Japan’s automotive giant Toyota is exploring the possibility of building an ethanol plant in Indonesia to ensure a steady supply of sustainable fuel for its bioethanol-compatible vehicles, a minister said Tuesday, reported Jakarta Globe.Id.
Deputy Minister for Investment and Downstream Industry Todotua Pasaribu confirmed that Toyota is among several foreign companies showing interest in establishing ethanol production facilities in the country.
“Yes, they plan to build an ethanol plant. Toyota is one of the interested parties, and there are a few others as well,” Todotua told reporters in Jakarta.
Toyota recently showcased the Fortuner Flexy Fuel prototype at the 2023 Gaikindo Indonesia International Auto Show (GIIAS). The SUV, one of Indonesia’s most popular models, is powered by a 2.7-liter, four-cylinder petrol engine modified to run entirely on bioethanol (E100).
Todotua said Toyota’s interest in an ethanol plant stems from the need to secure a reliable bioethanol supply. “They are serious about entering ethanol manufacturing. Hopefully, the process will go smoothly and can be realized soon,” he added.
Brazil, a global leader in ethanol production and biofuel policy, has also expressed interest in investing in Indonesia’s ethanol sector, Todotua noted.
The government is still evaluating potential plant locations, but Lampung Province on Sumatra Island is considered a strong candidate due to its abundant sugarcane, cassava, corn, and sorghum supplies.
“All the necessary commodities are available there. What remains is our commitment to develop ethanol plants and implement the E10 policy,” Todotua said, referring to Indonesia’s plan to mandate 10 percent bioethanol blending in gasoline.
Energy and Mineral Resources Minister Bahlil Lahadalia has previously stated that the government will offer incentives to companies building ethanol plants to support the rollout of the E10 mandate by 2027.
Indonesia is expected to require about 1.4 million kiloliters of ethanol annually to meet this target, with the government aiming to satisfy demand through domestic production rather than imports.
Bahlil added that ethanol plants could use a variety of feedstocks, including cassava, corn, and sugarcane. A sugarcane-based facility is planned for Merauke in South Papua, while sites for cassava-based plants are still being evaluated.
