ESDM Strategy to Cut Fuel Imports Could Save 4 Million KL Per Year

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has revealed a strategy to reduce fuel oil (BBM) imports by up to 4 million kilolitres per year. He stated that using ethanol in petrol fuel blends could reduce the import burden, a method that has already been successfully applied to diesel.

"Taking the example of B40, which originally started from B10. Ethanol comes from cassava, sugarcane, and maize. If we succeed with B50, why don’t we start with this (E20) to reduce imports? If it can be done, we could save 4 million kilolitres per year," Bahlil said during a speech at the CNBC Indonesia Energy Forum in Jakarta on Thursday (25/6/2026).

He also assessed that the move could increase public income through agriculture and create employment. "We are promoting both bio-based and fossil fuels to achieve net zero," Bahlil stated.

He added that Indonesia has successfully reduced diesel imports thanks to the development of biofuel blends using up to 40% palm oil (B40). The mandatory B10 to B40 programme has been running since 2016, absorbing a large portion of farmers’ palm oil and securing the market.

"This July we will inaugurate B50, which will save Indonesia’s reputation from dependence on diesel imports. This year we are no longer importing diesel," he said.

"With this B50, 50% of our diesel consumption of approximately 300,000 barrels per day comes from biofuel, so from our crude imports of 1 million barrels per day, only 700,000 barrels per day remain," Bahlil added.