Jakarta. Indonesia aims to end diesel fuel imports by 2026 and achieve self-sufficiency as production ramps up at a major refinery upgrade project in Balikpapan, Energy and Mineral Resources Minister Bahlil Lahadalia said on Tuesday.

The plan hinges on the full operation of the Refinery Development Master Plan (RDMP) Balikpapan project, which is expected to significantly boost domestic diesel output. Once fully online, Indonesia is projected to post a surplus of around 3 million to 4 million kiloliters of diesel annually, Bahlil said.

“In 2026, if the RDMP is completed and operating fully, we will have a diesel surplus of roughly 3 to 4 million kiloliters,” Bahlil said. “Our agenda for 2026 is to have no diesel imports.”

The timeline, however, depends on infrastructure readiness and the operational schedule of state energy firm PT Pertamina, which manages the refinery. Bahlil said the government is coordinating closely with Pertamina to ensure technical preparedness.

If the Balikpapan refinery only reaches full capacity by March 2026, Indonesia may still import limited volumes of diesel in the early months of the year to safeguard national fuel stocks, he added.

“That will depend on Pertamina. If full operations start in March, then in January and February there may still be small imports to cover supply needs,” Bahlil said.

Beyond cutting imports, the Energy Ministry is also preparing a roadmap to improve the quality of diesel fuel sold domestically. Indonesia’s current diesel has a cetane number of 51, but the government aims to align fuel standards with Euro 5, which would reduce emissions and improve engine performance.

Bahlil acknowledged that upgrading fuel quality poses challenges, particularly due to the limitations of existing refinery infrastructure. Still, he said the government remains committed to modernizing refinery technology to meet higher environmental standards.

“We are moving in that direction,” he said. “At present, our refinery infrastructure is not fully ready, but we are committed to upgrading it.”

The RDMP Balikpapan refinery upgrade is classified as a National Strategic Project and carries an investment value of $7.4 billion, or about Rp126 trillion. It is among the largest single-site investments ever undertaken by a state-owned enterprise in Indonesia and is designed to significantly reduce the country’s reliance on imported fuel.