Indonesia to Boost Domestic Fuel Production, Reduce Imports with RDMP
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PublishedJan 12
Sources3 verified

Indonesia to Boost Domestic Fuel Production, Reduce Imports with RDMP

AnalisaHub Editorial·January 12, 2026
Executive Summary
01

Executive Summary

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

3. Minister of Energy and Mineral Resources Bahlil Lahadalia stated that private fuel stations will be required to purchase from Pertamina, supporting the government's goal of enhancing energy self-sufficiency.

Full Analysis
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Deep Dive Analysis

Indonesia Advances Energy Self-Sufficiency with RDMP Inauguration

Enhanced Domestic Fuel Production

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

. The RDMP is expected to significantly boost domestic production of various fuel types, particularly diesel and jet fuel.

Key Developments and Timeline

  • The RDMP will increase the production of diesel and other refined products, with an estimated 4 million kiloliters of diesel production expected this year 2.
  • Minister Bahlil Lahadalia announced that the government plans to halt imports of industrial diesel (CN 51) in the second half of 2026, following the initial stoppage of subsidized diesel (CN 48) imports earlier in the year 1.
  • The project will also enable Indonesia to stop importing aviation turbine fuel (avtur) by 2027, as confirmed by Bahlil during the inauguration ceremony 3.

Regulatory Measures and Industry Impact

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

. This move aims to strengthen Pertamina's role in the domestic fuel market and reduce reliance on imports.

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.

Original Sources

Story Info

Published
4 days ago
Read Time
12 min
Sources
3 verified

Topics Covered

Energy PolicyFuel ProductionImport Reduction

Key Events

1

RDMP Inauguration

2

Fuel Import Reduction Plan

3

Domestic Production Increase

Timeline from 3 verified sources