Makassar. Energy and Mineral Resources Minister Bahlil Lahadalia outlined the government’s strategy to curb fuel imports while strengthening the role of regional businesses in managing natural resources during the Hipmi Plenary Council session in Makassar, South Sulawesi, on Sunday.

Bahlil said national gasoline consumption in 2026–2027 is projected to reach around 40 million kiloliters annually, while domestic production capacity stands at only about 14.5 million kiloliters, leaving Indonesia reliant on imports of roughly 25–26 million kiloliters.

To reduce dependence on imports, the government is pursuing several strategic measures, including the Refinery Development Master Plan (RDMP) Balikpapan project aimed at boosting Pertamina’s refining capacity.

“The operation of RDMP Balikpapan produces 5 million kiloliters of gasoline and 3.9 million kiloliters of diesel. This year, with the B40 program, we will no longer import diesel, and this is the first time in our nation’s history,” he said.

He emphasized the importance of expanding domestic processing capacity, citing the RDMP Balikpapan project inaugurated by Prabowo Subianto on Jan. 12, 2026, as a concrete example.

Bahlil also highlighted key technical challenges in the energy sector, particularly aging oil wells that limit optimal oil and gas lifting. “These aging wells must inevitably be intervened in through technology. Of the total of 39,000 to 40,000 wells, only about 17,000 to 18,000 are operational, while the rest are idle because they are old. This is where we are pursuing cooperation,” he explained.

Another breakthrough measure involves accelerating the development of wells already included in approved plans of development. In addition, the Energy Ministry will soon open tenders for 110 new oil and gas blocks to strengthen energy supply resilience. Bahlil stressed that faster execution, technological investment, and strategic partnerships between the government and private sector must move in tandem.

The government will also implement mandatory bioenergy blending policies, namely E10 and E20, which he said could cut import needs by up to 9 million kiloliters, reducing total fuel imports to around 11 million kiloliters.

“With mandatory E10 and E20, imports can be reduced by around nine million kiloliters. That would leave our imports at roughly eleven million kiloliters,” he said.

He added that by 2027, Indonesia is expected to produce several strategic fuel types domestically, including RON 92, RON 95, and RON 98 gasoline, as well as certain aviation fuel and diesel products, allowing future imports to focus more narrowly on crude oil with smaller volumes.

“This is our strategy to ensure there are no longer issues related to fuel imports being scrutinized by law enforcement,” he said.

Beyond energy, Bahlil also pointed to changes in mining business permit policies, with the government prioritizing the involvement of micro, small, and medium enterprises (MSMEs) and regional cooperatives in mining management.

For instance, if a mining area is located in Luwu, South Sulawesi, MSMEs domiciled and operating in that region will receive top priority.

The policy is expected to promote more equitable economic distribution and ensure that local communities directly feel the benefits of natural resources.

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