April 20, 2026 [Reuters]- Indonesia is in talks with Japan’s Toyota Motor Asia on a potential joint investment in bioethanol production in the ​Southeast Asian country, a government official and executives from Toyota ‌told reporters on Monday.

Here are some details:

• A renewable energy subsidiary of Indonesia’s state energy firm Pertamina is discussing potential joint investment with Toyota ​Tsusho for a bioethanol plant in Indonesia’s Lampung ​province on the southern tip of Sumatra, said Deputy Investment ⁠Minister Todotua Pasaribu.
• If they reach a deal, construction on a ​plant with capacity of 60,000 kilolitres of bioethanol per annum ​could start in the second half of 2026, with production eyed in 2028, he said.
• A new 6,000-hectare (around 14,800 acres) sorghum plantation will produce ​the feedstock, Pasaribu said.
• The estimated total cost of the investment is $200 ​million-$300 million, he said.
• Japan’s Research Association of Biomass Innovation for Next Generation ‌Automobile ⁠Fuels (raBit) is involved in the talks, Pasaribu said.
• Speaking alongside Pasaribu, Masahiko Maeda, Toyota Motor Asia’s chief executive for the Asia region, said Toyota vehicles could use the bioethanol produced in ​the Lampung plant.
• Pras ​Ganesh, an ⁠executive vice president of Toyota Motor Asia, told Reuters on the sidelines of the press ​conference that discussions were still underway and a ​deal ⁠has not been reached.
• Indonesia has set a target to produce bioethanol using domestically available sources such as biomass from palm oil, ⁠corn ​and sorghum to reduce its reliance on ​imported fuels.
• The country plans to impose mandatory 10% bioethanol content in gasoline in ​2028.