Buton Asphalt: When Natural Resources Leave Their Origin
Buton Asphalt: When Natural Resources Leave Their Origin
Friday, 15 May 2026 - 15:06 WIB
Yapit Saptaputra
Head of the Oil and Gas Division of the National KAHMI Council
Member of the BPH Migas Committee for the 2021-2025 period
SEPTEMBER 27, 2022, was a memorable day for the people of Buton Islands and Indonesia in general when President Joko Widodo visited the asphalt plant of PT Wika Bitumen in Buton Regency. He was accompanied by Investment Minister/Head of BKPM Bahlil Lahadalia, Governor of Southeast Sulawesi Ali Mazi, and local officials.
On that occasion, President Jokowi encouraged Buton Regency, Southeast Sulawesi, to rise as an industrial region producing asphalt by utilising the large asphalt potential it possesses. President Jokowi’s emphasis was not only that, he reminded that with the Buton Asphalt deposit of around 622 million tons, Buton must become an “asphalt industry”, not just a mine without added value.
The added value that the community will get can be in the form of Taxes, Regional Levies or other Non-Tax State Revenues and of course this will have an impact on the increase in the Original Regional Revenue of Buton Regency and other Districts/Cities in the Buton Islands, Southeast Sulawesi.
However, a surprise occurred at the groundbreaking of 13 National Downstream Industrialisation Projects Phase II on April 29, 2026, in Cilacap by President Prabowo Subianto, accompanied by ESDM Minister Bahlil Lahadalia, Investment Minister/BKPM Rosan Roeslani and other officials. There, Project #9 was announced, namely the “Buton Asphalt Ecosystem and Production Facilities” which will be carried out by the BUMN Holding: PT Wijaya Karya (Persero) Tbk., PT Jasa Marga (Persero) Tbk, located in Karawang Regency, West Java. This is different from what President Jokowi had previously said that the location of the Indonesian asphalt industry is in Buton Regency.
Responses have poured in from various parties, including the Buton Sultanate, one of the sultanates that still exists in Indonesia and is still in existence. The Sultan of Buton, La Ode Muhamad Kariu, also sent an open letter to President Prabowo as a form of protest against the policy of placing the Buton Asphalt downstream industrialisation centre outside its source, namely Buton Regency.
Head of the Oil and Gas Division of the National KAHMI Council
Member of the BPH Migas Committee for the 2021-2025 period
SEPTEMBER 27, 2022, was a memorable day for the people of Buton Islands and Indonesia in general when President Joko Widodo visited the asphalt plant of PT Wika Bitumen in Buton Regency. He was accompanied by Investment Minister/Head of BKPM Bahlil Lahadalia, Governor of Southeast Sulawesi Ali Mazi, and local officials.
On that occasion, President Jokowi encouraged Buton Regency, Southeast Sulawesi, to rise as an industrial region producing asphalt by utilising the large asphalt potential it possesses. President Jokowi’s emphasis was not only that, he reminded that with the Buton Asphalt deposit of around 622 million tons, Buton must become an “asphalt industry”, not just a mine without added value.
The added value that the community will get can be in the form of Taxes, Regional Levies or other Non-Tax State Revenues and of course this will have an impact on the increase in the Original Regional Revenue of Buton Regency and other Districts/Cities in the Buton Islands, Southeast Sulawesi.
However, a surprise occurred at the groundbreaking of 13 National Downstream Industrialisation Projects Phase II on April 29, 2026, in Cilacap by President Prabowo Subianto, accompanied by ESDM Minister Bahlil Lahadalia, Investment Minister/BKPM Rosan Roeslani and other officials. There, Project #9 was announced, namely the “Buton Asphalt Ecosystem and Production Facilities” which will be carried out by the BUMN Holding: PT Wijaya Karya (Persero) Tbk., PT Jasa Marga (Persero) Tbk, located in Karawang Regency, West Java. This is different from what President Jokowi had previously said that the location of the Indonesian asphalt industry is in Buton Regency.
Responses have poured in from various parties, including the Buton Sultanate, one of the sultanates that still exists in Indonesia and is still in existence. The Sultan of Buton, La Ode Muhamad Kariu, also sent an open letter to President Prabowo as a form of protest against the policy of placing the Buton Asphalt downstream industrialisation centre outside its source, namely Buton Regency.