On December 16, Indonesian President Prabowo Subianto announced that the country plans to gradually phase out fuel imports over the next four years, in a bid to implement the national energy self-sufficiency strategy. Subianto stated that the Indonesian government will first halt diesel imports starting from 2026, then progressively reduce imports of other fuels, and ultimately achieve a complete termination by 2030. This initiative aims to reduce Indonesia's dependence on foreign energy sources and redirect the relevant funds to domestic development projects.
Core Measure for Zero Diesel Imports: Nationwide Rollout of B50 Biodiesel in 2026
The key strategy to eliminate diesel imports is the nationwide promotion of B50 biodiesel in 2026. By increasing the blending ratio of domestic Fatty Acid Methyl Esters (FAME) in diesel fuel, Indonesia will completely replace imported diesel with locally sourced resources. Government data shows that Indonesia's diesel imports are projected to reach 4.9 million kiloliters in 2025, accounting for approximately 10.6% of the country's total demand.
E10 Gasoline Mandate to Further Cut Fuel Imports
The government also plans to enforce a 10% ethanol blending requirement in gasoline by 2030, which will further reduce the scale of fuel imports. According to data from the Indonesian Methanol and Ethanol Producers Association, Indonesia's ethanol production capacity stood at 303,325 kiloliters in 2024, while the actual output was only 160,946 kiloliters. Platts, a division of S&P Global Commodity Insights, pointed out that Indonesia's ethanol production needs to increase by 8.7 times to meet the E10 standard requirements.
Significant Cost Savings and Dual Self-Sufficiency Goals
Indonesia currently spends approximately 520 trillion Indonesian rupiah annually on fuel imports. Subianto emphasized that reducing fuel imports will save the country hundreds of trillions of rupiah each year, which will be used to support regional development initiatives. The government's medium-to-long-term energy plan also includes developing biofuels from local agricultural products, with the goal of achieving dual self-sufficiency in both national energy and food supplies within five years.
Key Terminology Notes
- B50 biodiesel: A blend of 50% biodiesel (FAME) and 50% petroleum diesel
- E10 gasoline: A blend of 10% ethanol and 90% petroleum gasoline
- Fatty Acid Methyl Esters (FAME): The primary component of biodiesel, produced from vegetable oils (primarily palm oil in Indonesia) through transesterification
- Prabowo Subianto: Current President of Indonesia (2024-present)
- Platts: A leading global provider of energy and commodities information, part of S&P Global Commodity Insights
This translation maintains the original structure and key information while adapting to English news writing conventions, ensuring accuracy, clarity, and professionalism for international readers interested in Indonesia's energy policy developments.
