Indonesian Political, Business & Finance News

Prabowo: Indonesia to Stop Diesel Imports from July 2026

| Source: CNBC Translated from Indonesian | Energy
Prabowo: Indonesia to Stop Diesel Imports from July 2026
Image: CNBC

President Prabowo Subianto has confirmed that Indonesia will stop importing diesel fuel from July 2026. The policy is supported by the implementation of the mandatory 50 percent biodiesel blend (B50), which came into effect this month.

Prabowo made the statement while leading a simultaneous nationwide harvest event with the Indonesian National Armed Forces (TNI) in Malang, East Java, on Friday (17/7/2026). He said the government is continuing to accelerate various strategic programmes.

“Previously, we succeeded in becoming the first country in the world to produce B50. Now we produce diesel from palm oil, so from this July we will no longer import diesel from abroad,” Prabowo said in a speech broadcast online.

Beyond B50, the government is also preparing to implement ethanol blending in petrol. Prabowo revealed that Indonesia already has the capability to move towards implementing E10, which is petrol with a 10 percent ethanol blend.

“I saw the exhibition earlier, we are already capable of moving towards E10, 10 percent ethanol, so petrol will be blended with 10 percent ethanol. But the officers said we can reach E20. We need factories; we currently only have one factory. I have decided we will build at least 30 factories, if necessary up to 50 factories,” he said.

He then compared the development of bioethanol use in several other countries. For example, India has implemented E20, while Brazil is already using E100.

“India is already at E20, India is already at E20, Brazil is already at E100. There is no way Indonesia cannot do it. Indonesia can, right? We can,” he said.

President Prabowo officially launched the blending of diesel fuel with 50 percent palm oil-based biofuel (B50) a week earlier in Karawang Regency, West Java. The inauguration of the B50 mandate is a strategic government agenda to reduce dependence on fuel imports, particularly diesel, and to strengthen the added value of national natural resources while maintaining economic resilience and Indonesia’s energy sovereignty.

The B50 launch was attended by Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of Investment and Downstreaming and CEO of Danantara Indonesia Rosan Perkasa Roeslani, Coordinating Minister for Economic Affairs Airlangga Hartarto, and President Director of PT Pertamina Simon Aloysius Mantiri, among other cabinet ministers.

In his speech, Prabowo stated that with the launch of the B50 programme, Indonesia officially became the first country in the world to implement a B50 biodiesel mandate. “This is not just a technological achievement; this is proof that Indonesia can utilise its natural wealth for the benefit of its people,” Prabowo said at a Pertamina petrol station rest area at KM 57 in Karawang, West Java. “This is an important milestone in the journey towards energy self-sufficiency.”

For Prabowo, the survival of a nation is determined by three things: first, the ability to produce food for its people; second, the ability to have its own energy sources without depending on other nations; and third, the ability to manage its own water resources.

“Today I am proud to be here. I have been waiting for this day since before I was inaugurated as President. My core team and my advisors always emphasised that we must achieve food self-sufficiency and energy self-sufficiency. We must not import fuel or food. This has been my focus since before I became President, since I was chairman of HKTI, since I was Minister of Defence,” Prabowo stressed.

Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that with the implementation of the B50 mandate, Indonesia will be free from diesel imports this year. In his remarks, Bahlil explained that Indonesia’s diesel consumption reaches 38 to 40 million kilolitres per year.

“Previously, we still imported around 3 to 4 million kilolitres per year. With the implementation of B50, we will no longer import diesel. This is the first time,” Bahlil said at the B50 launch in Karawang.

Bahlil explained that achieving B50 was not an easy task. Typically, increasing the biodiesel blend would take up to 10 years with a 3-year trial phase. “But the President’s order was to find a way to implement B50 by 2026. We interpreted this not just as a technical matter, but as a matter of national sovereignty and independence for our energy,” Bahlil stressed.

The legal basis for the B50 mandatory programme is Minister of Energy and Mineral Resources Regulation Number 4 of 2025 concerning the Supply and Utilisation of Biofuels, and Minister of Energy and Mineral Resources Decree Number 257.K/EK.01/MEM.E/2026 of 2026 concerning the Obligation to Blend Biofuel in the form of Biodiesel with Diesel Fuel Oil at 50 percent within the Financing Framework by the Plantation Fund Management Agency.

The policy requires a 50 percent biodiesel blend for all diesel fuel types. In its implementation, biofuel business entities, fuel business entities, and distributing business entities are required to apply the specified standards and quality specifications.

Following the launch, the government is providing a three-month transition period until 30 September 2026 before B50 is circulated at public fuel stations. This transition period is intended to use up existing biodiesel stocks.

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