Indonesia Plans to Turn Diesel Surplus Into Jet Fuel to End Imports
Karawang, West Java. Indonesia plans to convert surplus low-grade diesel into aviation fuel as part of a broader strategy to eliminate jet fuel imports and strengthen the country's energy self-sufficiency, Energy Minister Bahlil Lahadalia said on Thursday.
Bahlil said Indonesia is expected to generate a surplus of 3 million to 4 million kiloliters of low-grade diesel this year, providing feedstock for a domestic aviation fuel industry.
“The next step is to develop aviation fuel from this surplus,” Bahlil said during a visit to Karawang, West Java.
He said the Energy and Mineral Resources Ministry and state-owned oil company Pertamina are preparing a roadmap to develop domestic aviation fuel production, noting that diesel and jet fuel share similar feedstocks.
“God willing, we expect construction of our aviation fuel plant to begin by the end of 2026,” he said.
According to Bahlil, the diesel surplus is being driven by two factors: the implementation of Indonesia's mandatory B50 biodiesel program, which has reduced diesel consumption by requiring a 50% palm oil blend, and rising output from the upgraded Balikpapan refinery in East Kalimantan.
The Balikpapan refinery is expected to produce 5.6 million kiloliters of diesel annually, significantly increasing domestic supply.
Beyond replacing jet fuel imports, the government also aims to produce all gasoline with an octane rating of RON 92 or higher domestically, further reducing Indonesia's reliance on imported refined fuels.
“We want all of these products to be produced here in Indonesia,” Bahlil said.
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