Jakarta. Indonesia is seeking to expand the use of natural asphalt from Buton Island in Southeast Sulawesi as an alternative to imported petroleum-based asphalt, as global oil prices climb above $100 per barrel.

Public Works Minister Dody Hanggodo said on Thursday that national asphalt demand currently stands at around 1 million tons per year and is projected to rise to 1.5 million tons in the coming years.

Indonesia still relies heavily on imports to meet demand, with petroleum-based asphalt accounting for roughly 80% of total consumption.

“About 80% of our asphalt needs still depend on petroleum-based imports,” Dody said in Jakarta.

At the same time, Indonesia holds substantial reserves of natural asphalt on Buton Island, estimated at no less than 132 million tons. The material contains around 30% bitumen, with the remainder consisting of limestone minerals.

Despite its abundance, utilization remains limited, accounting for only around 4% of national demand.

Dody said the gap presents a strategic opportunity to strengthen industrial self-sufficiency while reducing dependence on imported raw materials.

As part of this effort, the government is targeting at least 30% of the asphalt used in national road construction to come from Buton. The policy is expected to accelerate domestic resource utilization.

From an economic standpoint, increased use of Buton asphalt could generate state budget savings of up to Rp 4 trillion ($235.4 million) while also boosting tax revenues.

“This will create a new supply chain and strengthen the domestic industry. If other countries can use Buton asphalt, why can’t we use it ourselves?” Dody said.

However, the government acknowledged challenges in scaling up production, particularly due to limited adoption of processing technology in the field.

“We are not choosing the easiest path, as the technology is not yet widely implemented. But we are choosing to be self-reliant,” he added.