Indonesia enters a three-month transition period before closing the tap on diesel fuel imports

Jakarta – Starting in April 2026, the government will initiate a transition period toward diesel fuel self-sufficiency, culminating in the complete halt of imports. The national diesel fuel supply is targeted to no longer depend on foreign sources, as the capacity of domestic refineries is considered sufficient.

Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (MEMR), Laode Sulaeman, stated on Monday, 5 January, that the government is providing all businesses with approximately three months to prepare before the policy to ban diesel fuel imports is fully implemented. This transition period is necessary to ensure that refineries are operationally ready and that the national supply chain can be adjusted.

“The RDMP is already operational, but in terms of implementation, the RDMP or Pertamina will need three months of preparation. Three months of preparation, after which everything will be shut down, including the private sector. In April, we will shut everything down,” said Laode. RDMP refers to the Refinery Development Master Plan, or Pertamina’s oil refinery development and modernisation programme.

He explained that the suspension of diesel fuel imports would not only apply to PT Pertamina (Persero) but also to private companies that had been relying on supplies from abroad. All of Indonesia’s diesel needs would eventually be met by domestic refineries, especially after the RDMP Balikpapan project in East Kalimantan became fully operational.

According to Laode, the government has sent an official letter to private companies asking them to immediately adjust their procurement schemes. During this transition period, companies are required to coordinate directly with Pertamina to obtain diesel fuel allocations from domestic production.

He added that the domestic diesel distribution mechanism for these businesses would be automatically recorded in the National Commodity Balance Information System (SINAS NK), enabling the government to monitor diesel availability and distribution in real time.

Laode emphasised that the policy to halt diesel imports was based on the belief that domestic production capacity was sufficient to meet national demand. However, he acknowledged that this was not yet the case for all types of fuel oil.

“This is because we already produce domestically. Others still import petrol. This is because the domestic market is unable to meet the entire demand,” he said.

With this step, the government hopes to reduce dependence on diesel fuel imports while strengthening national energy security. However, the success of this policy depends heavily on a smooth transition period and the readiness of all businesses to adjust their supply chains to domestic production. (Hartatik)

Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)

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