-- Indonesia is holding discussions with Japanese automotive giant Toyota Motor (TM), in a potential joint effort for bioethanol production in the country, according to a Reuters report on Monday.
The project involves the renewable energy unit of Indonesia's state-owned Pertamina, with the plant located in the Lampung province on the southern tip of Sumatra, according to the country's Deputy Investment Minister Todotua Pasaribu.
With a planned capacity of 60,000 kilolitres of bioethanol per annum, construction on the plant could begin as early as the second half of 2026, with output starting in 2028, if the two sides reach an agreement.
Feedstock for the plant will be produced by a new 6,000-hectare, or 14,800-acre sorghum plantation, Pasaribu said, while estimating that the overall investment could reach $200 million to $300 million.
Japan's Research Association of Biomass Innovation for Next Generation Automobile Fuels (raBit) is also involved in the discussions, while senior Toyota executives highlighted that the plant's bioethanol output can be used to fuel the company's own vehicles.
This comes as Indonesia pushes to scale up bioethanol output using domestic feedstocks such as palm biomass, corn and sorghum, aiming to cut reliance on imported fuels. The government also plans to mandate a 10% bioethanol blend in gasoline starting in 2028.
Neither Toyota nor the Indonesian Ministry of Investment immediately responded to' request for a comment on this story.
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