Indonesia to Continue Importing High-Quality Diesel for Industrial Use

Government Plans to Stop Regular Diesel Imports by 2026

The Indonesian government is planning to cease diesel fuel imports once the B50 biodiesel program and the Refinery Development Master Plan (RDMP) in East Kalimantan are fully implemented. Minister Bahlil explained that there are two types of diesel fuel with different specifications: CN48 for vehicles and public facilities, and CN51 for heavy machinery in industries. While domestic production of CN48 diesel is expected to be sufficient, Indonesia will continue importing CN51 diesel due to insufficient domestic production.

Different Specifications Drive Import Decisions

Bahlil clarified that the decision to continue importing certain types of diesel is based on the different specifications required for various uses. "We still have the option to import CN51 diesel from outside because our domestic production is not enough to meet industrial needs," he stated. The government aims to achieve energy self-sufficiency while supporting industrial operations that require high-quality diesel.

RDMP Project to Boost Domestic Production

The Refinery Development Master Plan (RDMP) project in Balikpapan, valued at US$7.4 billion (approximately Rp120 trillion), is a National Strategic Project expected to significantly boost Indonesia's diesel production capacity. Once fully operational, the project is projected to create a surplus of 3 to 4 million kiloliters of diesel. Bahlil emphasized that the timeline for stopping diesel imports depends on the operational readiness of the refinery managed by PT Pertamina (Persero).

Potential Short-Term Imports

While the government targets zero diesel imports by 2026, Bahlil noted that there might be a need for limited imports in early 2026 if the new refinery's full operation is delayed until March 2026. "If the refinery starts full operation in March, we might still need to execute some imports in January and February to maintain national stock resilience," he explained. The final decision will depend on Pertamina's operational readiness and the government's assessment of energy security needs.