Indonesia and Toyota discuss bioethanol cooperation to promote local fuel industry upgrade

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Indonesian government officials and Japanese Toyota executives confirmed that Indonesia is negotiating with Toyota Asia Motor Corporation on the construction of a bioethanol production project in Indonesia, aiming to promote the upgrading of the local fuel industry and reduce dependence on imported fuel.

Indonesian government officials and Japanese Toyota executives confirmed that Indonesia is negotiating with Toyota Asia Motor Corporation on the construction of a bioethanol production project in Indonesia, aiming to promote the upgrading of the local fuel industry and reduce dependence on imported fuel.

Project Overview and Cooperation Details

Indonesian Deputy Minister of Investment Todotua Pasalib revealed that Indonesia's state-owned energy company Pertamina's renewable energy subsidiary is negotiating with Toyota for a joint venture to build a bioethanol plant in Lampung province in southern Sumatra. If the cooperation is reached, the total investment of the project is expected to be 0.2 billion to 0.3 billion US dollars, and the annual production capacity of bioethanol can reach 60000 kiloliters. It is planned to start construction in the second half of 2026 and put into production in 2028. The project will support the construction of 6000 hectares of sorghum plantation as a raw material base, the next generation of automotive fuel biomass innovation research association also participated in the relevant negotiations.
Masahiko Maeda, CEO of Toyota Asia, said that Toyota's vehicles can directly use the bioethanol produced by the plant. Prasi Ganash, executive vice president of Asia, pointed out that negotiations are still in progress and no final agreement has been reached.

Industrial Background and Policy Objectives

Indonesia is promoting the use of palm oil, corn, sorghum and other indigenous biomass resources to produce bioethanol to reduce dependence on imported fuel. According to the plan, Indonesia plans to implement a mandatory standard of 10% bioethanol content in gasoline in 2028. This cooperation with Toyota is a key step to achieve this goal.

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