Minister of Public Works Cuts Asphalt Imports by 30 Percent, Regulation to be Issued in Two Weeks

The government is targeting the completion of the Draft Ministerial Regulation (Permen) on the use of processed Buton Asphalt (Asbuton) within the next two weeks as a strategic step to reduce national reliance on asphalt imports. Public Works Minister Dody Hanggodo stated that the technical use of Asbuton does not face significant obstacles but requires a legal framework to ensure optimal and widespread implementation in the field. “Technically, it is not a major issue, but we still need a legal umbrella. Therefore, we are accelerating the preparation of this Permen and targeting its completion in 1–2 weeks so that it can be launched soon,” said Dody, quoted from a press release on Friday (17/4/2026). He added that the initial implementation phase will begin through the A30 scheme, namely the use of 30 percent Asbuton in the asphalt mixture. “We start with A30 because I am confident this can be implemented immediately. Contractors will not face difficulties as the adjustments are not significant. The important thing now is to ensure there is a regulation governing it,” he said. This regulatory acceleration is part of the government’s efforts to curb asphalt imports, which have long dominated national needs. The government targets a reduction in imports of at least 30 percent through increased utilisation of Asbuton. Currently, Asbuton usage is around 4 percent of total national asphalt consumption. With this policy, the share of Asbuton is targeted to increase to around 30 percent. Meanwhile, the use of imported petroleum asphalt will decrease from 78 percent to around 52 percent. The use of local petroleum asphalt is estimated to remain at around 18 percent. From an economic perspective, optimising Asbuton is projected to save foreign exchange of up to Rp 4.08 trillion per year and increase domestic tax revenues by around Rp 1.6 trillion per year. This policy is also expected to have a multiplier effect on the economy of up to Rp 22.67 trillion and open up new employment opportunities through the development of the domestic Asbuton processing industry. In addition, the policy is directed at encouraging compliance with Indonesian National Standards (SNI) and increasing the Domestic Content Component (TKDN) to at least 40 percent to strengthen the domestic Asbuton processing industry. Through this accelerated regulatory preparation, the Ministry of Public Works reaffirms its commitment to promoting the downstreaming of natural resources, strengthening the national construction industry, and achieving asphalt self-sufficiency in line with the development targets in the 2026–2029 National Medium-Term Development Plan.