Indonesia to Process Surplus Diesel into Jet Fuel to Halt Imports

Energy and Mineral Resources Minister Bahlil Lahadalia has announced that Indonesia will process its surplus diesel into aviation fuel (avtur) to halt imports. “The diesel surplus is estimated, in our calculations, to be between 3 to 4 million kilolitres. The next step is to push for the construction of an avtur plant,” he said after the launch of the B50 biodiesel mandate programme at KM 57 of the Jakarta-Cikampek Toll Road in Karawang Regency, West Java, on Thursday. Bahlil noted that the raw material for avtur is almost similar to that of diesel. Consequently, the Ministry of Energy and Mineral Resources, together with Pertamina, is currently drawing up a roadmap for the development of a domestic avtur industry. He is targeting the end of 2026 for Indonesia to begin building its own avtur plant, thereby eliminating the need for imports. “God willing, please pray that by the end of 2026 we can commence the construction of our avtur plant,” Bahlil stated. The statement relates to the potential diesel surplus resulting from the implementation of the B50 biodiesel mandate and the optimisation of the Balikpapan Refinery in East Kalimantan. “That refinery produces 5.6 million kilolitres. With that addition, a surplus will occur,” Bahlil explained. Beyond plans to stop avtur imports, Bahlil also said that Indonesia aims to produce RON 92, RON 95, and even RON 98 petrol domestically in the future, eliminating any import issues. “So there will be no more thoughts or speculation as if there is some game being played with imports. We want everything to be produced domestically,” Bahlil said. President Prabowo Subianto inaugurated the B50 biodiesel mandate programme at KM 57 Toll Rest Area in Karawang Regency, West Java, on Thursday. Bahlil then announced that Indonesia is no longer importing diesel. He affirmed that today Indonesia is not only launching B50 but also taking a major step towards greater energy sovereignty.