Indonesia Claims It Will No Longer Import Diesel in 2026

JAKARTA — The government claims Indonesia will no longer import certain diesel in 2026 as it accelerates the palm oil-based biodiesel programme, or B50. Energy and Mineral Resources Minister Bahlil Lahadalia said the move is intended to reduce the country’s high reliance on energy imports.

‘Alhamdulillah, in 2026 we will no longer import diesel, except for high-quality diesel such as C51,’ Bahlil said at the IPA Convex 2026 event at ICE BSD on Wednesday, 20 May 2026.

He said the government is moving to accelerate the implementation of B50, which is planned to commence on 1 July 2026. To curb imports, the government is expanding the use of biodiesel based on crude palm oil (CPO).

‘Dfrom the 1 million barrels per day that we have to import, it will be converted or substituted by using B40, and now we will push B50 from 1 July,’ he said.

According to Bahlil, the use of biodiesel can convert around 200,000 to 300,000 barrels per day, so fuel imports could be reduced to around 600,000 to 700,000 barrels per day.

Bahlil said national petrol demand currently stands at about 39 to 40 million kilolitres per year. Domestic production is only around 19 to 20 million kilolitres.

‘We still import 20 million kilolitres. And we will partly convert this to ethanol,’ he said.

Even as the government begins promoting vegetable-based energy blends, the oil and gas sector remains essential to support energy needs and domestic industrial feedstocks.