Solar Without Imports by 2026, Government Relies on Refineries and Biodiesel

The government is accelerating its energy independence agenda by targeting the cessation of diesel fuel (solar) imports by 2026. This policy is being followed by adjustments from private fuel station operators, who are now switching to purchasing supplies from PT Pertamina (Persero) in line with strengthened domestic production. Director General of Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM), Laode Sulaeman, stated that the mechanism for private entities to purchase domestic diesel is already operational through coordination meetings held since the policy was announced. “It’s already underway. Actually, since it was announced, meetings have been conducted. It’s running,” Laode said on Wednesday (6/5/2026). ESDM Minister Bahlil Lahadalia emphasised that the combination of refinery development and the biodiesel programme is the main key to this transition. One supporting project is the development of the RDMP Balikpapan by PT Kilang Pertamina Internasional, which significantly increases national oil refining capacity. In addition, the government is accelerating the implementation of B50 biodiesel, targeted to take effect from July 2026 to strengthen the substitution of solar imports. Based on ESDM Ministry data, solar CN51 imports in 2026 are estimated to still be around 600,000 kilolitres before being completely halted at the end of the year. Overall, national solar needs in 2025 reach 110,932 kilolitres per day or about 40.49 million kilolitres per year. Meanwhile, in the previous year, solar imports were still at 4.93 million kilolitres or 12.17 percent of total national needs. Those supplies were dominated by Singapore at 65.06 percent, followed by Malaysia at 27.65 percent, South Korea at 3.40 percent, India at 2.16 percent, United Arab Emirates at 1.21 percent, Taiwan at 0.39 percent, and Thailand at 0.13 percent. Researcher from the National Secretariat of the Indonesian Forum for Budget Transparency (Fitra), Badiul Hadi, estimated the value of solar imports to be in the range of Rp55 trillion to Rp65 trillion per year.