Minister reveals Buton asphalt use saves Rp4 trillion in foreign exchange annually
Jakarta (ANTARA) - Public Works Minister Dody Hanggodo has revealed that utilising Buton asphalt, or asbuton, can save the country approximately Rp4 trillion in foreign exchange per year.
“So we hope that by utilising Buton asphalt we can reduce asphalt imports, strengthen the domestic industry, promote equitable distribution and economic growth, and most importantly save the country’s foreign exchange, which is expected to reach approximately Rp4 trillion per year,” said Dody in Jakarta on Wednesday.
The Ministry of Public Works has issued Minister of Public Works Regulation Number 10 of 2026, reinforced by Minister of Public Works Decree Number 6950 of 2026 concerning the use of processed Buton asphalt.
This is intended to ensure that the policy on Buton asphalt utilisation can be implemented properly.
“We also believe this will contribute to lowering the Incremental Capital Output Ratio (ICOR) itself. For that reason, I hope toll road business entities will support and participate in this policy on the use of Buton asphalt while maintaining technical and academic feasibility. And all stakeholders must move,” said Dody.
Nevertheless, Dody emphasised that the Buton asphalt utilisation policy must not burden toll road business entities to the point of affecting toll road tariffs.
“But I also do not want Buton asphalt to burden costs. So the target for the price of Buton asphalt itself is at least equal to the current price of regular asphalt, or lower if possible. So if the price is higher, I expect our friends at the toll road business entities and the Indonesian Toll Road Association (ATI) to reject it. They must reject it! Because it will affect the tariffs themselves, and I do not want to raise tariffs just because costs have gone up,” he added.
The Ministry of Public Works has begun implementing the use of a 30 percent Buton asphalt blend (A30) on a number of strategic toll road sections as a measure to strengthen national construction material self-sufficiency while reducing dependence on imported asphalt.
The policy is an implementation of Minister of Public Works Regulation Number 10 of 2026 concerning the Processing of Processed Buton Asphalt for Road Construction and Preservation, which serves as the foundation for the utilisation of processed asbuton in Indonesia.
Public Works Minister Dody Hanggodo said that the utilisation of asbuton is part of the government’s strategy to strengthen the domestic industry, increase the added value of national natural resources, and maintain infrastructure spending efficiency amid the dynamics of global commodity prices.
According to Dody, the implementation of A30 is being carried out in stages using an approach similar to the biodiesel blending policy, such as B10 to B20. The asbuton blend percentage will continue to be increased in line with industry readiness, technical evaluation results, and economic considerations.