Jakarta. Indonesia is planning to convert its diesel surplus to jet fuel in 2026, according to a minister, as the palm oil-rich country wants to cut down on imports.

In a recent cabinet meeting led by President Prabowo Subianto, Energy Minister Bahlil Lahadalia said that he remained confident that Indonesia would stop importing diesel fuel starting next year. Indonesia plans to raise the mandatory palm oil content in its diesel from 40 percent to 50 percent in 2026. The state-run oil firm Pertamina will soon launch the $7.4 billion Balikpapan refinery project. This facility is expected to bump up the processing capacity by 100,000 barrels per day, thereby totaling 360,000 barrels per day.

“The Balikpapan refinery will allow us to add around 100,000 barrels per day [in processing capacity], allowing us to reach a diesel surplus,” Bahlil told Prabowo on Monday.

“Starting next year, we will no longer import diesel. Because our production should be enough to meet the domestic demand. If we can further push the mandatory mandate to B50, we should be able to get 4 million tons of surplus, which we will convert into aviation fuel,” Bahlil said.

Indonesia currently mandates a palm oil-based biodiesel at a 40 percent blend as part of a policy better known as the B40. The number corresponds to how much palm oil is within the biodiesel. The tests for the B50 biodiesel have already begun. Bahlil, however, admitted that Indonesia would still procure its gasoline from foreign supplies, while pushing for the ethanol mandate. For starters, Indonesia mulls requiring all gasoline sold domestically to contain 10 percent ethanol starting 2027.

According to government statistics, Indonesia’s diesel fuel consumption is expected to reach 39.5 million kiloliters this year. About 15.6 million kiloliters comes from palm oil biodiesel, while Indonesia produces the remaining 18.32 million kiloliters. The country closes the 4.9 million kiloliter gap with imports. The Energy Ministry revealed that Indonesia had imported nearly 1.8 million kiloliters of jet fuel throughout last year, up from 278,000 kiloliters bought the previous year.

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