Toyota weighs bioethanol production investment in Indonesia
Toyota considers bioethanol production project in Indonesia
Toyota weighs bioethanol production investment in Indonesia
Toyota is discussing a bioethanol project in Indonesia with Pertamina and Toyota Tsusho, potentially adding a new pillar to its alternative-fuels strategy.
2026-04-20T17:49:02+03:00
2026-04-20T17:49:02+03:00
2026-04-20T17:49:02+03:00
Toyota is considering an investment in bioethanol production in Indonesia, a project that could become an important part of its alternative-fuels strategy. Talks involve local energy company Pertamina and Toyota Tsusho.What the bioethanol project involvesThe parties are discussing the construction of a plant in Lampung province on the island of Sumatra. The facility is expected to have annual capacity of about 60,000 kilolitres of bioethanol. Investment is estimated at between $200 million and $300 million. If an agreement is reached, construction could begin in the second half of 2026, with production scheduled to start in 2028.Technical base and feedstockTo support the project, an agricultural base covering about 6,000 hectares is planned. Sorghum is set to be the main feedstock, alongside other biomass sources including corn and waste from palm production.The project is also backed by a Japanese research association focused on developing alternative automotive fuels.Why it matters for ToyotaToyota has long pursued a diversified technology strategy, ranging from hybrids to hydrogen solutions. Bioethanol is being viewed as another way to reduce dependence on fossil fuels without fully abandoning internal-combustion engines.For Indonesia, the project carries strategic weight: the country plans to introduce mandatory 10% bioethanol content in gasoline from 2028, reducing fuel imports.The potential deal between Toyota and Indonesia underlines that the future of the auto industry will not be defined by electric vehicles alone. Alternative fuels such as bioethanol could become an important part of the energy transition, especially in developing markets.
Toyota, Indonesia, bioethanol, Pertamina, Toyota Tsusho, Lampung, Sumatra, sorghum, biomass, alternative fuels, internal combustion engine, fuel imports
2026
Michael Powers
news
Toyota considers bioethanol production project in Indonesia
Toyota is discussing a bioethanol project in Indonesia with Pertamina and Toyota Tsusho, potentially adding a new pillar to its alternative-fuels strategy.
Michael Powers, Editor
Toyota is considering an investment in bioethanol production in Indonesia, a project that could become an important part of its alternative-fuels strategy. Talks involve local energy company Pertamina and Toyota Tsusho.
What the bioethanol project involves
The parties are discussing the construction of a plant in Lampung province on the island of Sumatra. The facility is expected to have annual capacity of about 60,000 kilolitres of bioethanol. Investment is estimated at between $200 million and $300 million. If an agreement is reached, construction could begin in the second half of 2026, with production scheduled to start in 2028.
Technical base and feedstock
To support the project, an agricultural base covering about 6,000 hectares is planned. Sorghum is set to be the main feedstock, alongside other biomass sources including corn and waste from palm production.
The project is also backed by a Japanese research association focused on developing alternative automotive fuels.
Why it matters for Toyota
Toyota has long pursued a diversified technology strategy, ranging from hybrids to hydrogen solutions. Bioethanol is being viewed as another way to reduce dependence on fossil fuels without fully abandoning internal-combustion engines.
For Indonesia, the project carries strategic weight: the country plans to introduce mandatory 10% bioethanol content in gasoline from 2028, reducing fuel imports.
The potential deal between Toyota and Indonesia underlines that the future of the auto industry will not be defined by electric vehicles alone. Alternative fuels such as bioethanol could become an important part of the energy transition, especially in developing markets.
