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Indonesia Targets Zero Diesel Imports Starting 2026 via Biodiesel

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Indonesia Targetkan Nol Impor Solar Mulai 2026 Melalui Biodiesel. Sumber: Disway

The Ministry of Energy and Mineral Resources (ESDM) has announced an ambitious target: Indonesia aims to cease all imports of diesel fuel starting in 2026. This step is a crucial effort by the government to realize national energy self-sufficiency and end dependency on imported fossil fuels.

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, expressed optimism that the zero-import target for diesel can be achieved by next year. The government has prepared two primary instruments that will work in synergy to reach this goal.

Implementation of the B50 Biodiesel Mandate

The primary factor driving the zero-import diesel target is the implementation of the B50 Biodiesel program (a 50% biofuel blend), which the government continues to promote. Increasing the blending rate from B35 to B50 will significantly reduce the requirement for fossil-based diesel in the domestic energy and transportation sectors.

Full Operation of RDMP Balikpapan

The second instrument is the increase in domestic refinery production capacity through the official full-scale operation of the Refinery Development Master Plan (RDMP) Balikpapan project.

  • Largest Refinery: RDMP Balikpapan will become Indonesia’s largest refinery project, with a production capacity reaching 360,000 barrels per day (bpd).

  • Significance of National Strategic Projects (PSN): This project is a National Strategic Project executed by PT Kilang Pertamina Balikpapan (KPB), a subsidiary of PT Kilang Pertamina Internasional (KPI). This capacity increase is projected to meet domestic demand independently.

In addition to focusing on fulfilling domestic diesel needs, the government is also determined to increase oil and gas lifting (ready-to-sell production). Minister Bahlil emphasized that the key to maintaining the availability of energy raw materials is through the exploration of new basins and the optimization of mature wells using modern technology. Notably, the government plans to tender exploration rights for 70 new basins as an effort to boost national oil and gas lifting.