Minister of Public Works Relies on Buton Asphalt to Reduce Imports by 50 Percent
The Ministry of Public Works (PU) will reduce reliance on imported asphalt amid global uncertainties. Public Works Minister Dody Hanggodo stated that his ministry is maximising the utilisation of domestic asphalt.
According to him, this step is targeted to reduce imports by around 50 percent. “We cannot fully depend on external resources, especially amid uncertain global situations. What we have domestically must become our main strength,” Dody said, quoted from a written statement on Thursday, 2 April 2026.
He explained that the policy is taken in response to rising risks of supply disruptions and fluctuations in global energy prices, particularly due to geopolitical dynamics in the Middle East region. To that end, Dody is encouraging increased use of Buton Asphalt (Asbuton) as a substitute for imported asphalt.
“So far, most imported asphalt comes from petroleum derivatives. When global oil prices rise or supplies are disrupted, the cost of procuring asphalt also increases and directly impacts the road development budget,” he said.
However, Dody noted, Indonesia has abundant asphalt reserves known for their good quality. Yet, in recent years, their utilisation has remained limited.
“On average, the use of processed Asbuton only reaches about 4 percent of the total national asphalt needs,” he said.
Dody explained that currently, around 78 percent of national asphalt needs are still met by imports. From a total need of 1.056 million tonnes in 2024, this figure is projected to increase to 1.5 million tonnes per year.
Through the Asbuton (A30) substitution policy, Dody said it can mitigate the impact of price surges due to global energy turmoil. The use of local raw materials is expected to strengthen supply resilience while increasing domestic industry independence.
In addition to strengthening supply resilience, he said, this policy is projected to save state foreign exchange by up to Rp 4.08 trillion per year and increase tax revenues by Rp 1.6 trillion per year. “And it will drive the strengthening of the domestic industry through fulfilment of SNI and a minimum TKDN of 40 percent,” Dody said.