Oil Refinery

(Photo : Christian Harb / Unsplash)

Indonesia is planning to end its diesel imports this year following the inauguration of the Refinery Development Master Plan (RDMP) project at Refinery Unit V in Balikpapan City, East Kalimantan.

The country's Energy and Mineral Resources Minister, Bahlil Lahadalia, explained that the output of the Balikpapan refinery is more than enough to cater to the demand, which means that it is no longer necessary to import diesel from overseas.

Indonesia to Halt Diesel Imports in 2026

According to a report by Jakarta Globe, the government will also no longer issue permits to import oil this year.

“If there are still shipments early next year, those are simply the realization of permits issued last year," said Bahlil.

Bahlil also emphasized that these moves are part of the government's push to make Indonesia more independent and self-reliant when it comes to energy.

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Prabowo Inaugurates Balikpapan Refinery

This comes after the Balikpapan refinery with inaugurated by President Prabowo Subianto, which also marks the beginning of operations.

During the inauguration, the president went on to note that the Balikpapan refinery is the first RDMP project to be inaugurated in the country in more than three decades, according to a report by ANTARA News.

"We must not depend on imported energy," Prabowo said during the inauguration. "This nation aspires to be self-reliant and has the capacity to achieve it, as our country is blessed with abundant resources.”

The refinery, which is operated by the state-owned company Pertamina, is capable of producing 360,000 barrels of oil each day. With the refinery now operational, it is also expected to contribute Rp514 trillion to Indonesia's gross domestic product (GDP).

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