Indonesian Government to End Diesel Fuel Imports in 2026
Policy Shift Aims to Boost Domestic Production
The Indonesian government has announced plans to stop importing diesel fuel in 2026, with private fuel stations required to source their supplies from domestic refineries 5. This significant policy change was revealed by Laode Sulaeman, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM). The decision is part of a broader effort to reduce the country's reliance on foreign fuel and promote domestic energy production.
High Demand and Regulatory Compliance
The policy shift comes amid high fuel demand in 2025, with private fuel stations continuing to show strong consumption patterns 1. The government is currently calculating import quotas for 2026 based on consumption patterns and compliance with national regulations. Minister Bahlil Lahadalia emphasized that compliant private fuel stations will receive import quotas, while those attempting to manipulate the system will face consequences 23.
Article 33 of the 1945 Constitution
The new policy is grounded in Article 33 of the 1945 Constitution, which mandates that natural resources be managed for the benefit of the nation 14. President Prabowo Subianto has reinforced this principle, emphasizing the importance of national control over energy resources. The government is working to ensure a smooth transition by reviewing domestic refining capacity and adjusting supply chains accordingly.
Impact on Private Fuel Stations
Major private fuel station operators, such as BP-AKR, have already submitted their import quota requests for 2026 6. The government is expected to announce the final quotas based on factors including historical consumption and compliance with regulations. This policy change represents a significant shift in Indonesia's energy management strategy, with far-reaching implications for both domestic producers and consumers.
LNG Supply Security
In a related development, Minister Bahlil assured that LNG supplies are secure until mid-2026, thanks to careful management and coordination with suppliers 3. The government is working to finalize supply arrangements for the second half of 2026, with further details to be announced in the coming months.