Minister of Public Works pushes for asphalt self-sufficiency to save Rp4 trillion in foreign exchange

Jakarta (ANTARA) - Minister of Public Works Dody Hanggodo is pushing for the acceleration of Buton Asphalt (Asbuton) utilisation to support national asphalt self-sufficiency. He stated that the current national asphalt demand stands at around 1 million tonnes per year and is projected to rise to 1.5 million tonnes in the coming years. “However, nearly 80 per cent still depends on petroleum-based asphalt that we import,” Dody said during a media discussion in Jakarta on Thursday. He explained that global geopolitical dynamics, including those in the Middle East, have triggered fluctuations in energy prices, impacting the infrastructure sector. “This situation has driven oil prices to fluctuate even higher, directly affecting our infrastructure sector, particularly strategic materials like asphalt,” he stated. According to him, this condition highlights the risks of reliance on imported materials in national development. He noted that Indonesia possesses substantial Asbuton reserves on Buton Island, yet their utilisation remains limited. Currently, Asbuton usage accounts for only about 4 per cent of total national needs. To address this, the Ministry of Public Works targets increasing Asbuton utilisation in national road construction to at least 30 per cent. “This is an opportunity for us to increasingly stand on our own feet in the future,” he remarked. Beyond strengthening independence, Dody views the policy as offering economic benefits. He mentioned that Asbuton utilisation could save the state foreign exchange by around Rp4 trillion and increase tax revenues by approximately Rp2 trillion. “The potential foreign exchange savings for the state will reach around Rp4 trillion, and with additional tax revenues of nearly Rp2 trillion,” he revealed. He added that developing the Asbuton industry could also generate economic value-added of around Rp23 trillion. Through these steps, the government hopes to bolster the domestic industry while ensuring the resilience of construction material supplies.