Jakarta. Japan’s automotive giant Toyota is considering building an ethanol plant in Indonesia as part of its efforts to secure sustainable fuel supplies for its bioethanol-compatible vehicle lineup, a senior official said Tuesday.

Deputy Minister for Investment and Downstream Industry, Todotua Pasaribu, said Toyota was among several foreign companies interested 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.

The company showcased the Toyota Fortuner Flexy Fuel prototype at the 2023 Gaikindo Indonesia International Auto Show (GIIAS). The SUV, one of the most popular in Indonesia, features a 2.7-liter, four-cylinder petrol engine but has been heavily modified to run entirely on bioethanol (E100).

According to Todotua, Toyota’s plan to build an ethanol plant in Indonesia is driven by the need to secure a steady supply of bioethanol feedstock. “They are serious about entering ethanol manufacturing. Hopefully, the process will go smoothly and can be realized soon,” he said.

In addition to Toyota, Todotua said Brazil, one of the world’s leaders in ethanol production and biofuel policy, has also shown interest in investing in Indonesia’s ethanol sector.

He said the government is still assessing potential sites for the plants, but Lampung Province on Sumatra Island is seen as a strong candidate because of its abundant supply of sugarcane, cassava, corn, and sorghum.

“All the necessary commodities are available there. What remains is our commitment to develop ethanol plants and implement the E10 policy,” he said, referring to the government’s plan to mandate 10 percent bioethanol blending in gasoline.

Energy and Mineral Resources Minister Bahlil Lahadalia previously said the government would offer incentives to companies building ethanol plants in Indonesia to support the implementation of the E10 mandate by 2027.

To achieve the target, Indonesia will need an estimated 1.4 million kiloliters of ethanol annually. The government aims to meet this demand through domestic production rather than imports.

Bahlil said the ethanol plants could use various feedstocks, including cassava, corn, and sugarcane. A sugarcane-based ethanol facility is likely to be built in Merauke, South Papua, while potential sites for cassava-based plants are still being mapped.

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