Key insights and market outlook
Indonesia has inaugurated the Refinery Development Master Plan (RDMP) in Balikpapan, marking a significant step towards reducing fuel imports. The project is expected to increase domestic production of diesel and jet fuel, with plans to stop importing industrial diesel in the second half of 2026 and aviation turbine fuel (avtur) by 2027 1
The Indonesian government has officially inaugurated the Refinery Development Master Plan (RDMP) at Pertamina's Balikpapan refinery, marking a crucial milestone in the country's efforts to reduce fuel imports and enhance energy self-sufficiency 1
To support the increased domestic production, the government is implementing regulatory measures to ensure market absorption of the additional output. Key among these is the requirement for private fuel stations to purchase from Pertamina, as mandated by Minister Bahlil 2
The enhanced production capacity is expected to have a positive impact on Indonesia's trade balance by reducing the need for fuel imports. Additionally, it will contribute to greater energy security and potentially stabilize domestic fuel prices.
RDMP Inauguration
Fuel Import Reduction Plan
Domestic Production Increase