Indonesia targets 2030 end to fuel imports amid energy self-sufficiency drive

Indonesia plans to gradually halt fuel imports within the next four years, President Prabowo Subianto said Dec. 16, as part of a national drive for energy self-sufficiency.

The government will begin by ending diesel imports from 2026, followed by a phased reduction of other fuel imports through 2030, Subianto said, according to a statement on the president's official website. The move aims to cut Indonesia's dependence on foreign energy and redirect spending to domestic development.

The plan will start with a nationwide rollout of B50, the fuel blend containing 50% palm-based biodiesel, by 2026, a step expected to eliminate diesel imports.

In 2025, diesel imports are projected to reach 4.9 million kiloliters, or roughly 10.6% of national demand, according to government data.

The B50 program will increase the share of Fatty Acid Methyl Ester (FAME) in domestic diesel, replacing imported volumes and making Indonesia's diesel supply fully sourced from local resources.

The government also aims to mandate a 10% ethanol blend in gasoline by 2030, further reducing fuel imports.

Platts, part of S&P Global Energy, reported that Indonesia's 2024 ethanol production stood at 160,946 kl, from an installed capacity of 303,325 kl, according to Apsendo, an Indonesian association of methylated spirits and ethanol producers. Meeting this E10 requirement would demand an 8.7 times increase in production.

Subianto said the government is also accelerating the use of renewable energy, with a focus on solar and small-scale hydropower, to supply remote and hard-to-reach areas. He noted that falling costs for solar panels and advances in hydropower technology make these options more accessible, reducing the need to transport costly fuel across Indonesia's vast archipelago.

Indonesia currently spends about Rupiah 520 trillion ($31.5 billion) each year on fuel imports. Reducing these imports could save hundreds of trillions of rupiah annually, funds that could be redirected to support regional development, Subianto said.

The government's broader energy plan includes developing more biofuel-based energy from local commodities as part of a medium-term goal to achieve national energy and food self-sufficiency within five years.

Statistics Indonesia's data released on Dec. 17 showed that the country's imports of light and middle distillates in October both rose month over month, but fell year over year.

Imports of light distillates, including gasoline, naphtha and LPG, rose 4.07% month over month but fell 1.34% year over year to 2.380 million metric tons in October.

In particular, 90-97 RON gasoline imports stood at 1.240 million mt in October, down 0.23% month over month and 12.40% year over year. Over January-October, imports of 90-97 RON gasoline totaled 12.873 million mt, down 2.75% year over year.

October imports of middle distillates of 640,820 mt were up 42.64% month over month but down 33.33% year over year.