Jakarta, CNBC Indonesia - The Minister of Public Works, Dody\nHanggodo, has emphasised the government\u2019s steps to bolster self-reliance\nin road construction materials by promoting the use of Buton asphalt\n(Asbuton) as a substitute for imports. This policy direction forms part\nof a broader national efficiency strategy in the infrastructure sector,\nparticularly in controlling costs and ensuring supply resilience for\nmaterials.<\/p>\n
\u201cThe Ministry of Public Works has taken concrete measures, one of\nwhich is strengthening self-reliance in road construction materials as\npart of efforts to control performance and national efficiency. On this\nauspicious occasion, I want to reaffirm our collective commitment at the\nMinistry of Public Works to promote national asphalt self-sufficiency\nthrough the utilisation of Buton asphalt, or what we know as Asbuton,\u201d\nDody stated during the Ministry of Public Works\u2019 halal bi halal event on\nThursday (2\/4\/2026).<\/p>\n
Amid rising demand, the government has identified a disparity between\nnational consumption and heavy dependence on foreign supplies, where\ncurrent national asphalt needs stand at approximately 1 million tonnes\nper year and are projected to increase to 1.5 million tonnes annually in\nthe coming years.<\/p>\n
\u201cHowever, nearly 80% still relies on petroleum-based or imported\nasphalt. On the other hand, we have vast reserves of a mineral called\nButon asphalt on Buton Island, but its utilisation remains very limited\nat present\u2014around perhaps 4% of total national needs,\u201d he explained.<\/p>\n
The government is now directing policies to significantly increase\nAsbuton usage in national road projects as a gradual import\nsubstitution. The Ministry of Public Works will promote the use of this\nlocal commodity in national road construction to reach at least 30%.<\/p>\n
In addition to reducing import dependence, this policy is seen to\nbring broad economic impacts, from foreign exchange savings to\nstrengthening domestic industry.<\/p>\n
\u201cThe potential savings in state foreign exchange could reach around\nRp4 trillion, along with additional tax revenue of nearly Rp2 trillion.\nThis policy will drive the growth of the domestic Buton asphalt\nindustry, create new supply chains within the country, and strengthen\nthe national industrial structure,\u201d he elaborated.<\/p>\n
He also highlighted that the Asbuton commodity has historically been\nmore utilised by other countries, making it high time for Indonesia to\noptimise these resources for domestic benefit.<\/p>\n
\u201cIf Buton asphalt can be used by other countries, why can\u2019t we use it\nourselves? So, ladies and gentlemen, Buton asphalt has mostly been\nexported so far. And if other countries can use it, God willing, we can\ntoo,\u201d he continued.<\/p>\n
From a governance perspective, increased Asbuton use is expected to\ndrive improvements in quality standards while enhancing the\ncompetitiveness of the domestic processing industry.<\/p>\n
\u201cThe use of Buton asphalt will improve procurement quality and\nstandards, both for road authorities, producers, associations, and\nconstruction service providers,\u201d he said.<\/p>\n
Furthermore, developing this industry is estimated to have multiplier\neffects on the national economy, including job creation.<\/p>\n
\u201cThe development of the Buton asphalt industry is projected to create\neconomic value added of up to approximately Rp23 trillion, while opening\nthousands of new job opportunities for the community,\u201d he added.<\/p>\n
Nevertheless, the government acknowledges that this step is not\nwithout challenges, particularly in terms of technological readiness and\nuneven industry adoption.<\/p>\n
\u201cThis policy is not just about replacing materials, but about our\nability to increasingly stand on our own feet. We must admit, we are not\nchoosing the easy path because the technology is not yet widespread, but\nwe are choosing to be more independent,\u201d Dody remarked.<\/p>\n
In conclusion, he stressed that optimising Asbuton is part of the\nbroader national development agenda moving forward.<\/p>\n
\u201cOptimising the use of Buton asphalt in road development is a\nstrategic step to promote economic self-reliance, drive national\nindustrialisation, enhance fiscal efficiency, and ensure long-term\nmaterial supply resilience, while supporting the 2025-2029 National\nMedium-Term Development Plan towards national asphalt self-sufficiency,\u201d\nhe concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-to-aggressively-use-buton-asphalt-instead-of-imports-potentially-saving-this-much-1775116256", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }