Pertamina, Toyota join forces to study alternative fuels

PT Pertamina and Toyota Motor Corp. will study alternative fuels to help reduce Indonesia’s dependence on fossil-based fuels, the state-owned oil and gas company said in a statement on February 15. The memorandum of understanding (MOU) between the two companies covers a two-year plan of research and development.
“The focus of the joint study is for the development of biofuel, compressed natural gas and petroleum-based products that meet the Euro 4 standards,” Pertamina said in a news statement.
The statement did not say if the cooperation will lead to a business venture. The MOU was signed by Pertamina’s Director of Investment Plan and Risk Management Afdal Bahaudin and Soichiro Okudaira, managing director of Toyota Motor Corp.
Around 94% of fuel consumed in Indonesia is fossil-based — 47% petroleum, 21% natural gas and 26% coal. Only 6% is from renewable sources, according to Pertamina.