Deputy Minister of Investment: Bioethanol E10 Targets Japanese Car Users

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Jakarta, huutoanland Indonesia

Deputy Minister (Wamen) for Investment and Downstreaming Todotua Pasaribu said it was a mixed program
bioethanol
10 percent in fuel oil (BBM) or E10 targets users of Japanese-made cars.
According to Todotua, this strategy is because Japanese cars dominate in Indonesia, and the hope is that E10 will be well absorbed.
“60-70 percent of the motor vehicle population, especially cars, are still (produced) in Japan, so they are the market, they are the consumers,” said Todotua when met on the sidelines of the Antara Business Forum in Jakarta, Wednesday (19/11) as quoted from
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Todotua explained that there are already automotive companies that will invest their funds in developing an ethanol plant.These companies have also carried out research and commercial plans regarding the use of ethanol in fuel oil.
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“Actually, it’s not just Toyota, after I went to Japan, apparently this is a consolidation cycle for automotive groups in Japan. But Toyota is indeed the leader,” said Todotua.
Todotua said that the location for the ethanol factory would start in Lampung.
“Maybe it will start initially, the factory will be in Lampung,” he said.
Based on the Strategic Investment Downstream Roadmap owned by the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), a number of regions such as Lampung have been prepared to become centers for the development of the bioethanol industry, with the support of raw materials from sugar cane, cassava and sorghum.

Investment in this sector is projected to not only strengthen the clean energy supply chain, but also open up new jobs and encourage the welfare of local farmers in the region.
Previously, PT Toyota Motor Manufacturing Indonesia (TMMIN) expressed interest in investing in the development of the bioethanol industry in Indonesia.
This step is part of Toyota’s global strategy to secure fuel supplies for bioethanol-based flex-fuel vehicles, as well as supporting the Indonesian Government’s policy of reducing dependence on imported fossil fuels.
According to Todotua, in order to support the E10 policy, plans are currently being studied to develop facilities with a production capacity of 60 thousand kiloliters per year and an investment value of IDR 2.5 trillion.
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