Indonesia Delays Diesel Import Ban Pending RDMP Completion

Project Overview

The Indonesian government has postponed its plan to halt diesel imports until the Refinery Development Master Plan (RDMP) in Balikpapan is fully operational. The RDMP project, being developed by Pertamina, is a critical component of Indonesia's energy strategy aimed at reducing dependence on imported diesel.

Current Project Status

According to Laode Sulaeman, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), the RDMP Balikpapan project is in its final stages. All major construction phases have been completed, and the facility is ready for commissioning. The official inauguration is expected in January 2026, after which the refinery will start contributing significantly to Indonesia's diesel supply.

Strategic Importance

The successful completion of RDMP Balikpapan is vital for Indonesia's energy security. Once fully operational, the refinery is projected to be the backbone of the country's diesel supply, thereby reducing the nation's reliance on imports and saving foreign exchange. The project aligns with the government's broader strategy to enhance domestic refining capacity and achieve energy self-sufficiency.

Economic Implications

The RDMP project not only addresses energy security concerns but also has significant economic implications. By reducing diesel imports, Indonesia can save substantial foreign exchange reserves. Moreover, the project is expected to create employment opportunities and stimulate economic activity in the region around Balikpapan.