Indonesia achieved diesel self - sufficiency in January 2026 following the inauguration of the massive Balikpapan Refinery Development Master Plan (RDMP) located in Balikpapan, a seaport city on the east coast of the island of Borneo in East Kalimantan province, with a $7.4 billion upgrade that expanded capacity to 360.000 barrels/day and integrated Euro V standards, allowing the country to end diesel imports and reduce reliance on foreign energy.
According to statements by Coordinating Minister for Economic Affairs Airlangga Hartarto and President Prabowo Subianto reported by Antara, news agency that delivers real time information on various events from Indonesia and around the world. the development boosts national energy independence.
During a public event, Coordinating Minister of Economic Affair said that the completion of the project marks a key step towards Indonesia’s independence, as he explained, the country will no longer need to import diesel, which will reduce exposure to the volatility of global energy markets and strengthen national energy security.
The project led by PT Pertamina, an Indonesian state - owned oil and natural gas corporation headquartered in Jakarta, was inaugurated by President Prabowo Subianto, who called it the first - large - scale refinery development in Indonesia in more than three decades. The modernized facility is now the largest refinery in the country and plays a central role in meeting domestic fuel demand.
The expansion raised the refiunery’s processing capacity from 260.000 to 360.000 barrels per day, which will allow it to supply up to 25% of the national fuel needs. The authorities estimate that the project will reduce annual fuel imports by more than $4 billion and contribute significantly to economic growth.
In addition to diesel, the modernized refinery will produce gasoline, liquefied petroleum gas and petrochemicals. The upgrade is also expected to improve fuel quality by reducing sulphur content and increasing the production of high - value refined derivatives.
Key Features of the Balikpapan RDMP:
• Capacity Boost: Increased processing from 260.000 to 360.000 barrels per day, making it Indonesia’s largest refinery.
• Euro V Standards: Upgraded units now produce cleaner fuels, reducing sulphur content.
• Product Diversification: Expanded LPG output and added petrochemical units, including a Residual Fluid Catalytic Cracking (RFCC) complex.
• Energy Security: A major step in the government’s goal to cut fuel import spending (estimated at over $4 billion annually) and strengthen energy independence.
Broader Energy Goals:
• Phase - Out Other Imports: The government aims to stop aviation fuel imports by 2027 and reduce other fuel imports by 2030.
• Biofuel Mandates: Plans include nationwide implementation of a B50 (50% palm – based biodiesel) blend to further reduce diesel reliance and a 10% ethanol blend (E10) for gasoline by 2030.
This project led by PT Pertamina, is a significant milestone in Indonesia’s broader strategy for energy self - sufficiency and downstream industrial development.
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