Government targets Japanese-made cars to run on ethanol.

The Indonesian government will focus on cars from Japanese manufacturers for the 10 percent Ethanol mandate.

Government targets Japanese-made cars to run on ethanol.
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  • By Satrio Adhy

  • Thursday, 20 November 2025 | 14:00 WIB

KatadataOTO – Various regulations for the implementation of a 10 percent ethanol blend (E10) are continuously being developed. This includes the vehicles being targeted.

Currently, the government is targeting cars from Japanese manufacturers as their main target for implementing the E10 mandate.

“The population of motor vehicles, especially cars, is still 60-70 percent (produced by) Japan,” said Todotua Pasaribu, Deputy Minister of Investment and Downstreaming, to Antara on Thursday (20/11).

Based on this fact, he confirmed that products from Toyota, Daihatsu, and Honda will be the main targets.

Honda Culture Indonesia Volume 2 Held in Bandung and Palembang
Photo : HPM

Therefore, the new policy regarding the implementation of the 10 percent ethanol blend can run smoothly in the future.

Additionally, the government has chosen Toyota to collaborate. They will later develop an ethanol plant.

The manufacturer from the Land of the Cherry Blossoms has also conducted research and commercial planning, especially for the use of ethanol in fuel oil (BBM).

“Actually, it's not just Toyota; after I went to Japan, it turns out this is a consolidation cycle for the automotive groups in Japan,” he continued.

For your information, based on the Strategic Investment Downstreaming Roadmap owned by the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), several regions have been prepared to become ethanol development centers.

Take the Lampung region for example, where various raw materials will be planted, starting from sugarcane, cassava, and sorghum.

Investment in this field is believed to bring many positive impacts, such as strengthening the clean energy supply chain.

Then, creating new jobs and promoting the welfare of local farmers in the region. So all the benefits can be felt by many parties.

President Prabowo's aide stated that Toyota Motor Manufacturing Indonesia (TMMIN) is interested in investing in the development of the bioethanol industry in Indonesia.

This step is part of Toyota's global strategy to secure the fuel supply for bioethanol-based flex-fuel vehicles.

Toyota Officially Exports 3 Million Cars from Indonesia
Photo : KatadataOTO

While also supporting the Indonesian Government's policy in an effort to reduce dependence on imported fossil fuels.

Finally, in order to support the E10 policy, a plan to develop a facility with a production capacity of 60,000 kiloliters per year and an investment value of IDR 2.5 trillion is currently being studied.

As a reminder, the need for bioethanol in the country reaches 40 million kiloliters per year. Then with the implementation of E10, it will become 4 million kiloliters by 2027.


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