A number of foreign investors are currently showing interest in developing bioethanol plants in Indonesia. After Brazil expressed its interest earlier, Japanese automaker Toyota has now also shown its intention to take part.

The Deputy Minister of Investment and Downstreaming/Investment Coordinating Board (BKPM), Todotua Pasaribu, stated that Toyota’s interest in building a bioethanol facility in Indonesia aligns with the company’s need to ensure feedstock availability for bioethanol production.

In addition, this initiative is consistent with Toyota’s ongoing efforts in the automotive industry, where the company has already been utilizing hydrogen and bioethanol technologies. Some Toyota vehicles are even capable of operating on gasoline blended with up to 100% ethanol (E10 to E100).

“In fact, Toyota already has products that, if I’m not mistaken, can run entirely on 100% ethanol, or E100,” Todotua said after attending the Indonesian Economists Gathering at Menara Bank Mega, Jakarta, on Tuesday (Oct 28, 2025).

As a benchmark, Brazil stands out as a successful example of implementing bioethanol in its gasoline fuel mix, from both its agricultural strategy and industrial management.

“Brazil is one of the most successful countries in managing ethanol, from how it cultivates the raw commodities to how its plants operate. If I recall correctly, their production capacity reaches around two million units per year,” Todotua explained.

Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) has previously announced that the government is preparing to build a biodiesel plant in Merauke, South Papua, which is expected to begin operations by 2027.

The Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, stated that the government is also encouraging the development of bioethanol as a gasoline blend. Currently, the bioethanol project in Merauke is still in progress.

“This project is intended to supply the factory’s production needs and is expected to be completed by 2027. The process is ongoing, and the investor involved comes from within Indonesia,” said Yuliot in Jakarta, Tuesday (Sept 23, 2025).