Indonesia has launched a new renewable fuel development centre in Lampung as part of efforts to strengthen energy security, accelerate the energy transition and reduce dependence on imported fossil fuels, Antara News reported.
The centre, located in Tegineneng, Pesawaran Regency, will integrate agriculture, technology and renewable energy investment to develop domestic feedstocks for biofuel production.
Deputy Minister of Investment and Downstreaming Todotua Pasaribu said Indonesia had significant potential to expand both bioethanol and biodiesel production as the country works to strengthen energy security, advance downstream processing and diversify its energy mix.
Indonesia’s annual gasoline consumption of around 36 million kilolitres is one of the factors driving the need to expand domestic renewable fuel production, Todotua said.
The Lampung initiative will focus on developing sorghum-based bioethanol, with both first-generation (1G) and second-generation (2G) processing technologies being explored. The centre will also support downstream processing of cassava and corn, providing a broader agricultural feedstock base for the biofuel sector.
The project was launched through the signing of a memorandum of understanding among key stakeholders, a symbolic sorghum planting ceremony and the start of work on an initial 10-hectare plot. The plot is part of a planned 20-hectare complex in Masgar, Tegineneng.
The development is targeting a local bioethanol production capacity of 430,000 kilolitres and aims to create an integrated supply chain connecting farmers with state-owned energy assets and global industrial companies.
The strategy includes reactivating existing processing facilities, partnering with state-owned plantation company PTPN and converting traditional plants for biofuel production.
The initiative brings together the Ministry of Investment and Downstreaming, Lampung Provincial Government, PT Pertamina New and Renewable Energy (PNRE), PT Toyota Motor Manufacturing Indonesia (TMMIN) and PT Toyota Tsusho Indonesia (TTI).
The centre is expected to strengthen Indonesia’s domestic agricultural feedstock base and support the wider development of renewable transport fuels, including bioethanol and biodiesel.
