Indonesia is striving to become a base for a sustainable automotive industry in Asia, one way being through strengthening strategic cooperation with Japan. This collaboration aims to accelerate the transformation to low-carbon vehicles and strengthen the global supply chain.
The collaboration initiative was realized through the holding of the 6th Indonesia–Japan Automobile Dialogue and the 1st Biofuel Co-Creation Task Force Meeting in Jakarta on November 11, 2025.
Minister of Industry, Agus Gumiwang Kartasasmita, expressed his appreciation for this collaboration.
“We appreciate this strategic forum, which is a form of collaboration between the Indonesian Ministry of Industry and METI Japan, in supporting the acceleration of the transition to low-carbon mobility through a multiple pathways approach , including the development of electrified vehicles and biofuels,” said the Minister of Industry.
Net Zero Emission Commitment Through LCEV and Biofuel
Indonesia has a strong commitment to achieving the Net Zero Emission target by 2060. This commitment is actively supported by the Ministry of Industry through the Low Carbon Emission Vehicle (LCEV) program.
Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry (ILMATE) Setia Diarta said the LCEV program encompasses a comprehensive range of technologies, including the development of flexible engines capable of using biofuels, in addition to electrification.
Similarly, the Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, emphasized the importance of cross-sector synergy in adopting clean energy, including biofuel programs such as biodiesel, bioethanol, and hydrotreated vegetable oil (HVO).
The government is targeting the implementation of E10 (a 10% ethanol blend) by 2028, the success of which requires the support of supporting infrastructure from all stakeholders.
The Combination of Bioenergy Power and Japanese Technology
Cooperation with Japan is crucial given Indonesia’s position as a hub for the automotive industry and exports in Asia. Tanaka Kazushige, Director General of the Manufacturing Industries Bureau at METI Japan, sees this collaboration as a path to a brighter automotive future.
“We believe that the combination of Indonesia’s rich bioenergy resources and Japan’s technological excellence will lead to a brighter automotive future. This collaboration is not only between governments but also involves the private sector,” said Tanaka Kazushige.
The focus of technical collaboration within the Biofuel Co-Creation Task Force includes testing and standardization of E10 and B50 fuels. Japan, through METI, is targeting the implementation of E10 by 2030 and E20 by 2040. Meanwhile, Indonesia continues to advance its national biofuel program, including the implementation of B40 and preparation for B50 testing.
This strategic collaboration between Indonesia and Japan is expected to deepen, support sustainable industrial growth, and significantly accelerate the achievement of the national carbon neutrality target.