Downstream Strategic Investment owned by the Ministry of Investment and Downstreaming/BKPM, a number of areas such as Lampung have been prepared to become a center for the development of the bioethanol industry, with the support of raw materials from sugarcanes, cassava, and sorghum.

Investment in this sector is projected not only to strengthen the clean energy supply chain, but also to create new jobs and encourage the welfare of local farmers in the regions.

"As a pioneer project, it has been discussed that it will cooperate with Pertamina NRE (New Renewable Energy) in Lampung, the raw materials are also not only from the company but also involve local farmers and farmer cooperatives so that they can also move the economy in the regions, later for energy supply it will also be integrated with Pertamina's geothermal and hydrogen plants," explained Todotua.

After returning from Tokyo, continued Todotua, both Toyota and Pertamina will immediately conduct joint studies and visit sites in Lampung, the target is that by early 2026 joint venture companies (JV) will have been formed.

Todotua also said, in order to support the E10 policy, currently being studied as planning to develop facilities with a production capacity of 60,000 kiloliters per year and an investment value of around Rp. 2.5 trillion.

"This investment is the first step that is expected not only to meet domestic needs but also to open up export opportunities to other countries," said Todotua.